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2021 (6) TMI 342 - ITAT HYDERABADEstimation of income - Computation of Net profit - CIT (A) estimating the income @ 10% as the assessee is engaged in Real Estate Business and not as Civil Contractor - HELD THAT:- It is apparent that the assessee has grossly erred by not maintaining the particulars of its business. The assessee has also failed to produce the books of accounts and any relevant document concerning the same before Revenue Authorities. Assessee is engaged in the real estate business where the profit is lucrative - if the assessee had earned commission from purchase and sale of immovable asset then the expenditure towards the same will be minimal ie., not beyond 40% of the turnover thus the net profit will be over 50%. The profit margin will be high with respect to purchase and sale of immovable property. Moreover, gross turnover of the assessee is as high as ₹ 16.5 Crs therefore, the provisions of presumptive tax U/s. 44AD of the Act will not at all be applicable nor any positive inference can be drawn from the same in the case of the assessee which the Ld.CIT(A) has relied upon. We are of the view that the order of the Ld. CIT (A) does not have much merit - estimation of net taxable income @ 18% of the turnover would suffice in the case of the assessee. Accordingly, we hereby sustain the Order of the Ld.AO to that extent - Appeal of the Revenue is partly allowed.
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