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2016 (5) TMI 1266 - ANDHRA PRADESH HIGH COURTEstimation of gross receipts - Held that:- In the present case, the gross receipts, no doubt, are far in excess of ₹ 40 lakhs and, as such, Section 44AD of the Act is not attracted. The Tribunal, however, held that Section 44AD of the Act serves as a guidance in estimating net profit even in cases where the gross receipts exceed ₹ 40 lakhs also. The Tribunal has referred to the earlier orders passed in several other cases where profits were estimated at 8% of the gross receipts for the main contract, and at between 5% to 7% for sub-contracts. As has been rightly held by the Tribunal, estimation of profits would depend on several factors, and would vary from one case to another. As the manner in which profits are to be estimated would depend on the facts of a given case, no question of law arises on such estimation either by the Commissioner of Income Tax (Appeals) or by the Tribunal, unless such an estimation is perverse. In the present case, we are satisfied that the order of the Tribunal does not suffer from any such infirmity
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