Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1072 - AT - Income TaxIncome estimation at 8% - assessment was made u/sec. 144 - Held that:- The Special Bench of the ITAT in the case of M/s Arihant Builders Vs. ACIT [2006 (11) TMI 253 - ITAT INDORE] considered the issue under similar facts and circumstances of the case and after taking clue from the provisions of section 44AD, though not applicable, held that estimation of income at 8% of the turnover is reasonable. In our opinion, in the case under consideration estimation at 8% is very reasonable because the coordinate benches of the Tribunal is accepting the estimation of income ranging from 8% to 12.5% depending upon the facts of the case and nature of contracts undertaken.Therefore, in the absence of proper reasons for earning lesser profit, the order of the AO is upheld and income estimation at 8% on the gross receipts made by AO is accordingly confirmed - Decided against assessee. Addition on waiver of interest by Andhra Bank - addition as income under the head "Other Sources" - Held that:- In the course of present arguments, assessee filed a statement of Andhra Bank ledger account copy stated to have been filed in September, 2013 in the course of arguments. As seen from the record, this particular document is not on the paper book nor specifically filed. Nor the nature of income was forth coming from the orders of authorities. Therefore, at the time of deciding the issue, it was specifically stated vide para 28 that "we find that assessee did not place any material on record about the nature of income nor contended before us that these incomes has nexus with the contract business". Since this particular document stated to have been filed in the course of argument, it is not on record, the contention of the assessee now that this amount was written off by bank and was considered as income under section 41(1) cannot be considered in the course of proceedings under section 254(2). Be that as it may, even otherwise, since this amount was claimed as expenditure in earlier year and was allowed as such, the same can be considered as income of the year, even though the estimation was made on the contract work of during the year. Since this income does not pertain to contract work of this year, we are of the opinion that there is no error in the order of the ITAT confirming the income under the head "Other Sources". Therefore, the contention of the assessee is rejected.- Decided against assessee.
|