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TMI Blog2023 (12) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... the similar issue and sustained the addition @6.75%. Since the net profit @6.75% has been estimated by the Tribunal in the assessee s own case, we, therefore, respectfully following the same, uphold the finding of the ld. CIT(A) of rejecting the books results and estimate the net profit rate @ 6.75% for the year under appeal on the gross turnover and the addition is sustained only to the extent of the difference between the net profit rate of 6.75% estimated by us as against the net profit declared by the assessee in its income tax return. Accordingly, the assessee s appeal is partly allowed and the that of the revenue is dismissed for Assessment Year 2013-14. As far as Assessment Year 2015-16 is concerned, only the assessee is in ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee explaining the reasons for late filing of appeal. On perusing the same, we are convinced that the assessee was prevented by sufficient cause from filing these appeals in time. Accordingly, we condone the delay and proceed to admit the appeals for hearing. 3. We first take up the cross-appeals for Assessment Year 2013-14. Facts in brief are that the assessee is a partnership firm engaged in the business of Civil contracts. Income of Rs. 1,98,85,090/- declared in the return of income filed for Assessment Year 2013-14 on 28/09/2013. Subsequent to survey conducted u/s 133A of the Act at the business premises of the assessee on 31/07/2015, notice u/s 148 of the Act was issued and duly served followed by validly serving notice u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the ld. CIT(A), the net profit may be estimated @6.75%. 6.1. On the other hand, the ld. D/R vehemently argued supporting the order of the ld. Assessing Officer. 7. We have heard rival contentions and perused the record placed before us. We notice that the assessee is a civil contractor has declared the net profit @5.79%. The ld. Assessing Officer had made additions under various heads but the ld. CIT(A) has observed that the books of accounts of the assessee deserves to be rejected and profits to be estimated @8%. We also notice that this Tribunal in the assessee s own case for Assessment Year 2011-12 2014-15 has decided the similar issue and sustained the addition @6.75% by observing as follows:- 3. Brief facts of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntractual business of net profit of 5.48% and 4.55% respectively. The AO after survey was conducted on 31.07.2015 after issuing 148 notice has framed, the reassessment making disallowance as noted above u/s 40(a)(ia) and section 40A(3) of the Act as well as addition u/s 69C of the Act. On appeal, the Ld. CIT(A) has deleted the additions made u/s 40(a)(ia), sec. 40A(3) sec. 69C of the Act and thereafter has rejected the books of accounts of the assessee and estimated the net profit at 8%. The main plea of the assessee is that the net profit of 8% is very high and relied on certain decisions of the Tribunal wherein lesser net profit has been accepted by the Tribunal in the cases of Contractors. We note that the Revenue has not challenged th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that from the assessees own performance and net profit declared from A.Y. 2011-12 to 2014-15, an estimate of 6.75% on the contractual turnover of the assessee could be just, fair and reasonable and we order accordingly. Likewise for A.Y. 2014-15, we direct the estimation of the net profit at 6.75% on the contractual turnover of the assessee. 8. Since the net profit @6.75% has been estimated by the Tribunal in the assessee s own case, we, therefore, respectfully following the same, uphold the finding of the ld. CIT(A) of rejecting the books results and estimate the net profit rate @ 6.75% for the year under appeal on the gross turnover and the addition is sustained only to the extent of the difference between the net profit rate of 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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