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2017 (11) TMI 717 - AT - Income TaxDisallowance of expenditure - amounts were never used for its business activities - Estimation of income at 8% in the case of main contractor and 5% in the case of a sub-contractor - Held that:- In the case of MAA Highways (2016 (5) TMI 344 - ITAT HYDERABAD) we have already held that where the income is estimated after rejection of books of account, no further disallowance of business expenditure can be made. In the case before us also, the AO has made the estimation on the ground that the assessee had not incurred any expenditure and the amounts were never used for its business activities and were returned back to the main contractor. Since the facts and circumstances are the same before us as in the case of Maa Highways and since we have confirmed the estimation of income by the AO at 8% in the case of main contractor and 5% in the case of a sub-contractor, we see no reason to interfere with the order of the CIT (A). - Decided against revenue
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