TMI Blog2016 (5) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Assessing Officer on this issue and it is much more general in nature. The assessee has itself computed net profit at 6.30 per cent. of gross contract receipts. In our considered view, taking into account the net profit generally applicable in the case of works contract, the net profit at 8 per cent. will be reasonable. Therefore, we set aside the order of the learned Commissioner of Income-tax (Appeals) on this issue and direct to estimate the net profit at 8 per cent. as against 10 per cent. adopted by the authorities below. Addition under section 68 made on account of Shaym Trading Co. and Sahoo Enterprises - Held that:- We observe that although the assessee is pleading that sundry creditors are genuine, but it is on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equential - I. T. A. No. 295/CTK/2014 - - - Dated:- 23-2-2016 - R. C. Sharma (Accountant Member) And Partha Sarathi Chaudhury (Judicial Member) For the Petitioner : S. N. Sahu For the Respondent : Suvendu Dutta ORDER Partha Sarathi Chaudhury (Judicial Member) 1. This is an appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals)-1, Bhubaneswar, dated May 13, 2014, in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2010-11. 2. The assessee has filed concise grounds of appeal in preference to the descriptive grounds filed along with Form 36. 3. As per the said concise grounds of appeal, three issues are arising. The first grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to produce details of expenditure, ledger, cash book and bills and vouchers. However, the assessee failed to produce the ledger with supporting bills and vouchers and cash book before the Assessing Officer. In view of the same, the Assessing Officer was of the view that the correctness and completeness of the books of account could not be established and book results as per the profit and loss account could not be supported. Accordingly, by invoking the provisions of section 145(3), the Assessing Officer estimated the net profit at 10 per cent. of the gross contract receipts and machine hiring charges from which, the Assessing Officer further allowed salary and interest to the partners to arrive at the taxable income. The Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put forth any reasons and views specifically for which he has confirmed the order of the Assessing Officer on this issue and it is much more general in nature. The assessee has itself computed net profit at 6.30 per cent. of gross contract receipts. In our considered view, taking into account the net profit generally applicable in the case of works contract, the net profit at 8 per cent. will be reasonable. Therefore, we set aside the order of the learned Commissioner of Income-tax (Appeals) on this issue and direct to estimate the net profit at 8 per cent. as against 10 per cent. adopted by the authorities below. This ground is allowed. 9. Ground No. 2 relates to the addition of ₹ 9,50,100 under section 68 made on account of Shaym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nied any transactions with the assessee during the relevant year. In view of this, we set aside the order of the learned Commissioner of Income-tax (Appeals) and restore the issue to the file of the Assessing Officer to verify whether the said creditors are genuine or not and if it is found to be genuine, then relief may be allowed to the assessee. This ground is allowed for statistical purposes. 13. The last ground is relating to credit of TDS amount of ₹ 9,10,269 and the levy of interest under section 234B and section 234C. 14. Before us, the learned authorised representative relied on the decision of the Cuttack Bench in the case of Biraja Construction v. Asst. CIT in I. T. A. No 592/CTK/2012, dated January 11, 2013, wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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