TMI Blog2015 (10) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... - I.T.A. No. 1064/JP/2011 - - - Dated:- 26-9-2014 - Shri R.P. tolani And Shri T.R. Meena JJ. Assessee by :- Shri K.R. Sabarwal Department by :- Shri Rajesh Ojha. ORDER PER: T.R. MEENA, A.M. This is an appeal filed by the assessee against the order dated 19/09/2011 of the learned C.I.T.(A)-II, Jaipur for the A.Y. 2008-09. The effective grounds of appeal are as under:- On the facts and in the circumstances of the case, the learned CIT(A) erred: 1. In confirming the applicability of section 145(3) of the IT Act. 2. in not appreciating properly the peculiar circumstances of the case and comparable cases relied by the appellant/assessee and thereby confirming the applicability of Net Profit Rate of 8% of Gross R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble ITAT B Bench of Jaipur in the case of M/s Vijay Builders, Jaipur wherein net profit was accepted @ 5%. After considering the assessee s reply, the learned Assessing Officer distinguished the case law cited by the assessee i.e M/s Vijay Builders, Jaipur. It is further observed that in past, assessee s own case net profit @ 8% subject to depreciation and bank interest had been held justified by the Hon ble ITAT in A.Y. 2003-04. In A.Y. 2006-07 and 2007-08, the net profit rate was applied by the Assessing Officer @ 8% on net profit rate subject to allowability of depreciation and bank interest. Accordingly, the learned Assessing Officer made assessment @ 8% on gross receipts and subject to depreciation and interest. 4. Being aggrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant for A.Y. 2002-03 has upheld the rejection of books of accounts. Considering these admitted defects in my considered view, the A.O. was fully justified in rejecting the books of account by invoking provisions of section 145 of IT Act. Now the question comes that what should have been estimated net profit rate. Since the basis to adopt 10.5% net profit rate is the net profit rate adopted by A.O. in assessment order of A.Y. 2002-03 and there is no other basis for the same and CIT(A) vide his appellate order dated 25/11/2005 has already upheld 8% net profit rate subject to depreciation and interest claimed and as such in my considered view for this year also it shall meet the end of justice to adopt such net profit rate of 8% subject to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et profit rate of 8%, the cases relied upon by the learned AR are of no benefit to the assessee. The learned AR has relied upon the results in the case of the assessee in the preceding years but at the same time, the type of work allotted in the preceding years and the similarity of preceding years with the impugned year has not been brought on record and therefore, in such circumstances and facts of the case, the results of the preceding year in assessee s own case cannot be a guide in the present case. Therefore, the estimation made by the authorities below appears to be reasonable and we find no infirmity in the order of the learned CIT(A) who has rightly confirmed the action of the A.O. Thus, ground No. 2 and 2.2 of the assessee are dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aintained all the regular books of account i.e. the cash book, ledger, bank account etc. The accounts book was admittedly produced before the Assessing Officer and she could not find any specific defects therein. The Assessing Officer has rejected the account book on the basis of non-maintaining day to day register, consumption register, opening and closing stock inventory etc. The Assessing Officer has further opined that the assessee has not maintained vouchers, payment sheets and muster roll. The learned Assessing Officer has not pointed out any serious defect in the accounts book. Thus he prayed to delete the addition confirmed by the learned CIT(A). 6. AT the outset, the learned D.R. supported the order of the learned CIT(A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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