9911796707
TMI Blog2025 (4) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... rounds of appeal: "1. The Ld. CIT(A), NFAC has erred and was not just and proper on the facts of the case and in law in confirming the addition of Rs. 46,63,936/- being 8.0% of the turnover of contract Receipts of Rs. 5,82,99,204/-. 2. The Ld. CIT(A), NFAC has erred and was not just and proper on the facts of the case and in law in confirming the addition of Rs. 60,35,697/- being @ 50.00% of the HIRE RECEIPTS of Machinery of Rs. 1,20,71,394/-." 3. The brief facts of the case are that the assessee is engaged in the business of rendering contract services and is also involved in renting of Plant and Machinery to various corporates. For the impugned year under consideration, the Assessing Officer noted that though the assessee had substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(c) of the Act. 5. In appeal, Ld. CIT(A) partly allowed the appeal of the assessee by restricting the addition on account of undisclosed rental income amounting to Rs. 1,20,71,394/- to 50% of such receipts. 6. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A). 7. Before us, the Counsel for the assessee submitted that this is the first year of business carried out by the assessee. Accordingly, since the assessee was not well-versed with the provisions of the Income Tax Act, admittedly there was non-compliance on the part of the assessee in not maintaining the books of accounts in respect of it's contractual business and there was also omission on part of the assessee in not filing his return of income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons made by the Ld. Assessing Officer and Ld. CIT(A), in their respective orders. However, looking into the totality of the circumstances, in which the net profit rate of 2% has been accepted by the Department for succeeding assessment years, the Ld. D.R. also did not object to the determination of income for the impugned assessment years, at a net profit rate of 5% of the total turnover of the assessee. 9. We have heard the rival contentions and perused the material available on record. 10. We observe that this is the first year of the assessee's contractual business, in which he has earned income from carrying out contractual work and also rental income on account of hiring of Plant and Machinery. For this year, the assessee did not fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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