TMI Blog2017 (4) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... tant Member) For the Assessee : K. C. Devdas, AR For the Revenue : G. Aparna Rao, CIT-DR ORDER B. Ramakotaiah (Accountant Member) These three appeals pertain to assessee in AYs. 2008-09, 2009-10 2010-11 and all the appeals are against the orders of the Commissioner of Income Tax (Appeals)-IV, Hyderabad (For AYs. 2008-09 2009-10) CIT(A)-3, Hyderabad (for AY. 2010-11). Originally, appeals in ITA Nos. 1656/Hyd/2012 1657/Hyd/2012 are dismissed for non-prosecution by the orders dt. 12-09-2013. However, a Miscellaneous Application was preferred by assessee. These were recalled by the order dt. 22-11-2013. Since the issues involved are common, these appeals are disposed-off by this common order. 2. Briefly th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmitted that in earlier years, ITAT has determined the income at 8%. 5. We have considered the rival contentions and perused the orders of the authorities. The Co-ordinate Bench in earlier years has considered the appeals of search period, including the reliability of the Special Audit Report and has decided the determination of income as under: 13.2 There is no doubt that the book keeping adopted by the assessee was complex and the relevant data generated by the assessee based on Bills and Vouchers were not available with the assessee and part of the documents were seized by the department, which was used by the special auditor to recast the P L A/c. The degree of reliance and reliability of information adopted by the special audit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re left with the overall turnover of the assessee and net income determined by the AO, CIT(A) , special auditor and estimated profit @ 15% in the subsequent year by this coordinate bench. We cannot adopt 15% of sales simply because the coordinate bench treated the business of the assessee as civil contract business and the same was not controverted by the assessee. But from the records submitted before us by both assessee DR as the business of assessee is in real estate dealing only in buying, developing and selling lands. 13.5 The relevant data before us are (extracted from paper book Submitted by the assessee) Cumulative figures a) Cumulative turnover for 7 AYs (As per special audit report accepted by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report and profit arrived by them, the mere adjustment cannot increase the profit arrived by special auditors. CIT(A) has not found anything new while adjudicating but had only rejected the grounds raised by the assessee. Hence, there cannot be any incremental profit arrived by CIT(A). Hence, the profit arrived after consequential to CIT(A) s order cannot be relied. 13.6 We are left with income computed by special auditor at 9.65%. But this income arrived by special auditor by adopting presumptions and modifying the values of purchase, sales, opening and closing stock. Based on the submissions of DR and assessee, we are of the view that the reliability of the special audit could be in between 80- 85%. On applying the reliability facto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though the turnover of the assessee is more than the turnover of the eligible assessee as prescribed in the section 44AD. This is the rate which is near to the percentage arrived after factoring the reliability and the income computed by the special auditor. Hence, we direct the AO to adopt 8% of the sales as determined by the special auditor, to compute the income of the assessee year to year basis for AY 2000-01 to 2006-07 . 5.1. Even though Ld. Counsel made vehement plea for reduction of the percentage as assessee is not a civil contractor, we are not convinced with the argument as assessee accepted the estimation of 12% in AY. 2007-08. Keeping in view the above fact and orders of the Co-ordinate Bench, we are of the opinion that AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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