Appeal partially allowed: income estimated at 8%, verification of creditors required, TDS credits to be verified.

The Tribunal partially allowed the appeal, ruling in favor of the appellant on the issues of estimating income from contract works at 8% instead of 10%, directing verification of genuineness of creditors for additions under section 68, and instructing the Assessing Officer to verify TDS credits and provide credit accordingly under sections 234B and 234C.

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Issues:
1. Estimation of income from contract works
2. Addition under section 68 for Shaym Trading Co. and Sahoo Enterprises
3. Credit of TDS amount and levy of interest under sections 234B and 234C

Estimation of income from contract works:
The appellant challenged the estimation of income from contract works at 10% instead of 8% by the Commissioner of Income-tax (Appeals). The Assessing Officer estimated the net profit at 10% of gross contract receipts due to unverifiable accounts. The appellant argued that 8% would be more reasonable. The Tribunal agreed, setting aside the Commissioner's order and directing to estimate the net profit at 8%.

Addition under section 68 for Shaym Trading Co. and Sahoo Enterprises:
The appellant contested the addition of Rs. 9,50,100 under section 68 for Shaym Trading Co. and Sahoo Enterprises, claiming these were genuine transactions. However, the creditors denied any transactions with the appellant. The Tribunal set aside the Commissioner's order, instructing the Assessing Officer to verify the genuineness of the creditors before making a decision.

Credit of TDS amount and levy of interest under sections 234B and 234C:
Regarding the credit of TDS amount of Rs. 9,10,269 and the levy of interest under sections 234B and 234C, the Tribunal referred to a previous decision directing the Assessing Officer to verify the TDS certificate and give credit accordingly. The Tribunal set aside the Commissioner's order, asking the Assessing Officer to verify the income status and provide credit for TDS amount in line with the law. The levy of interest under sections 234B and 234C was deemed consequential.

In conclusion, the appeal was partially allowed by the Tribunal, addressing the issues raised by the appellant in relation to the estimation of income from contract works, addition under section 68, and the credit of TDS amount along with the levy of interest under sections 234B and 234C.

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