TMI Blog2015 (10) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... , and the assessee is indeed in a position to substantiate the claim for expenditure, the expenses incurred by the assessee should be allowed. In this view of the matter, we deem it fit and proper to remit the matter for fresh adjudication by the Assessing Officer in the light of such evidences, in support of expenditure, as he may be in a position to produce. In case, of course, he cannot produce the bills and vouchers partly, the disallowance to that extent will have to be sustained by the Assessing Officer. Let all these aspects be examined afresh, after providing due and fair opportunity of hearing to the assessee, in accordance with the law and by way of a speaking order. We direct so. - Decided in favour of assessee for statistical pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (Appeals), Gwalior has erred in applying a net profit @ 6% is highly excessive in comparison of similar type of case in case of Naresh Katare Appeal No.567/Agra/2012 in which rate of profit accepted as 3% subject to allowing deduction u/s 40(b) and depreciation to that extent the addition is being liable to be deductible. 4. That other objection will be raised at the time of hearing and the appellant reserves the right to amend, alter, add and withdraw any ground at time of hearing. Grievances by the A.O. : On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in estimating the net profit rate of 6% without giving any cogent basis as against 12.5% applied by the A.O. The appellant reserves his right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ableness, genuineness and quantum of such expenses to be considered for the purpose of assessing the income of the assessee. As discussed above, the assessee firm carried out civil work and admitted contract receipts which are not doubted. However, it is to be noted that without corresponding expenses, it is not possible to the assessee to carry on the works. In similar situation and condition, in contract cases, the Hon ble ITAT, Hyderabad decided that it is fair and reasonable to estimate the income of the assessee @ 12.5% on contract receipts as referred below: 14.0 The ITAT, Hyderabad in its orders in ITA No.1843/Hyd/89 dt. 29/08/1994; ITA No.804 805/Hyd/93 dt. 24/04/1994; ITA No.380 381/Hyd/94, dt. 10/03/1999 and ITA No.294 to 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Act. Keeping in view of the various adverse features notice in assessment proceedings, the facts and circumstances of the assessee s case the rate of profit disclosed and the decision of the learned Tribunal as above, the undersigned is of the opinion that it would be fair and reasonable to estimate assessee s profit from contract works @ 12.5% subject to allowing deductions u/s. 40(b) of the I.T. Act. without depreciation. 5. Aggrieved, assessee carried the mater in appeal before the CIT(A) who upheld the rejection of books of accounts but restricted the estimated income to 6% of contract receipts. In coming to this conclusion, he reasoned as follows:- 3. I have gone through the assessment order and written submissions filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rival contentions, perused the material on recorded and duly considered factual matrix of the case in the light of the applicable legal position. 8. We find that it is an admitted position that the assessee is engaged in the business of civil contacts for Government agencies. We have also noted that while assessee did not, at assessment stage, produce any evidences in support, such as bills and vouchers, of the ledger entries. The assessee s claim before the CIT(A) has been that, the version of the Assessing Officer is not correct, (the assessee) has maintained complete books, which are audited and complete details including bank account and bills and vouchers were furnished . If that is the case, and the assessee is indeed in a po ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
