9911796707
TMI Blog2011 (12) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... ing maintenance charges. The assessee was asked by the Assessing Officer to produce evidence in support of this expenditure debited against the maintenance charges received. The Assessing Officer held that in spite of several opportunities given, the assessee could not produce any evidence in support of the expenditure incurred and therefore he estimated the income at 18% of gross contract by applying the provisions of section 145 of the IT Act. Accordingly, the income from this maintenance was adopted at ₹ 1,20,763/-. 3. Aggrieved, the assessee preferred an appeal before the CIT(A) on this issue among others. The CIT(A) noted that the total receipts of the assessee for the year under consideration amounted to ₹ 1,15,05,086/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he lessee, an amount of ₹ 18,29,986/- was paid to the assessee towards rent for the period from 1.4.2005 to 31.3.2006, against which an amount of ₹ 4,24,786/- was deducted towards TDS. The assessee claimed an amount of ₹ 5,76,937/- as deduction u/s 24(a). The Assessing Officer restricted the deduction claimed u/s 24(a) proportionate to the period of holding the property as owner to the extent of ₹ 3,84,625/- on the ground that the assessee has disposed off the property on 21.11.2005 and has ceased to be the owner of the property from that date onwards. 6. The Learned Authorized Representative of the assessee argued before the CIT(A), that Section 24 of the Act has no restrictive clause and does not stipulate any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject is at ₹ 14,13,133/-. It was further submitted that the business income declared by the assessee from the gross receipts of ₹ 1,70,87,500/- will be at 8.27%. There is no dispute in respect of the gross receipts of the entire project from the assessment year 2003-04 to 2007-08 which at ₹ 1,70,87,500/-. The income declared for the early years i.e. from the assessment year 2003-04 to 2005-06 and for the assessment year 2007-08 were accepted by the revenue and requested to delete the addition. 8. With respect to reimbursement of expenditure it was submitted by the assessee, before the CIT(A), as under: As per the documents, it is seen that the assessee has disposed off the properties in favour of Sri P.V Ramakrishna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 1,04,00,000/- it is not denied that the assessee has received ₹ 8,05,086/- which should form part of total receipts for the year under consideration. The assessee has not shown the extra receipts of ₹ 3 lakhs which should form part of total receipts for the period under consideration. Thus, total receipts for the year under consideration amounts to ₹ 1,15,05,086/-. The total receipts should not be considered as income for the year, but income has to be curbed out. The bench mark for income is 8% in a civil construction; in case of small entrepreneur whose total receipts for a year are less than 40 lakhs. Since, the assessee is a big person in terms of the volume of business is concerned, taking into account the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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