PVN Constructions, Erode V. ACIT Circle -2 , Erode

ITA 1042/CHNY/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6099 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 23-06-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 14-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S.SRIDHAR ERODE

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय ी एबी टी. वक , ाियक सद" एवं माननीय ी मनोज कु मार अ'वाल ,लेखा सद" के सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.1042/Chn y/2024 (िनधा*रणवष* / As sessment Year: 2017-18) M/s. PVN Constructions 144, Chennimalai Road, Erode-638 001. बनाम/ Vs . ACIT Circle-2 Erode. थायीलेखासं./जीआइआरसं./PAN/GIR No. A A HF P - 7 9 0 1 - N (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri S.Sridhar (Advocate) Erode (Virtual) – Ld.AR थ कीओरसे/Respondent by : Shri P. Sajit Kumar(JCIT) -Ld. DR सुनवाईकीतारीख/ D at e of He a rin g : 24-06-2024 घोषणाकीतारीख /Date of Pronouncement : 03-07-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-10-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 06-12-2019. 2. The registry has noted delay of 108 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of one of the partners of the assessee-firm. It has been submitted that delay occurred due to adverse medical conditions being faced by the partner of the assessee firm. Considering the same, we condone the delay and proceed for adjudication of the appeal on merits. 3. The assessee firm is engaged in civil contract works. In the absence of any explanation forthcoming from assessee regarding low net profit rate, Ld. AO estimated income @8% of total turnover. Accordingly, the income was assessed at Rs.191.75 Lacs as against Rs.139.03 Lacs as admitted by the assessee. The position remained the same during first appeal and accordingly, the assessment was confirmed against which the assessee is in further appeal before us. 4. The Ld. AR submitted that in earlier years, the assessee has reflected Net Profit of 6% which may be adopted in this year. In the earlier year, this rate has been accepted. The Ld. Sr. DR has opposed the same. 5. Considering the facts and circumstances and keeping in view the plea of Ld. AR to make suitable estimations, we direct Ld. AO to accept profit rate of 6.5% as against 8% estimated made by him. The rate of 8% is for small businesses only whereas the assessee is having turnover of more than Rs.23.96 Crores and therefore, aforesaid estimation is a reasonable estimation. The Ld. AO is directed to re-compute the income of the assessee. No other ground has been urged in the appeal. 6. The appeal stand partly allowed. Order pronounced on 3 rd July, 2024 Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated :03-07-2024 DS आदेशकीIितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु=/CIT Coimbatore. 4. िवभागीय ितिनिध/DR 5. गाडBफाईल/GF