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2017 (8) TMI 363 - AT - Income TaxAssessment of income on estimation basis rejecting the books of account - addition @8% - rejection of books of accounts - project completion method - Held that:- As noticed from the learned Commissioner of Income-tax (Appeals) orders that, the assessee has not filed the returns for the assessment year 2014-15 and 2015-16 and not ascertainable whether the assessee has completed the project and admitted the taxable income relating to the above projects in the subsequent years. The authorised representative also did not furnish any information regarding the completion of project and admission of income in respect of the above two projects. In the absence of production of book of account, bills, vouchers true and correct income cannot be deduced. Therefore, we do not find any error in the order of the learned Commissioner of Income-tax (Appeals) and accordingly, we confirm the addition made by the Assessing Officer at the rate of 8 per cent. on the gross receipts. Estimation of income on accumulated gross receipts - Held that:- Since the substantial project works have been completed and the risks were transferred, the Assessing Officer estimated the income on the gross receipts accumulated till the end of the financial year 2009-10. From the commencement of the project till the assessment year 2010-11 and subsequent year, the assessee filed nil return and no income was admitted. The assessee has not submitted the details relating to completion of project and admission of income relating to the above projects. In the absence of books of account, the correctness of the expenditure could not be established. Therefore, only option available to the Assessing Officer is to estimate the income and complete the assessment. The assessee has not admitted any income in the earlier years and no evidence has shown regarding the admission of income in the subsequent years and the Assessing Officer held that the substantial risks have been transferred in the year under consideration. Therefore, we do not find any error in the lower authorities orders and we confirm the order of the learned Commissioner of Income-tax (Appeals) and dismissed the grounds of appeal.
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