2016 (12) TMI 1834

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..... 12% thereby making addition to the returned income. 3. The brief facts of the case are that assessee is a civil contractor and cases have been taken up for scrutiny. The assessee had stated that no stock register was maintained and in the absence thereof, the details of material purchased like cement, bricks, bajri, and bitumen etc. by the assessee could not be verified. The Assessing Officer recorded several facts in the assessment order. The books of account of the assessee are not complete and correct and are not reliable. The Assessing Officer was of the view that the case of the assessee is of Civil Contractor, the main expenses are the expenses incurred on material purchased and of labour. Both these expenses are not verifiable for .....

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..... de considering history of the assessee. He has submitted that in preceding assessment years, the assessments have been framed by the Assessing Officer accepting lesser profit rate of 3% in assessment year 2003-04. In assessment year 2004-05 in ex-parte order, 6.5% NP rate was applied and assessee is in appeal in High Court. In assessment year 2005-06, ITAT confirmed the NP rate declared by assessee at 1.08% vide order dated 23.09.2009 in ITA 140/2009. Copy of the order is placed on record. In assessment year 2006-07, ITAT confirmed application of NP rate declared by assessee at 1.20% vide order dated 24.11.2011 in ITA 1461/CHD/2010. In assessment year 2008-09, assessee declared NP rate of 3.33% and the Tribunal in ITA 1233/2011 vide order d .....

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..... ted the Assessing Officer to make addition on account of estimate of profit by applying NP rate of 6%, we are of the view in the facts and circumstances of the case, following history of the assessee, it would be reasonable and appropriate to direct the Assessing Officer to apply NP rate @ 6% as against 12% adopted by the authorities below. 5. In this view of the matter, we modify the orders of authorities below and direct the Assessing Officer to compute the income of the assessee by applying net profit rate of 6% as against 12% and compute the income of the assessee accordingly in both the assessment years under appeal. 6. In the result, both the appeals of the assessee are partly allowed. Order pronounced in the Open Court.
Case l .....

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