9911796707
TMI Blog2014 (3) TMI 1062X X X X Extracts X X X X X X X X Extracts X X X X ..... timated the AO cannot base his disallowance on the same books of account for the purpose of disallowance by invoking the provisions of section 40(a)(ia) of the Act or general disallowances u/s 37 of the Act. The estimation made by AO of net profit will take care of every addition related to business income or business receipts and no further disallowance can be made. We see force in the argument of the assessee that when the income of the assessee was computed applying gross profit rate and no deduction was allowed in regard to the expenses claimed by the assessee, there was no need to look into the provisions of section 40(a)(ia) of the Act or section 37 of the Act. Accordingly, no disallowance could have been made in view of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e him at the time of hearing of appeal, the Ld. CIT(A) erred in not considering the assessee s submissions before passing the Appellate order. 3. That, the Ld. A.O. erred in estimating the assessee s income from Civil Construction business @ 8% of his gross receipt and thereafter again adding back Hire Charges ₹ 14,78,355/-, Transportation Charges ₹ 3,52,150/-, Slurry Removable Expenses ₹ 19,94,975/-, Supervision Charges ₹ 3,15,000/-, Labour Charges ₹ 93,35,650/-, Site Expenses ₹ 43,88,116/- and Load Testing Expenses ₹ 8,03,838/- and the Ld. CIT(A) was not justified in upholding the said additions. 3. We have heard rival submissions and gone through facts and circumstances of the case. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which are directly related to receipts of contract that means business expenses. According to Ld. counsel for the assessee no disallowance can be made once when book results are rejected and net profit rate is applied. In the present case the gross receipt of the assessee is at ₹ 5,91,26,166/- and AO has applied net profit rate @ 8%. On the other hand, Ld. Sr. DR supported the orders of lower authorities. 5. We find that there is no dispute that there are no books of account as the assessee failed to produce the same. It is also an admitted position that assessee has accepted the application of net profit rate @ 8% on the gross receipts. The dispute only is as regards to disallowance on account of hire charges, transportation cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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