- (1.) THE present appeal is filed by the department under Section 260 -A of the Income Tax Act, 1961 against the judgement and order dated 26.08.2009 passed by the Income Tax Appellate Tribunal, Agra in I.T.A.T. No. 188/Agr/2008 for the assessment year 2003 -04.
(2.) THE brief facts of the case are that the assessee's company is engaged in the construction of roads. During the assessment year under consideration, the A.O. found various discrepancies in the books of account and has rejected the same under Section 145(3) of the Income Tax Act, 1961.
(3.) AFTER rejecting the books of account, the A.O. estimated the net profit rate at the rate of 8% of the cost receipt before depreciation by drawing inspiration from Section 44AD of the Act and he made the addition. The CIT (A) as well as Tribunal have deleted the said addition. Not being satisfied the department has filed the present appeal. With this background we heard Shri Shambhu Chopra, learned counsel for the appellant and Shri Shubham Agrawal, learned counsel for the assessee and perused the material available on record.;