M/S APARAJITA CONSTRUCTION,BALLIA vs. DY. CIT, CIRCLE - 02, VARANASI

The assessee has filed this appeal challenging the order dated 16.08.2019 passed by Ld CIT(A), Varanasi and it relates to the assessment year 2014-15.

The assessee is a contractor and filed his return of income declaring total income at Rs.16,35,240/-. The AO rejected the books of account of the assessee and estimated the income @ 8% of gross contractual receipt. Before the ld.CIT(A), the assessee did not appear and, hence, the ld.CIT(A) dismissed the appeal of the assessee.

Before us, the ld. AR submitted that the ld.CIT(A) has estimated the profit of the assessee in assessment year 2012-13 and 2013-14 @ 6%. Accordingly he prayed that the income from business may be estimated @ 6% in this year also.

We heard the parties and perused the record. Since the ld.CIT(A) has been consistently estimating the profit at 6% of the contract receipts, we are of the view that there is merit in the above said prayer of the assessee. The Ld D.R also did not object to the said request. Accordingly, we set aside the order passed by Ld CIT(A) in this year and direct the AO to estimate the profit at the very same rate of 6% of the gross contract receipts.

In the result, the appeal filed by the assessee is partly allowed.