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2020 (2) TMI 884 - AT - Income TaxRejection of books of accounts u/s 145(3) - On money receipt - estimation of income - addition on account of entire construction receipts as alleged unrecorded receipts - HELD THAT:- CIT (A) was not justified in confirming the addition of entire on-money receipts amounting to ₹ 4,72,02,368. Therefore, only estimated net profit is required to be taxed. We find that the assessee has shown net profit at 4.55.% for the assessment year under consideration and 4.59% for A.Y. 2010-11. Further, the Hon`ble High Court in the case of CIT V. Abhishek Corporation [1998 (8) TMI 110 - ITAT AHMEDABAD-C] has upheld the net profit at 1.31% as declared by the assessee in that case. The net profit rate disclosed at 4.55% during the assessment year under consideration by the assessee in books of accounts and considering the facts that the project undertaken by the assessee comes under deduction of section 80IB(10) hence, there may not be any intention to disclose the lower rate of profit. Considering these facts, and taking in to account net profit in construction business, it would be reasonable to estimate 6% of net profit on total on-money receipts - Appeal of the assessee is partly allowed.
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