Profits estimated at 10% of contractual receipts hence no separate disallowance u/s. 40A(3) or 40(a)(ia) warranted: ITAT Chennai

ACIT Vs Irulandi Thevar Vetrivel (ITAT Chennai) ITAT Chennai held that once the books of accounts have been rejected and the profits are being estimated, then no further separate disallowance u/s 40A(3) or 40(a)(ia) of the Income Tax Act is warranted. Facts- The assessee is a contractor who is involved in the construction of roads, bridges, runways and tunnels etc. The assessee is also engaged in the business of operating petrol bunks, cinema theatres and manufacture of blue metals and ready-mix concrete. A search u/s 132 of the Act was conducted upon the assessee on 03.03.2021 pursuant to whi...