Law:

Section:

Section 68, read with section 69B, of the Income-tax Act, 1961 - Cash credits - Assessment year 1996-97 - Assessee who was a civil contractor filed his return for relevant assessment year - Assessing Officer completed assessment of assessee, but same was later cancelled - Subsequently, in fresh assessment, Assessing Officer applied net profit rate on contract receipts of assessee for estimating income from contract work and also made separate addition on account of introduction of unexplained cash in assessee's books of account and on account of unexplained payments made for purchase made outside books - Whether once net profit rate was applied on contract receipts of assessee for estimating income from contract work, no further addition was called for in respect of purchases and introduction of cash in view of facts and circumstances of instant case - Held, yes CASE REFERRED TO CIT v. Banwari Lal Banshidhar [1998] 229 ITR 229 (All.) [Para 6]. S.K. Garg for the Appearing Party. ORDER 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 made 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 Income-tax Act are directly hit in the instant case." 2. The assessee is a civil contractor. He filed income-tax return for the assessment year 1996-97 on 10-1-1996. Assessment was made which was cancelled under section 263 of the Income-tax Act, 1961 (for short, 'the Act'). Fresh assessment was made on 28-2-2002 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…

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