TMI Blog2017 (5) TMI 1566X X X X Extracts X X X X X X X X Extracts X X X X ..... (DR) ORDER Per N.S.Saini, AM This is an appeal filed by the revenue and cross objection field by the assessee against the order of the CIT(A)-Hazaribag dated 1.11.2016 for the assessment year 2011-2012. 2. The revenue has taken the following grounds of appeal: 1. That on the facts and in the circumstances of the case, the CIT(A) erred in deleting the addition made by the AO and also in the remand report, AO has mentioned that assessee has not furnished any papers or documents like bills, vouchers, books of a/cs as asked for in support of his claim. 2. That on the facts and in the circumstances of the case, the CIT(A) erred in accepting the papers and documents produced before him when the same books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting evidences were not furnished by the assessee, the Assessing officer disallowed 10% of ₹ 3,99,24,445/- and added ₹ 39,92,224/- to the total income of the assessee. 6. Similarly, the assessee has claimed ₹ 4,56,699/- under the head other expenses . Since no evidence was furnished to clarify as to what nature of expenses and its relevance to its business activities, the Assessing Officer disallowed 50% of the expenses of ₹ 2,28,350/- and added the same to the income of the assessee. 7. Similarly, the assessee has debited an amount of ₹ 89,87,553/- under the head carriage for material labour . As there was no bifurcation, the Assessing Officer observed that it is difficult to ascertain as to the cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ma. In the cited case only certain shortcomings were noticed in the books of account which were not even specifically pointed out by the AO. Hence, the ITAT felt it prudent to restrict estimated income to 5% before depreciation. In the appellant s case, it is not a question of any shortcomings of the nature as pointed out in the cited case, but it is a case where substantial expenses towards labour payment of ₹ 3,55,65,905/- materials consumed of ₹ 3,99,24,445/-, other expenses of ₹ 4,56,699/- and carriage for materials and labour of ₹ 89,87,563/- have been claimed for which no bills/vouchers and other relevant details were at all produced in the course of assessment proceedings as well as in the course of appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of the ITAT, Cuttack as cited by the appellant, I hold that the estimated profit at 10% of the gross contract receipts covers stake of revenue arising out of possible deviation from compliance to the provisions of section 40(a)(ia) of the I.T.Act for which no separate disallowances are required to be made. The AO is, therefore, directed to delete the addition made under different heads as per para B para C and para D of the assessment order and assess the appellant s total income by including 10% of the gross contract receipts of ₹ 10,22,93,445/- as net income from contract business before depreciation. The appellant s grounds are partly allowed. 10. In the cross objection, the grievance of the assessee is that the CIT(A) is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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