9911796707
TMI Blog2013 (10) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... ile returns - He can show loss and then file returns, the Tribunal was justified in saying it is not a good ground at all. Applicability of Section 44-AD – Held that:- The activity carried on by a builder or realtor would not attract the provisions of Section 44-AD and it would rather attract the case where the assessee were to be a civil contractor - The income earned by the Company would be more than the income earned by a civil contractor as opined by the Tribunal - there was no material to substantiate the contention that the project was not completed even upto 5% - All the receipts during this period plus non filing of the returns and disclosure of the receipt of accounts in the search and seizure would clearly show there was no bon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the first time objecting the estimation of 20% of gross receipts as income without any justification. According to them, except one project in question, nothing came to be undertaken by the Company and due to lack of experience, the Company went into problems. They had no proper planning, hence it resulted in loss as revealed in the audited accounts. According to them, subsequent to 2003, no business was carried on. Therefore, the assessment ought to have been done under Section 44-AD of the Income Tax Act taking 8% as the gross receipts. The assessing authority confirmed the proposal. However, the first appellate authority held that the percentage of completion of the project is below 5%, therefore, estimation of income came to be del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me at 20% of gross collection is not reasonable as the activities carried on by the appellant Company resulted in a loss on account of lack of experience and this is also one of the reasons why returns were not filed, though they had an audited balance sheet. It is well settled that ignorance or innocence of law is no excuse. Once he commenced business of construction in 2000 and if he has receipt of income as seen from the records, he is expected to file returns. If he knew that the accounts need to be audited by an auditor, definitely, the Company was also aware of the fact that they were expected to file returns. Therefore, inexperience or ignorance cannot be a ground not to file returns. 4. Second ground taken up by them is, they sust ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
