Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 338 - AT - Income TaxDetermination of Net Profit rate – Applicability of sec 44AD - Held that:- Following the decision of the Special Bench of the Tribunal in the case of [M/s Arihant Builders (P) Limited Vs. ACIT 2012 (10) TMI 702 - ITAT AMRITSAR] Estimation of income at 8% of the turnover is reasonable because the Tribunal estimated the income ranging from 8% to 12.5 % depending upon the facts of the situation. Therefore, the order of the CIT(A) is hereby upheld and the income shall be estimated at 8% of the gross contract receipts - Accordingly, this ground of appeal of the assessee is dismissed. Miscellaneous Income vs Income from other Sources – Income received from sale of scrap and other building materials - Held that:- Order of the CIT(A) in holding that there is no such receipts having nexus with the contract receipts received by the assessee from execution of civil construction works. Hence, the addition made by the AO and sustained by the CIT(A) of Rs. 9,10,587/- under ‘income from other sources’ is confirmed - Thus, this ground of appeal is dismissed. Disallowance u/s 40(a)(ia) – Held that:- Disallowance of Rs. 1,00,200/- made by the AO and sustained by the CIT(A) is confirmed as due default on the part of the assessee under the TDS provisions, the mandatory provisions of section 40(a)(ia) of the Act are applicable and such disallowance is to be made separately even while estimating the profit on the contract receipts - this ground of appeal of the assessee is dismissed - In the result, appeal of the assessee is dismissed.
|