9911796707
TMI Blog2024 (2) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... erits in estimating the net profit @8% and consequentially in upholding addition of Rs. 25,62,738/-. 1.2 That Ld CIT(A) has erred in law and facts in not considering the income already declared by the assessee. 1.3 That without prejudice, the net profit if any should not be more than 2.18% being average net profit for last 3 years. 1.4 That no proper and reasonable opportunity of hearing has been allowed. 2.1 That under the facts and circumstances of the case, the Ld. CIT(A) grossly erred in law in upholding addition of Rs. 33,25,689/- for disallowance u/s. 43B. 2.2 That no addition u/s. 43B should have been made once the profit is estimated and books of accounts are rejected u/s. 145(3). 2.3 That without prejudice, no disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 NP 2,62,652.00 -71,219.00 41,48,778.00 NP Ratio 0.82 0.21 5.94 6. The ld. AR placed reliance on following judicial pronouncements: * L.P.R. Construction Vs. DCIT, Circle-1 2021 (7) TMI 796 - ITAT ALLAHABAD. * Om Prakash Singh Vs. ACIT, Circle-3, Mathura 2019 (8) TMI 830 - ITAT AGRA. * CIT, Patiala Vs. M/s Hind Agro Industries 2015 (12) TMI 1407 - ITAT CHANDIGARH 7. On the other hand, the ld. DR submitted that the assessee has not produced any details of the expenses and the provisions of Section 145(1) of the Income Tax Act, 1961 have been duly and rightly invoked by the Assessing Officer. The assessee inspite of giving sufficient opportunities, did not submit relevant details and hence the profits have been rightly estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is a separate section 40(ia) of Act which provides that if an assessee fail to deduct any tax at source or after deduction fails to deposit the said TDS to the Govt, account before due date of filing of return of income u/s 139(1) of the Act then the AO may made addition equivalent to 30% of the amount on which such tax deducted. Section 43B mainly covers expenses that are allowed to be claimed as deduction only in case of actual payment. TDS is not an expense but a tax which is deducted on the behalf of the deductee and deposited to the government's treasury. In the Instant case the Assessing Officer made addition u/s 43B of the Act which do not support the action of the Assessing Officer. Hence, the same is directed to be deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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