Potru Muralikrishna, Visakhapatnam V. THE ACIT, Rajahmundry

ITA 136/VIZ/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8999 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 20-04-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R S ARAVINDAKSHAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HONBLE JUDICIAL MEMBER ITA NO. 136/VIZ/2015 (ASST. YEAR : 2011-12) POTRU MURALI KRISHNA, D.NO. 4-2-67/10, NANDAMURU ROAD, KOVVUR, W.G. DISTRICT. VS. ACIT, CIRCLE-1, RAJAHMUNDRY. PAN NO. AEMPP 5584 N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. SUBRAHMANYAM FCA. DEPARTMENT BY : SHRI R.S. ARAVINDAKSHAN SR.DR DATE OF HEARING : 03/04/2017. DATE OF PRONOUNCEMENT : 19/04/2017. O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), RAJAHMUNDRY, DATED 11/03/2015 FOR THE ASSESSMENT YEAR 2011-12. 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A TRANSPORT CONTRACTOR, FILED HIS RETURN OF INCOME BY DECLARING TOTAL INCOME OF 15,36,410/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE ACT. CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND AFTER DUE PROCESS, ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTED THAT ASSESSEE FAILED TO FURNISH ALL THE BILLS FOR EXPENSES RELATING TO TRANSPORT CHARGES OF 4,56,16,222/- 2 ITA NO. 136/VIZ/2015 (POTRU MURALI KRISHNA) AND ALSO IN RESPECT OF EXPENSES RELATING TO CLEANER BETA AND OIL CHARGES. THE ASSESSING OFFICER ALSO NOTED THAT ASSESSMENT YEAR 2010-11, THE ASSESSEE HAS SHOWN NET PROFIT OF 4.4% OF GROSS TRANSPORT RECEIPTS. KEEPING IN VIEW OF THE ABOVE, THE ASSESSING OFFICER HAS ESTIMATED INCOME OF THE ASSESSEE AT 6.5% OF GROSS CONTRACT RECEIPTS AND ACCORDINGLY ASSESSMENT IS COMPLETED. 3. ON APPEAL, LD. CIT(A) HAS SCALED DOWN THE ESTIMATION FROM 6.5% TO 4.5%. THE RELEVANT PORTION OF THE ORDER IS EXTRACTED HEREUNDER:- 5.1 AS REGARDS THE ESTIMATE MADE, I FIND THAT THE ASSESSEE HAD DECLARED PROFIT AT 4.4% IN THE EARLIER YEAR. NO CONVINCING EXPLANATION WAS GIVEN AS TO WHY THAT MUCH PROFIT WAS ADMITTED FOR THE SUBJECT YEAR. IT WAS ALSO NOTED THAT THE ASSESSEE OWNS THREE LORRIES WHICH ARE UTILIZED IN ITS TRANSPORT BUSINESS. THEREFORE, TAKING INTO ACCOUNT ALL THESE FACTS AND CIRCUMSTANCES, I CONSIDER IT REASONABLE TO ESTIMATE THE PROFIT FOR THIS YEAR AT 4.5% OF GROSS CONTRACT RECEIPTS NET OF ALL EXPENSES. THE ASSESSING OFFICER IS DIRECTED TO RE-COMPUTE THE INCOME ACCORDINGLY. 4. I HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 5. THE LD. CIT(A) AFTER CONSIDERING ALL THE FACTS AND CIRCUMSTANCES OF THE CASE, ESTIMATED THE PROFIT AT 4.5%, HENCE, I FIND NO REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). THUS, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 19 TH DAY OF APRIL, 2017. SD/- (V. DURGA RAO) JUDICIAL MEMBER DATED : 19 TH APRIL, 2017. 3 ITA NO. 136/VIZ/2015 (POTRU MURALI KRISHNA) VR/- COPY TO: 1. THE ASSESSEE - POTRU MURALI KRISHNA, D.NO. 4-2-67/10, NANDAMURU ROAD, KOVVUR, W.G. DISTRICT. 2. THE REVENUE - ACIT, CIRCLE-1, RAJAHMUNDRY. 3. THE CIT, RAJAHMUNDRY. 4. THE CIT(A), RAJAHMUNDRY. 5. THE D.R., VISAKHAPATNAM. 6. GUARD FILE. BY ORDER