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TMI Blog2019 (6) TMI 1713X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee vide order sheet dated 15.05.2017 wherein he conveyed his desire to reject the books of accounts based on the discrepancies noted therein and his intention to estimate net profit at 8%. Pursuant to which, the assessee pleaded that the estimate of net profit should be determined at 5%. We note that the CIT(A) has estimated the income at 8% instead of 5.79% declared by the assessee (excluding material supplied by the Government) and also it was made clear by the CIT(A) that assessee will get deduction at Rs. 7,23,906/- and Rs. 53,543/- which were added by the AO though not contested by the assessee. We note that the Ld. CIT(A) has not taken into consideration any comparable cases similar to that of assessee to determine net p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12, the assessee firm has shown net profit of 5.48% from its contractual business. The AO noted that there was a survey on 31.07.2015 (i.e. AY 2016-17) conducted in the assessee s premises and after issuing statutory notices, the assessment was carried out against the assessee. The AO noted that there was unexplained expenditure so, he made addition u/s 69C on the basis of violation of section 40(a)(ia) and section 40A(3) for AY 2014-15 an amount of Rs. 54,57,223/- Rs. 1,10,97,600/- was disallowed. Similarly for AY 2011-12 disallowance u/s 40A(3) Rs. 52,62,039/- was made. On appeal, the Ld. CIT(A) deleted the additions made u/s 69C, 40(a)(ia) 40A(3) of the Act and thereafter rejected the books of accounts of the assessee and estimated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estimation of net profit by the Ld. CIT(A) is reasonable or not. We note that in order to arrive at net profit of 8% to Ld. CIT(A) has taken into account, the net profit percentage of assessee from A.Y. 2011-12 to 2014-15. We note that for easy understanding, we reproduce the chart of net profit percentage of the assessee from A.Y. 2011-12 to 2014-15 which is as under: Asst. Year Net profit as per accounts of the appellant Adjustments as per Table-III above Read net profit declared in the accounts of the appellant Net Profit percentage A B C D(B+C) 2011-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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