AGGARWAL CONSTRUCTION CO. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal has been preferred by the Assessee under Section 260A of the Income-tax Act, 1961 (in short, "the Act") against the order dated 15-5-2009 passed by the Income-tax Appellate Tribunal, Chandigarh Bench 'B', (hereinafter referred to as "the Tribunal") in ITA No. 508/Chd./2007 on the ground of perversity of finding in upholding assessment of income at 11 per cent net profit rate on the gross receipts for the assessment year 2003-04 proposing to raise the following substantial questions of law:

(2.) The Assessee declared gross receipts of Rs. 1,22,28,341 and income at Rs. 12,22,834.10 which worked out to be 10 per cent of the assessable receipts. After claiming certain deductions, the net taxable income was depicted as Rs. 6,67,612. During the course of assessment proceedings, the Assessee was asked to produce the books of account as well as details of the expenses. However, the books of account which were produced were found to be containing only some particulars and were not regular books of account. The details of the expenses claimed to have been incurred were not produced and the stand taken was that the relevant records were untraceable as the Managing Partner had died. The Assessing Officer after rejecting the books of account made assessment by applying 12 per cent rate of net profit on the gross receipts in the income-tax returns. On appeal, the said rate was upheld. On further appeal to the Tribunal, the rate was reduced to 11 per cent without the same being quoted as a precedent. The Tribunal observed as under:

(3.) We have heard the learned Counsel for the Appellant.