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TMI Blog2016 (1) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. - ITA Nos. 1183 & 2076/Ahd/2010 - - - Dated:- 8-12-2015 - Shailendra Kumar Yadav, JM And Rajesh Kumar, AM For the Appellant : Ms Sanyogita Nagpal, Sr DR For the Respondent : Shri M K Patel, AR ORDER Per Shailendra Kumar Yadav, Judicial Member These two appeals filed by the Revenue are directed against respective orders of the Commissioner of Income Tax (Appeals)-II, Surat, dated 12.01.2010 and 29.03.2010 for Assessment Years 2006-07 2007-08 respectively. Since both these appeals pertain to same assessee on identical issues; therefore, these were heard together and are being disposed of by this consolidated order for the sake of convenience. ITA No. 1182/Ahd/2010 : AY 2006-07 2. In this appeal, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out the various defects in para-4.2 of the assessment order. On the basis of such findings and observations, the Assessing Officer rejected the assessee's book results u/s 145(3) of the Income-tax Act and then he observed that the outstanding labour payments as also the expenses mentioned earlier, were substantially bogus and since it was not possible to ascertain the quantum of the other expenses, he proceeded to apply the provisions of Section 44AD to the total receipts of the assessee and worked out the net profit at ₹ 26,88,774/-. After adjusting the net profit of ₹ 1,86,779/- disclosed by the assessee, the Assessing Officer made the addition of ₹ 25,01,995 to the assessee's total income. 3. Matter was carr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee's business and the compulsions. One of the objections taken by the Assessing Officer has been that the expense vouchers did not reflect the address of work-sites. This was not found a relevant ground. The second objection was that no details or record for site-wise purchases or issue of material was maintained. This again was not found relevant since the assessee did not necessarily have to make purchases separately in each site. Similarly, there was no requirement for maintaining site-wise details of closing stock or consumption of materials. The difference in the labour payment of ₹ 37,000/- as recorded in the ledger and ₹ 39,000/- as per the responding voucher, was too insignificant to be taken into account when comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer that the assessee had inflated the expenses by preparing bogus vouchers was totally unsubstantiated. Such a sweeping observation was not warranted without the support of concrete findings in this regard. If the books of account of the assessee has been kept as per normal accounting standards, then Assessing Officer should not be disturbed the same without raising any specific defect therein. In these facts and circumstances, the CIT(A) was fully justified in observing that the Assessing Officer was not justified in rejecting the assessee s books result u/s 145(3) of the Act. The CIT(A) has also rightly observed that the action of Assessing Officer was also not justified in applying the provisions of Section 44AD since t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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