9911796707
TMI Blog2015 (11) TMI 1434X X X X Extracts X X X X X X X X Extracts X X X X ..... has been treated as profit for working out the Gross Profit on contract receipts. The Assessing Officer has pointed out several defects in maintenance of the books of account and accordingly rejected the same under section 145(3) of the Act. Thereafter, the Assessing Officer observed that assessee had shown gross profit of Rs. 45,50,072/- on the total work done of Rs. 10,88,77,849/- which included an amount of Rs. 43,06,319/- by way of sale of materials. The Assessing Officer concluded that actual contract receipt profit was declared at Rs. 2,43,752/- which gave profit rate of 0.22% and the same was, therefore, held to be on lower side. The Assessing Officer, therefore, on rejection of the books of account proceeded to estimate gross profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during assessment as well as appellate proceedings. It is seen that the appellant had not put forth any credible arguments in support of his claim of maintaining proper books of account and as against that the Assessing Officer had specified various defects on the basis of which one could conclude that true and fair profit of enterprise could not be worked out. The assessee was found to have not maintained the stock register. Therefore the action of the Assessing Officer in rejecting the books of account u/s 145(3) was logical inevitable conclusion, the same is therefore confirmed. The Assessing Officer has estimated profit at 8% to which also there has not been any credible objection by the appellant during the appellate proceedings. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s below. 5. On consideration of the rival submissions, we do not find any merit in this ground of appeal of the revenue. The ld. CIT(Appeals) found that assessee had produced Hot Mix material from its plant for its contract work and the excess production was sold to outside parties leading to turnover of Rs. 43,06,319/- on this account. This finding of fact recorded by ld. CIT(Appeals) have not been rebutted through any material or evidence on record. It, therefore, stands established that amount of Rs. 43,06,319/- was the turnover and as such ld. CIT(Appeals) was justified in holding that it was not possible that there would be no cost of goods produced/sold as done by the Assessing Officer. It is well settled law that the turnover of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
