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2014 (4) TMI 342 - AT - Income TaxEstimation of income at 7% of turnover – Held that:- The assessee had not produced supporting documentary evidences during the assessment proceedings – the AO had to estimate the taxable income - after issuing a show-cause notice and considering the submissions of the assessee, he estimated the income @ 7% of the turnover - during the year, assessee had received Rs. 14. 18 lakhs on settlement of earlier years’claims - AO has estimated the profit @ 7% on turnover - the order do not suffer from any infirmity considering the peculiar facts of the case under appeal - the assessee had not produced the supporting evidence, the AO had to adopt some estimate - his estimation was reasonable Decided against Assessee. Enhancement of income vis-a-vis disallowance u/s 40(a)(ia) of the Act – Held that:- The decision in Teja Constructions Versus ACIT [2009 (10) TMI 593 - ITAT HYDERABAD] followed - 40(a)(ia) is applicable only in respect of TDS defaults when amount is “payable There is difference between the word ‘paid or payable the legislature used the word very carefully in section 40(a)(ia) - Sec. 40(a)(ía) has to be subjected to strict interpretation - Going by the rule of strict interpretation the default with reference to actual ‘payment’ of expenditure would not entail disallowance - Decided in favour of Assessee.
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