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2008 (8) TMI 528 - HC - Income TaxAccounting- Rejection- Revenue alleged that the assessee has not accounted the correct receipts and on that basis the Assessing Officer computed the total income of the assessee at Rs. 52,10,010. Against that order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) and the Commissioner of Income-tax (Appeals) has estimated the profits of the assessee at 8 per cent. of the contract receipts, having found that the total addition made by the Assessing Officer is highly exorbitant which would amount to net profit at 27.28 per cent., which is commercially impossible in respect of Government contract works. Tribunal took into consideration that under section 44AD of the Act, when books of account were not maintained, the income had to be estimated only at 8 percent. Held that- the Tribunal was justified in upholding the estimate.
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