TMI Blog2018 (4) TMI 1632X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned, the assessee had already explained before AO that it was not in practice of making the measurement sheets as the said work was used to be done by the quality manager of the department of the government before making the payment. The assessee finally had completed the projects. So far as the observation of the Assessing officer that certain vouchers were handmade and certain receipts were unsigned, as observed, since the assessee is involved in the road construction business for which it had to make payment to various labourers and other persons, who do not possess any printed vouchers, taking into the consideration the aforesaid nature of business, even if some vouchers relating to freight, repairs etc. were handmade, that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred on facts and in law in rejecting the books of account of the Appellant u/s 145(3) without any reasonable and logical basis. The rejection of books of account is illegal, bad in Jaw and without any judicious application of mind. 3. That in the view of facts and circumstances of the case, the CIT(A) has erred in upholding the application of net profit rate of 8% as levied by the Assessing officer when the same is without any basis and is highly excessive keeping in view the nature of the assessee's business. 4. That, without prejudice, the AO has grossly erred in not allowing deduction of interest paid on loans taken by the appellant. 5. That, without prejudice, the AO has grossly erred in not allowing deduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tenance of the stock register. 4. We have gone through the order of the Assessing officer and have found that the Assessing officer while rejecting the books of account has observed that the assessee is not maintaining day to day stock register, and has failed to furnish the measurement sheets and even also failed to file details of the work in progress. Further that certain entries on account of repairs, freight charges have been found handmade and even some are unsigned. The Ld. Counsel for the assessee has invited our attention page 35 of the paper book to state that so far as the non-furnishing of measurement sheets was concerned, it was duly explained to Assessing officer that the assessee had been carrying out the contractual wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Pun) and further on the decision of the CIT Vs. Bindal Apparels [2011] 322 ITR 410 (Del). 4. The Ld. DR on the other hand has relied on the findings of the lower authorities and has also invited our attention to the impugned order of CIT(A) wherein the Ld. CIT(A) has observed that even during the assessment year 2005-06, the books of account of the assessee were rejected and the net profit from contract @ 8% of gross receipts was estimated. That the above estimation of profit was further upheld by the Hon'ble Jurisdictional High Court of Himachal Pradesh in CIT Vs. Rakesh Mahajan vide its order dated 9.9.2015 ITA No. 55 of 2009 with ITA No. 38 of 2010. 5. At this stage, the Ld. Counsel for the assessee has furnished before u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration is concerned, the issue is relating to non-maintenance of day to day stock register is covered by the various decision of the Hon'ble High Courts including that of Delhi High Court in the case of CIT Vs. Bindal Apparels (supra) and CIT Vs. Jas Jack Elegance Exports (supra) and of the Hon'ble e Punjab Haryana High Court in the case of Pandit Bros. Vs. CIT (supra) wherein the Hon'ble High Courts have been unanimous to hold that where owing to the nature of business of the assessee it is not possible for the assessee to maintain day to day to day stock register, the books of account should not be rejected merely on this count. So far as the non-furnishing of the measurement sheets is concerned, the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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