2009 (11) TMI 938

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ant/assessee and the standing counsel appearing for the respondent Department. 3. The assessee was engaged in both as a consultant and contractor for setting up of acqua farms for various parties. The assessee has not maintained any books of accounts and whatever records produced in the course of assessments were found to be unreliable. Therefore, the assessment was completed after rejecting the books of accounts and on estimation basis. The assessments were modified in the first appeal and the Tribunal again modified the same by granting further relief with regard to estimation of income. It is against these orders the assessee has come up before us with these appeals filed under s. 260A of the IT Act (for short 'the IT Act'). ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....work and disallowed only so much of the balance of Rs. 2,01,414 pertaining to consultancy work. Counsel for the assessee though contended that the disallowance is arbitrary could not establish before us that the accounts are correct and complete. Details of expenditure and the purpose for which it was spent, were also not available on record. Therefore, in our view, the Tribunal rightly disallowed a sum of Rs. 2 lakhs towards civil work and allowed at least 50 per cent of the claim attributable to consultancy work. We find, no substantial question of law involved in the finding of the Tribunal. Therefore, we answer this question in favour of the Revenue and against the assessee. 5. The next question raised by the assessee pertains to add....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... accounts, we have to necessarily refer to the reason for rejection of books of accounts at least for one year. It is seen that on examining the books of accounts, the AO noticed that the assessee has shown cash payment of Rs. 80.16 lakhs on a single day, i.e., on the last date of the previous year relevant for the asst. yr. 1994-95 i.e., on 31st March, 1994. In order to verify the genuineness of the transaction, the AO issued notice to the persons in whose names vouchers were prepared by the assessee for having made the payments. The notices sent to some of the parties were returned stating that no such party exists and some of the persons who appeared before the AO gave sworn statement stating that they have not received the amount from t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... work at 8 per cent because under the presumptive scheme, s. 44AD provides for assessment of income on civil construction work at 8 per cent where the contractor's turnover is below Rs. 40 lakhs. Even though counsel for the appellant contended that s. 44AD has no application as the contract amount is above Rs. 40 lakhs, we do not think, there is justification to interfere with the order of the Tribunal because in the first place, the Tribunal has granted part relief to the assessee by reducing the estimated income from 10 per cent to 8 per cent. Secondly, what the Tribunal has done, is only to follow s. 44AD as a guideline for estimation of income from civil work. We, therefore, find no justification to interfere with this part of the o....