Ita/64/2010 Of K.p.chandradasan v. Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY WEDNESDAY, THE 12TH JANUARY 2011 / 22ND POUSHA 1932 ITA.No. 64 of 2010() -------------------- AGAINST THE ORDER DATED 24/08/2009 IN COCH IN ITA.502/2008 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT / ASSESSEE ---------------------------------------- K.P.CHANDRADASAN, LAKSHMI NIVAS, P.O.PANTHEERANKAVU, CALICUT. BY ADV. SRI.K.A.SALIL NARAYANAN RESPONDENT(S): APPELLANT/ REVENUE ------------------------ THE COMMISSIONER OF INCOME TAX, CALICUT. ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 12/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ.---------------------------------- ITA No.64 of 2010 --------------------------------- Dated, this the 12[th] 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 theorders of the Tribunal and the lower authorities, we do not find anyquestion of law arising from the order of the Tribunal because afterholding that the book results cannot be accepted, the Tribunal hasonly estimated the profit at Rs.10 lakhs, which works out onlyaround 3.3% of the contract receipts. The appellant's case is thatgoing by the findings of the CIT(Appeals) and the Tribunal, books ofaccounts should not have been rejected and so much so, the incomereturned should have been accepted by the Department. We do not find any merit in this claim because the recordsproduced pertaining to expenditure are only self made vouchers andopening work-in-progress and closing work-in-progress are only ITA No.64/2010 -2- an estimated figure of Rs.20 lakhs. Section 44AD authorisesestimation of profit from contract receipts up to 8%, where thecontract receipt is not more than Rs.40 lakhs. Going by theprinciple laid down therein, we feel estimation of total income atRs.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 theview that the finding of the Tribunal is only on facts and nosubstantial question of law arises therefrom. Accordingly, this ITA filed by the assessee is dismissed. (C.N.RAMACHANDRAN NAIR, JUDGE) (BHABANI PRASAD RAY, JUDGE) jg