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TMI Blog2019 (8) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... late Tribunal, Agra Bench, Agra for the Assessment Year 2011-12. The said appeal was admitted on 21.09.2017 by this Court on the following questions of law formulated in the memo of appeal:- "(i) Whether the Appellate Tribunal was legally justified in applying net profit rate at 8% u/s 44AD when the gross turnover of the Appellant exceeded 1 crore and books of accounts were maintained as per section 44AB of the IT Act? (ii) Whether the Appellate Tribunal was justified in framing assessment by applying net profit rate at 8% on the basis of statement of assessee contrary to standard procedure of assessments provided under section 143 and 144 of IT Act? (iii) Whether the Appellate Tribunal is legally justified in treating interest incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, that the maintenance of stock register and quantitative tally is not possible. The Assessing Authority, while framing the assessment order dated 22.01.2014, has enhanced the net profit @ 8% and has observed as under:_ "During the period assessee's contractual gross receipt is Rs. 8,37,12,897/-. Net profit taken @ 8% on gross receipt comes to Rs. 66,97,032/-, assessee has also shown interest from FDRs Rs. 1,93,893/- & from rent of JCB Rs. 1,52,590/-, total net profit comes to Rs. 70,43,515/- in which assessee has already shown net profit in his P&L Account of Rs. 46,09,455/-. Therefore, difference of Rs. 24,34,060/- (Rs. 70,43,515 - 46,09,455/-) disallowed out of expenses and added back in his total income. This disallowance also in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oks of accounts by the assessing officer is justified." Still feeling aggrieved by the order of the Commissioner of Income Tax (Appeals), Agra, the assessee - appellant preferred an appeal before the Tribunal, who by the impugned order, has dismissed the appeal of the appellant observing as follows:- "14. We find the order of the ld. CIT (A) is reasonable and justified in respect of estimation of income at the NP rate admitted by the assessee himself, in the course of assessment proceedings. We also find that the ld. CIT (A) has not applied the provisions of section of section 44AD of the Act, rather he had justified the assessee's admission of 8% NP rate before the A.O. With the support of judicial pronouncements, wherein net prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. vide order sheet entry dated 22.01.2014 as above, is justified, with the support of judicial precedent relevant and the law applicable in the case of assessee. We also notice that the allegation raised by the assessee, in respect of the lower authorities, are baseless and without documentary evidence as regards the estimation of his income, in any arbitrary or capricious manner." Feeling aggrieved by the aforesaid order of the Tribunal, the assessee has preferred the present appeal. It has been argued by the counsel for the appellant that at the time of assessment proceedings, the assessee has given consent for acceptance of 8% of gross net profit only with a condition that no penal action shall be taken against him and therefore, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has also not shown the interest derived from FDR to the tune of Rs. 1,93,893/- as well as the lease rent of Rs. 1,52,590/- so received from leasing out of JCB machines.
Once it has been found that the assessee has not voluntarily maintained its books of account, as required under the Act, the books of account have rightly been rejected and the net profit, which has been fixed at 8%, is quite reasonable. Moreover, all the authorities below have rejected the contention of the appellant. At this stage, no substantial question of law arises in the present appeal.
The appeal is, accordingly, dismissed. The substantial questions of law are answered accordingly against the Assessee and in favour of the Revenue. X X X X Extracts X X X X X X X X Extracts X X X X
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