9911796707
TMI Blog2019 (11) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... .O. asked the assessee to produce complete books of accounts along with details/documents as per questionnaire issued by him. The A.O. also asked the assessee to furnish evidence with regard to cash deposits of Rs. 83 lakhs in savings bank account with Corporation Bank. The assessee failed to furnish the requisite details or produce books of accounts. The A.O. issued show cause notice as to why the income may not be estimated by taking net profit @ 12%. in spite of repeated opportunities and show cause notice the assessee failed to produce books of accounts, bills and vouchers and the requisite information. The AO accordingly estimated the income of the assessee by applying net profit rate of 12%. Addition of Rs. 18,93,183/- was accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, no explanation have been given, therefore, A.O. made the addition of Rs. 83 lakhs to the income of assessee. 5. The assessee challenged all the four additions before the Ld. CIT(A) and also filed application for admission of additional evidences under Rule 46A of I.T. Rules. Remand report of the same was called for from the A.O. The A.O. reiterated the facts stated in the assessment order. The assessee was asked to file rejoinder. The assessee explained that documents could not be submitted because his only son was suffering from Cancer. The assessee submitted that flat rate of 7% may be applied to the contract work and relied upon Order of ITAT, Chandigarh Bench in the case of Sudershan Kumar Shekhar vs., ACIT in ITA.No.101/Chd./ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering the rival submissions, we are of the view that it is a nominal delay and that explanation of assessee is supported by medical certificate. Therefore, delay in filing the appeal is condoned. 11. Learned Counsel for the Assessee reiterated the submissions made before the authorities below and relied upon Judgment of Hon'ble Punjab & Haryana High Court in the case of Telelinks vs., CIT, Bathinda in ITA.No.269 of 2014, Dated 20.11.2014, in which the matter was restored to the A.O. to re-determine the net profit rate. He has also relied upon Judgment of Hon'ble Punjab & Haryana High Court in the case of CIT vs., Amarjit Singh Bajwa [2013] 84 CCH 198 (P & H) in which it was held that "if in earlier assessment years as well as in subsequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account, bills and vouchers before the authorities below and even same are also not produced before the Tribunal. Therefore, rejection of books of account is justified in the matter. The A.O. while estimating income of assessee, has applied net profit rate of 12%. However, Learned Counsel for the Assessee has filed chart of net profit rate for earlier year as well as subsequent years which shows that in subsequent assessment year assessee has declared 8.134% as net profit rate, however, in A.Y. under appeal, net profit rate is 3.014%. The assessee submitted before the Ld. CIT(A) that net profit rate of 7% may be applied as was also done by ITAT, Chandgarh Bench in the case of Sudershan Kumar Shekhar vs., ACIT ITA.No.101/Chd./2011. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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