TMI Blog2020 (10) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is accepted while deciding the ground no. 1, then no separate addition on account of this income which are already part of the Profit Loss account and considered in the total income declared by the assessee in the return of income is called for. Hence the addition made on this account is deleted. - Decided in favour of assessee. - ITA Nos. 871, 859 & 860/JP/2019 (Assessment Years : 2010-11, 2012-13 & 13-14.) - - - Dated:- 4-8-2020 - SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SINGH YADAV, AM Assessee by: Shri Dinesh Kumar (Advocate) Revenue by: Shri K.C. Gupta (JCIT) ORDER PER BENCH : These three appeals by the assessee are directed against three separate orders of ld. CIT (A) dated 6.3.2019, 26.03.2019 and 22.03.2019 for the assessment years 2010-11, 12-13 and 13-14 respectively. The assessee has raised common grounds in these three appeals except the quantum of addition and rate of Net Profit applied by the AO. The grounds raised for the assessment year 2010-11 are reproduced as under :- 1. On the facts and in the circumstances of the case, the ld. Commissioner of Income Tax (Appeals) Kota erred in confirming the action of the AO by makin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumption register not maintained. f) Labour charges- maintained only muster rolls sheets which are not verifiable nature. In view of the above, books of assessee cannot be accepted and books of account are liable to reject. Therefore, the LD.AR of the assessee vide order sheet entry dated 08.03.2013 has been asked to show cause why books may not be rejected u/s 145(3). The assessee though explained the defects as pointed out by the AO but took the stand that due to the reason of works executed at various sites, it is not practically possible to maintain the details of consumable goods of each site and, therefore, the site-wise consumption register is not maintained. The ld. A/R has fairly admitted that this Tribunal in case of sister concern of the assessee, namely, Dynamic Engineers vs. ACIT in ITA No. 856, 857 858/JP/2019 vide order dated 31st December, 2019 has considered an identical issue for the assessment years 2010-11 to 12-13 against the assessee. At the outset, we note that this Tribunal has considered this issue raised by the assessee in the additional ground regarding rejection of books of account under section 145(3) in para 5 of the order dated 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y about the supporting evidence in respect of various claims made by the assessee. The second explanation of the assessee is that the various expenditures were incurred at the remote sites of the assessee and, therefore, the proper vouchers were not available with the assessee but only self made vouchers were produced by the assessee in support of the claims. It is pertinent to note that the assessee is working as a Railway Contractor and, therefore, the claim of the assessee for incurring expenditure in the process of executing the contract work is required to be supported by proper vouchers. It is not a rare incident of small claim or only few expenditures but the AO has pointed out so many instances of the claim of expenses right from various purchases, consumable items, mess, rail loading, unloading, cutting expenses, transportation expenses. Therefore, when there is gross failure on the part of the assessee to produce the supporting evidence and it is not an isolated instance but it appears to be the claim on wholesale basis without supporting with proper vouchers, then the explanation furnished by the assessee that the assessee is executing the work at remote sites cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of the assessee while framing the assessment under section 144 read with section 145(3) of the IT Act. Therefore, the said rate is very reasonable and proper in view of the provisions of presumptive tax under section 44AD of the IT Act which provides the rate of profit at 8%. He has relied upon the orders of the authorities below. 5. Having considered the rival submissions and careful perusal of the record, at the outset we note that an identical issue has been considered by the Tribunal in the case of sister concern of the assessee, namely, M/s. Dynamic Engineers Vs. ACIT (supra) vide order dated 31st December, 2019 in para 8 as under :- 8. We have considered the rival submissions as well as the relevant material on record. There is no dispute that after rejecting the books of account under section 145(3) of the Act, the income of the assessee is required to be estimated on some reasonable and proper basis. The past history of GP declared by the assessee is a proper guidance for estimation of income in pursuant to the rejection of books of account. In the case in hand, the assessee has declared GP at 11.06%. The assessee also furnished the comparative details of GP de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case, the ld. Commissioner of Income Tax (Appeals) Kota errzed in confirming the action of the AO by making separate additions of ₹ 60000/- on account of administration expenses received, ₹ 16,725/- on account of consultancy charges received and ₹ 9123/- on account of sundry balance written off (total ₹ 85848/-) vide his order dated 26.03.2019 (Ground Number 2 of ground of appeal filed before CIT (A). 7. The AO has made the addition of ₹ 85,848/- under the head Income from Other Sources. The AO noted that apart from the business income, the assessee has also received other income on account of administrative expenses, sundry balances written off and consultancy charges. The AO after estimation of the income by applying N.P rate has also made a separate addition of this amount of ₹ 85,848/-. 8. We have heard the ld. A/R as well as the ld. D/R and considered the relevant material on record. Since the addition made by the AO on account of trading income based on net profit rate applied by the AO has been deleted and the income declared by the assessee is accepted while deciding the ground no. 1, then no separate addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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