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2010 (1) TMI 912 - AT - Income TaxEstimated addition - 15% of the sales as net profit - held that:- AS-2 which was originally issued in June, 1981 and revised in 1999 excludes construction contracts from the scope of Accounting Standard (AS-7). The method adopted by the assessee is one of the recognized method. The AO has not rejected the assessee's books. In these circumstances, as rightly contended by the ld. Representative for the assessee, the estimation of income to the extent of 30% and reduction of the same by CIT(Appeals) to 15% is incorrect. - the CIT(Appeals) was not justified in retaining the estimated addition and the CIT(Appeals) was not justified also in treating this as an accepted method. - Decided in favor of assessee.
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