Deputy Commissioner of Income Tax v. M/s. Bhawani Construction & Co.

Parties Involved

Facts Summary

The assessee, M/s. Bhawani Construction & Co., is a Civil Contractor. It filed an electronic return on 31.03.2015 declaring a total income of Rs.25,91,280/-. The assessee claimed a refund of Rs.12,70,620/- against TDS of Rs.18,96,224/-. The Assessing Officer recorded a finding that the assessee had gross contract receipts of Rs.8,70,56,410/-. However, the figures from the books of account did not reconcile, leading to an addition of Rs.2,38,29,800/-. The Commissioner of Income Tax (Appeals) rejected the book result and estimated the income at 6% of the total turnover. The Revenue appealed against this decision.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) was justified in entertaining fresh evidence in violation of Rule 46A?
• 2. Whether the income of the assessee should be estimated at 6% of the total turnover?

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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