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TMI Blog2015 (10) TMI 2789X X X X Extracts X X X X X X X X Extracts X X X X ..... addition.'' 2.1 Brief facts of the case are that the assessee filed its return of income on 22-10-2008 declaring its income at Rs. 22,84,310/-. The case of the assessee was selected for scrutiny and an order u/s 143(3) of the Act was passed on 27-09-2010 determining total income of the assessee at Rs. 49,80,010. The AO observed in his assessment order that the assessee is engaged in civil construction work and had disclosed receipts of Rs. 8,58,31,903/-. The net profit rate before interest and remuneration was disclosed at 5.48% by the assessee. The AO while examining the wages and labour expenses amounting to Rs. 2,21,96,168/- observed that they were paid in cash by self made vouchers and some of which were unsigned by the recipients. Sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. CIT(A) has given relief of Rs. 17,16,639/- (Rs. 68,66,552 minus Rs. 51,49,914) by observing as under:- ''4.3 I have carefully perused the order of the AO and the submissions of the AR and find that while the AO has made a specific observations regarding the defects in the maintenance of books of account of the appellant, these have not been rebutted by the A.R. of the appellant. Therefore, the decision of the AO to invoke the provisions of Section 145(3) in the case of the appellant is confirmed. Reliance is placed on the Hon'ble jurisdictional H.C. in the case of Gotan Lime Khanij Udyog vs. CIT 256 ITR 243 wherein it has been held that the assessee's own case is the best comparable case for estimating the n.p. for estimat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not maintain the books of account properly for which he invoked the provisions of Section 145(3) of the Act and thus rejected the books of account of the assessee firm and estimated net profit rate at 8% before depreciation, interest and remuneration to partners. The ld. CIT(A) in his appellate order has confirmed the rejection of books of account made by the AO u/s 145(3) of the Act but the ld. CIT(A) applied the net profit rate at 6% before depreciation, interest and remuneration to the partners by deleting the addition of Rs. 17,16,639/-. We find from the records that in the absence of the any specific findings by the AO, the ld. CIT(A) has rightly applied the net profit rate of 6% by deleting the addition of Rs. 17,16,639/- made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order as it is essentially a finding of fact by the two appellate authorities. It is admitted fact that provisions of Section 145(3) of the Act have rightly been invoked by the Assessing Officer so also upheld by the appellate authorities, but in a case where provisions of Section 145(3) are invoked one has to consider either the past history of the assessee or history of similar situated other businessman / traders. However, on perusal of the assessment order, we notice that the Assessing Officer is absolutely silent as to justifying net profit rate to the extent of 13.7%,whether the addition/ disallowance made by the AO can be said to be appropriate. The assessment order is totally silent about similarly situated other traders/bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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