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2022 (9) TMI 1092

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..... evidences in respect of expenses before us, we are of the considered view that the ld. CIT(A) has been reasonable in estimating profit by apply the rate of 8%. In the result, we uphold the order of ld. CIT(A) in the instant set of facts. - ITA No. 147/Rjt/2021 - - - Dated:- 21-9-2022 - Shri Waseem Ahmed, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member Assessee by: Shri Chetan Agarwal, A.R. Revenue by: Shri B.D. Gupta, Sr. D.R. ORDER PER BENCH:- This is an appeal filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 28-10-2021, in proceedings under section 144 of the Income Tax Act, 1961; in short the Act . 2. The assessee has taken the following grounds .....

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..... 3.3. I have considered the matter. The assessee was executing civil construction work and renting out of vehicles. The fact of assessee doing contract work is in the knowledge of the AO. I have seen 26AS. Out of total receipt of Rs.1,12,92,131/- tax was deducted u/s 194C for a sum of Rs. 1,04,91,762/- and u/s 1941 for Rs. 8,00,369/-. Thought assessee did not produce any books of accounts or record showing expenses, in that line of business, substantial expenses must have been incurred. Even if income is assessed u/s 144, it has to be a fair estimate. There is plethora of case laws wherein it has been held that the whole trading receipt cannot be assessed as income. The appellant had pointed to some decisions of even Hon'ble Jurisdictio .....

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..... the gross receipts. In response, DR submitted that estimation of net profit at 8% by Ld. CIT(Appeals) is very reasonable in the instant set of facts, especially when the assessee has not brought forth any evidence in support of expenses incurred. 6. We have heard the rival contentions and perused the material on record. The assessee has not been able to bring forth any supporting evidences in respect of expenses incurred in earning the contractual income. The assessee has cited examples of assessee s in similar line of business and submitted that the profit margin in their case was less than 5%. However, since the assessee has been unable to submit any supporting evidences in respect of expenses before us, we are of the considered view .....

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