These may be briefly noticed. The assessee firm is engaged in the civil construction work. During the course of assessment proceedings, the assessee produced cash book and ledger. However, the purchase file claimed to have been lost, was not produced. The assessee had shown sale and purchase of fixed assets during the year but the bills for verification of the same were not produced by the assessee. The Assessing Officer referred the case for special audit under Section 142(2A) of the Act. In the absence of proper documents and voucher and the report of the special auditor that the assessee had not maintained proper books of account, the Assessing officer vide order dated 11.7.2008, Annexure A.1 rejected the books of account of the assessee under Section 145(3) of the Act and on the basis of gross profit worked out at 4,19,99,172/- applied 10% net profit rate and worked out income at 41,99,917/-. Besides applying net profit rate of 10%, other additions made were on the issue of negative cash of 8,88,195/-, on account of non submission of proof of sales tax payment of 6,12,124/- and labour payments pertaining to assessment year 2004-05 claimed during the year amounting to `2,60,498/-. Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 5.2.2009, Annexure A.2, the CIT(A) upheld the action of the Assessing Officer in invoking the provisions of Section 145(3) of the Act, following the ratio laid down by the Hon'ble Supreme Court in CIT v. British Paints India, 188 ITR 44. The CIT(A) also applied net profit rate of 6.5% to the direct contract receipts and rate of 5% to
