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2016 (4) TMI 507 - AT - Income TaxEstimation of income at 17% of gross receipts against the additions made on specific grounds - Held that:- CIT(A) directed the AO to adopt a profit percentage of 17% which will take care of the shortage of cash in the cash book and the disallowance u/s.14A. It will also take care of the various other shortcomings in maintenance of books of account. We do not find any infirmity in the order of the CIT(A) on this issue. Admittedly, there are certain defects in the books of account such as non-maintenance of subsidiary ledgers, goods inward and outward register, stock register etc. Therefore, the books of account are not amenable to proper verification. At the same time, if the approach adopted by the AO is accepted, then the construction business gives a profit percentage of more than 64% which is not possible in this line of business especially when the assessee has undertaken construction work for private parties. The Various Benches of the Tribunal are considering profit rate of 8% to 15% in construction business as reasonable. Since the Ld.CIT(A) in the instant case has directed the AO to adopt profit percentage of 17%, therefore, in our opinion, such profit percentage under the facts and circumstances of the case is reasonable and does not call for any interference. We accordingly uphold the order of the CIT(A) - Decided against revenue
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