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TMI Blog2015 (7) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... e of assessee at 2.24% of gross receipts by admitting additional evidences in the form of details of comparable cases without providing any opportunity of rebuttal to the A.O. under Rule 46A?" 2. Brief facts giving rise to this appeal are that the assessee company was engaged in the business of land development work during the year under consideration. The assessee company filed return of income on 25.09.2008 declaring an income of Rs. 1211/- and the same was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny and statutory notice u/s 143(2) of the Act was issued and duly served upon the assessee. The AO rejected the books of accounts of the assessee and completed assessment u/s 143(3) of the Act vide order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered other better comparable cases on the issue of estimation of net profit. Ld. DR has placed reliance on the decision of Hon'ble High Court of Punjab & Haryana dated 20.11.2014 in ITA No. 269 and 225 of 2014 in the case of Telelinks vs CIT, Bathinda and CIT vs Mattewal Cooop L/C Society, decision of Hon'ble Punjab & Haryana High Court dated 5.2.2013 in ITA NO. 825/2010 in the case of CIT vs Smt. Kamlesh & Other cases and the decision of Hon'ble Jurisdictional High Court of Delhi dated 9.12.2014 in ITA No. 80/2014 CIT vs Subodh Gupta and submitted that even if Rule 44AB of the Act is not applicable, then also 8% of gross receipts of the assessee should be adopted for estimation of net profit rate. 6. Ld. Counsel of the assessee re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Ld. CIT(A) has been upheld. The Tribunal has also upheld the action of the 1st appellate authority in restricting the addition made on account of 4% commission on debit and credit entries ITA No. 2044/D/2011 5 regarding providing of accommodation entries to the said companies to 2.4% of the gross receipt shown in the profit and loss account from the above companies. 7. Under the above background, we do not find reason to interfere to the first appellate order in this regard. The same is upheld. The grounds are accordingly rejected." 8. First of all, it would be just and proper to consider the applicability of the decisions relied by the ld. DR appearing for the Revenue. In the case of Telelink (supra), the AO estimated net profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to individual assessee who do not maintain books of accounts and surrender themselves to provisions of Section 44AD of the Act. Ld. DR could not lead us to hold that facts of these cases are similar to the present case. Thus, we agree with these contentions of the ld. Counsel as the facts of the extant case are clearly distinguishable from the facts of the case of CIT vs Kamlesh etc. (supra). 10. In the case of CIT vs Subodh Gupta, the Hon'ble Jurisdictional High Court of Delhi held that the appellate authorities have not applied section 44AD of the Act but where difficulty arose as they had to estimate reasonable rate of net profit, hence in absence of any data and details, they applied net profit rate as mentioned in section 44AD of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the coordinate bench of this Tribunal in the case of Radha Ballabh Nest Build Pvt. Ltd.(supra), we are of the considered opinion that the issue raised by the revenue in the sole ground is covered by the decision of the Tribunal for similar AY 2008-09 passed in ITA No.2044/Del/2011 (supra). We are unable to see any ambiguity, infirmity or any other valid reason to interfere with the impugned order of the first appellate authority. In the case of ITO vs Radha Ballabh Nest Build Pvt. Ltd.(supra), the Tribunal, on identical set of facts and circumstances, has upheld the order of the CIT(A) and the addition made by the AO has been deleted by upholding the order of the CIT(A) which adopted rate of 2.24% of the gross receipts from M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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