TMI Blog2016 (8) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... ading addition - Held that:- The assessee has not challenged the rejection of books of account before the ld CIT(A) and also before us, therefore, it is admitted fact that the assessee’s books are not reliable. In past, the assessee in A.Y. 2007-08 has been disclosed NP rate @ 7.17% on turnover of ₹ 5.7 crores. In A.Y. 2008- 09, the assessee has disclosed NP rate @ 6.13% on turnover of ₹ 10.00 crores. Now turnover has gone up to ₹ 13.26 crores on which the assessee has disclosed NP rate @ 6.31%, which is better than NP disclosed in immediate preceding year but lower than A.Y. 2007-08. Therefore, under this head, we confirm a lump sum addition of ₹ 5.00 lacs in the interest of justice. Loss assessed by the Assessing Officer as positive income - CIT(A) followed the Hon’ble ITAT Jaipur Bench decision in assessee’s own case for A.Y. 2006-07 where addition has been restricted to ₹ 35,000/- - Held that:- It is undisputed fact that in liquor business, the assessee has shown positive income in A.Y. 2007-08 and 2008-09. However, in A.Y. 2009-10, the assessee had disclosed net loss at ₹ 2,41,520/- and the GP rate compared to A.Y. 2006-07 has gone down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Id. AO . The action of the Id. CIT (A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the rejection of books and deleting the trading addition of ₹ 6,18,430/- 2. In the facts and circumstances of the case and in law the Id CIT (A) has erred in confirming the action of the Id AO in rejecting the books of account of the assessee by invoking the provision of section 145(3) and thereafter confirming the trading addition of ₹ 35,000/- out of the total trading addition of ₹ 2,55,523/- of liquor business made by the Id. AO . The action of the Id. CIT (A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the rejection of books and deleting the trading addition of ₹ 35,000/- 2. Both the appeals of the revenue and C.O. of the assessee are heard together and for the sake of convenience, common order is being passed in all the three cases. 3. First we take ITA No. 130/JP/2013 for the A.Y. 2005-06. The assessee derived income from taking civil contract work. He filed his return for A.Y. 2005-06 on 31/10/2005 declaring total incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Now the revenue is in appeal before us. The ld DR has vehemently supported the order of the Assessing Officer on both the issues. At the outset, the ld AR of the assessee has supported the order of the ld CIT(A) and prayed to uphold the order passed by him. 6. We have heard the rival contentions of both the parties and perused the material available on the record. In this case, the original assessment was completed U/s 143(3) of the Act on 13/12/2007. Notice U/s 148 of the Act was issued on 25/3/2011 for A.Y. 2005-06, which is after four years from the end of the assessment year. As the assessee has disclosed all the particulars of income in the return as well as audit report and there is no failure on the part of the assessee in disclosing full and true all material facts necessary for his assessment in the assessment year under consideration, therefore, we uphold the order of the ld. CIT(A) on ground No.1. On merit in ground No. 2 of the appeal, the ld CIT(A) had given details findings by considering the amended provisions of Section 40(a)(ia) and the Hon ble Calcutta High Court decision in the case of CIT Vs. Virgin Creations (supra). The assessee had paid TDS deducted on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on liquor business also. The assessee replied vide letter dated 25/11/2011 by considering the assessee s reply, the ld Assessing Officer held that in A.Y. 2007-08, the ld CIT(A) confirmed the application of net profit rate @ 8% on gross contract receipts subject to deduction of financial charges and depreciation. By considering the Hon ble ITAT decision in the case of Ved Prakash Pareek Vs. ITO 39 Tax World 176 and Santosh Kumar Rawat Vs. ITO Ward 5(1), Jaipur in ITA No. 631/JP/2006 wherein net profit rate of 8% and 10% respectively had been upheld. The ld Assessing Officer applied the provisions of Section 145(3) of the Act on the basis of defects pointed out by him and accordingly, net profit rate @ 8% applied on contract receipts subject to bank charges and depreciation. He further applied provisions of Section 145(3) on liquor business, applied GP rate @ 24% and made addition of ₹ 14,000/- under this head. Finally the ld Assessing Officer decided the income on civil contract business at ₹ 1,04,53,239/- and ₹ 14,000/- in the wine business. 8. These additions were challenged before the ld CIT(A), who had allowed the appeal partly. The Hon ble ITAT has confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closed NP rate @ 6.31% if the addition confirmed by the ld CIT(A), the net profit rate is worked out @ 6.78%, which is totally unjustified. Therefore, he prayed to allow the C.O., delete the addition confirmed by the ld CIT(A) and dismissed the revenue s appeal. 11. We have heard the rival contentions of both the parties and perused the material available on the record. The assessee has not challenged the rejection of books of account before the ld CIT(A) and also before us, therefore, it is admitted fact that the assessee s books are not reliable. In past, the assessee in A.Y. 2007-08 has been disclosed NP rate @ 7.17% on turnover of ₹ 5.7 crores. In A.Y. 2008- 09, the assessee has disclosed NP rate @ 6.13% on turnover of ₹ 10.00 crores. Now turnover has gone up to ₹ 13.26 crores on which the assessee has disclosed NP rate @ 6.31%, which is better than NP disclosed in immediate preceding year but lower than A.Y. 2007-08. Therefore, under this head, we confirm a lump sum addition of ₹ 5.00 lacs in the interest of justice. 12. Under the liquor business, the assessee had shown loss of ₹ 2,41,519/- which has been assessed by the Assessing Officer as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
