IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY WEDNESDAY, THE 12TH JANUARY 2011 / 22ND POUSHA 1932 ITA.No. 64 of 2010() -------------------- AGAINST THE ORDER DATED 24/08/2009 IN COCH IN ITA.502/2008 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT / ASSESSEE ---------------------------------------- K.P.CHANDRADASAN, LAKSHMI NIVAS, P.O.PANTHEERANKAVU, CALICUT. BY ADV. SRI.K.A.SALIL NARAYANAN RESPONDENT(S): APPELLANT/ REVENUE ------------------------ THE COMMISSIONER OF INCOME TAX, CALICUT. ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 12/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ. ---------------------------------- ITA No.64 of 2010 --------------------------------- Dated, this the 12th day of January, 2011 J U D G M E N T Ramachandran Nair, J. Heard Adv. Shri.Salil Narayanan for the appellant and learned Standing Counsel for the respondent. 2. After hearing both sides and after going through the orders of the Tribunal and the lower authorities, we do not find any question of law arising from the order of the Tribunal because after holding that the book results cannot be accepted, the Tribunal has only estimated the profit at Rs.10 lakhs, which works out only around 3.3% of the contract receipts. The appellant's case is that going by the findings of the CIT(Appeals) and the Tribunal, books of accounts should not have been rejected and so much so, the income returned should have been accepted by the Department. We do not find any merit in this claim because the records produced pertaining to expenditure are only self made vouchers and opening work-in-progress and closing work-in-progress are only ITA No.64/2010 -2- an estimated figure of Rs.20 lakhs. Section 44AD authorises estimation of profit from contract receipts up to 8%, where the contract receipt is not more than Rs.40 lakhs. Going by the principle laid down therein, we feel estimation of total income at Rs.10 lakhs on a total turn over of Rs.3 crores works out only 3.3% of the turn over on work executed by the assessee. We are of the view that the finding of the Tribunal is only on facts and no substantial question of law arises therefrom. Accordingly, this ITA filed by the assessee is dismissed. (C.N.RAMACHANDRAN NAIR, JUDGE) (BHABANI PRASAD RAY, JUDGE) jg