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2018 (1) TMI 598 - AT - Income TaxEstimation of income @ 12.5% on construction contracts and 8% on sale of plots clear of depreciation and all other expenses - Held that:- From the perusal of the assessment order, it is observed that the A.O. did not reject the books of accounts before resorting for estimation of income. In the absence of any evidence brought on record to hold that the expenditure claimed by the assessee is unreasonably high and quantification of unverifiable nature of expenditure and fresh facts to resort higher estimation of income, we do not see any reason to interfere with the order of the Ld. CIT(A) and we hold that the Ld. CIT(A) has rightly applied the estimation of income @ 8% on contract receipts and 5% on sale of plots. Accordingly, the order of the Ld. CIT(A) is upheld and the revenue’s appeal on these grounds are dismissed. Interest income under the head Other sources - nature of income - Held that:- We hold that the interest income received on deposits required to be assessed under the business income but not as separate source of income. Hence, we uphold the order of the Ld. CIT(A) and dismiss the appeal of the revenue on this ground. See CIT Vs. LOK holdings [2008 (1) TMI 365 - BOMBAY HIGH COURT] and Eveready Industries Limited Vs. CIT and Anr (2009 (12) TMI 226 - CALCUTTA HIGH COURT).
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