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2017 (8) TMI 317 - AT - Income TaxEstimation of income - project completion method - Held that:- Though the assessee claimed to have followed the project completion method, it is obligatory on the part of the assessee to maintain the regular books of account and support the contention with the books of account, bills and vouchers, that it is following project completion method and true and correct financial position can be drawn with the books of account. The expenditure debited to the work-in-progress/advances received required to be accounted correctly to show that no inflation of expenditure and no suppression of income was made by the assessee. The assessee has not produced the books of account, bills and vouchers. In the absence of the books of account, bills and vouchers the contention of the assessee that it is following project completion method is without any basis. It is clear from the facts gathered from the assessment order and the Commissioner of Income-tax that, the assessee is not following any method which gives true and current financial affairs to deduce the income correctly. Therefore, we do not find any reason to disturb the order of the Commissioner of Income-tax. Accordingly, we confirm the addition made by the Assessing Officer at the rate of 8 per cent. on the gross receipts. - Decided against assessee. Estimation of income on accumulated gross receipts in the assessment year under consideration - Held that:- In the earlier years, the assessee has not admitted any income and filed "nil" return of income as discussed earlier. No books of accounts were produced before the Assessing Officer to estimate that the Revenue and expenditure was accounted correctly. Therefore, till the date of filing the return, the assessee has admitted 'nil' income and the earlier receipts were not offered to income. The assessee has not produced the books of account before the Assessing Officer and the relevant evidence in respect of expenditure incurred till date. In the absence of books of account, the correctness of the expenditure could not be established. Therefore, only option available to the Assessing Officer to estimate the income on the gross receipts received up to accounting year 2009.- Decided against assessee.
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