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2018 (8) TMI 1723 - ITAT VISAKHAPATNAMEstimation of income - additional income declared by the assessee during the assessment proceedings and computation of gross receipts by the CIT(A) and estimation of income on the said gross receipts @ 12% by the Ld. CIT(A) - Held that:- There is no dispute that the entire receipts of ₹ 2. 13. 21000/- represent the business receipts against the admission of turnover of ₹ 1, 20, 00, 000/- in the return of income. Though the assessee canvassed for exclusion of receipts of ₹ 40. 00 lacs from the turnover of the year under consideration no supporting evidence was placed by the assessee to show that the receipts were received in advance before completion of the work. The agreements placed before us support that the receipts were business receipts required to be assessed in the impugned assessment year. Therefore, we hold that the entire receipts worked out by the Ld. CIT(A) to the extent of ₹ 2, 13, 21, 000/- rightly assessed by the Ld. CIT(A) as gross contract receipts for the year under consideration. CIT(A) estimated the income @12% and the Ld. AR did not bring any tangible evidence to show that the profit of the assessee was less than 12%. The assessee has neither submitted the details of expenditure relatable to the additional gross contract receipts admitted by the assessee nor the advances received by the assessee as per bank account. The assessee has not declared the true and correct receipts and the income earned there from. Only after the case was selected for scrutiny and called for the details, the assessee had admitted the additional gross receipts of ₹ 50, 44, 750/- before the AO. Though the assessee stated that the Sum of ₹ 40. 00 lacs represent the advance but not established the same with any evidence. Therefore, we hold that the Ld. CIT(A) has rightly rejected the books of accounts and estimated the income fairly @12% and we do not find any reason to interfere with the order of the Ld. CIT(A). CIT(A) has not given an opportunity for rebuttal of the gross receipts and consequent estimation of income - Held that:- As during the appeal hearing, we have given an opportunity to the Ld. AR to place the relevant material to show that the turnover was less than the sum computed by the ld. CIT(A) and the income estimated was less than 12% but the Ld. AR did not make out a case with tangible evidence to establish that the contract receipts were less than ₹ 2, 13, 21, 000/- and the profit of the assessee was less than 12%. Therefore, we do not find any infirmity in the order of the Ld. CIT(A) and the same is upheld. Accordingly the appeal of the assessee on this ground is dismissed. - Decided against assessee
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