TaxTMI 
TaxTMI 
2025 (4) TMI 2148
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....)"), both dated 24.07.2024 for the A.Y. 2016-17 respectively. Since these appeals are inter related, they are heard together and one consolidated order is being passed for the sake of convenience and brevity. ITA No. 1166/Hyd/2024 2. The grounds raised by the assessee are as under : 1. The impugned order of the learned Authorities below in so far as it is against the Appellant is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant's case. 2. The Appellant denies himself liable to be assessed on a total income of an amount being Rs. 4,26,82,504/-, under the facts and circumstances of the case. 3. Whether the learned CIT(A)'s is justified in allo....
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....6,682/- during the year under consideration. Consequently, notice u/s.148 the Income Tax Act, 1961 ('the Act') was issued by the Ld. AO to the assessee. However, the assessee failed to file any return in compliance to the notice u/s.148 of the Act also. Further, the assessee also did not comply to the other notices issued by the Ld. AO. Finally, the Ld. AO completed the assessment u/s.147 r.w.s. 144 of the Act on 15.03.2022 treating the entire contract receipt of Rs. 4,26,15,822/- and rental receipt of Rs. 66,682/- as unexplained income u/s.69A of the Act. 4. Aggrieved with the order of Ld. AO, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A), after considering the submission of the assessee held that the source....
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....as the higher profit estimation of 50% on the contract receipts. We are in agreement with the submission of the Ld. AR regarding such higher accumulation of profit on contract receipts. There should be a reasonable basis for estimating income on gross receipts. In our opinion, the estimation of profit @ 50% of the contract receipts is not reasonable. We have also gone through the provision of section 44AD of the Act, where, an estimation of profit at 8% of the turnover has been provided under the Act. Considering the facts and circumstances of the case and in the interest of justice, in our opinion, adopting 8% rate of profit on contract receipts would be just and proper in the case of the assessee. Accordingly, we direct the Ld. AO to comp....
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....art of the assessee. In the alternate argument, the Ld. AR submitted that, if the bench accept the estimation of 8% rate of profit, the tax liability would be approximately equal to the TDS already deducted by the contractor. Therefore, there would be no significant tax liability remaining, hence, the penalty should be dropped. 12. Per contra, the Ld. DR relied on the orders passed by the revenue authorities. He further argued that the assessee failed to file the ROI. Had the case not been selected u/s.147 of the Act, the assessee would have been remain outside the tax net. Accordingly, there is clear case of concealment on the part of the assessee justifying the penalty u/s.271(1)(c) of the Act. Accordingly, the Ld. DR prayed before the....