M/s Abhay Enterprises, Palamau V. ACIT, Circle-3, Ranchi

ITA 184/RAN/2015

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9983 (ITAT-RANCHI)
• Duration Of Justice: 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 28-12-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Assessee Lawyers: S K PODAR DEVESH PODAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 184 /RAN/2015 ASSESSMENT YEAR : 2008 - 09 M/S. ABHOY ENTERPRISES, HAMIDGANJ, DALTONGANJ, PALAMU, JHARKHAND VS. ACIT, CIRCLE - 3, RANCHI PAN/GIR NO. AACFM 3340 B (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI S.K.PODAR /DEVESH PODAR , AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 7 /12/ 2016 DATE OF PRONOUNCEMENT : 7 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 28.10.2015 , FOR THE ASSESSMENT YEAR 2008 - 09 . 2. GROUND NOS.2 & 4 READ AS UNDER: 2. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED IN CALCULATING GROSS RECEIPTS AT RS.7,51,34,215/ - WHICH INCLUDES INTEREST ON FDR AND INTEREST ON I.T.REFUND TOTALLING TO RS.2,76,789/ - . ACTUAL GROSS RECEIPTS WAS RS.7,48,57,426/ - ON WHICH PROFIT DISCLOSED WAS RS.42,92,683/ - . 4. FOR THAT INTEREST RECEIVED FROM FDR WAS SEPARATELY ADDED. FDR WAS PLEDGED WITH DEPARTMENT AGAINST SECU RITY AND EARNEST MONEY. INTEREST WAS PART OF CONTRACT INCOME AS SUCH SHOULD NOT BE ADDED SEPARATELY. FOR THE ASSESSMENT YEAR 2009 - 10, LD 2 ITA NO. 184/RAN/2015 ASSESSMENT YEAR :2008 - 09 CIT(A) DELETED THE ADDITION MADE FOR INTEREST ON FDR SEPARATELY AND ITAT CONFIRMED THE DECISION OF THE CIT(A) ON THIS ISSUE. 3 . AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE SUBMITTED THAT HE IS NOT PRESSING GROUND NO S . 2 & 4 OF THE APPEAL AND HAS ALSO MADE ENDORSEMENT TO THIS EFFECT IN THE GROUNDS OF APPEAL APPENDED TO FORM NO.36 FILED BEFORE THE TRIBUNAL. THEREFORE, GROUND NOS.2 & 4 ARE DISMISSED AS NOT PRESSED. 4. IN GROUND NOS.1 & 3 OF THE APPEAL, THE GRIEVANCE OF THE ASSESSEE THAT THE LD C IT(A) IS ERRED IN ESTIMATING THE PROFIT AT 7% OF THE GROSS RECEIPTS OF THE ASSESSEE. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS SHOWN GROSS RECEIPTS OF RS.2,93,65,842/ - AND RS.2,01,53,955/ - FOR A.Y. 2006 - 07 AND 2007 - 08 AND SHOWN NET PROFIT @ 5.99% AND 6.26% RESPECTIVELY. DURING THE PRESENT ASSESSMENT YEAR U NDER APPEAL, BEING A.Y. 2008 - 09, THE ASSESSEE HAS SHOWN GROSS RECEIPT OF RS.7,51,34,215/ - AND NET PROFIT RATIO OF 6.4% DESPITE THERE BEING A QUANTUM JUMP IN THE GROSS RECEIPT. THE ASSESSING OFFICER OBSERVING THAT KEEPING IN VIEW TIME BARRING NATURE OF TH E CASE AND NON - FURNISHING OF LEDGERS AND NON - PRODUCTION OF BOOKS OF ACCOUNT ALONGWITH BILLS AND VOUCHERS, THE INCOME OF THE ASSESSEE IS ESTIMATED AT 8% OF THE GROSS 3 ITA NO. 184/RAN/2015 ASSESSMENT YEAR :2008 - 09 RECEIPT OF RS.7,48,57,426/ - AND ESTIMATED THE INCOME AT RS.37,91,965/ - IN PLACE OF RS.22,68 ,623/ - SHOWN BY THE ASSESSEE IN THE RETURN OF INCOME. 6 . ON APPEAL, LD CIT(A) OBSERVED THAT THE ASSESSING OFFICER HAS NOT BEEN ABLE TO BRING ON RECORD ANY COMPARABLE CASE AFTER REJECTING THE BOOK RESULTS OF THE ASSESSEE. HE FURTHER OBSERVED THAT CONSIDER ING THE DECISION OF THE TRIBUNAL AND HIS PREDECESSOR IN ASSESSEES OWN CASE FOR A.Y. 2009 - 2010, PROFIT ESTIMATION @ 7% WOULD BE APPROPRIATE AND THUS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 7. BEING STILL AGGRIEVED BY THE ORDER OF THE LD CIT(A), THE ASSE SSEE IS IN APPEAL BEFORE ME. 8. LD A.R. OF THE ASSESSEE SUBMITTED THAT FOR ASSESSMENT YEAR 2009 - 2010, ESTIMATION OF NET PROFIT OF 6% FROM CONTRACT BUSINESS WA S UPHELD BY THE TRIBUNAL IN THE APPEAL FILED BY THE REVENUE. HE , THEREFORE, PRAYED THAT THE INCOM E FOR THE YEAR UNDER APPEAL SHOULD ALSO BE ESTIMATED BY APPLYING THE RATIO OF 6% ON GROSS CONTRACT RECEIPT AS DONE BY THE TRIBUNAL IN THE SUBSEQUENT ASSESSMENT YEAR I.E. 2009 - 2010. 9. LD D.R. RELIED ON THE ORDER OF THE LD CIT(A). 10. I FIND THAT IT REMAINS UNCONTROVERTED BY LD D.R. THAT THE TRIBUNAL IN A.Y. 2009 - 2010 IN THE CASE OF THE ASSESSEE ITSELF HAS UPHELD THE ESTIMATION OF INCOME FROM CONTRACT RECEIPT @ 6%. NO DISTINGUISHING FEATURES HAVE BEEN POINTED OUT BY LD D.R. THEREFORE, KEEPING IN VIEW THE 4 ITA NO. 184/RAN/2015 ASSESSMENT YEAR :2008 - 09 ABOVE FACTS OF THE CASE OF THE ASSESSEE, I DIRECT THE ASSESSING OFFICER TO ACCEPT THE NET PROFIT SHOWN BY THE ASSESSEE DURING THE YEAR UNDER APPEAL @ 6.4%. THUS, THE GROUNDS OF THE ASSESSEE ARE PARTLY ALLOWED. 11. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON 7 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTA NT MEMBER RANCHI ; DATED 6 7 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : M/S. ABHOY ENTERPRISES, HAMIDGANJ, DALTONGANJ, PALAMU, JHARKHAND 2. THE RESPONDENT. ACIT, CIRCLE - 3, RANCHI 3. THE CIT(A) RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//