TaxTMI 
TaxTMI 
2017 (9) TMI 1714
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....-2014 for the assessment year 2009-10. ITA No. 1564/PUN/2014 by the assessee and ITA No. 1691/PUN/2014 by the Department are directed against the order of Commissioner of Income Tax (Appeals)-II, Nashik dated 02-06-2014 for the assessment year 2010-11 and ITA No. 1565/PUN/2014 by the assessee and ITA No. 1692/PUN/2014 by the Department are directed against the order of Commissioner of Income Tax (Appeals)-II, Nashik dated 10-06-2014 for the assessment year 2011-12. Since, the issues involved in all these appeals are arising from same set of facts, these appeals are taken up together for adjudication and are disposed off by this common order. The assessee and the Revenue have assailed the findings of Commissioner of Income Tax (Appeals) primarily by raising similar grounds in their respective appeals for each assessment year. 2. The brief facts of the case as emanating from records are: The assessee is a proprietor of M/s. Chakradhar Construction. The assessee is engaged in execution of Civil Contracts mainly allotted by Government and semi Government organizations. A survey action u/s. 133A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was conducted at t....
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....of Income Tax (Appeals) deleted the additions made u/s. 69C, 69B, disallowance of contract receipts and disallowance of other expenses. The Commissioner of Income Tax (Appeals) confirmed the addition u/s. 69 Rs. 40,02,044/-. Further, the CIT(A) estimated net profit @ 10% of gross receipts to cover up all omissions and to protect the leakage of revenue. Against the findings of Commissioner of Income Tax (Appeals), both, the assessee and the Department are in appeal before the Tribunal. 3. The assessee has filed modified grounds of appeal for assessment years 2008-09 and 2009-10. The modified grounds of appeal for assessment year 2008-09 reads as under : "1. In the facts and circumstances of the case and in law, the learned C.I.T. [A] has erred in estimating the net profit of the appellant from the business of Civil Construction @ 10% of the Gross receipts without any comparable cases. The estimate of Net Profit made by the learned C.I.T. [A] being arbitrary, and abnormally high, the same may please be modified and restricted to reasonable N .P. ratio of 8% of Gross receipts. 2. The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or a....
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....ng the net profit Rs. 1,45,39,878/- which is @ 10% on gross contract receipt at Rs. 14,53,98,789/-, as against N.P. shown by the appellant at Rs. 81,28,954/- and made addition at Rs. 64,10,924/-, without considering the nature of business and with any comparable cases in the similar line of business of contracts. Therefore, addition may please be deleted. (2) On the facts and in the prevailing circumstances of the case and in law, if the estimated addition as per appellate order of CIT(A) is considered, then Net Profit would be at Rs. 2,19,33,970/- {Rs.1,45,39,878 + Depreciation Rs. 73,94,101], which will be related at 15.08% [Rs.2,19,33,979/ Rs. 14,53,98,789.x100], as against profit shown by appellant at Rs. 1,55,23,055/- [Rs.81,28,954 + Depreciation Rs. 73,94,101.], which is @ 10.67% [Rs.1,55,23,055/- /Rs.14,53,98,789.x100]. As the appellant has shown reasonable profit, further estimated addition made at Rs. 64,10,924/- by the CIT(A) is not justified and hence, addition may please be deleted. 4. Shri Sunil Ganoo appearing on behalf of the assessee submitted that the Commissioner of Income Tax (Appeals) has estimated net profit of assessee at 10% which is on higher side. The ld....
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....statement of the assessee was recorded. In his statement the assessee admitted to certain investment and expenditure which are tabulated here-in-below : Financial Year Head 07-08 08-09 09-10 10-11 11-12 Total Illegal Payments 2.90 40.03 98.44 45.51 30.7 217.58 Unaccounted loans -- 5.00 35.01 56.20 55.19 151.40 Jeep investment -- -- 1.65 -- -- 1.65 Unaccounted expenditure -- 65.00 -- -- 94.47 159.47 Investments -- -- -- -- 77.80 77.80 Profit on construction for Datta Fibre -- -- -- -- 24.75 24.75 Unaccounted investment in const. -- - - -- -- 52.00 52.00 2.90 110.03 135.10 101.71 334.91 684.65 Apart from above, the assessee disclosed that the shares on premium were privately placed in Datta Agro Services Pvt. Ltd. in the name of various persons during Financial Year 2010-11 i.e. period relevant to the assessment year 2011-12 from suppressed receipts of Financial Year 2007- 08. The details of investments made by assessee in the name of various persons are as under: 1. Shri Sanjay Digambar Patil. 1137500 2. Shri Shankar Mohan Jadhav 3000000 3. Shri Vinod Jagannath Patil 3543000 4. Shri Ajit Ash....
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....ssment years 2008-09, 2009-10 and 2011-12 and modified ground / ground no.2 and 3 in appeal for assessment year 2010-11 are partly allowed. 9. In assessment year 2010-11, the Assessing Officer had made itemized additions to the tune of Rs. 34,89,56,221/-, on various counts. In First Appellate proceedings, Commissioner of Income Tax (Appeals) confirmed addition u/s. 69 in respect of unexplained investments Rs. 40,02,044/- only and deleted the remaining additions. The Commissioner of Income Tax (Appeals) while confirming the aforesaid addition observed as under: "11.2 During the appellate proceedings, I have gone through the assessment order, remand report and the appellant' submission and comments on remand report and find that there is no force in the contention of the appellant. I have verified the said impounded papers on the basis of which addition was made by the A.O. and find that there is clear indication that these are the receipts of other sources, rent, etc. of the appellant. It is admitted by the appellant that there are certain transactions recorded in the impounded registers, however, they have not been recorded in the appellant's books. As the appellant has ....