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TMI Blog2016 (4) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... n books of account rejected as not produced by the assessee but the business result can be compared from the other cases, which has also not been applied by the lower authority even confirming the addition by the ld CIT(A). Keeping in view of the past history of the case, we apply N.P. rate @ 5.5% subject to interest and remuneration to the partner. The Assessing Officer is directed to calculate the income as per observation made by us. - ITA No. 61/JP/2016 - - - Dated:- 4-3-2016 - SHRI R.P. TOLANI, JM SHRI T.R. MEENA, AM For The Assessee : Shri S.L. Jain (Adv) and Mrs. Premlata (Adv) For The Revenue : Shri O.P. Bhateja (Addl.CIT) ORDER PER: T.R. MEENA, AM This is an appeal filed by the appellant against the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Authorities below have grossly erred in law and facts in not allowing third party interest from net profit determined by Appling net profit theory. 5. That the learned Authorities below have grossly erred in law and facts in taxing bank interest as income from other source instead of income from business on funds lying in the business. 6. That the learned Authorities below have grossly erred in law and facts in charging interest u/s, 234(B) of ₹ 1,58/436/- , 234(D) of ₹ 2,41,396/- 244(A)Rs. 2,32,703/-. 2. The assessee derived income from civil construction work. The assessee firm filed its return on 26/09/2012 declaring total income of ₹ 25,68,360/-. The case was scrutinized U/s 143(3)/144 of the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Assessing Officer. He also claimed printing stationary expenses, vehicle repairing expenses, repair and maintenance expenses and office expenses without any bill vouchers. The ld Assessing Officer asked to produce the books of account on various dates but no compliance has been made by the partners of the firm. Summons to all the partners were also issued to make compliance of query raised by the Assessing Officer even notice U/s 131, no partner attended the assessment proceedings, therefore, the ld Assessing Officer decided to complete the assessment proceedings U/s 144 of the Act on the basis of net profit and considering the past history of the case. He also applied Section 145(3) of the Act and relied on the decision in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the Assessing Officer. She further held that interest U/s 234(B), 234(D) and 244(A) are consequential of the above findings. 4. Now the assessee is in appeal before us. The ld AR of the assessee has argued that the lower authorities has not considered the assessee s past history by estimating the profit. He has drawn our attention on Hon ble ITAT in A.Y. 2006-07, 2005-06 and 2004-05 had decided the appeal by accepting net profit rate @ 5% in all the years. In A.Y. 2009-10, a lump sum addition of ₹ 5 lacs had been confirmed by the Hon ble ITAT whereas net profit rate disclosed by the assessee @ 5.38%. It is further submitted that the assessee has maintained books of account consisting of cash book, ledger, purchase vouchers, ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest paid to the third party for which he relied on the decision of Hon ble ITAT Jaipur Bench decision in the case of Mohata Cons. Co. Vs ITO 21 TW 257 (JP), ITO Vs Gopalaram Premaram 24 TW 442 (JP) and various other decisions of Hon ble ITAT, Jodhpur. Finally he requested to confirm the book result disclosed by the assessee. 5. At the outset, the ld DR has vehemently supported the order of the ld CIT(A) and further argued that the ld CIT(A) s order is well reasoned and had already been considered all the facts and legal issue raised by the assessee. The assessee had not produced complete books of account during the course of assessment proceedings, therefore, rejection of books U/s 145 of the Act is justified and also net profit has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer on net profit rate @ 5.38% on total contract receipt of ₹ 12.32 crores. The Coordinate Bench has confirmed the lump sum addition of ₹ 5 lacs. Even from A.Y. 2004-05 to 2008-09 the assessee either disclosed net profit rate more or less 5% or accepted by the ITAT @ 5% subject to interest and remuneration to the partners. The assessee in A.Y. 2009-10 was before the Hon ble Rajasthan High Court wherein the Hon'ble High Court has dismissed the assessee s appeal where lump sum addition of ₹ 5 lacs was confirmed by the ITAT. The assessee has claimed third party interest from the net profit rate estimated but on verification of the past history, it is found that the assessee never claimed third party inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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