IN THE ITAT LUCKNOW BENCH ‘B’ (THIRD MEMBER)
Pragati Engineering Corporation
V/s.
Income-tax Officer, Raebareli
IT APPEAL NO. 304 (LKW) OF 2011
[ASSESSMENT YEAR 2005-06]
MAY 14, 2012
ORDER
Sunil Kumar Yadav, Judicial Member
This appeal is preferred by the assessee against the order of the Id. CIT(A) confirming the addition of Rs. 12,55,520 made by the Assessing Officer after making disallowances under various heads on ad-hoc basis ranging from 10 to 20% of the total claim.
2. The brief facts borne out from the record are that the assessee is a Civil Contractor and during the course of assessment proceedings, the assessee was asked to produce the books of account i.e. ledger and cash book, but the same could not be produced despite various opportunities provided to it by the Assessing Officer. It was stated before the Assessing Officer through written submission that the books of account were impounded by the local Police in the case of Shri. Akhilesh Kumar Singh, the husband of Smt. Vaishali Singh who is one of the partners of the firm. Therefore, the assessee could not produce the books of account. In support of these contentions, the assessee could not file any documentary evidence before the Assessing Officer. The Assessing Officer, however, examined the claim of expenses of the assessee under various heads and since these expenses were not open to verification, he made ad-hoc disallowances ranging from 10 to 20% of the total claim. The details of the total disallowances made by the Assessing Officer are as under:-
