आयकर अपीलीय अिधकरण रायपुर (cid:586)ायपीठ रायपुर , , IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR (cid:373)ी पाथ(cid:330) सारथी चौधरी, (cid:586)ाियक सद(cid:735) एवं (cid:373)ी अवधेश कु मार िम(cid:373) लेखा सद(cid:735) के सम(cid:407) । , BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM &

SHRI AVDHESH KUMAR MISHRA, AM आयकर अपील सं /ITA No: 536/RPR/2025 .

(िनधा१रण वष१ Assessment Year: 2014-15)

Aaditya Construction, vs Income Tax Officer- 1, Korba

56, Indira Complex, Transport Nagar, Mahanadi Extension Complex, Korba-495001, C.G. Ghantaghar, Niharika Road, Kashi Nagar, Korba-495677, C.G.

PAN: AAPFA5390N (अपीलाथ५/Appellant) : (ঋ(cid:529)थ५ / Respondent)

िनधा१ौरती की ओर से / Assessee by : None राज(cid:738) की ओर से / Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई की तारीख / Date of Hearing : 08/01/2026 घोषणा की तारीख Date of : 16/02/2026 /

Pronouncement आदेश / O R D E R Per Avdhesh Kumar Mishra, AM:

The appeal for Assessment Year (‘AY’) 2014-15 filed by the assessee is directed against the order dated 16.07.2025 of the Commissioner of Income Tax (Appeals), Raipur-3 [CIT(A)] passed under section 250 of the Income Tax Act, 1961 (‘Act’).

2. The assessee has raised following grounds of appeal: -

“1. Ld. CIT(A) erred in deciding appeal without considering record and evidence available. Resultantly, appellate order is illegal & unsustainable.

2. Order passed by Ld. CIT(A) s illegal in as much as the same has been passed without adjudicating merits of case.

3. Ld. CIT(A) erred in estimating net profit @0.70 which was highest rate in last

3 years despite the fact that assessee had maintained regular books of accounts and got it Audited As per Section 44AB. The part addition made by AO and confirmed by Ld. CIT(A) is arbitrary, illegal and not justified.

4. Ld. CIT(A) erred in estimating income on adhoc basis despite disagreeing to AO’s rejection of books of account.

5. The appellant reserve the right to amend, modify or add any of the ground/s of appeal.”

3. The relevant facts giving rise to this appeal are that the assessee, a civil contractor, filed its Income Tax Return (‘ITR’) of the relevant year on 28.09.2014 declaring income of Rs.11,89,140/-. The case was picked up for scrutiny. The assessee does contract works of mainly PWD Korba, PWD Champa, Chhattisgarh Rural Development Agency Bilaspur & Raipur, etc. The Ld. Assessing Officer (‘AO’), observing that the assessee had not produced all bills & vouchers of certain expenditures; therefore, such expenses were unverifiable. Further, the Ld. AO had also opined that owning of the Plant & Machinery worth of Rs.2.69 crores by the assessee would lower its expenditure with consequential enhancement in the profit.

The relevant finding of the Ld. AO reads as under:

“The assessee has paid cash labour payments in a gap of every sweets in lakhs of rupees and such payments have been made in less than 20,000/- deliberately in the books to workers, labourers, karigars, trucks owners, tractor owners, masons suppliers of materials, waters and other sorts of material inputs of the contract works. None of them was produced nor their identity was disclosed nor any evidence of pucca rukka (receipts) with revenue stamps with their complete postal addresses were supplied to but it was only reiterated that these are some of their due salary and other labour related payments only and thus with all these facts none of the expenditure claimed by the assessee was amenable was verification. Just some of vouchers were maintained which were nothing but self serving a chronological vouchers which were devoid of details of work for which such payment were made. Ultimately something has to be some link with the work and how the assessee's such modus operandi can be allowed to go with the sense that each is well with the work related outgoings Thus an important question of law has arisen that assessee is bound to cause verification of any item which is subject matter of investigation but if he does not cooperate to the revenue then w