Sarath Babu v. Dy. Commissioner of Income Tax, Circle 8(1) IT Towers Hyderabad
[Citation -2016-LL-0928-47]
| Citation | 2016-LL-0928-47 |
|---|---|
| Appellant Name | Sarath Babu |
| Respondent Name | Dy. Commissioner of Income Tax, Circle 8(1) IT Towers Hyderabad |
| Court | ITAT-Hyderabad |
| Relevant Act | Income-tax |
| Date of Order | 28/09/2016 |
| Assessment Year | 2010-11 |
| Judgment | View Judgment |
| Keyword Tags | estimation of income • civil construction • sub-contractor • profit margin • share trading |
| Bot Summary: | Brief facts of the case are that the assessee, engaged in the business of civil contracts, filed his return of income for the relevant A.Y on 02.10.2010 declaring the income of Rs.52,49,650. With regard to civil construction work, the AO verified the bills and vouchers maintained by the assessee and observed that the assessee has not maintained books of account and bills and vouchers properly as they are mostly self made and without any proper and supporting evidence. Since the assessee could not explain with valid evidence, the AO held that the books of the assessee cannot be relied upon to deduce the correct income of the assessee for A.Y 2010-11. Was not convinced with the assessee s contentions and holding that the assessee has failed to submit why the work was taken on sub-contract basis and also as to why the work was not completed, he adopted the total contract receipt as Rs.18,80,05,301 as reflected in the 26AS and thereafter proceeded to estimate the income of the assessee at 8 of the gross contract receipts. Aggrieved, the assessee preferred an Page 2 of 4 ITA No 49 of 2015 Sarat Babu Chegurupati Hyderabad appeal before the CIT who confirmed the order of the AO and the assessee is in second appeal before us. While the learned Counsel for the assessee reiterated the submissions made by the assessee before the authorities below, the learned DR supported the orders of the authorities. Taking the same into consideration and also in the interest of justice, we deem it fit and proper to remand the issue to the file of the AO with a direction to the assessee to produce all the relevant material before the AO and also with a direction to the AO to consider whether the assessee is a sub- contractor and on the basis of such material, to estimate the income of the assessee at the rates fixed by this Tribunal in various decisions. |