ITO, Ward - 1, Nadia, Nadia V. M/s. St. Joseph Construction, Nadia

ITA 1057/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54783 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 02-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 131; 2

Judgement Text

, ' , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA ( ) . . , , , , , , ) [BEFORE SRI S.V. MEHROTRA, A.M. & SRI MAHAVIR SING H, J.M.] ! ! ! ! / I.T.A NO. 1057/KOL/2011 ASSESSMENT YEAR : 2008-2009 INCOME TAX OFFICER, WARD-1, NADIA -VS.- M/S. ST. JOSEPH CONSTRUCTION, NADIA (PAN : AARFS 4035 J) ( '# /APPELLANT ) ( $%'# / RESPONDENT ) FOR THE APPLICANT ( '# ) : SHRI A.K. PRAMANICK, D.R. FOR THE RESPONDENT ( $%'# ) : N O N E &' ( ) * &' ( ) * &' ( ) * &' ( ) * /DATE OF HEARING : 26.12.2011 +, ) * +, ) * +, ) * +, ) * /DATE OF PRONOUNCEMENT : 26.12.2011 - / ORDER PER SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER/ . . , :- THIS APPEAL FILED BY THE REVENUE IS AGAINST THE OR DER OF LD. COMMISSIONER OF INCOME- TAX (APPEALS)-XXXVI, KOLKATA DATED 18.05.2011 FOR T HE ASSESSMENT YEAR 2008-09. 2. BRIEF FACTS OF THE CASE ARE THAT IN THE RELEVANT ASSESSMENT YEAR, THE ASSESSEE-FIRM DERIVED INCOME FROM BUSINESS OF CIVIL CONSTRUCTION. THE ASS ESSEE HAD FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS.68,970/-. THE ASSESSIN G OFFICER NOTICED FROM THE AUDITED BALANCE- SHEET AND PROFIT & LOSS A/C. THE TOTAL RECEIPT SHOW N BY THE FIRM WAS AT RS.57,73,804/-. IN SUPPORT OF ITS RECEIPTS, THE ASSESSEE-FIRM HAD FILE D TDS CERTIFICATES RECEIVED FROM MISSIONARIES OF CHARITY, WHICH CERTIFIED MAKING A TOTAL PAYMENT OF RS.57,73,804/- DURING THE FINANCIAL YEAR 2007-08. THE ASSESSING OFFICER OBSERVED THAT WHILE EXAMINING THE 26AS OF THE ASSESSEE-FIRM GENERATED FROM THE DEPARTMENTAL DATA BASE, IT WAS F OUND THAT THE ASSESSEE-FIRM RECEIVED THE FOLLOWING AMOUNTS DURING THE FINANCIAL YEAR 2007-08 FROM DIFFERENT ORGANIZATIONS AND TDS HAD BEEN DEDUCTED ACCORDINGLY AS PER CHART BELOW :- ITA NO. 1057/KOL./2011 2 SN TAN NAME OF THE CONCERN FROM WHOM PAYMENT RECEIVED FOR CONSTRUCTION WORK BY THE ASSESSEE- FIRM AMOUNT PAID BY THE CONCERN TO THE ASSESSEE-FIRM DURING THE FINANCIAL YEAR 2007-08 TDS 1. CALJ03089C JESUS AND MARY WEST BENGAL EDUCATION SOCIETY RS.4,55,543/- RS.10,323/- 2. CALMO3197F MISSIONARIES OF CHARITY RS.57,73,804/- RS.1,30,628/- 3. CALTO4029E THE ROMA CATHOLIC DIOCESE OF KRISHNANAGAR RS.50,00,000/- RS.1,08,158/- TOTAL RS.1,12,29,347/- RS.2,49,109/- FROM THESE INFORMATIONS, THE ASSESSING OFFICER CONC LUDED THAT THE ASSESSEE HAD NOT DISCLOSED RECEIPTS TOTALING TO RS.54,55,543/- IN ITS ACCOUNTS . THE ASSESSING OFFICER ISSUED SUMMONS UNDER SECTION 131 TO THE ACCOUNTANT OF THE ROMAN CA THOLIC DIOCESE OF KRISHNANAGAR, NADIA, WHO PRODUCED FOLLOWING DOCUMENTS BEFORE THE ASSESSI NG OFFICER :- (1) WORK ORDER OF THE ROMAN CATHOLIC DIOCESE OF KRISHNA NAGAR GIVEN TO ASSESSEE VIDE MEMO NO. CM(K) 2006 DATED 20.02.20 06, (2) PHOTOCOPY OF TDS CERTIFICATE; (3) PHOTOCOPY OF PAYMENT CERTIFICATE FOR THE FINANCIAL YEAR 2007-08; (4) PROVISIONAL RECEIPT COPY OF SUBMISSION OF TDS RETUR N IN FORM NO. 26Q. FROM THESE DOCUMENTS, THE ASSESSING OFFICER CONCLUD ED THAT THE ASSESSEE-FIRM HAD RECEIVED AN AMOUNT OF RS.50,00,000/- FROM THE ROMAN CATHOLIC DI OCESE OF KRISHNANAGAR DURING THE FINANCIAL YEAR 2007-08, BUT THE ASSESSEE-FIRM DID N OT DISCLOSE THIS GROSS RECEIPT AS WELL AS INCOME TO THE REVENUE. THE ASSESSING OFFICER HAS AL SO EXAMINED THE DATE OF ISSUE OF CHEQUE BY THE ROMAN CATHOLIC DIOCESE OF KRISHNANAGAR, AND ALS O DEPOSIT IN THE ASSESSEES BANK A/C., THE DETAILS OF WHICH ARE GIVEN AT PAGES 5-6 OF ASSESSME NT ORDER AND FROM THESE DETAILS, HE POINTED OUT THAT THE PARTNERS OF THE ASSESSEE-FIRM ADMITTED THAT AN ADDITIONAL AMOUNT WAS RECEIVED BESIDES THE AMOUNT SPECIFIED EARLIER IN THE RETURN FILED FOR THE ASSESSMENT YEAR 2008-09. HE HAS REPRODUCED THE DETAILS FROM THE WRITTEN SUBMISSIONS OF THE PARTNERS. THE ASSESSING OFFICER ALSO EXAMINED THE PURCHASES MADE BY THE ASSESSEE AN D FROM ALL THE DETAILS AFTER CONSIDERING THE ITA NO. 1057/KOL./2011 3 ASSESSEES EXPLANATION CONCLUDED THAT THE ASSESSEE CONCEALED THE RECEIPTS FROM DIFFERENT ORGANIZATIONS AMOUNTING TO RS.54,55,53/- AND MADE A N ADDITION OF RS.54,55,543/-. HE ALSO OBSERVED THAT THE DETAILS OF PURCHASES FURNISHED BY THE ASSESSEE FROM HINDUSTAN HARDWARE, KRISHNANAGAR, NADIA AMOUNTING TO RS.17,56,021/- WER E GENUINE AND, THEREFORE, NO ACTION WAS CALLED FOR ON THIS ACCOUNT. 3. LD. CIT(APPEALS) AFTER CONSIDERING THE ASSESSEE S SUBMISSIONS DIRECTED THE ASSESSING OFFICER TO REJECT THE BOOKS OF ACCOUNTS OF THE ASSE SSEE-FIRM SINCE THE ASSESSEE HAD CONCEALED HUGE CONTRACTUAL RECEIPTS TO THE TUNE OF RS.54,55,5 43/-. HE ALSO DIRECTED THE ASSESSING OFFICER TO ESTIMATE THE PROFIT @ 8% ON THE ENTIRE RECEIPTS OF RS.1,12,29,347/- EQUIVALENT TO RS.8,98,348/-, NET OF ALL EXPENSES INCLUDING SALARY AND INTEREST PAYMENTS TO PARTNERS. 4. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. LEARNED DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDER OF ASSESSING OFF ICER. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. D.R. B Y CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, IN OUR OPINION, NO I NTERFERENCE IS CALLED FOR IN THE ORDER OF LD. CIT(APPEALS) AS HE HAS DIRECTED THE ASSESSING OFFI CER TO COMPUTE NET PROFIT AT 8% ON THE ENTIRE RECEIPTS INCLUDING THE RECEIPTS FOUND TO HAV E BEEN CONCEALED BY THE ASSESSEE. IN ANY CASE, THE ENTIRE RECEIPTS, AS ADDED BY THE ASSESSING OFFI CER, COULD NOT BE ADDED BECAUSE IT IS NOT DISPUTED THAT THE IMPUGNED AMOUNT HAD BEEN RECEIVED FROM THE CONTRACT WORK CARRIED ON BY THE ASSESSEE. IT IS NOT THE CASE OF ASSESSING OFFICER T HAT THE SOURCE OF IMPUGNED SUM OF RS.54,55,543/- WAS OTHER THAN THE BUSINESS. THEREFO RE, WE CONFIRM THE ORDER OF LD. CIT(APPEALS) AND REJECT THE GROUND OF APPEAL TAKEN BY THE REVENUE. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. . / . / . / . / 0 1 0 1 0 1 0 1 .2 .2 .2 .2 3 3 3 3 2 2 2 2 45 4545 45 ORDER PRONOUNCED IN THE OPEN COURT ON 26/ 12 /2011. & 6 7 - 26/12/2011. SD/- SD/- [ MAHAVIR SINGH / ] [S.V. MEHROTRA/ ( . . )] JUDICIAL MEMBER/ ACCOUNTANT MEMBER/ DATED : 26/ 12/ 2011 ITA NO. 1057/KOL./2011 4 COPY OF THE ORDER FORWARDED TO: 1. M/S. ST. JOSEPH CONSTRUCTION, R.C. PARA, CATHEDRAL ROAD, P.O. KRISHNANAGAR, NADIA. 2 ITO, WARD-1, NADIA 3. COMMISSIONER OF INCOME-TAX (APPEALS)- , KOLKATA 4. CIT- , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA (TRUE COPY) BY ORDER ASSISTANT REGISTRAR, I.T.A.T., KOLKATA LAHA, SR. P.S.