TMI Blog2006 (7) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... substantial question of law : "Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that no separate addition on account of introduction of unexplained cash in the assessee's books of account and on account of unexplained payments made for purchases made outside the books can be made once the net profit rate is applied on contract receipts of an assessee for estimating his income from contract work when the provisions of sections 68 and 69B of the income-tax Act are directly hit in the instant case ?" 2. The assessee is a civil contractor. He filed income-tax return for the assessment year 1996-97 on January 10, 1996. The assessment was made which was cancelled under section 263 of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not deserve the consideration because the book results were rejected by the Assessing Officer by applying the net profit rate of 10 per cent. Further, it is not the case that purchases were not effected because of confirmation of some of the parties on record and the same are disputed because of the details mentioned in the order when the basis of these details were the same books of account, the sum total of these factors proves that it is a case where the profits were not supported by the complete books of account and even the books for one contract were not reliable. Therefore, the net profit rate had to be estimated in such a case as done by the Assessing Officer. Herein I do not agree with the contention of the appellant as held by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generally declared by the assessees in this line it will be fair and reasonable to apply the net profit rate of 13 per cent. to the gross receipts detected by the Department which result in enhancement of income to the extent of Rs. 2,14,647. The appellant gets relief of Rs. 14,04,366." 6. The Tribunal observed : "As is observed above, the addition on account of cash credits even if the net profit rate is applicable could be made but it depends upon the facts of each case. This is a case before us which clearly shows that the addition on account of cash credits would be unjustified. We accordingly do not find any merit in the submissions of the learned DR with regard to the making separate addition on account of cash credit of Rs. 12, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
