CIT JODHPUR Vs. JAIN CONSTRUCTION COMPANY BARMER

JUDGEMENT

(1.) This appeal by the Revenue against the order passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ( ITAT ) in ITA No. 04/JU/2005 for the Assessment Year 1999-2000 has been admitted for consideration on the following substantial question of law:-

(2.) The assessee, said to be deriving his income from contract work, filed the return for Assessment Year 1999-2000 declaring the income of Rs.2,08,230/- with tax audit report.The same was processed under Section 143(1) on 27.03.2000 at the same figure. The assessee had shown total contract receipt of Rs. 1,69,05,812/-. There was material supplied by the department at Rs.25,95,066/-.

(3.) The assessee had shown gross profit of Rs.17,35,435/-. The assessee had also executed contract work through sub-contractor and received sub-letting commission at Rs. 34,958/-. The case was picked up for scrutiny. Books of accounts, as produced, were rejected by the Assessing Officer ( AO ) for several reasons including those of not maintaining the stock register, muster rolls and several expenses being not supported by adequate vouchers.