2011 (12) TMI 619

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....om M/s Chaitanya Educational Committee, Hyderabad towards building maintenance charges. The assessee was asked by the Assessing Officer to produce evidence in support of this expenditure debited against the maintenance charges received. The Assessing Officer held that in spite of several opportunities given, the assessee could not produce any evidence in support of the expenditure incurred and therefore he estimated the income at 18% of gross contract by applying the provisions of section  145 of the IT Act. Accordingly, the income from this maintenance was adopted at Rs. 1,20,763/-. 3. Aggrieved, the assessee preferred an appeal before the CIT(A) on this issue among others. The CIT(A) noted that the total receipts of the assessee f....

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....seen from the TDS certificates issued by the lessee, an amount of Rs. 18,29,986/- was paid to the assessee towards rent for the period from 1.4.2005 to 31.3.2006, against which an amount of Rs. 4,24,786/- was deducted towards TDS. The assessee claimed an amount of Rs. 5,76,937/- as deduction u/s 24(a). The Assessing Officer restricted the deduction claimed u/s 24(a) proportionate to the period of holding the property as owner to the extent of Rs. 3,84,625/- on the ground that the assessee has disposed off the property on 21.11.2005 and has ceased to be the owner of the property from that date onwards. 6. The Learned Authorized Representative of the assessee argued before the CIT(A), that Section 24 of the Act has no restrictive clause an....

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....om the project is at Rs. 14,13,133/-. It was further submitted that the business income declared by the assessee from the gross receipts of Rs. 1,70,87,500/- will be at 8.27%. There is no dispute in respect of the gross receipts of the entire project from the assessment year 2003-04 to 2007-08 which at Rs. 1,70,87,500/-. The income declared for the early years i.e. from the assessment year 2003-04 to 2005-06 and for the assessment year 2007-08 were accepted by the revenue and requested to delete the addition. 8. With respect to reimbursement of expenditure it was submitted by the assessee, before the CIT(A), as under: As per the documents, it is seen that the assessee has disposed off the properties in favour of Sri P.V Ramakrishna Ra....

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.... that the assessee has received Rs. 8,05,086/- which should form part of total receipts for the year under consideration. The assessee has not shown the extra receipts of Rs. 3 lakhs which should form part of total receipts for the period under consideration. Thus, total receipts for the year under consideration amounts to Rs. 1,15,05,086/-. The total receipts should not be considered as income for the year, but income has to be curbed out. The bench mark for income is 8% in a civil construction; in case of small entrepreneur whose total receipts for a year are less than 40 lakhs. Since, the assessee is a big person in terms of the volume of business is concerned, taking into account the various parameters of operations of the assessee and ....