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TMI Blog2014 (6) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... e turnover of the year and in case of a civil contractor, the net taxable income can be arrived by applying the net profit rate of the total receipts. Although a lumpsum addition has been sustained by invoking different net profit rate, but a separate addition of sundry creditors by treating them as bogus, particularly, when these are trade creditors, the entire amount qua them is not justified. When the assessee is showing receipt of all these creditors and in that case even if the names and complete addresses thereof could not be given but the trade creditors cannot be treated at par with the cash creditors. - Appeal of the department stands dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 HI-Tech Earth Movers 4163799 J.J. Engineers 75529 JRC Construction 303500 Madan Ram 51760 Mahipal Ram 2344409 Man Singh 1080650 Mohd. Bhai Contractor 790775 Nasir Bhai Contractor 758763 Nathu Lal 432670 Pioneer Trader 296040 Pradeep Kumar 1015000 Ripra Enterprises 1015000 Smt. Bhawari Devi Choudhary 291544 Smt. Nirmala Choudhary 2356535 Total 16116094 The assessee was asked to submit the names with complete addressed of these sundry creditors. The assessee submitted addresses of five sundry creditors on 26.6.2011 but did not submit complete addressed of other creditors. Subsequently, confirmation from some others were also produced on 16.11.2011. The A.O. called for information u/s 133(6) of the Act from M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire material on record. Both the parties have reiterated their stand which was taken before the ld. CIT(A). We are in agreement with the ld. CIT(A) who has found that in fact, the A.O. has rejected the books of account by mentioning numerous defects therein which has been discussed from page 2 to 9 of the assessment order. Thus there is implied rejection of books of account. To meet out any pilferage, etc., by enhancing and increasing the net profit rate, in our considered opinion, the ld. CIT(A) has justified his action. The trade creditors, obviously have to be included in the turnover of the year and in case of a civil contractor, the net taxable income can be arrived by applying the net profit rate of the total receipts. Although a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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