TMI Blog2016 (5) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... but the Gross Contract Receipt of the relevant year appears to be a more authentic and a sure guide for the assessment. The past tax history would have been more useful in the absence of Gross Contract Receipt. Accordingly, assessment on its basis cannot be faulted merely for the reason that past tax history was not considered. The question is to whether the assessment should have been @ 10% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Sri Praveen Kumar for the Income Tax Department. The petitioner is a civil contractor. He was assessed under Section 144 of the Income Tax Act, 1961 for the assessment year 2010-11 vide order dated 27.03.2013. The Assessing Authority rejected the account books of the petitioner and left with no option assessed him on the basis of estimation of income of the assessee @ 10% of the Gross C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessment on the basis of the past income of the petitioner could not have been very safe. An assessee in the past may be having low income whereas his business fortunes may have improved upon considerably in the year in question. Therefore, when the Gross Contract Receipt was on record, it was more safe and prudent to depend upon it rather than the past tax record. In Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... past tax history was not considered. The question is to whether the assessment should have been @ 10% of the Gross Contract Receipt or at some reduced rate dependants upon the facts and circumstances of the each case. In the event, the assessing authority has exercise the discretion to assess it on 10% of the Gross Contract Receipt, the same is not liable to be disturbed in exercise of extra or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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