AI Drafter 
TaxTMI 
TaxTMI 
2018 (3) TMI 884
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.... is filed by the assessee in ITA No. 204/VIZ/2015. ITA No. 204/VIZ/2015 2. Facts of the case, in brief, are that the assessee is an individual, deriving income from construction and sale of apartments and house property, filed his return of income by admitting total income of Rs. 36,610/-. The return filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'Act') and subsequently, case was selected for scrutiny. After following due procedure, assessment is completed under section 143(3) of the Act. During the course of assessment proceedings, the Assessing Officer has observed that the assessee has shown gross receipts of Rs. 2,02,55,000/- towards sale of first floor, 6 f....
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....assessee has submitted that ld. CIT(A) by following in assessee's own case for the Assessment Year 2010-11, scaled down the estimation from 12.5% to 9% which is reasonable and the same may be confirmed. . 7. We have heard both the sides, perused the material available on record and orders of the authorities below. 8. In this case, the assessee is in the business of construction of sale of apartments, filed his return of income by admitting net profit at Rs. 13,08,735/-, which worked out to 6.26%. When the assessee was asked to file details and on verification of the same, the Assessing Officer found that bills / vouchers filed by the assessee are self made and the assessee is not able to substantiate the expenditure claimed by him and....
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....ts, a percentage of 9 is adopted in the place of 12.5 adopted by the Assessing Officer in the impugned assessment order and he-is directed accordingly." 8.2 Since the issue involved is one and same, the decision outlined in the above order will also apply to Asst. Year 2011-12. Accordingly, I hold that a percentage of 9 is adopted in the place of 12.5 adopted by the Assessing Officer in the impugned assessment order and he is directed accordingly." 9. We find that ld. CIT(A) for the year under consideration, has considered the profit of earlier year and scaled down the estimation of profit from 12.5% to 9%. We find no reason to interfere in the order passed by the ld. CIT(A). Thus, this ground field by the Revenue is dismissed. ....
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....mount of Rs. 46,17,322/- towards loan account No.HLAPVJW00042857 in India Bulls. The source for repayment of loan is said to have been taken as advances from Smt. K. Madhavi and Smt. K. Mythri. Thus, the assessee got it back the property pledged to India Bulls and registered on first floor to Smt. K. Madhavi and Smt. K. Mythri on 09/03/2011. From this, it can be construed that the assessee utilized the loan amounts not only to house property but also to business income. The Assessing Officer was of the opinion that the provisions of section 194A clearly applicable to the case of the assessee since assessee failed to deduct TDS on interest payment made to India Bulls, the interest claimed at Rs. 31,00,530/- is disallowed under section 40(a)(....
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....nds from India Bulls and utilized the same for the purpose of construction of house property and paid the same with interest to India Bulls. The rent received from the house property offered as 'income from house property' and submitted that the interest paid for the purpose of loan taken for construction of the houses hence, allowable under section 24(b) of the Act. He further submitted that assessee has not claimed any expenditure in profit & loss account, therefore, Assessing Officer cannot disallow the claim on account of interest paid to India Bulls. The case of the Assessing Officer is that the assessee has borrowed money from India Bulls for construction of house property in CVR Chambers and also for business separately, and the asse....
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....e AO. This order of the ITAT has been upheld by the Hon'ble Jurisdictional High Court vide the order dated 20/06/2013 where on the following question it was held as under:- "This appeal is sought to be admitted on the following suggested question of law:- "Whether on facts and in the circumstances of the case the appellate tribunal is justified in holding that no further disallowance under section 40(a)(ia) and 40A(3) of the Income Tax Act, can be made on the basis of the books of accounts in spite of mandatory provision and non-obstante clause contained therein, merely because the income was determined on estimate basis, by rejecting such books of accounts?" We have gone throught the impugned order of the App....