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2015 (9) TMI 1103 - AT - Income TaxEstimation of income @ 8% on contract receipts - CIT(A) deleted the addition - Held that:- As can be seen, only on the basis of TDS certificate enclosed by assessee in the return of income, AO has concluded that the amount received by assessee from LAPPL is a contract receipt and accordingly proceeded to estimate the income. However, as can be seen from the terms of the relevant agreement between assessee and LAPPL, assessee is to receive 15% of the total contract amount as mobilization advance. Though, it may be a fact that in the TDS certificate, deductee has mentioned it as payment towards professional charges but, that itself is not conclusive enough to prove the fact that amount received was not advance but towards work executed. When it is a fact on record that during the impugned AY assessee has only received mobilization advances being 15% of the total contract price and has not raised any bill on the contractee towards a portion of the work executed. Moreover, when assessee has shown the income on the contract work in the succeeding AY, which also includes work-inprogress of 16.22 crores, on which income has been estimated by AO in the impugned AY, in our view, there is no justifiable reason in interfering with the order of ld. CIT(A). In any case of the matter, there is no prejudice caused to revenue as the income assessable on the contract receipt has been offered by assessee for taxation, though, in a different assessment year. - Decided against revenue.
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