TMI Blog2011 (12) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome from civil contract. 3. The ld. CIT(A) has decided this issue by observing as under: 4. Income from contract business estimated ₹ 4,46,303:-- The Assessing Officer observed that the total cheque amounts received from contract works during the year was ₹ 43,03,336/- and after rejecting the plea of the appellant, estimated the profit at ₹ 4,46,303/-. In her Written Submissions dated 26-10-2009, the appellant submitted as under:-- 'As against admitted income of ₹ 1,12,760/-, the learned A.D. assessed ₹ 4,46,303 as income from contract business. The total amount of contracts received by cheque was ₹ 43,03,336/-. In other words, the learned A.O. assessed 10.37% as income. Your appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich had been maintained in the regular course and this has been recognized by the Hon'ble Supreme Cout1 while rejecting the Dept.'s SLP - please see 319 ITR st, 3. The Assessing Officer had neither discussed the reasons for estimation nor the basis for such estimation. In the circumstances, I am unable to sustain addition made by the Assessing Officer. Accordingly, I hereby direct the Assessing Officer to adopt income of ₹ 1,12,760/- as against ₹ 4,46,303/- estimated by him. 4. The ld. D.R. Shri Shaji P. Jacob, vehemently argued and supported the order of the Assessing Officer. He submitted that the assessee has filed Return of Income on the basis of estimate. The Assessing Officer found that the assessee has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the books of account or supporting vouchers could be brought on record by the Revenue. From the records available before us, it is not clear as to how the books of account of the assessee were incomplete. Further, it is also observed that no specific error in the vouchers produced by the assessee could be pointed out by the Assessing Officer. It is not the case of the Revenue that the self-made vouchers were not verifiable. The assessee explained that in its line of business, third party vouchers were not available and therefore, self made vouchers were prepared. In our considered opinion, books of account cannot be rejected merely because they were supported by self made vouchers unless it is observed that there is some specific err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there has been a plethora . . . . .. i The peak credit appearing on for ₹ 10,3,382/- is added to the total income of the assessee . Your appellant is submitting herewith a photo copy of the said bank account [Annexure B] Your appellant wishes to submit that the A.O. failed to consider the following facts:-- (a) The S.B. Account with SBI in question is disclosed in the Balance Sheet of your appellant as at 31-3-2005. The balance as on 31-3-05 is ₹ 1,76, 605 which is disclosed in the Balance Sheet as on 31-3-05. Thus, the said account is disclosed and the A.O is in error to treat it as undisclosed. (b) The credit balance as on 31-3-2005 is ₹ 1,76,605 which is disclosed in the balance Sheet as on 31-3-05 filed alo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the arguments are immensely well taken. The appellant filed her original return on 03-08-2005 (i.e. more than a year before the date of search) along with the Balance Sheet as on 31-3- 05. The savings bank account the appellant had with SBI is disclosed in the balance sheet and thus it would be rather totally incorrect to treat it as undisclosed bank account. The question of assessment of 'peak credit' shall arise only if the' said bank account is an undisclosed one. I have carefully gone the photo copy of the said bank account submitted by the appellant along with her Written Submissions. The balance as on 31-3-2005 viz. ₹ 1,76,605.20 is the same as shown in the Balance Sheet filed on 31-3-2005. Further, the A.O. had al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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