9911796707
TMI Blog2013 (3) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. On facts and in circumstances of the case Lnd. ACIT and CIT (A)were not justified in applying the provision of section 145(3) of the I.T.Act. 3. On facts and in circumstances of the case Lnd. CIT (A) was not justified in confirming the N.P.Rate of 12% on the net contract receipt and the application of flat N.P.Rate of 12% is highly excessive without any basis, material and data on the record . 4. On facts and in circumstances of the case Lnd. CIT(A) was not justified in not allowing the deduction of interest of ₹ 1,91,225/- and salary of ₹ 1,20,000 paid to partners as per terms of partnership deed which is allowable deduction in the case of partnership firm u/s 40(b) of the I.T.Act. 4. The ground No.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared on 6.12.2010 and furnished written reply and also produced books of account as noted by the Assessing Officer in para 4 of the assessment order. As per the Assessing Officer, the reply furnished by the assessee was not acceptable as the books of account produced were not supported by vouchers/bills, payment to wagers. The assessee had not maintained any stock register and muster roll. In view thereof, the books of account of the assessee were rejected under section 145(3) of the Act and in view of the judgment of the Hon'ble Punjab Haryana High Court in M/s Prabhat Kumar, Contractor, Sirsa Vs. CIT in ITA No.293 of 2008, flat rate of 12% was applied to the gross receipts less material supplied by the government department and inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucted out of gross receipts. From the perusal of the order of the CIT (Appeals) we find that another deduction on account of sales tax of ₹ 40,74,135/- has been allowed by the CIT (Appeals). The assessee though had filed audited accounts but books of account produced by the assessee were incomplete to the extent that the assessee failed to produce muster rolls i.e. the evidence of salary paid to the wagers and it also failed to produce original vouchers in respect of the purchases made by it. Further objection of the Assessing Officer was that the assessee had not maintained stock register. The maintenance of stock register is not compulsory in line of business carried on by the assessee as the same is not required under the law. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o laid down by the Hon ble Punjab Haryana High Court in CIT Vs. M/s Prabhat Kumar Contractor (supra) wherein the rate of profit @ 12% was applied by the Hon ble Court. 11. The assessee is a road contractor and not civil contractor as in the case before the Hon ble Punjab Haryana High Court. The assessee had disclosed the income for the year under consideration at net profit rate of 1.20% and the Assessing Officer for computing the income of the year had applied net profit rate of 6.5%. The basis for the application of the said net profit rate by the Assessing Officer was similar rate applied in assessment year 2005-06 and the CIT (A) had placed reliance to the ratio laid down by the Hon'ble Punjab Haryana High Court in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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