Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 5 - AT - Income TaxEstimation of income - Rejection of books of accounts - estimation of profit rate @ 8% on contract turnover in civil construction business - HELD THAT:- Foremost argument against estimating the assessee’s income @ 8% in issue, is not sustainable since the assessee’s turnover pertains to sub-contract business only. He fails to dispute that the assessee had not given full details of the sub-contract receipts right from scrutiny till date. We, thus, find no reason to accept his technical as well as factual arguments regarding to books’ rejection resulting in the impugned profit estimation. We accordingly decline the assessee’s substantive ground to this effect. Addition u/s. 40(a)(ia)in view of the rejections of books of accounts - We are of the opinion that the same has no legs to stand once the assessee’s books stood rejected as per hon’ble jurisdictional high court’s decision in Indwell Constructions vs. CIT [1998 (3) TMI 121 - ANDHRA PRADESH HIGH COURT] that no disallowance could be made once an assessee’s profits are estimated at the fixed percentage of it’s turnover. We, thus, accept the assessee’s instant third substantive grievance. Addition u/s 68 - unexplained cash credits - share application / premium and unsecured loan - only plea is that no such amounts had been collected in the relevant previous year so as to form subject matter of section 68 addition - HELD THAT:- Faced with this situation, we are of the opinion that the same requires afresh factual verification at the Assessing Officer’s end as per law. We order accordingly. The assessee or its learned authorised representative shall appear before the Assessing Officer on or before 30/09/2021 with all the relevant details to be followed by three effective opportunities of hearing at its own risk and responsibility.
|