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2018 (6) TMI 545 - AT - Income TaxBest judgment assessment u/s 144 - Estimation of profit - whether the works are executed as a contractor or a sub-contractor? - Held that:- Very work order mentions that the work is that of the State of Nagaland and the assessee got the work from UAN Max Infra Ltd - this shows that assessee is only sub-contractor - as per CIT(A) assessee executed all the works in the capacity of sub-contractor, the income returned by the assessee i.e. 5.99% appears to be reasonable since assessee itself submitted that 6% of profit is acceptable, the CIT(A) directed the AO to reduce the estimation of profit at 6% as against 8% - Decided in favor of assessee. Sale of scrap - Held that:- Generally, scraps are generated in the normal course of business and it should be treated as part of business income only - since assessee has already offered 6% of profit, which includes scrap sales - thus appeal of revenue is dismissed.
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