Khurana Engineering works Pvt. Ltd, Bokaro V. DCIT, Bokaro

ITA 102/RAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0007 (ITAT-RANCHI)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 04-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY PAL
• Assessee Lawyers: ASIT KUMAR MEHTA
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 102 /RAN/2016 ASSESSMENT YEAR : 2010 - 2011 KHURANA ENGINEERING WORKS PVT LTD., C/O. AVIJIT CHANDA, SECTOR - III/A, QR. NO.118, BOKARO STEEL CITY. VS. DCIT, CIRCLE - 3, BOKARO PAN/GIR NO. AABCK 2764 P (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI ASIT KUMAR MEHTA AR REVENUE BY : SHRI SANJAY PAL , DR DATE OF HEARING : 8 /12/ 2016 DATE OF PRONOUNCEMENT : 8 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - HAZIRBAG , DATED 22.1.2016 , FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE SO L E ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD C IT(A) ERRED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER IN ESTIMA TING THE GROSS PROFIT OF THE ASSESSEE @ 18% OF THE RECEIPTS. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT IN ASSESSMENT YEAR 2009 - 2010, THE ASSESSEE HAS SHOWN GROSS PROFIT @ 26.22% WHEREAS IN THE PRESENT 2 ITA NO. 102/RAN/2016 ASSESSMENT YEAR :2010 - 2011 ASSESSMENT YEAR UNDER APPEAL, WHICH IS THE ASSESSMENT YEAR 2010 - 2011, THE ASSESSEE HAS SHOWN GROSS PROFIT @ 11.37%. THEREFORE, HE REJECTED THE BOOK RESULTS OF THE ASSESSEE AND ESTIMATED THE GROSS PROFIT OF THE ASSESSEE @ 18% AND COMPUTED THE BUSINESS INCOME OF THE ASSESSEE AT RS.51,30,334/ - IN PLACE OF RS.14,82,710/ - SHOWN BY THE ASSESSEE. 4. ON APPEAL , LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. BEFORE ME, LD A.R. OF THE ASSESSEE FILED A WRITTEN SUBMISSION AND AT PAGE 2 HAS GIVEN WORKING OF GROSS PROFIT. HE POINTED OUT THAT THERE WAS ERROR IN CALCULATION OF THE GROSS PROFIT FOR ASSESSM ENT YEAR 2009 - 2010 BY THE ASSESSING OFFICER AND THAT IT IS ONLY 13.57% AND NOT 26.22% AS CALCULATED BY THE ASSESSING OFFICER. HENCE, HE PRAYED THAT THE GROSS PROFIT OF THE ASSESSEE SHOULD BE DETERMINED @ 14% FOR THE YEAR UNDER CONSIDERATION KEEPING IN VIE W THE GROSS PROFIT ACTUALLY EARNED BY THE ASSESSEE IN ASSESSMENT YEAR 2009 - 2010 @ 13.57%. 6. LD D.R. AGREED WITH THE SUBMISSION OF LD A.R. OF THE ASSESSEE. 7. AFTER CONSIDERING FACTS AND CIRCUMSTANCES OF THE CASE AS ALSO THE WORKING OF THE GROSS PROFIT FOR ASSESSMENT YEAR 2009 - 2010 SUBMITTED BY LD A.R. OF THE ASSESSEE, WHICH CALCULATION HAS ALSO BEEN ACCEPTED BY LD D.R DURING THE COURSE OF HEARING, I FIND THAT THE ACTUAL GROSS PROFIT EARNED IN ASSESSMENT YEAR 2009 - 2010 WAS 13.57% AND NOT 26.22% AS WORKED OU T BY THE ASSESSING OFFICER. I, THEREFORE, SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DIRECT THE ASSESSING OFFICER TO COMPUTE THE GROSS PROFIT OF 3 ITA NO. 102/RAN/2016 ASSESSMENT YEAR :2010 - 2011 THE YEAR UNDER CONSIDERATION @ 14% AND ALLOW PARTLY THE GROUND OF APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON 8 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 8 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : KHURANA ENGINEERING WORKS PVT LTD., C/O. AVIJIT CHANDA, SECTOR - III/A, QR. NO.118, BOKARO STEEL CITY 2. THE RESPONDENT. DCIT, CIRCLE - 3, BOKARO 3. THE CIT(A) HAZARIBG 4. CIT , HAZARIBG 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//