TaxTMI 
TaxTMI 
2012 (12) TMI 411
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....learned CIT(A) on the issue raised by the Revenue in their appeal for the Assessment Year 2008-09. 2. ITA No.377/CTK/2012 filed by the assessee against the order dt. 20.1.2012 of the Commissioner of Income-tax (Appeals) pertains for the Assessment Year 2007-08. 3. The appeal filed by the assessee for the Assessment Year 2008-09 is belated by 53 days, the cause of which has been explained in the petition for condonation of delay filed before the Tribunal that the assessee being a contractor, due to exposure at work site, he was affected with viral Heapatitis and was under treatment of doctor from 20.2.2012 to 4.6.2012 supported by Medical Certificate placed on record. Considering the same to be reasonable cause, we condone the delay an....
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....d Counsel for the assessee argued that it was not the case of Civil Contractor as construed by the Assessing Officer when the facts are glaring that more than 87% of the receipts were purely reimbursement of the material cost incurred by the assessee. The learned CIT(A) therefore, did not consider these contentions in confirming the estimation of 8% when he chose to rely on the decision of ITAT, Cuttack Bench in the case of S.N. Kanungo & Associates v. Asstt. CIT in ITA NO.090/CTK/2011 for the Assessment Year 2006-07 who had held that the provisions of section 44AD would apply in case the books of account are not maintained or they are not properly maintained as noted by the Assessing Officer. The learned Counsel for the assessee argued tha....
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....he assessee submitted that the percentage of 8% on gross receipts as adopted by the learned CIT(A) as income of the assessee is on higher side. 8. We have heard the rival submissions of the parties and perused the material available on record. We have perused the orders of the authorities below and also the fact that the assessments for both the AYs have been passed u/s.144 which has been taken note of by the learned CIT(A). The learned CIT(A) thought it fit to estimate the income at 8% for both the AYs when for the Assessment Year 2007-08 the Assessing Officer on a specific finding that the assessee is not cooperating resorted to pass the order u/s.144. He passed the estimation of 8% on the gross receipts as given in the financial state....
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....cates that part of the learned CIT(A) contentions are acceptable to the extent that the estimation should not lead to taxing of incomes again specifically those incomes which are not incomes on which actually material cost directly billed to the assessee when the bills for the material purchased are also submitted to the contractees. In other words, the maintenance of books of account has been more to the benefit to the assessee which non-maintenance has taken recourse by the authorities to make the assessment and that too on estimation. The learned Counsel for the assessee has relied on certain decisions of the Tribunal which on the facts and circumstances of the case granted relief to the extent that the books of account maintained are fo....