9911796707
TMI Blog2019 (7) TMI 1802X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee has not brought on record whether assessee has transferred the TDS deducted by M/s Tehri Hydro Development Corporation. No information was submitted before us. However, we notice that in the immediate previous AY, i.e. AY 2008-09, income of the assessee was estimated @ 2% and there is no change in the business model, in our considered view, AO cannot increase the rate of estimation without any major deviation in the business model of the assessee. Therefore, we are inclined to accept the findings of ld. CIT(A) and accordingly, upholding the order of CIT(A), we dismiss the grounds raised by the revenue. - ITA No. 461/Hyd/2019 - - - Dated:- 31-7-2019 - SMT. P. MADHAVI DEVI AND SHRI S. RIFAUR RAHMAN, JJ. Revenue by : Shri Y. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Limited (THDCL), Rushikesh, Uttaranchal. During the year under consideration, the assessee shown the gross receipts at ₹ 235,90,17,325/- on which the tax deducted at source was claimed at ₹ 5,34,55,435/-. The assessee submitted that it has not maintained any books of accounts and offered income Rs. NIL. The assessee's AR contended and replied that the JV had shown Rs.NIL income based on assessment of its group JV PCL MVR JV. During the course of assessment proceedings, the AR of the assessee was asked to produce books of accounts. Since no books are maintained by the assessee, the assessee-company had declared the profits at Rs.NIL. In view of non-maintenance of any books of accounts by the assessee, the AO h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mated at 6% of contract receipts i.e. ₹ 7,07,70,520/- (being 50% share by the assessee). 3. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A) and submitted before the CIT(A) as under: In the matter of this appeal, the assessee is disputing of the estimate of rate of profit adopted by the AO. The work on the project has been continuing from the earlier years. For the immediately preceding assessment year 2008-09 profit rate @2% has been adopted by the AO. The assessee raised a dispute against assessment in the hands of JV and also the rate of profit adopted in the assessment. However, the ld. CIT(A) dismissed the appeal and sustained the estimate of profit @2% of the receipts. For the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear under appeal, I am of the considered view that the action of the AO in estimating income @6% on gross receipts is on higher side and, I hereby direct the AO to estimate income @2% on gross receipts. As a result, the grounds raised in this regard are allowed. 5. Aggrieved by the order of CIT(A), the revenue is in appeal before us raising the following grounds of appeal: 1. The CIT(A) erred in directing the AO to estimate income at 2% instead of 5% of gross receipts without any basis whereas as per section 44AD, where no books of accounts were maintained, the income is to be estimated @ 8% of gross receipts. 2. Any other ground that may be urged at the time of hearing. 6. Considered the rival submissions and perused the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
