TMI Blog2023 (7) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... he bogus expenses, the actual estimated expenses need to be reduced from the amount of revenue receipts for computing the income. In our considered opinion, the ld. CIT(A) was more than considerate in estimating the profit at 12% on such contract receipts as against the assessee s normal profit rate from genuine business at 6.51%. The contention of the Department that the full amount, as added ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the assessee is engaged in the business of Construction and Maintenance of Dams and Power projects. The return was filed declaring total income at Rs. 7.27 crore. During the course of assessment proceedings, the Assessing Officer (AO) observed that the assessee awarded subcontract works to various parties including M/s. Starmark Infra Developers Pvt. Ltd; Silicon Real Estate Pvt. Ltd.; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tribunal. 3. We have heard both the sides and gone through the relevant material on record. The ld. CIT(A) has affirmed the findings of the AO anent to the bogus sub-contract expenses. The assessee is not in appeal. To that extent, the impugned order is affirmed by holding that the assessee recorded accommodation bills totaling to Rs. 63.30 crore. Now, the question is about the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus sub-contract expenses, stand at Rs. 64.49 crore. The AO has not disputed the genuineness of the contract receipts to this extent. This shows that the assessee actually carried out the contract work of this magnitude but recorded bogus bills towards sub-contract expenses amounting to Rs. 63.30 crore for reducing the amount of profit, instead of actual lower expenses. On disallowing the bogus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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