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TMI Blog2010 (12) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the assessee for assessment year 2005-06 is directed against the order of learned Commissioner of Income Tax (Appeals), Tiruchirapalli, dated 17.08.2009. 2. Briefly stated, the facts of the case are that the assessee is engaged in the business of civil construction. For assessment year 2005-06, the assessee declared income of ₹ 57,080/- on a total turnover of ₹ 1,02,39,180 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 144 of the Income-tax Act, 1961 because the assessee failed to produce the requisite books of accounts (which were alleged to be audited) and vouchers in response to notice u/s 143(2) of the Act. 3. The CIT(Appeals) also failed to notice that most of the expense in the form of wages, purchase of jelly, bricks, sand and cement were made in cash. These expenses were around 50% of the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and circumstances of the case. The finding of the CIT(Appeals) that net profit @ 2.5% of the gross receipt would be justified on the facts and circumstances of the case, when u/s 44AD, minimum net profit of 8% has been presumed by the Legislature in cases where gross receipt from civil construction does not exceed ₹ 40 lakhs, is erroneous and based on surmises and conjectures. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd have carefully perused the entire records available before us. After perusing the assessment order, we have found that the net profit of 10% applied to total gross receipts by the A.O. is based on no evidence. When the books of accounts are also rejected or in any case, books are not maintained by the assessee, but the total receipts as declared by the assessee are accepted, the only method to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation in these years also and not otherwise, because only like things can be compared. 4. But, in the given case, the A.O. has simply made ad hoc addition without referring to either the past history of the assessee or to any comparable case. He has mentioned so many other things which are not relevant for the purpose. Although the A.O. himself has accepted in the next year a net profit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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