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2021 (5) TMI 206 - AT - Income TaxEstimation of turnover of the assessee's benami firms - A.O. estimated the income of all the benami firms @ 5% of their aggregate turnover - HELD THAT:- Assessee is holding 95% share in all the 10 firms. The so-called partners of those firms have also conceded that they are only employees of the assessee and not the partner of the assessee. The assessee has also not brought out any materials on record to establish that the profits of the firms were distributed to the partners of the firm according to their profit-sharing ratio i.e., in the ratio of the capital held by the assessee and the other partners - it is apparent that all the ten partnership firms are the assessee's benami firms. Therefore, We are of the view that the Learned Revenue Authorities had rightly treated all the relevant firms as the assessee's benami firms. As these firms have also not maintained their books of accounts properly and produced cogent evidence for the expense incurred before the Ld. Revenue Authorities. Under these circumstances, the Learned Revenue Authorities has estimated 5% of the aggregate turnover of all the relevant firms as the income of the assessee which We are of the view is quite reasonable and fair. Therefore, we do not find it necessary to interfere with the order of the Learned Revenue Authorities on this issue. Disallowance u/s. 40(a)(ia) - Interest paid by the assessee to various entities without deducting TDS - HELD THAT:- At this stage, the Ld. AR could not controvert to the findings of the Learned Revenue Authorities on this issue. In this situation, We are of the view that the Learned Revenue Authorities had rightly invoked the provisions of section 40(a)(ia) of the Act which is in accordance with the provisions of the Act. Hence, we do not find it necessary to interfere with the orders of the Learned Revenue Authorities on this issue also. Therefore, Groundraised by the assessee are also devoid of merits.
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