Current account treatment of overseas tournament services removed most FEMA findings, but excess EEFC remittance and delayed repatriation remained bre...
Modification of bail conditions remains available through inherent jurisdiction where onerous deposits undermine justice and cannot recover disputed d...
Merchant banker regulation consolidates registration, governance, capital, reporting, outsourcing and investor-protection requirements under an update...
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 non-deduction of TDS. The Tribunal held that when books of accounts are rejected, it is rejected as a whole, and there cannot be part rejection or part acceptance. The Assessing Officer was justified in estimating business profits at a flat percentage of gross contract receipts in the absence of regular books. In such cases, the profit percentage declared by the assessee in earlier years is the best guide. Considering the assessee's earlier years' profit percentages, the Tribunal estimated the contract business profits at 6% on the reduced contract figure after deducting demurrage for non-completion of work. Regarding the addition u/s 40(a)(ia), the Tribunal held that when books are rejected, the revenue cannot make additions or disallowances based on the same rejected books. Hence, the addition u/s 40(a)(ia) was deleted in favor of the assessee.
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 non-deduction of TDS. The Tribunal held that when books of accounts are rejected, it is rejected as a whole, and there cannot be part rejection or part acceptance. The Assessing Officer was justified in estimating business profits at a flat percentage of gross contract receipts in the absence of regular books. In such cases, the profit percentage declared by the assessee in earlier years is the best guide. Considering the assessee's earlier years' profit percentages, the Tribunal estimated the contract business profits at 6% on the reduced contract figure after deducting demurrage for non-completion of work. Regarding the addition u/s 40(a)(ia), the Tribunal held that when books are rejected, the revenue cannot make additions or disallowances based on the same rejected books. Hence, the addition u/s 40(a)(ia) was deleted in favor of the assessee.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4788
Join Channel
TaxTMI 
