HC Upholds 4% Profit Estimation for Road Construction Business

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...