Disallowance toward provision for loss on contracts - reporting ...

Accounting Standard 7: Reporting Profits on Contracts Requires Reliable Estimates to Prevent Unjustified Loss Claims.

July 7, 2016

Case Laws Income Tax AT

Disallowance toward provision for loss on contracts - reporting profit on the basis of proportionality as per AS-7 - The reliability of the estimate is indeed very relevant and crucial to the claim for loss, lest any amount could be claimed under the garb of the likely loss - AT

View Source

← Previous Next →

Disallowance toward provision for loss on contracts - reporting ...

Accounting Standard 7: Reporting Profits on Contracts Requires Reliable Estimates to Prevent Unjustified Loss Claims.

July 7, 2016

Case Laws Income Tax AT

You may also like:

Recognition of contract revenue under Accounting Standard (AS) 7 - Maintenance activities cannot be clubbed with the construction activity. Having gone through the...

The Income Tax Appellate Tribunal examined the determination of net profits from contract business, rejection of books of accounts, and addition u/s 40(a)(ia) for...

New and Revised Auditors’ reporting standards (w.e.f. accounting periods starting 01/04/2018)

In a case regarding GP estimation, the Assessing Officer (AO) applied an 8% profit rate on the assessee's turnover, which did not match Form 26AS. The CIT(A),...

Rejection of books of accounts u/s 145(3) - trading addition - Once the books of accounts are rejected, the AO is required to estimate the gross profit in the hands of...

Corporate debtor's account correctly declared as non-performing asset (NPA) due to failure to renew cash credit facilities and provide required financial documents for...

Estimating the profit on alleged unrecorded sales - A.O. directed to make addition by estimating profit @ 15% of the amount so deposited in the bank account with respect...

Deduction of interest expenditure of INR u/s 36(1)(iii) - the Assessee has undertaken only one redevelopment project. It is not disputed that interest cost is directly...

Profit estimation on unaccounted turnover: AO estimated 8% profit based on seized material, which was reduced to 5% by CIT(A). ITAT held that in case of profit...

Addition of contract receipts - bogus activity - Estimation of income - The AO had made an addition to the assessee's income, alleging discrepancies in the contract...

Estimation of profit - addition of receipts pertaining to contract receipts not shown in the total turnover and cash deposits into SBI Bank account - Department must act...

Escapement of income - works contract - A.O. directed to estimate net profit of 10% on main contract works and 7% on sub contract works, net of all expenditure including...

Addition of difference in sales – there was no justification in not accepting the sales recorded by the assessee in its books of accounts as per Accounting Standard AS-7 - AT

Estimation of income - Bogus purchases - Rejection of books of accounts - There is no error in the finding of the ld.CIT(A) for rejection of the books of accounts as...

ITAT ruled that penalty under section 271(1)(c) cannot be sustained where income assessment was based on estimated net profit rate of 24.50% versus assessee's declared...

Quick Updates: