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TMI Blog2020 (12) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... . Brief facts of the case are that, the assessee is engaged in the business of execution of civil contracts and filed his return of income, declaring total income of Rs. 91,35,460/- on 26-09- 2015. 4. During the course of assessment proceedings, the assessee failed to submit the ledger extracts, bills and vouchers pertaining to expenses, debited to the Profit & Loss A/c. In the absence of bills and vouchers to support the expenditure claimed by the assessee, the AO rejected the books of account and estimated the income of the assessee @8.5% of the gross bills and accordingly determined the total income at Rs. 1,15,47,492/- on main contract works executed by the assessee. 5. Against the said assessment, the assessee was in appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the income admitted by the assessee works out to 6.72%. The assessee submitted the gross bills, bank account statements, Profit & Loss A/c and Balance Sheet before the AO. The gross bills received by the assessee are in synch with Form 26AS statement. There was no dispute in this regard. Though the AO made the estimation of income @8.5%, no comparable case has been brought on record by the AO. During the appeal hearing also Ld.DR did not bring any comparable case for reasonable estimation of the income. Before the CIT(A) the assessee brought out the following case law, in support of his contentions: i. B.Banamber& Co., Vs. ITO (2016) [48 ITR (Trib.) 41 (Ctk)]; ii. NishikantT.Patne Vs. ACIT, Circle-3 (2013) [60 SOT 146/36 taxmann.com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied by the Assessing Officer at the time of assessment". 9.2. As per the submissions made before the CIT(A), the estimation of income @8% is reasonable. Even though the assessee had the turnover over and above the limit of Section 44AD, the Special Bench of ITAT, Indore in the case of Arihant Builders Developers Vs. ACIT, [291 ITR 49] (Indore) held that - estimation of income taking the cue from Section 44AD is reasonable though the limit exceeds. Therefore, taking into consideration of the submissions of the assessee and the lead from the order orders relied up on by the assessee, we hold that the estimation of income @8% meets the needs of justice. Accordingly, we set aside the order of the CIT(A) and direct the AO to estimate the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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