9911796707
TMI Blog2014 (1) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 2. For that the learned A.O. is not justified to determined the income from business at Rs.95,42,661/-. On the other hand, the learned Commissioner determined the same at Rs.4,03,87,306/- which is highly arbitrary and unjustified. 3. For that the income as determined is improper and unjustified. 4. For that application of 5% Net Profit and accordingly enhancement of the income determined by the A.O. is without any basis and as such arbitrary and unjustified. 5. For that the learned Commissioner is wholly unjustified to re-determine the income merely citing non-comparable and irrelevant case laws and decisions. Instead, the learned Commissioner should have appreciated the submissions and contentions of the appellant." 2. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t income had been determined by the assessee subsequent to the survey operation therefore cannot be held against the assessee for rejection of books of account. However, the learned CIT(A) therefore fine tuned the estimation by holding that the income from transportation would be 5% of the gross lorry receipts and the receipts from the tipper hired out would 5% when he brought to tax the amount to be taxed in the hands of the assessee at Rs.4,03,13,306 and Rs.74,000 respectively. 4. The assessee is in appeal before us on the above issues insofar as the learned Counsel of the assessee has vehemently argued that the learned CIT(A) whether took cognizance of the fact that the revised return filed by the assessee was as a punishment to be mete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Chartered Accountant under the provisions of Section 44AB on having been maintained by the assessee in accordance with the accounting standard prescribed therein when the verification of the books of account did not lead to any finding of defects to reject the books results. He pointed out that the Assessing Officer has not verified the books of account having passed the assessment order u/s.144 insofar as he accepted the appearance before him when during the course of proceedings and the assessee filed a revised return and it was merely enhancement of estimation as returned by the assessee vis-a-vis accurately at 1% of the gross lorry receipts. The fact that the learned CIT(A) and the Assessing Officer have accepted the gross rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the survey team. Similarly it was not the case of the Assessing Officer to pass the order u/s.144 insofar as the law provides that the assessee had not cooperated was not entitled to claim deduction of interest and salary to partners by invoking provisions of Section 184(5). 6. We have heard the rival parties and perused the material available on record. On our careful consideration of the facts and circumstances of case as brought on record by the authorities below, we are inclined to find that the Assessing Officer in his brief order has tried to invoke the provisions of Section 145(3) and arithmetically computed the income at 1% of the lorry freight receipts. He has also maintained that the income from the tipper was to be taxed sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... themselves have contradicted their findings inspite of the assessee claiming in the immediately preceding Assessment Year the Assessing Officer had accepted 1% to be taxed insofar as the learned CIT(A) in those years had directed the Assessing Officer to adopt 1% income on the gross lorry receipts of the assessee. We do not find any reason to divert from the consistent adoption of 1% of the gross receipts to be taxed in the hands of the assessee on the basis of book results insofar as the return of 1% income also includes the extra income generated by the assessee on the hiring of the tipper which has been restricted by the learned CIT(A) to 5% as against 24% returned. In this view of the matter, we direct the Assessing Officer to compute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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