TMI Blog2022 (11) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... is not ascertainable. AO had no details with him except the turnover of the assessee, which has also been extracted from the books of account of M/s. Serajuddin Co. This being so, a perusal of the order of the ld CIT(A) clearly shows that he has taken into consideration all the issues to come to the conclusion in paras 5.1 5.2 of his order that the estimation of income of the assessee is the best method to determine the income of the assessee. We find no reason to interfere with these findings of the ld CIT(A) in respect of estimation of income insofar as neither the assessee nor the revenue has been able to dislodge the findings of the ld CIT(A). Percentage of the net profit as determined by the CIT(A) at 10% - A perusal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see as adopted on M/s. Serajuddin Co., and granting the assessee a reduction of 30% towards expenses. The balance 70% of the turnover was treated as the income of the assessee and out of the said 70%, 50% to 60% of the total receipts was protectively assessed in the hands of the assessee and substantially in the hands of M/s. Serajuddin Co. The balance was treated as substantive income of the assessee. It was the submission that the ld CIT(A) in para 5.2 of his order estimated the income of the assessee at 10% of the total receipts of the assessee from M/s. Serajuddin Co. It was the submission that the assessee having not co-operated in the assessment proceedings, the estimation done by the AO was liable to be upheld and that of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lip Kumar Nayak. iv.) During the course of search, the statement of Shri Dillip Kumar Nayak recorded on oath has been reproduced by the A.O in para-3.4 on pages-5 to 7 of the assessment order. It is obvious that major expenses were incurred on labour and wages. It was baffling to note that as against alleged expenses of Rs.1.27 crores, not a single voucher was found at the premises of the assessee or his Chartered Accountant namely Shri Naresh Kumar Agarwal. The number of labourers employed by the assessee in the mines was about 100 as per documents submitted to the labour department. The payment of labour was made at the rates prescribed by the Labour Department. Even assuming that it was slightly higher than that applicable for skill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk in respect of 730.32 MT of lumps, 18.95 MT of lumps and 6462.63 MT of fines. The billing rate is Rs.650/- per MT for lumps and Rs.205/- per MT for fines in January, 2008. The actual rate was Rs.380/- per MT for lumps and Rs.105/- for fines. On the right side of receipt of excess monies in cash from the contractors. Such cash received from the contractors was also allocated among partners and they had shared the gains. Thus the order of the A.O. should be restored and that of the CIT(A) be reversed. 5. Ld CIT DR submitted that a diary being BKN-16 had been found in the course of search on the assessee, which showed the computation of cash back payments to Serajuddin Co for the months of January, February, March and September ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers to profit and loss account in his order. How this profit and loss account has been prepared is not ascertainable. Thus, clearly, the AO had no details with him except the turnover of the assessee, which has also been extracted from the books of account of M/s. Serajuddin Co. This being so, a perusal of the order of the ld CIT(A) clearly shows that he has taken into consideration all the issues to come to the conclusion in paras 5.1 5.2 of his order that the estimation of income of the assessee is the best method to determine the income of the assessee. We find no reason to interfere with these findings of the ld CIT(A) in respect of estimation of income insofar as neither the assessee nor the revenue has been able to dislodge the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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