K.P.Chandradasan vs The Commissioner Of Income Tax on 12 January, 2011

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 64 of 2010()


1. K.P.CHANDRADASAN, LAKSHMI NIVAS,
                      ...  Petitioner

                        Vs



1. THE COMMISSIONER OF INCOME TAX,
                       ...       Respondent

                For Petitioner  :SRI.K.A.SALIL NARAYANAN

                For Respondent  :SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES)

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice B.P.RAY

 Dated :12/01/2011

 O R D E R
   C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ.
           ----------------------------------
                        ITA No.64 of 2010
            ---------------------------------
           Dated, this the 12th day of January, 2011

                          J U D G M E N T

Ramachandran Nair, J.

Heard Adv. Shri.Salil Narayanan for the appellant and learned

Standing Counsel for the respondent.

2. After hearing both sides and after going through the

orders of the Tribunal and the lower authorities, we do not find any

question of law arising from the order of the Tribunal because after

holding that the book results cannot be accepted, the Tribunal has

only estimated the profit at Rs.10 lakhs, which works out only

around 3.3% of the contract receipts. The appellant’s case is that

going by the findings of the CIT(Appeals) and the Tribunal, books of

accounts should not have been rejected and so much so, the income

returned should have been accepted by the Department.

We do not find any merit in this claim because the records

produced pertaining to expenditure are only self made vouchers and

opening work-in-progress and closing work-in-progress are only

ITA No.64/2010
-2-

an estimated figure of Rs.20 lakhs. Section 44AD authorises

estimation of profit from contract receipts up to 8%, where the

contract receipt is not more than Rs.40 lakhs. Going by the

principle laid down therein, we feel estimation of total income at

Rs.10 lakhs on a total turn over of Rs.3 crores works out only 3.3%

of the turn over on work executed by the assessee. We are of the

view that the finding of the Tribunal is only on facts and no

substantial question of law arises therefrom.

Accordingly, this ITA filed by the assessee is dismissed.

(C.N.RAMACHANDRAN NAIR, JUDGE)

(BHABANI PRASAD RAY, JUDGE)

jg