9911796707
TMI Blog2012 (9) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... As per the Revenue, every assessment year was distinct and separate and rule of res judicata did not apply to income-tax proceedings. 2. Facts apropos are that assessee, a civil contractor, had filed his returns for the impugned assessment years on 21.9.2006 and 5.12.2007 admitting income of ₹ 6,61,530/- and ₹ 5,49,520/- respectively. During the course of assessment proceedings, assessee was asked to produce books of account, vouchers and invoices. It seems assessee could produce only the books of account and vouchers in respect of materials. However, as per the A.O., the vouchers in respect of materials were self-made ones. Assessee it seems did not furnish particulars regarding the work-out of work-in-progress. Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, learned D.R., strongly assailing the order of CIT(Appeals), submitted that assessee could not produce vouchers for expenses and books were rightly rejected. According to him, circumstances called for an estimated assessment. A.O. went by provisions of Section 44AD wherein 8% was fixed by the Legislature to be an appropriate rate of profit on gross receipts where turnover was less than ₹ 40 lakhs. Learned D.R. submitted that even though in assessee s case, turnover exceeded ` 40 lakhs, since the books were rejected for various defects, application of profit rate of 8% was justified. 6. Per contra, learned A.R. strongly supported the order of CIT(Appeals). 7. We have perused the orders and heard the rival submissions. It is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mated basis or not. We are, therefore, of the opinion that in the facts and circumstances of the case, it would be fair and just if the income of the assessee is fixed at 8% rate of gross contract receipts as done by the Assessing Officer and claim of depreciation allowed thereafter. However, after granting such depreciation, if the income goes below the returned income, then the A.O. shall assess the income at the returned level itself. With these directions, the appeals are disposed of. 8. Though the learned A.R. placed reliance on a decision of co-ordinate Bench of this Tribunal in the case of ACIT v. M/s Standard Roads in I.T.A. No. 564/Mds/09, which was later confirmed by the jurisdictional High Court on Revenue s appeal, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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