TaxTMI 
TaxTMI 
2018 (11) TMI 374
X X X X Extracts X X X X
X X X X Extracts X X X X
....u/s 143(2) of the Income-tax Act, 1961 ( in short 'the Act') was issued and served on the assessee. A survey u/s 133A of the Act was conducted in the case of the assessee on 23/03/2010. During the survey, one of the partners of the firm, Sri Narayandas Kishandas Narang was recorded a statement, as per which, he admitted to estimate the profit @ 10% of the closing stock/work-in-progress. Since the assessee has not declared the profit @ 10% of the project, AO relying on the above statement of one of the partner, estimated the income of the year @ 10%. 2.1 Further, in the assessment proceedings, assessee brought on record to claim the Central Excise & Service Tax demand of Rs. 28,71,629/- for this AY, but, the demand was raised by the Central....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tement cannot be considered as corroborative evidence and he relied on the CBDT Circular No. 286/2/2003 (IT/INV). He further submitted that AO cannot estimate the income without rejecting the books of account. He submitted that assessee has declared correct turnover and assessee is maintaining proper books of account and prayed that the income admitted by the assessee may be treated as correct income. 5.1 He further submitted that assessee has received an additional service tax liability which was not crystalized during this AY, however, the same was brought to the notice of the assessee by the Central Excise Department and the assessee has received final service tax order on 16/08/2012 and this liability pertains to the AY under considera....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... As per the financial statements submitted by the assessee for the AYs 2009-10, 2010-11 and 2012-13, we notice that assessee is following a method of accounting, as per which, completed projects which are sold during the year are considered for declaring income and incomplete projects are carried forward to the next AY without estimating any income. During this current AY, assessee has completed the project and declared sales to the extent of Rs. 14.22 crores and also declared a profit of Rs. 54.24 cores, which is 3.81% of sales. Assessee has declared Rs. 30 lakhs as additional income consequent to survey and the basis of such declaration of additional income was not brought on record. It is a fact that AO has not rejected the books of acco....