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TMI Blog2016 (7) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... We find that estimation has to be based on facts and circumstances of the each case. In the present case, the estimation restricted by the Ld. CIT(A) as against the order of the A.O., we find it just and reasonable, there is no reason to interfere with the order passed by the CIT(A). Thus this appeal filed by the revenue is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... furnish the details of the trade creditors shown at ₹ 3,41,00,000/- along with confirmation letters explaining the sources for the investment made. On verification of the details of the sundry debtors of ₹ 1,72,60,594/- and the trade creditors of ₹ 3,41,00,000/- furnished by the assessee it is noticed that the debtors represents bills receivable from the respective companies and total amount of trade creditors represents wages payable to labour. There are no secured/unsecured loans availed by the assessee and there are no assets purchased during the year. It is noticed that during the year the assessee has attained a turnover of ₹ 23,43 crores as against ₹ 10.95 crores of the last year. However, the profit mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT, Hyderabad 'A' Bench, Hyderabad in ITA No.500/HYD/2012 and estimated the income from subcontracts at 7% and 12.5% on contracts. On the other hand, the appellant has relied on the decision of the Hon'ble ITAT, Hyderabad Bench 'B' in the case of Sri Keshava Bhatta Vangala vs. ITO, Ward-8(2), Hyderabad in ITA No. 1213/Hyd/2013, wherein the Tribunal has held that estimation of profit @ 8% on main contract and at 5% on sub contract is justified. On a perusal of the above decisions, it is observed that in the decision relied upon by the Assessing Officer also, the Hon'ble Tribunal has flnally held that estimation of profit at 8% on main contract and 5% on sub contract is justified However, the Assessing Officer has estimat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. In this case, assessee is a civil contractor and also carried sub contracts. In the course of assessment proceedings, the A.O. has asked the assessee to file the books of accounts. The assessee is not able to file all the relevant details, therefore, the A.O. has rejected the books of accounts and estimated the income on gross receipts of sub contract works at 7%, income estimated on gross receipt of main contract works at 12.5%. On appeal, the Ld. CIT(A) has restricted the disallowance in respect of sub contract works at 7% to 5% and in respect of main contracts 12.5% to 9%. Both the A.O. as well as CIT(A) stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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