TMI Blog2012 (5) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... brief facts of the case are that assessee was a Govt. Contractor. During the year the assessee had shown total contract receipts of ₹ 98,79,720/- and declared net profit rate of 4.6%. The Assessing Officer detected various defects in the books of account as enumerated in para 2.2 at pages 5 6 of the assessment order. In view thereof, books of account were rejected u/s 145 (3) of the Act and the net profits were estimated by Assessing Officer by applying rate of 8% to gross receipts, resulting in addition of ₹ 359,620/-. The assessee is not in appeal against the same and the said issue is settled. 4. Further, the Assessing Officer noted that assessee to have made cash payments totaling ₹ 516730/- and the same were prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not attracted and also the payments made were genuine. 8. The CIT(A) deleted the additions made under various heads like unexplained cash credit, section 40A(3, 40a(ia) and 41 (i)(a) of the Act, in view of application of net profit rate of 8% on gross receipts. The ld. Authorised Representative had relied on Indwell Constructions Vs CIT [232 ITR 776 (AP)] and CIT Vs Banwari Lal Banshidhar [229 ITR 229 (All)]. 9. Revenue is in appeal against the order of CIT(A) on the above said deletions Mr. N.K. Saini, DR appeared for revenue and Mr. Vishal Mohan appeared for assessee and put forward their contention. 10. We have heard the rival contentions and perused the record. The issue arising in the present appeal is against the fate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT 36 DTR (Trib) (Hyd) 220 held that the books of account of the assessee was not relied, it was rejected by the Assessing Officer and the same was confirmed. Now, based on the reliance on the same books, for the purpose of invoking the provisions of s.40(a)(ia) is improper. The estimation of income takes care of the irregularities committed by the assessee. Further addition by invoking s.40(a)(ia) amounts to punishing the assessee for a same offence on double occasions, which is not permitted by law. 15. In view of the above said settled principle of law, we hold that where the income of the assessee for the captioned year is estimated by applying net profit rate, after rejecting the books of account, in view of the provisions of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
