Nutan Gupta, CHENNAI V. ITO, CHENNAI

ITA 1546/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7899 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 06-06-2016
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTHJCIT
• Assessee Lawyers: D ANAND
• Keywords: Business income
• Section: 44AD

Judgement Text

, B/ SMC , IN THE INCOME TAX APPELLATE TRIBUNAL B/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./ I.T.A.NO.1546 /MDS./2016 ( / ASSESSMENT YEAR :2011-12) SMT.NUTAN GUPTA, 38,MAJESTIC TERRACE, 118,ARCOT ROAD, SALIGRAMAN, CHENNAI. VS. ITO,BUSINESS WARD -1(4), NEW JURISDICTION: NON CORPORATE WARD 1(4), CHENNAI-34. PAN AADPG 0302 Q ( / APPELLANT ) ( / RESPONDENT ) ! ' # / APPELLANT BY : MR.D.ANAND,ADVOCATE $% ! ' # / RESPONDENT BY : MR.A.V.SREEKANTH,JCIT, D.R & ' ' ( ) / DATE OF HEARING : 07.12.2016 *+ ' ( ) /DATE OF PRONOUNCEMENT : 07.12.2016 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-2, CHE NNAI DATED 21.03.2016 PERTAINING TO THE ASSESSMENT YEAR 2011- 12 . ITA NO.1546/MDS/2016 2 2. THE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS WITH REGARD TO ESTIMATE THE INCOME BY AO AND SUSTAINING THE ADDITI ON OF ` 9,99,690/- BY CIT(A) BEING THE BUSINESS INCOME OF THE ASSESSE E, THOUGH THE TURNOVER WAS ` 40 LAKHS. 3. BEFORE US, THE LD.A.R SUBMITTED THAT BY DISALLO WING EXPENDITURE OF ` 9,99,690/-, THE NET PROFIT OF ASSESSEE WAS 32.85% O F THE TURNOVER, WHICH WAS IMPOSSIBLE IN THE LINE OF BUSINESS AS THE ASSESSEE IS ENGAGED IN THE CONSTRUCTION ACTIVITIES. HE SUBMITT ED THAT FOR THE RELEVANT ASSESSMENT YEAR THE TURNOVER IS LESS THAN RS.60 LAKHS, THEN PROVISIONS OF THE SECTION 44AD IS APPLICABLE. AS SU CH, HE PRAYED THAT THE INCOME MAY BE ESTIMATED BY APPLYING THE SAID PROVISIONS. ON THE OTHER HAND, LD.D.R RELIED ON THE ORDER OF LOWER AUTHORITIES. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, IN THIS CASE, THE TURNOVER OF A SSESSEE IS RS.40 LAKHS AND IN THE ASSESSMENT YEAR 2011-12, IF THE TU RNOVER IS LESS THAN 60 LAKHS, THE PROVISIONS OF THE SECTION 44AD IS APP LICABLE. AS SUCH IT IS APPROPRIATE TO ESTIMATE THE INCOME OF ASSESSEE A T 8% OF THE TURNOVER OF THE ASSESSEE FROM CONSTRUCTION ACTIVITI ES OVER AND ABOVE ITA NO.1546/MDS/2016 3 THE INCOME DECLARED BY THE ASSESSEE, OTHER THAN THE INCOME FROM BUSINESS. 5. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALL OWED. ORDER PRONOUNCED ON 7 TH DECEMBER, 2016 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 07 TH DECEMBER, 2016 . K S SUNDARAM. , ' $(-. /.( / COPY TO: 1 . ! / APPELLANT 3. & 0( () / CIT(A) 5. .3 4 $(5 / DR 2. $% ! / RESPONDENT 4. & 0( / CIT 6. 4 6 7 ' / GF