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TMI Blog2017 (2) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in estimating income of the appellant @2% of the value of the sales bills issued by the appellant in respect of supply of building materials as against 0.75% actually received. The 2nd ground is that the ld. CIT(A) erred in estimating income of the appellant @3% of the value of the sales Appellant by: Shri Hari S. Raheja, AR Respondent by: Shri Shivaji Ghode, DR bills issued by the appellant in respect of supply of building materials as against 0.50% actually. The 3rd ground is that ld. CIT(A)erred in not allowing the various expenses claimed by the appellant and reflected in the Profit & loss Account filed along with the Return of Income on the ground that assessee has not carried out any genuine business activity. The 4th ground is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transportation and 2% of gross value of building material supply bills for determination of income without there being any evidence to suggest that the appellant might be understating her commission income as assessed by the CIT(A), without considering the fact that appellant had to incur certain expenses in carrying on this activity and therefore net commission income actually earned was substantially lower that what has been determined in the assessment order. The 6th ground is that the ld. CIT(A) erred in ignoring as also not adopting the ratio laid down by this honourable Tribunal in so far as allowablity expenses claimed by the appellant. The 7th ground is that the ld. CIT(A) erred in ignoring as also not applying the ratio laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee to produce books of accounts, purchase and sales register, stock book , cash book and the bank statements. No books of accounts as called for by the A.O were produced. In view of the above, the A.O estimated income from building materials and transport receipt bills @ 2% in respect of M/s. D.C. Corporation and M/s. D.K. Enterprises. The AO also added the bogus TDS of Rs. 5,15,519/-. 4. The assessee filed appeal before the ld. CIT(A) against the order of the AO. The ld. CIT(A) found that the facts in this impugned assessment year are similar to the facts in the previous assessment year 2009-10. Therefore he directed the AO to add net commission income @ 3% of gross value of transportation and @ 2% of the gross value of material supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere deposited into the bank accounts and the cash was immediately withdrawn thereafter and handed over to the parties. If the assessee is able to demonstrate that the very same modality was followed in respect of Rs. 14.47 lakhs also, then the assessee's claim for estimating income at 0.5% plus TDS amount can be admitted. However, this fact requires verification at the end of the AO. Accordingly, we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO with the direction to examine the bank accounts and other explanations furnished by the assessee and take appropriate decision in accordance with the law. 7.1 We find that the assessee in response to the notice u/s 142(2) issued by the AO on 18/01/2013 has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii),6 & 7. The Hon'ble Andhra Pradesh High Court in the case of Indwell Constructions vs. CIT (1998) 232 ITR 776 (AP) has held: "The pattern of assessment under the Act is given by section 29 which states that the income from profits and gains of business shall be computed in accordance with the provisions contained in sections 30 to 43D. Section 40 provides for certain disallowances in certain cases notwithstanding that those amounts are allowed generally under other sections. The computation under section 29 is to be made under section 145 on the basis of the books regularly maintained by the assessee. If those books are not correct or complete, the Assessing Officer may reject those books and estimate the income to the best of his judg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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