9911796707
TMI Blog2021 (6) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... timating the income @ 10% as the assessee is engaged in Real Estate Business and not as Civil Contractor. 3. The brief facts of the case are that the assessee is a firm engaged in Real Estate and Development business. Initially, the assessee had failed to file its return of income for the AY 2013-14. Meanwhile, search and seizure operations U/s. 132 of the Act was conducted in the case of Ramkey Estates and Farms limited on 7/2/2013. During the course of search a development Agreement-cum-GPA dated 29/11/2007 was found and seized wherein the assessee was involved and therefore the case was taken up for scrutiny and the assessment was completed in central circle. Even during the course of scrutiny assessment proceedings, the assessee failed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mptions. This is the fit case to estimate the income of the assessee. In this given situation, the presumptive rate available in the section 44AD may be adopted even though the turnover of the assessee is more than the turnover of the eligible assessee as prescribed in the section 44AD. This is the rate which is near to the percentage arrived after factoring the reliability and the income computed by the special auditor. Hence, we direct the AO to adopt 8% of the sales as determined by the special auditor, to compute the income of the assessee year to year basis for AY 2000-01 to 2006-07. 5.5. Considering the facts of the case referred and relied upon by the assessee, it is reasonable to conclude that even in cases of estimation of profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at profits of the assessee are confined to 8%. Thus, considering the facts of the case, wherein the estimation was not questioned by the assessee and the correct rates of profit not proved to be not more than 8%, it may be reasonable to estimate such profits at 10% of the gross receipts and this may do justice at both the ends, in light of facts of the case, as brought on record. Under the circumstances, the AO is ordered to compute the net profits at 10% of the gross receipts, net of al the claims/ expenses and recompute the total income. Thus, the grounds related to this issue are treated as partly allowed." 4. Before us, the ld. DR vehemently argued by stating that the assessee is in Real Estate Business and therefore its profit will be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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