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TMI Blog2012 (7) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... ed order. [A] ITA No.2241/Ahd/2009 (Assessee's appeal) 2. The only issue in the grounds of appeal of the assessee is regarding the validity of the order of the Assessing Officer and of CIT(Appeals) in rejecting the accounts of the Assessee u/s.145 of the I.T. Act and applying a flat rate of net profit to the gross receipt of the assessee. 3. The Ld.counsel for the assessee submitted that the assessee is a Government Contractor and no defect for rejection of books of account could be pointed out by the Assessing Officer. He submitted that the main reason for rejection of accounts was the fall in Gross Profit during the relevant year, which could not be a valid ground for rejection of the accounts of the assessee. He relied on the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no reason to reject the books of account of the assessee. The case law cited by the ld.counsel for the assessee supports the case of the assessee. The difference in TDS figures as per certificates and as per books of account have been reconciled by the assessee and the reconciliation has been accepted as correct by the Assessing Officer vide his order dated 17/06/2009 giving effect to the order of the Learned CIT(Appeals). It is not the case of the Revenue that the assessee has sub-letted the contract to its sister-concern or related parties and the fact of sub-letting of contract is not in doubt. The Learned CIT(Appeals) has recorded that some of the reasons identified by the Assessing Officer for the fall in profit do not seem to be ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posing of assessee's appeal for Assessment Year 2006-07, wherein held that the rejection of books of account of the assessee was not valid and, accordingly, there is no merit in the ground of appeal of the Revenue, which is accordingly dismissed. [C] ITA No.1056/Ahd/2010 {[Penalty u/s.271(1)(c)] (Revenue's appeal)} 6. We have heard the parties. The only issue is regarding validity of penalty against u/s.271(1)(c) of the I.T.Act on the trading addition made by the Revenue by rejecting the books of account of the assessee. In view of our decision, as detailed in the above paragraphs while disposing of the assessee's appeal for the relevant Asst.Year 2006-07, wherein held that the rejection of books of account by the Department was not valid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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