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2014 (1) TMI 1402 - AT - Income TaxEstimation of income from contracts - Held that:- The assessee is covered under section 44AB - Where no books of account maintained and where provisions of sec. 44AB found applicable, the estimation of profit sat 12.5% held to be reasonable - The various judicial decisions in this regard also put the margins of the business in the range of 8 to 12.5%, depending on the facts of each case - Assessee is operating as an individual without borrowed funds so margin of 12.5% is reasonable - Decided against assessee. Unexplained expenditure - Held that:- The assessee has paid the amount of Rs. 11 lakhs through his bank account to M/s. Sai Ganesh Builders - Once the amount has gone through the bank account out of the own sources of the assessee it cannot be said to be unexplained - When the flow of the money is explained, it is very difficult to accept the contention that the assessee has invested in an unexplained way - Even for argument sake if it is accepted that the same was advanced/invested by assessee, it still cannot be considered as unexplained as the source is assessee own funds on which there is no dispute - The order of the CIT(A) is not correct - Decided in favour of assessee.
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