Sri Manne Srinivas , Gangavathi V. The Income Tax Officer Ward-1 , Hospet

ITA 1299/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2325 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 23-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: GANGADHAR J M
• Section: 44AD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-A BENCH, BANGALORE BEFORE SHRI. SUNIL KUMAR YADAV, JUDICIAL MEMBER ITA NO. 1299 /BANG/201 8 ASSESSMENT YEAR : 20 1 4 - 1 5 SHRI. MANNE SRINIVAS, PWD CONTRACTOR, KOTAIAH CAMP, GANGAVATHI. PAN : BFKPS 4352 B VS. THE INCOME-TAX OFFICER, WARD 1, HOSPET. APPELLANT RESPONDENT ASSESSEE BY : SHRI. GANGADHAR J. M. ADVOCATE REVENUE BY : SHRI. PRIYADARSHI MISHRA, JCIT, SPECIAL RANGE - III DATE OF HEARING : 13 /0 8 /201 8 DATE OF PRONOUNCEMENT : 07 / 0 9 /201 8 O R D E R PER SUNIL KUMAR YADAV, JM : THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), INTER ALIA, ON FOLLOWING GROUNDS: 1. THE ORDER OF THE HON'BLE COMMISSIONER OF INCOME TAX (APPEALS), GULBARGA IS OPPOSED TO THE LAW AND FACTS AND CIRCUMSTANCES OF THE CASE. 2. WHETHER HON'BLE CIT (APPEALS), GULBARGA IS RIGHT IN HOLDING THAT THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IS CORRECT WITH REGARD TO ESTIMATION OF PROFIT AT 8% OF THE TURNOVER? 3. WHETHER THE CIT (A), GULBARGA IS RIGHT IN REJECTING DECLARED NET PROFIT OF 3% ON THE TURNOVER AND SUBMISSION MADE THERE UNDER DURING THE APPELLATE PROCEEDINGS? ITA NO. 1299/BANG/2018 PAGE 2 OF 3 4. WHETHER THE HON'BLE CIT(A), GULBARGA IS RIGHT IN FOLLOWING 44AD OF THE INCOME TAX ACT ONLY FOR ESTIMATION OF PROFIT AT 8% EVEN THOUGH SEC 44AD IS NOT APPLICABLE TO THE ASSESSEE DURING THE RELEVANT A.Y 14-15? 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OTHER GROUNDS ON OR BEFORE HEARING OF THE APPEAL. 2. DURING THE COURSE OF HEARING, OUR ATTENTION WAS INVITED TO THE FACT THAT ASSESSEE HAS NOT MAINTAINED ANY BOOKS OF ACCOUNTS AND THE AO HAS ESTIMATED THE PROFIT AT 8%. THE APPEAL WAS FILED BEFORE THE CIT(A) AND THE CIT(A) HAS CONSIDERED THE PAST RESULT DECLARED BY THE ASSESSEE AND CONFIRMED THE ESTIMATION OF PROFIT AT 8%. NOW THE ASSESSEE IS BEFORE THE TRIBUNAL WITH THE SUBMISSION THAT IN EARLIER YEARS, THE PROFIT DECLARED WAS LESS AND THE SAME WAS ACCEPTED BY THE REVENUE AUTHORITIES. THEREFORE, THE DECLARED PROFIT SHOULD BE ACCEPTED. THE LEARNED DR PLACED A RELIANCE UPON THE ORDER OF THE CIT(A). 3. HAVING CAREFULLY EXAMINED THE ORDERS OF LOWER AUTHORITIES, I FIND THAT UNDISPUTEDLY THE ASSESSEE HAS NOT MAINTAINED THE BOOKS OF ACCOUNTS AND HE DECLARED THE NET PROFIT AT 11.2% FOR THE ASSESSMENT YEAR 2013-14 AND 5.13% FOR THE ASSESSMENT YEAR 2015-16. IN THE ABSENCE OF REGULAR BOOKS OF ACCOUNTS, THE AO HAS ESTIMATED THE PROFIT AT 8% OF THE TURNOVER. SINCE THE ASSESSEE COULD NOT PLACE A RELEVANT EVIDENCE TO JUSTIFY THE LESSER PROFIT DECLARED IN THE IMPUGNED ASSESSMENT YEAR, I FIND NO INFIRMITY IN THE ORDER OF THE CIT(A). ACCORDINGLY, I CONFIRM THE ORDER OF THE SAME. ITA NO. 1299/BANG/2018 PAGE 3 OF 3 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 7 TH SEPTEMBER, 2018. SD/ - SD/- (A. K. GARODIA ) (SUNIL KUMAR Y ADAV ) ACCOUNTANT M EMBER JUDICIAL MEMBER PLACE : BANGALORE DATED : 07/09/2018 /NS/* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT 4 C IT(A) 5. DR 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME-TAX APPELL ATE TRIBUNAL BANGALORE