COMMISSIONER OF INCOME TAX Vs. RAJINDER PARSHAD JAIN

JUDGEMENT

(1.) The Revenue is before us challenging the order dated August 28, 2012, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal"), on the following substantial questions of law:

(2.) The assessee is a civil contractor and during assessment year 2008-09, filed a return of income. The return was selected for scrutiny and, vide order dated November 10, 2010, the Assessing Officer, while rejecting the account books, assessed the income by applying a net profit rate of 12 per cent, on the gross receipts. The Assessing Officer also made additions under section 40(a)(ia) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for failure to deduct tax at source regarding the payment to sub-contractors. The Assessing Officer also made an addition on account of work-in-progress.

(3.) Aggrieved by this order, the assessee filed an appeal. The Commissioner of Income-tax (Appeals), Rohtak, (hereinafter referred to as "the CIT(A)) vide order dated March 18, 2011, deleted the net profit rate of 12 per cent by holding that no reason has been assigned for rejecting account books, confirmed additions on account of non-deduction of tax at source and held that as the deletion on account of work-in-progress is already reflected in the accounts, the addition has been rendered infructuous.