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TMI Blog2013 (6) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention of assessee & the fact that during the impugned assessment year there are certain defects, i.e. entries found in the ledger are not found in the cash book, estimation of profit @10% of the turnover will meet the ends of justice - ground raised by the assessee is partly allowed. - ITA.No.637/PN/2011, ITA No.1560/PN/2012 - - - Dated:- 14-5-2013 - Shri Shailendra Kumar Yadav And Shri R. K. Panda,JJ. For the Petitioner : Shri Harish Joshi For the Respondent : Ms. Ann Kapthuama ORDER Per R. K. Panda, AM:- These are cross appeals. The first one is filed by the Revenue and the second one by the assessee are directed against the order dated 28-02-2011 of the CIT(A)-II, Pune relating to Assessment Year 2007-08. 2. There is a delay of 13 months in filing of this appeal by the assessee for which a condonation petition has been filed. After considering the contents of the condonation petition and after hearing both the sides the delay in filing of this appeal by the assessee is condoned. 3. Facts of the case, in brief, are that the assessee is an individual engaged in the business of Civil Construction and filed his return of income on 31-10-2007 decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer has carried out verification of the labour charges expenses vis- -vis the vouchers produced by the appellant, along with ledger copies as additional evidence during the appellate proceedings. The Assessing Officer carried out verification of these vouchers with reference to ledger and cash book and has pointed out glaring discrepancies, as mentioned in the remand report dtd.21.1.2011. It has been pointed out by the Assessing Officer that in some of the self made vouchers, the appellant has made corrections in the dates as per the cash book entries. However, insipte of the same, in a large number of entries / vouchers produced the payments shown in the ledger is much different from that which is revealed from the corresponding date in the cash book; The total amount of such discrepancies pointed out by the Assessing Officer in the remand report worked out to Rs. 19,42,515/-. 4.9 In this connection, in the counter comments, the appellant has to some extent admitted the discrepancies, but has explained it by contending that the appellant was an engineer and not conversant with maintenance of accounts. It is further stated that the appellant should have engaged a Chartered Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook. On the basis of the same, and the specific difference pointed out by the Assessing Officer at Rs.19,42,515/- the addition to this extent is hereby sustained. Ground No. 2 is accordingly partly allowed." 5. Aggrieved with such part relief given by the CIT(A) the Revenue as well as the Assessee are in appeal before us with the following grounds : Grounds by Revenue : "1. The order of the learned Commissioner of Income-tax (Appeals) is contrary to law and to the facts and circumstances of the case. 2. The Learned Commissioner of Income-tax (Appeals) grossly erred in allowing the assessee's appeal instead of confirming the assessment. 3. The learned Commissioner of Income-tax (Appeals) grossly erred in restricting the disallowance of labour expenses to Rs.19,42,5157- mainly on the specific discrepancies pointed out in the remand report and in failing to appreciate that the assessee could not substantiate genuineness of other payments, which also contained the similar defects/ discrepancies as observed in the remand report by the Assessing Officer. 4. The learned Commissioner of Income-tax (Appeals) ought to have drawn adverse inference on the remaining claim in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was laying down the pipeline for providing potable water to the Rural areas at Village Kolhar in Ahmednagar District of Maharastra for Maharastra Jeevan Pradhikaran. The approximate value of the said work was Rs.23 lakhs. He submitted that under the facts and circumstances of the case there cannot be gross margin of more than 10% in this line of business. Referring to various decisions he submitted that the books cannot be rejected in absence of discrepancy pointed out by the Assessing Officer and disallowance in a mechanical manner is not permitted. He submitted that since the assessee could not appoint a professional Chartered Accountant, therefore, all these discrepancies as pointed out by the Assessing Officer occurred. However, during the assessment proceedings the assessee has produced the full details before the Assessing Officer. Therefore, addition of Rs.19,42,515/- which has been sustained by the Ld. CIT(A) out of the addition of Rs.50 lakhs by the Assessing Officer is unjustified and the same should be deleted. 7. The Ld. Departmental Representative on the other hand supported the order of the Assessing Officer. He submitted that during the assessment proceedings the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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