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2018 (10) TMI 1494 - AT - Income TaxEstimation of income - contracts for transportation of goods - contract receipt based on TDS certificates - AO estimated @ 6% or CIT(A) reduced it to 2% of receipts - no books were maintained - Held that:- The income that admittedly stands brought to tax in assessment is that arising to the assessee-AOP out of the contract receipt from different contractee-companies. The receipt arises to the assessee on the basis of transportation work undertaken by it, and which it does through its members, paying them a sum which, in the absence of any record, led to the estimation of its income in the first place. There is no question of two additions, i.e., on account of surplus (Rs.2.83 lacs) and the other as a percentage of the contract receipt. The AO, who estimated the same at 6% of the contract receipt, accordingly, had rightly not included the admitted surplus, which stands therefore wrongly included by the ld. CIT(A) by inferring its exclusion by the AO to be a mistake. The assessee has reported two other incomes, i.e., interest on tax-refund and sale of scrap. No issue in their respect, as apparent from the orders as well the grounds raised before the first appellate authority, stands raised before the Revenue authorities; the only issue being qua the addition made in assessment. The same, in any case, arising from outside oneself – as is contract receipt, the quantum of income from which source is the subject matter of dispute, is income, as indeed it would be for any other person. Reference in this regard may be made to the decision in Banglore Club v. CIT [2013 (1) TMI 343 - SUPREME COURT] reiterating the settled position of law in the matter with reference to several judicial precedents. We decide accordingly. Assessee’s appeal is partly allowed.
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