Held that the profit percentage of 15 per cent. of the total advances from customers was high, unreasonable and excessive. At the same time, the contention of the assessee that the profit may be estimated at five per cent. was not acceptable. Considering the entire facts and circumstances of the case, the Assessing Officer was to estimate the profits at 10 per cent. of the advances received from customers during the financial year 2013-14 relevant to assessment year 2014-15 only. (AY.2014-15)
Srabani Constructions Pvt. Ltd. v. ACIT (2021) 87 ITR 7 (SN) (Cuttack)(Trib.)
S. 145 : Method of accounting-Real estate business-Project competition method-Advance from customers-Estimate at 10 percent of advance received during the year is proper-Advance carried over from earlier years no addition can be made. [S. 28(1), 145(3)]