Entire receipt cannot be treated as income, in absence of material, presumptive net profit of 8% should be considered

Ravindranath J. Mishra Vs ITO (ITAT Surat) ITAT Surat held that addition of entire contractual receipt is unsustainable in law as the entire receipt cannot be treated as income. In absence of any material to show net profit rate, presumptive net profit rate of 8% is to be considered as estimated income. Facts- The assessee’s case was re-opened for A.Y. 2010-11 by recording reasons that as per details in ITS data, the assessee has received contractual receipt of Rs.8,95,080/- from Paras Pumps Pvt. Ltd. AO further recorded that no return of income was filed by assessee for assessment year unde...