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TMI Blog2022 (3) TMI 1179X X X X Extracts X X X X X X X X Extracts X X X X ..... in estimating the profit @15% in the gross receipt. Before us, AR has submitted that the estimation of profits @ 8% of gross receipts as specified in show-cause notice by AO would be acceptable to assessee. In such a situation, we direct the AO to estimate the profits on the basis of 8% gross receipt as per the show-cause notice issued by him to the assessee. We thus direct the AO accordingly. Thus the ground of the assessee is partly allowed. - ITA No. 6700/Del/2018 (Assessment Year: 2012-13) - - - Dated:- 8-12-2021 - SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. AMIT SHUKLA, JUDICIAL MEMBER Assessee by Dr. Rakesh Gupta, Adv. Revenue by Shri Kumar Pranav, Sr. D.R. ORDER PER ANIL CHATURVEDI, AM: This appeal fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances of the case, Ld. CIT(A) has erred in law and on facts in rejecting the books of accounts of assessee, more so when same were lost and FIR has been filed by the assessee before the Police Authority. 1(c) That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not quashing the impugned ex-parte passed by Ld. AO u/s 144 and that too by disregarding the submissions of the assessee and without observing the principles of natural justice. 1(d) That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of ₹ 82,31,322/- on account of estimation of net profit, is bad in law and against the facts and circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of FIR filed with the police authorities. Assessee however, produced the audit report and the bank accounts. AO was not satisfied about the correctness/completeness of the accounts of the assessee. AO noted that gross receipts of Supreme Contractors to be ₹ 5,65,73,990/- and M/s. Jagadama Steel Corporation to be ₹ 18,25,000/-. In the absence of books of accounts, AO was of the view that genuineness of the accounts was not reliable or it present true picture of the affairs of the assessee. Assessee was therefore issued a show-cause notice and asked to show-cause as to why the books of accounts be not rejected and the profit be computed as per the provision of Section 44AD of the Act @ 8% of the gross receipts which accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous opportunities granted by CIT(A) to substantiate his case and in such a situation no interference with the order of CIT(A) is called for. 7. We have heard the rival submissions and perused the materials available on record. The issue in the present ground is with respect to the estimation of profit. It is an undisputed fact that assessee did not produce the books of accounts and bill vouchers before the AO and in such a situation, AO had no other option but to estimate the profit of the assessee. It is however an undisputed fact that in the show cause notice, AO asked the assessee to show casue as to why the profits be not estimated @ 8% of the gross receipts but however the AO finally estimated the profits @ 15% of the gross receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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