TMI Blog2012 (9) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... ely. The orders of the authorities below to that extent are set aside and modified and we direct that no separate addition on account of interest income be made in the case of assessee. Thus, the assessee will get relief of ₹ 78,200/- and rest of the order of the ld. CIT(A) is confirmed. - ITA No. 138/Agra/2012 - - - Dated:- 14-9-2012 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER Appellant by : Written submissions Respondent by : Shri K.K. Mishra, Jr. D.R. ORDER Per Bhavnesh Saini, J.M.: This appeal by the assessee is directed against the order of the ld. CIT(A)-II, Agra dated 06.01.2012 for the assessment year 2007-08. 2. Briefly, the facts of the case are that as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T vs. A. Vajjiram Bors., 326 ITR 551, in which the net profit rate of 8% was confirmed. Further, in the case of CIT vs. Prabhat Kumar, 323 ITR 675, Punjab Haryana High Court confirmed the order of the Tribunal in applying net profit rate of 12% in the case of civil contractors subject to deduction of salary and interest to the partners. The ld. CIT(A) following the above decisions of two High Courts, dismissed the appeal of the assessee as regards the application of 8% net profit rate. The ld. CIT(A) also dismissed another ground of assessee in making addition of interest income because the interest income was separate income of the assessee and cannot take character of business income. Accordingly, the appeal was dismissed. 3. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, we uphold the order of the Assessing Officer in rejecting the books of account. After rejecting the books of account, the issue to be decided is estimation of income. The Assessing Officer estimated the income on total contract receipts by applying 8% profit rate and interest income was separately added to the total income. The contention of the assessee was that there are several decisions of contract where 5% Net Profit rate has been applied for estimation of income from contract business. It has also been submitted that in Assessment Year 2005-06 the Net Profit rate was only 4% wherein in the case under consideration the Net Profit rate is 5.02%. The Assessing Officer applied 8% Net Profit rate without giving any basis. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit rate. The interest income which is business income of the assessee is covered in the said estimation and separate addition is not required. We, therefore, modify the order of the Assessing Officer and CIT(A) and direct the Assessing Officer not to include the interest income of ₹ 79,400//- in estimation of total income. The assessee gets relief of ₹ 79,400/-. With the above direction, the order of CIT(A) is confirmed. 7. In the result, appeal of the assessee is partly allowed. 5. In the assessment year under appeal also, similar books of account were rejected. In the grounds of appeal, there is no challenge to the rejection of books of account. There is no change in the facts and circumstances of the case as compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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