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HC Upholds 4% Profit Estimation for Road Construction Business
Case Law Details
- Case Name
- CIT Vs Srinivasan Devendran (Madras High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2016-17
- Courts
- All High Courts, Madras High Court
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CIT Vs Srinivasan Devendran (Madras High Court)
In the case of CIT Vs Srinivasan Devendran, a civil contractor’s income estimation became a subject of contention. The Assessing Officer determined the income at 8%, but the Commissioner (Appeals) scaled it down to 4%, and the Tribunal upheld this decision.
The primary issue revolved around income estimation, which falls under factual determination rather than a question of law. The Tribunal considered previous assessment orders where the assessee had estimated 3% net profit and justified it based on higher work volume and competition in ci...
