9911796707
TMI Blog2013 (10) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... Company on 21.2.2006, no returns came to be filed by the Company in question. Certain incriminating documents were seized indicating various transactions relating to the business of construction carried on by the appellant. In spite of issuance of notices in accordance with the procedure, the appellant kept quiet without filing returns, therefore, proceedings came to be initiated and proposal for completion of assessment under Section 144 of the Income Tax Act, 1961 (best judgment) proposing income as the 20% of the gross receipts came to be issued. However, according to the appellant, audited accounts, including balance sheet were produced, though returns were not filed. The Company came up with its objection for the first time objecting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-03? If the assessee has not followed the project completion method or substantial completion method, how the finding of the CIT (Appeals) is justified? And above all, where is the material to show that the project was not completed even upto 5%? As already stated, in the absence of relevant details, the Assessing Officer was constrained to make an assessment on the basis of the materials available before her. The only material available before the Assessing Officer was the details of gross collections, that too not fully safe-vouched. It was in such circumstances that the Assessing Officer has estimated the income at 20% of gross collections." 3. The main contention of the appellant is, estimation of income at 20% of gross collection is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant Company is not as a civil contractor, but as a builder, therefore, definitely, the income earned by the Company would be more than the income earned by a civil contractor as opined by the Tribunal. On the other hand, when we go through the orders of 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 bona fides on the part of the appellant Company in not filing the returns, therefore, we are of the opinion, the estimation of profit at 20% from the receipts of the income for the assessment year 2002-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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