9911796707
TMI Blog2013 (3) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... oks reflecting the purchase of the material and the wages payable or paid, the revenue has no option but to frame best judgments assessment. It is not the case of the revenue that the assessee has not executed the work at all. In fact the order passed by the AO shows the details of the work executed by the assessee. AO in the following assessment year applied 8% net profit rate on contract receipt. There is no dispute to the argument that each of the assessment year is independent proceedings and the AO is within its jurisdiction to frame assessment by applying net rate of profit which he found prudent. But if in the earlier assessment years as well as in the subsequent assessment year, a particular net profit rate has been applied, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee which were duly proved by the A.O to be bogus and unverifiable. 4. Whether the Hon'ble ITAT was correct in law in confirming the order of the Ld CIT (A) even when the A.O was not allowed by the Ld. CIT(A) to represent the case on behalf of revenue?" The said questions of law arise out of the fact that the assessee filed its return on 31.10.2006 declaring total income of Rs.27,07,570/-. The assessee is a civil contractor. Subsequently, the assessment case was taken up in scrutiny and the assessment was framed by the Assessing Officer making additions of Rs.1,43,33,248/- including a sum of Rs.68,98,494/- as bogus and unverified purchases. The Commissioner of Income Tax (Appeals), in an appeal filed by the assessee, vide an or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax (Appeals) has applied 11% as net profit rate of the contract receipts but after remand, the Commissioner of Income Tax has applied 8% of the contract receipts as a net profit rate. It is pointed out that the communication of the Assessing Officer dated 1.4.2008 is only a proposal during the course of assessment proceedings and cannot be used against the revenue at the time of finalization of the assessment proceedings. It is contended that each assessment year is independent proceedings, therefore, the net profit rate applied in earlier years cannot be made basis to finalize assessment of year in question. Reliance is placed upon a judgment of this Court in Bandi Co-operative Labour and Construction Society v. Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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