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2013 (12) TMI 1566 - AT - Income TaxProceedings under s.153C - Held that:- Assessing officer having issued a notice u/s 153A of the Act, could not have completed proceedings which are supposed to be done u/s 153C of the Act if there is any incriminating material and accordingly, the proceedings itself become bad in law. Computation of income - Held that:- Estimation of income at 9.5% by the CIT(A) is on higher side. Considering the past record of the assessee, we are of the opinion that it is reasonable to estimate 5% income net of depreciation on sub-contract payments and 8% net of depreciation on the balance of the contract receipts, out of the total turnover shown by the assessee. This should meet the end of justice on the facts of the case. However, other incomes offered by the assessee, with reference to undisclosed income being added in A.Y. 2009-10 and other incomes not connected with the contract receipts should be accepted as such. This estimation of 8% on assessee’s contract works and 5% on sub-contract works is only limited to the contract receipts. With these directions, the assessing officer is directed to modify the computation of income accordingly. Assessee’s grounds are considered allowed accordingly.
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