2016 (11) TMI 1415

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..... ess, the books of account can be rejected. The assessing officer can estimate the profit on the basis of the material available on record. In the case before us, the books of account of the assessee are not rejected by the assessing officer. Merely because, the assessee has disclosed the profit less than 5% in some of the project, that alone cannot be a reason for the assessing officer to esti .....

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..... to assessment year 2012-13. 2. No one appeared for the assessee inspite of service of notice. The Registry has placed on record the postal acknowledgement as a proof of service of notice. Therefore, we heard the learned representative for the department and proceeded to dispose off the appeal on merit. 3. Shri M.M.Bhusari, the learned department representative submitted that the only issue .....

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..... assessee and the depreciation claimed, the profit declared by the assessee would go below 5%. Therefore, the assessing officer estimated the profit at 5% and found that there was a deficiency of ₹ 21.39 crores. Accordingly, the assessing officer estimated the income as ₹ 21.40 crores on estimate basis at 5% on all the projects. 4. On a query from the bench, whether the assessing of .....

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..... % on the ground that the income disclosed for some of the projects are less than 5%. The assessing officer has also observed in the assessment order that the income earned by the assessee in some of the projects are reasonable in relating to the regular contract business. The question arises for consideration is, can the profit of the assessee be estimated without rejecting the books of account? A .....

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..... amine the books of account and find out why he could not accept profit of the assessee on the basis of books of account maintained. Since such an exercise was not done and the books of account of the assessee was not rejected, this Tribunal is of the considered opinion that the CIT(A) has rightly allowed the claim of the assessee. Therefore, this Tribunal do not find any reason to interfere with t .....

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