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TMI Blog2016 (5) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... would depend on several factors, and would vary from one case to another. As the manner in which profits are to be estimated would depend on the facts of a given case, no question of law arises on such estimation either by the Commissioner of Income Tax (Appeals) or by the Tribunal, unless such an estimation is perverse. In the present case, we are satisfied that the order of the Tribunal does not suffer from any such infirmity - I.T.T.A.Nos. 452, 453 454 & 455 of 2015 - - - Dated:- 22-12-2015 - SRI RAMESH RANGANATHAN AND SRI M.SATYANARAYANA MURTHY, JJ. For The Petitioner : NARASIMHA SARMA COMMON JUDGMENT: (per Hon ble Sri Justice Ramesh Ranganathan) These appeals, under Section 260-A of the Income Tax Act, 1961 (for short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eby, both the assessee and the Revenue carried the matter in appeal to the Tribunal. In the order under appeal before us, the Tribunal affirmed the order passed by the Commissioner of Income Tax (Appeals) holding that, when the books of accounts were rejected, the only method available to the Assessing Officer was to estimate the profit; the profit ratio cannot be a constant factor for each and every year; the profit ratio would fluctuate depending upon various factors such as the place of execution of the contract, availability of raw material, labour and assessee s own funds etc; while estimating the profit, the authorities may take into consideration the profit ratio of similarly placed traders in the same locality and other factors; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals), after referring to the order of the Tribunal in Krishnamohan Constructions and Arihant Builders, Developers and Investors P. Ltd. 291 ITR 41 (SB), had estimated the profit at 8% for the main contract, and at 5% on sub-contract; the Tribunal was uniformly estimating the profits between 8% to 12.5% depending upon the factual situation, and 5% to 7% on the sub-contracts depending upon the factual situation; and, in their opinion, estimation of profit at 8% on the main contract, and at 5% on the sub-contract, was justified. Section 44AD of the Act stipulates that, notwithstanding anything to the contrary contained in Sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to 8% of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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