- (1.) Through the instant appeal, invoking Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the Act), the assessee has knocked the doors of this Court to challenge therein the order dated 24.09.2012 (Annexure A-3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh (hereinafter referred to as the Tribunal).
(2.) The subject matter of the present appeal pertains to the assessment year 2008-09 and through the same, the assessee seeks to raise the following substantial questions of law :- "1. Whether the ITAT was justified in confirming addition @ 6% on estimation basis without considering the past record and arbitrary addition to declared income by the authorities below 2. Whether the order of the Tribunal is based on extraneous considerations and perverse deserve to be set aside being against the provisions of law - After hearing learned counsel for the parties and perusing the record with their assistance, the relevant facts, which have emerged, are that the assessee, who is a Civil Contractor and is engaged in the business of construction of roads, for the assessment year in question, filed his return, which was processed under Section 143 (1) of the Act. His case was picked up for scrutiny and in the proceedings which ensued, the Assessing Officer found that the assessee had not produced before him the complete original vouchers and muster-rolls. It was further noted by the Assessing Officer that the copy of attendance cards, pertaining to the labour engaged by the assessee, which had been produced before him, were without names and addresses. In view of afore-noticed facts, after rejecting the books of accounts, the Assessing Officer assessed the assessee to tax after applying Net Profit Rate @ 12%.
(3.) The Assessing Officer further found that the assessee had not declared in the relevant assessment year the interest accrued on income tax refunds to the extent of Rs. 55,630/- for the assessment year 2007-08 and finding the same to have been concealed, the same was also ordered to be added as part of the taxable income of the assessee. The assessment order was challenged by the assessee before the Commissioner, Income Tax (Appeals), Karnal (hereinafter referred to as the Commissioner), before whom the assessee submitted that he had produced on record original purchase vouchers, books of accounts, attendance cards with names of the labourers with their complete addresses, complete details of sundry creditors and the Net Profit Rate applied in the preceding years. On such basis, it was prayed that Net Profit Rate @ 2.5% be applied in his case. However, the Commissioner dismissed the appeal, which gave a cause to the assessee to further take the matter in appeal before the Tribunal. The assessee's case before the Tribunal was that original purchase vouchers, books of accounts, attendance cards of the labourers with their complete addresses, complete list of sundry creditors and the Net Profit Rate applied in the case of the assessee for the last several preceding assessment years had been produced by him but the same had not been considered and therefore, it was prayed that the matter be either remitted back to the Commissioner for fresh adjudication or that the appeal of the assessee be allowed by the Tribunal itself by reducing the Net Profit Rate to 2.5%. The Tribunal, while acknowledging that 83-90% of the purchase vouchers were available on record, chose not to remand the matter back for fresh adjudication on the ground that the remaining 10-17% vouchers were self made and thus, not verifiable. It was further held that the labour attendance cards did not carry the addresses of the labourers. Still further, while relying on the Net Profit Rate of 6.5%, which was applied under an earlier order of the Tribunal, Net Profit Rate @ 6% was ordered to be applied for the assessment year in question. Aggrieved by the application of Net Profit Rate @ 6% and praying that the same be applied @ 2.5%, the assessee has filed the present appeal seeking to raise therein the substantial questions of law as reproduced earlier.;