- (1.) The Revenue has preferred this appeal proposing following substantial question of law: Whether, in the facts and circumstances of the case, the Tribunal was right in law in holding that no separate addition on account introduction of unexplained cash in assessee's books of account and on account of unexplained payments for purchases made outside the books can be made once the net profit rate is applied on contract receipts of an assessee for estimating his income from contract work when the provisions of Sections 68 and 69B of the IT Act are directly hit in the instant case.
(2.) The assessee is a civil contractor. He filed IT return for the asst. yr. 1996-97 on 10th Jan., 1996. Assessment was made which was cancelled under Section 263 of the IT Act, 1961 (for short, 'the Act'). Fresh assessment was made on 28th Feb., 2002 under Section 144 of the Act at total income of Rs. 24,99,250 including additions of Rs. 9,25,939 on account of cash introduced in the books and Rs. 9,77,535 on account of payments made for purchases outside the books of account.
(3.) On appeal, the CIT(A) deleted the addition of Rs. 19,03,474 on account of cash included and payments for purchases outside the books of account. In an appeal filed by the assessee, the CIT(A) allowed relief on the said two counts. The Tribunal affirmed the order of the CIT(A). Hence this appeal.;