9911796707
TMI Blog2012 (9) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 %, of receipt as reduced by the cost of material supplied by the Govt./Govt. Agencies. 3. On the facts and circumstances of the case and in law the Ld. CIT(A) has erred in deleting addition of Rs. 426796/- on account of interest as the assessee has not shown bank interest whereas TDS was claimed as per the TDS certificates. 4. On the facts and circumstances of the case and in law the Ld. CIT (A) has erred in deleting the addition made by the A.O. of Rs.14,26,304/-on account of margin in sub-contract work to the tune of 6% which was half of net profit. 5. On the facts and circumstances of the case and in law the Ld. CIT (A) has erred in allowing ground of appeal No. 8 without passing speaking order relating to the issue of circular issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der wherein it has been pointed out that a survey had taken place in the premises of the assessee on 12.03.2009 and a print-out was taken in respect of labour expenses. As per this print-out, the total wages were Rs.2,05,60,856/- whereas i n Profit & Loss Account, the assessee had shown wages of Rs.9,06,13,880/-. Therefore, it cannot be said that facts in this year are also the same because if excess wages were ignored, then the net profit ratio would work out to 23.6%. Therefore, admission of net profit at 12% was reasonable. 5. On the other hand, ld. counsel for the assessee submitted that assessee contractor was executing projects in various parts of the country and accounts were being consolidated in Chandigarh office. During survey, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR. AO has clearly observed that there was a survey and during which the details of wages taken out from computer shows that actual wages were Rs.2,05,60,856/- whereas wages were shown at Rs.9,06,13,880/-. Though it was stated that this was unsigned print-out but the same would have great relevance to the facts given in the present year. Once the accounts of assessee were audited, how there could be difference in the wages recorded in the computer print-out and the amount given in the Profit & Loss Account. We further found that Tribunal has recorded following observation in ITA No. 279/Chd/2011 i .e. assessee's own case in assessment year 2007-08 : "It is, however clarified that this order will not operate as precedent if the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g his predecessor's order, allowed the claim. 10. Before us, ld. DR strongly supported the order of AO and submitted that since no details were filed, addition i s justified. On the other hand, ld. Counsel of the assessee submitted that details of interest were duly filed before the AO, copy of which is at page 21 to 25 of the Paper Book. He particularly brought to our attention the credit entries which totaled to Rs.4,26,796/- which has been reduced from total interest expenditure of Rs.22,56,225/-. 11. We have heard the rival submissions carefully and find that i t has been stated in the Paper Book that contents of the Paper Book were available before the AO which means details of interest were fi led before the AO. The detail of intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf of the net profit that he would have earned, had be executed the works contract. Accordingly, he estimated the profit rate of 6% on such sub-contract work and made addition of Rs.14,26,304/-. 13. Before CIT(A), it was mainly submitted that to increase the turnover, assessee had taken more works then it could execute itself because certain advantages can be derived by showing higher turnover. Therefore, even if sub-contract work was given on par, then that situation is advantageous to the assessee. Otherwise also, main contractor cannot earn the same profit as on sub-let work. Reliance was also placed on the decision of Hon'ble Punjab & Haryana High Court in the case of CIT v Pran Nath Gupta (supra). Ld. CIT(A) observed that even in ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s generally gross turnover as per TDS certificate, minus sale tax and, minus material s supplied by the government. Therefore, we uphold decision of ld. CI T(A) in deleting this addition, but the principle of reduction of turnover i s not upheld and that has to be considered while adjudicating the first ground and accordingly, this issue is also set aside to the file of AO. 17. Through Ground Nos. 5 & 6, revenue has raised objection regarding depreciation and rejection of books. Since ld. CIT( A) has also applied the rate of profit and no deductions have been allowed separately for depreciation, therefore, these grounds are infructuous and are dismissed as infructuous. 18. In the result, appeal is partly all owed for statistical purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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