Vijay Pal Rao ORDER
Vijay Pal Rao, Member (J)
1. This appeal of the assessee is directed against the order dated 10.05.2018 of Ld. CIT(A), Allahabad for the A.Y. 2013-14.
2. The assessee has raised the following grounds.:-
"1. That in any view of the matter assessment order dated 30.03.2015 passed u/s. 143(3) of the Income Tax Act is bad both on the facts and in law and in the circumstances of the case. Therefore in all fairness the declared income on the basis of closed books of accounts should have been accepted in the interest of justice.
2. That in any view of the matter net profit rate of 7% as applied by Assessing Officer by applying the provision of Section 143(3) of the Income Tax Act is highly unjustified, especially when books are properly maintained and verified hence the addition made by rejecting the books of accounts this count is unwarranted.
3. That in any view of the matter a net profit rate of 7% as applied by the Assessing Officer on declared receipt is highly unjustified and illegal in the facts and circumstances of the case and therefore the extra addition so made amounting to Rs. 3,68,770/- on this account is unwarranted and liable to be declared.
4. That in any view of the matter interest charged u/s. 234A, 234B of the Income Tax Act is highly unjustified.
5. That in any view of the matter the appellant reserves his rights to take any fresh ground of the appeal before hearing of the appeal.
It is therefore prayed that a suitable order may kindly be passed and relief may please be allowed accordingly.
3. The only issue arises in this appeal of the assessee is regarding addition made by Assessing Officer by applying net profit rate of 7% as against net profit declared by assessee at 6.5%.
4. I have heard the Ld. AR as well as Ld. DR and considered the material available on record. The Ld. AR has submitted that the Assessing Officer after rejection of books of accounts has estimated the income by applying the net profit at 7%. The Assessing Officer has invoking the provision of Section 144AD for adopting the net profit rate at 7%. He has contended that once the books of accounts are rejected and assessee does not falls in the ambit of provisions of section 44AD of the I.T. Act, 1961 thus the Assessing Officer is not ...in applying the N.P. as per Section 44AD. He has referred to the comparative detail of net profit as well as turnover of the assessee for the A.Y. 2011-12 and 2013-14 and submitted that the Assessing Officer has accepted the net profit at 6% declared by assessee on turnover of Rs. 1.98 crores for A.Y. 2011-12 whereas the net profit declared by assessee for the year under consideration at 6.5% on turnover of Rs. 7.25 crores is not accepted by Assessing Officer. Thus, the Ld. AR has submitted that after rejection of books of account if the net profit declared by assessee is better than the past history then no addition is justified. In support of his contention, he has relied upon the decision of this Tribunal dated 11.10.2010 in the case of ACIT Vs. Hemant Kumar Sindhi as well as in the case of M/s. Baba Builders in ITA. Nos. 234 & 274/Alld/2010. These decisions have been upheld by jurisdiction High Court. Thus he has submitted that in view of the ........