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TMI Blog2023 (8) TMI 374X 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 ignoring fact that the Director of the company, himself had admitted during the assessment proceedings that books of accounts in respect of project in Algeria and Nigeria, had not been audited, while allowing relief to the assessee. 3. Brief facts of the case are that, the assessee filed return of income declaring income of Rs. 4,87,940/- the assessment order came to be passed by making an addition of Rs. 6,05,99,475/- on account of rejection of books of accounts and held that the assessee is not eligible to claim depreciation @ 60% on survey equipments. Aggrieved by the assessment order dated 30/03/2016, the assessee preferred an Appeal before the CIT(A), the ld. CIT(A) vide order dated 27/11/2017 allowed the Appeal filed by the assessee and directed the A.O. to delete the addition of Rs. 6,05,99,475/- made by applying GP rate of 10%. Aggrieved by the order of the CIT(A) the Revenue has preferred the present Appeal on the grounds mentioned above. 4. The Ld. Departmental Representative submitted that the CIT(A) erred in law in deleting the addition of Rs. 6,05,99,475/- made by the A.O. by way of rejection of books of accounts u/s 145(3) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On perusal of the available documents produced by the A.R the A.O. after detailed examination and made the addition of Rs. 6,05,99,475/-. 7. The ld. CIT(A) while deleting the addition held that the Ld. A.O. committed an error by applying GP rate of 10% without rejecting the trading result u/s 145(3) of the Act in following manners:- "4.2 1 have carefully considered the submissions of appellant on grounds of appeal 4, 5, 6 and 8 in which addition of Rs. 6,05,99,475/- have been challenged. With regard to Right of Way (ROW) expenses, appellant has submitted that ROW expenses are required to be carried out for obtaining Right of way to site and are normally required 3 to 4 times during the construction of line. ROW is required during survey foundation casting tower erection and stringing of wires. This work was contracted to local security agencies who arrange this ROW at each location on different times. They are aware about local customs traditions and ownership or occupation of the land on which the work is to be carried out. All the payments with regard to ROW at various locations have been paid through banking channels only. 4.3 Assessee maintained its accounts on mercantile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60% was claimed were filed before AO. However, only 15% depreciation was allowed by assessing officer. In accordance with the decision in the case of CIT vs. BSES Yamuna powers Ltd.[2013] 40 taxmann.com 108/[2004]220 Taxman 51(Delhi) computer accessories and peripherals being an integral part of computer systems are eligible for depreciation at higher rate of 60 percent -CIT v. BSES Yamuna Power Ltd. [2013] 40 taxmann.com 108/[2014]220 Taxman 51(Delhi). Hence assessing officer directed to allow depreciation allowed on 60% on all computer software entered as such under the head survey equipments and/or machinery." 8. In the present case admittedly the assessee has not produced books of account when the same is called to produce by the A.O. The assessee is required to maintain the books of accounts even for the foreign projects and it is required to be produced before the A.O. as and when the assessee is called to produce. While scrutinizing the books of accounts u/s 143(2) of the Act, it is impossible for the A.O. to ascertain the correct trading results/income of the assessee in the absence of books of account. The assessee has taken of plea before the A.O. that the bills and vouc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te his total income in accordance with the provisions of this Act. (2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,- (1) if his income from business or profession exceeds "[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds 20[ten lakh] rupees in any one of the three years immediately preceding the previous year; or (ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed 20[ten lakh] rupees, [during such previous year; or (iii) where the profits and gains from the business are deemed to the profits and gains of the assessee under "section 44AE) for section 448B or section 44BBB), as the case may be, and the see has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be during such previous year; or]] (iv) where ..... 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