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2014 (8) TMI 351 - HC - Income TaxEstimation of income - Applicability of section 44AD on gross turnover – Books of accounts not produced by assessee – Held that:- The Tribunal was rightly of the view that estimate made by the AO has to be on some basis and determination of gross profit rate cannot be on mere ipsi dixit - Tribunal felt that the gross profit rate as mentioned in the statute in Section 44AD should be applied – assessee had declared income of ₹ 7,34,920/- and the assessed income @ 8% gross profit on gross receipt of ₹ 2,86,70,726/- would be about ₹ 22,93,658 - Section 44AD prescribes a thumb rule and is applicable to small assesses, but while prescribing the thumb rule the Legislature, it is apparent, must have taken into account material and evidence to come to the figure of 8%. – thus, no substantial question of law arises for consideration – Decided against Revenue.
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