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2019 (7) TMI 1802 - AT - Income TaxEstimation of income - No maintenance of books of accounts - CIT(A) directed the AO to estimate income @ 2% on gross receipts instead 6% on gross receipts estimated by the AO - HELD THAT:- We notice that assessee is an entity formed to execute the civil contract work by the JV partners, namely, M/s Progressive Constructions Ltd., and M/s Intertech Lenhydro Consortium - As noticed that assessee has not maintained any books of account. It is not clear, who executed the civil contract. Since, assessee is only a facilitating entity, the work must have completed by one of the constituent of the JV. Assessee has not brought on record whether assessee has transferred the TDS deducted by M/s Tehri Hydro Development Corporation. No information was submitted before us. However, we notice that in the immediate previous AY, i.e. AY 2008-09, income of the assessee was estimated @ 2% and there is no change in the business model, in our considered view, AO cannot increase the rate of estimation without any major deviation in the business model of the assessee. Therefore, we are inclined to accept the findings of ld. CIT(A) and accordingly, upholding the order of CIT(A), we dismiss the grounds raised by the revenue.
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