2022 (8) TMI 1562

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....t the appeal of the Revenue. 2. Briefly, the facts of the case are that the assessee is an individual engaged in the business of execution of civil contracts of the Government. The return of income for the assessment year 2014-15 was filed on 09.04.2015 declaring total income of Rs. 1,08,50,204/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Circle-1, Nashik ('the Assessing Officer') vide order dated 07.12.2016 passed u/s 144 of the Income Tax Act, 1961 ('the Act') at total income of Rs. 8,17,97,441/- by disallowing the following expenditure :- Sr. No.  Expenses Amount 1 Site expenses 6,80,68,090/- 2 Tender expenses 15,51,476/- 3 ....

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....ing the course of assessment proceedings, the Assessing Officer was constrained to pass the assessment to the best of his judgement. 7. On the other hand, ld. AR submits that the additions made by the Assessing Officer is not sustainable which, would result in profits @ 40% of the gross receipts which is impossible in the business of execution of Government Civil Contracts. He also submits that without incurring any expenditure, it is not possible to execute the contract work and most of the work was executed through sub-contracts to whom the payment of Rs. 5,53,00,000/- was made. Finally, he submits that the assessee could not cooperate during the course of assessment proceedings, owing to the fact that the assessee was busy in pre....

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....sessing Officer are arbitrary, unreasonable etc. Therefore, we do not find any merit in the grounds of appeal filed by the Revenue. 9. In the result, the appeal filed by the Revenue in ITA No. 956/PUN/2018 for A.Y. 2014-15 stands dismissed. C.O. No. 41/PUN/2022-By Assessee : 10. The Cross Objection filed by the assessee challenges the estimation of profit @ 10% of gross receipts from execution of civil contracts. It is submitted that once book results were rejected by the ld. CIT(A), the estimation of profit should be made either on past history of the assessee or the profits of the comparables in the similar line of business. It is submitted before us that in the preceding 3 years, the net profits percentage of gross rec....