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TMI Blog2024 (3) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... and 5% on the sub-contract work. The Ld. CIT (A)-NFAC has relied on the decision of this Bench in the case of M/s. K. Venkata Raju [ 2022 (4) TMI 960 - ITAT VISAKHAPATNAM ] and accordingly estimated the income of the assessee. No merit in the argument of the Ld. AR and we have no hesitation uphold the decision of the Ld. CIT(A)-NFAC and dismiss the grounds raised by the assessee. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member And Shri S Balakrishnan, Hon ble Accountant Member For the Assessee : Sri GVN Hari, AR For the Revenue : Dr. Aparna Villuri, Sr. AR ORDER PER S. BALAKRISHNAN, ACCOUNTANT MEMBER : This appeal filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre, D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . AO noted that some of the bills/vouchers are not verifiable and some of the expenses were supported by self-made vouchers. In view of the above, a show cause notice was issued to the assessee stating that why the income cannot be estimated @ 12.5% on gross contract receipts. In response, the assessee s Representative submitted that the contract receipts of Rs. 61,45,010/- made through M/s Swarna Constructions also pertains to receipts from sub-contracts and has furnished the documentary evidence in support of the same. The assessee s Representative further pleaded the Ld. AO to consider the remuneration of Rs. 12,60,000/- paid to the Directors while estimating the income on gross receipts @ 12.5% on main contract receipts and @ 8% on sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectors and depreciation by relying on the decision of this Bench in the case of M/s. K. Venkata Raju (ITA No. 501/Viz/2019, dated 7/4/2022). Thus, the Ld. CIT(A)-NFAC partly allowed the appeal of the assessee and granted part relief to the assessee. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before the Tribunal by raising the following grounds of appeal: 1. The order of the Ld. CIT(A)-NFAC is contrary to the facts and also the law applicable to the facts of the case. 2. The Ld.CIT(A)-NFAC ought to have held that the AO is not justified in rejecting the books of account and in estimating the income from business. 3. Without prejudice to the above, the Ld. CIT(A)-NFAC is not justified in not granting separate de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NFAC has considered and granted relief to the extent of Rs. 19,22,890/- by reducing the estimated profits to 8% of main contracts and 5% of sub-contracts as against 12.5% of main contracts and 8% of the sub-contract works estimated by the Ld. AO. We find that the Ld. CIT(A)-NFAC has granted substantial relief to the assessee and this Bench of the Tribunal has consistently held that while estimating the profits, it shall be 8% on the main contracts and 5% on the sub-contract work. The Ld. CIT (A)-NFAC has relied on the decision of this Bench in the case of M/s. K. Venkata Raju (ITA No. 501/Viz/2019, dated 7/4/2022) and accordingly estimated the income of the assessee. We therefore find no merit in the argument of the Ld. AR and we have no he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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