Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARD :: VAT Audit :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: cpt :: form 3cd :: TDS :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: due date for vat payment
ITAT-Constitution of Benches »
 Income Tax Appellate Tribunal, Visakhapatnam Due To Administrative Reasons, Bench Will Not Function From 11.05.2017 To 26.05.2017
 Income Tax Appellate Triunal Mumbai Consolidated list of orders ready for pronouncement on 24/05/2017
 Income Tax Appellate Tribunal : Pune Benches : Pune Constitution of Pune Benches from 22/05/2017 To 26/05/2017
 Income Tax Appellate Tribunal : Chandigarh Benches : Chandigarh Constitution of Chandigarh Benches from 22/05/2017 To 26/05/2017
 Income Tax Appellate Tribunal Ahmedabad Benches , Ahmedabad S/shri Rajpal Yadav, JM & Manish Borad, AM Causelist For Bench 'A' Date : 22/05/2017
 Income Tax Appellate Tribunal : Kolkata Benches : Kolkata Constitution of Kolkata Benches From 22/05/2017 To 25/05/2017 (26th May 2017 M.A. Day )
 Income Tax Appellate Tribunal Mumbai Benches, Mumbai Consolidated Cause list of SA/MA/Pronouncement for friday 19/05/2017
 Income Tax Appellate TriBunal. Bangalore Bengalore Benches Bangalore 'A' Bench DB Cases Causelist for the week from 15/05/2017 To 18/05/2017
 Income Tax Appellate Tr!Bunal Chennai Benches Chennai Constitution For The Week From 15/05/2017 To 18/05/2017
  Income Tax Appellate Tribunal, Mumbai Consolidated list of orders ready for Pronouncement on 17.05.2017
  Income Tax Appellate Tribunal, Visakhapatnam 15.05.2017

ACIT, Cir. Moradabad , Circle-1, Moradabad. Vs. J.K. Construction, Zeena Inayat Khan, Rampur, Uttar Pradesh.
October, 08th 2014

                     DELHI BENCH "D" NEW DELHI

                             ITA No. 3003/Del/2013
                             Asstt. Yr: 2009-10
ACIT, Cir. Moradabad ,              Vs. J.K. Construction,
Circle-1, Moradabad.                       Zeena Inayat Khan, Rampur,
                                           Uttar Pradesh.
                                           PAN: AAEFJ 8820 B
( Appellant )                              ( Respondent )

                Appellant  by      :      Shri Vivek Nangia Sr. DR
                Assessee by        :      None (Written submissions)

                Date of hearing    :      17-09-2014
                Date of order      :      22-09-2014.


       This appeal, preferred by the revenue, is directed against order dated 04-03-
2013 passed by the ld. CIT(A), Bareilly, in appeal no. 1126/JCIT(OSD)/MBD/11-12,
relating to A.Y. 2009-10.
2.     None put in appearance on behalf of the assessee at the hearing. We proceed to
dispose of departmental appeal after hearing the Ld. DR and the written submissions
filed on behalf of the assessee.
3.     Brief facts of the case are that the assessee filed its return of income declaring
total income of Rs. 12,97,970/-. During the assessment proceedings the assessee was
required to produce books of account along with all the bills/ vouchers for purchases
and also details/ documents in support of labour charges. After considering the
assessee's submissions, the AO pointed out that there was fall in net profit during the
year under consideration for which no satisfactory explanation was provided. AO
rejected the books of a/c by invoking the provisions of section 145(3) and passed the
assessment order u/s 144. He applied the rate of 5% on gross receipts in the P&L A/c
to work out the net profit of the assessee, which worked out at Rs. 51,36,409.6 as

against net profit of Rs. 5,77,060/- disclosed by the assessee and accordingly
made an addition of Rs. 37,20,670/-.
4.    Before ld. CIT(A), the assessee had filed written submissions. Ld. CIT(A)
called for a remand report from AO. Ld. CIT(A) did not accept the AO's action
in rejecting the books of a/c after considering the assessee's submissions that
merely because some purchase vouchers could not be produced, the rejection of
book results was not justified. However, since all bills and vouchers were not
available for verification, considering the past history of the case he directed the
net profit to be taken at 2.78%. Being aggrieved with the order of ld. CIT(A),
the department is in appeal before us and has taken following grounds of
     "1.      In the facts and circumstances of the case, Ld. CIT(A) has
     erred in holding that the AO was not right in rejecting the books of
     accounts u/s 145(3) whereas the AO had given cogent reasons to
     reject the books of accounts which make his action reasonable and

     2.      In the facts and circumstances of the case, Ld. CIT(A) has
     erred in holding, on the one hand, that the AO was not right in
     rejecting the books of accounts and, on the other hand, directing
     the AO to compute the net profit of the assessee by applying N.P.
     rate of 2.78% on turnover, without appreciating the fact that the
     AO cannot estimate the net profit by applying certain N.P. rate on
     turnover without first rejecting the books of account.

     3.      In the facts and circumstances of the case, Ld. CIT(A) has
     erred in directing the AO to compute the net profit of the assessee
     by applying N.P. rate of 2.78% in place of 5% as done by the AO,
     without giving any cogent reason and justification for reducing the
     NP rate from 5% to 2.78% to estimate the net profit of the assessee.

5.    We have heard ld. DR and perused the entire material available on record
including the written submissions filed on behalf of the assessee.          In our
considered view, the AO was not justified in invoking the provisions of

145(3)particularly when books of a/c were duly audited, because he did not
point out any specific bills/ vouchers which were missing and had only made a
bald statement to that effect. Under such circumstances, the ld. CIT(A) was
justified in accepting the books of a/c. However, admittedly all the bills and
vouchers were not available, therefore, he had estimated the net profit at 2.78%
keeping in view past history. We see no reason to interfere in the order of
CIT(A) and, accordingly, uphold the same.
6.    In the result, revenue's appeal is dismissed.
Order pronounced in open court on 22-09-2014.

       Sd/-                                         Sd/-
( A.T. VARKEY )                              ( S.V. MEHROTRA )
JUDICIAL MEMBER                              ACCOUNTANT MEMBER
Dated: 22-09-2014.
Copy to :
   1. Assessee
   2. AO
   3. CIT
   4. CIT(A)
   5. DR
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions