9911796707
TMI Blog2014 (12) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... are found unreliable, incorrect or incomplete for valid reasons – the AO by relying upon several errors and incompleteness in the books of accounts decided to invoke the authority as per Section 145(3) - no plausible reason was extended by the assessee for errors in the vouchers and in other accounts books – the Tribunal without examining the errors pointed out by the AO reversed the order of assessment and its affirmance by CIT(A) by relying upon the principle that the vouchers submitted are not required to be treated untrue - The tribunal did not choose to examine the fact that no plausible reason was extended by the assessee to satisfy the Assessing Officer about their truthfulness – thus, the order passed by the Tribunal is set aside – ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of purchase and expenses are self-prepared, no work in progress was shown and the identity of the creditors was not borne out in the accounts books. With this background he invoked the power as per provisions of Section 145(3) of the Income Tax Act, 1961. The Assessing Officer estimated the net profit of assessee by applying a net profit rate of 12.5% on the contract receipts keeping in view certain judgments of different High Courts. Accordingly, an addition of ₹ 24,67,880/- was added in the income return furnished by the assessee. An appeal preferred by the assessee before the Commissioner of Income Tax (Appeals), Jodhpur giving challenge to the order of assessment came to be rejected by judgment dated 29.7.2009. The Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) or accounting standards as notified under sub-section (2), have not been regularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in Section 144. In the case in hand the Assessing Officer invoked the authority under sub-section (3) of Section 145 being not satisfied about the correctness and completeness of the accounts of the assessee. The Assessing Officer in detail referred errors and incompleteness in the books of accounts. The defects/discrepancies noticed by the Assessing Officer are as under:- (i) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts for payments are shown almost at all pages only for 21, 22, 24 26 persons, whereas the payments are shown on these pages for 32 persons. When these defects are pointed out it has been submitted by the AR that the assessee used to visit all these sites daily on his vehicle and mark the attendance of the laborers by himself. As regards the non availability of revenue stamps on these registers his argument is that it happened due to non availability of the same in the site. Both the arguments are put forth only for the sake of arguments and is not acceptable. It is also noticed that the assessee has shown payment of wages to male and female workers at the same rates whereas no such practice is prevalent in the field of road construc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to verification. Beside the above, the Assessing Officer found that the assessee was having continuous work in several contracts awarded to him and he was continuing with several works at various sites at the end of accounting year and it was not possible to believe that even after having work remaining to be completed with him he would have stopped his work on different sites in the month of March. The expenses claimed by the assessee were not even accrued on the last day of accounting year. The Commissioner of Income Tax (Appeals) after examining the errors and incompleteness pointed out by the Assessing Officer affirmed the order of assessment. The Income Tax Appellate Tribunal by the order impugned held that the purchase an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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