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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-2’, NEW DELHI
Before: SHRI J. SUDHAKAR REDDY
This is an appeal filed by the assessee against the order dt. 31.3.2014 of Ld.CIT(A), Muzaffarnagar for Assessment Year 2008-09.
The facts in brief are that the assessee is a Civil Contractor. The A.O. disallowed 20% of the purchases as the assessee could not produce books of accounts and evidences. Further 20% of the sundry creditors amounting to Rs.99,700/- were added to the income. On appeal the First Appellate Authority confirmed the same.
On consideration of rival submissions, I am of the considered opinion that the ends of justice would be met if the income of the assessee is determined at 8% of gross receipts by applying presumptive tax rate prescribed u/s 44AB of the Act. In the result the appeal of the assessee is allowed in part. The A.O. is directed to assess the income of the assessee at 8% of his gross receipts as prescribed u/s 44 AB of the Act.
In the result, the appeal by the assessee stands partly allowed. Order pronounced in the Open Court on 14th October,2015.