18% Profit Rate on Contract Receipts Held Excessive – ITAT Restricts Estimation to 8% and Grants Major Relief

Sai Siddhi Constructions Vs ITO (ITAT Pune) 18% Profit Rate on Contract Receipts Held Excessive – ITAT Restricts Estimation to 8% and Grants Major Relief The Pune ITAT granted substantial relief to a civil contractor by holding that estimating profit at 18% of gross receipts was excessive and unreasonable, and directed that income be computed at 8% of turnover in line with the presumptive taxation principles under section 44AD. The assessee, a Body of Individuals (BOI), had not filed a return of income for AY 2018-19. Based on information that it had received ₹1.66 crore from a charita...