TaxTMI 
TaxTMI 
2017 (9) TMI 1164
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....t A.O. has no power to assess income on presumptive basis u/s 44BBB(1) of the Act, if assessee has maintained books of account as prescribed u/s 44BBB(2) of the Act although books of account maintained by assessee are not proper and do not reflect the correct income of assessee? [B] Whether, the Hon'ble ITAT has erred in law and on facts of the case, in holding that A.O. has erred in rejecting books of accounts of assessee relying on the decision of Hon'ble Gujarat High Court decision in the case of CIT vs. Advanced Construction Co. (P) Ltd. reported in 275 ITR 30, although the ratio laid down by the Hon'ble Gujarat High Court is squarely applicable in present facts of the case and in favour of the revenue? 2. Respondent - assessee is a ....
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.... the assessee in executing similar works in the past. The assessee had also submitted detailed break-up of the estimated profit and loss account for the entire project for five financial years. The assessee had also submitted the details of the budgeted costs to the revenue. The assessee had produced the audited financial statements during all the financial years. The Commissioner had the benefit of further developments by the time the appeal was disposed of and noted that the financial statements of the financial years 2009-10 and 2010-11 were available which were submitted before him by the assessee which matched the estimated costs presented by the assessee before the Assessing Officer. The Commissioner also noted that the entire project....
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....ains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee." 6. Under sub-section (1) of section 44BBB of the Act therefore in case of assessee being a foreign company engaged in the business of civil construction or business of erection of plant or machinery or testing or commissioning thereof in connection with a turnkey power project approved by the Central Government would be taxed at t....