SHRI SUNIL KUMAR SONI, JASPUR V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), BILASPUR

ITA 184/RPR/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5381 (ITAT-RAIPUR)
• Duration Of Justice: 5 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 19-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Presumptive income; Depreciation
• Section: 44AD; 145(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं./IT A No.184/RPR/2017 (निर्धारण वर्ा / Assessment Year :2014-2015) Sunil Kumar Soni, Ghamhariya, Khajanchi Toli, PO & Dist: Jaspur (C.G.) Vs. DCIT-1(1), Bilaspur PAN No. : BCSPS 0812 F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्ाारिती की ओर से /Assessee by : None िाजस्व की ओर से /Revenue by : Shri G.N. Singh, Sr. DR सुिवाई की तािीख / Date of Hearing : 20/07/2022 घोषणा की तािीख/Date of Pronouncement : 20/07/2022 आदेश / O R D E R Per Arun Khodpia, AM : The assessee has filed this appeal arising out of the order passed by the ld. CIT(A), Bilaspur, dated 22.03.2017 for the assessment year 2014-2015. 2. None appeared on behalf of the assessee even the case was called for second round of hearing, therefore, the Bench proceeded to dispose off the present appeal after considering the arguments of ld. DR and the material available on record. 3. In this appeal, the assessee has raised the following grounds :- 1. In the facts and circumstances of the case, Ld. CIT(A) erred in upholding the rejection of books of account u/s 145(3). Rejection of books u/s 145(3) is unwarranted, arbitrary and not justified. 2. Without prejudice to ground no. 1, Ld. CIT(A) erred in upholding estimation of profit at 12.5% and in confirming the addition of Rs.1,51,00,788/- made by the AO on estimated basis. The adoption of rate of profit of 12.5% and the ITA No.184/RPR/2017 2 addition of Rs.1,51,00,788/- is arbitrary, baseless, illegal and not justified. 3. The appellant reserves the right to add, amend or alter any ground or ground/s of appeal. 4. Brief facts of the case are that the assessee is an individual and is engaged in doing civil contract work. He filed his return of income on 29.11.2014 declaring total income at Rs. 52,22,590/-. Thereafter the AO issued statutory notices to the assessee and in response to which the assessee appeared before the AO. Subsequently, the AO framed the assessment assessing total income of the assessee at Rs.2,03,23,378/- making addition of Rs.1,51,00,788/- applying net profit @12.5% of the total turnover of the assessee giving credit of depreciation and interest payment. Against which, the assessee preferred appeal before the CIT(A) and the CIT(A) confirmed the addition made by the AO and dismissed the appeal of the assessee. Now, the assessee is in further appeal before the Tribunal. 5. None for the assessee. 6. Ld. Sr. DR supported the orders of the authorities below and submitted that the AO has rightly rejected the books of accounts of the assessee because the assessee could not file the supported documents during the course of assessment proceedings. Further it was submitted by the ld. Sr DR that the AO has allowed the depreciation claimed by the assessee and the interest claimed by him also after justifiably applying net profit @12.5%. Therefore, the ld. Sr. DR submitted that the orders of the authorities below deserve to be upheld. ITA No.184/RPR/2017 3 7. We have considered the submission of the ld. Sr. DR and perused the material evidence available on record. On perusal of the assessment order, it is found that as per the AO the assessee has not maintained books of accounts properly and bills/vouchers for the expenses claimed by the assessee could not available to prove the genuinity of book results. Muster rolls are not produced for examination before the AO. In view of the above, we are of the opinion that the AO has rightly rejected the books of accounts of the assessee u/s.145(3) of the Act. However, the net profit applied by the AO was as such on higher side and unreasonable, since the provision of Section 44AD of the Act for presumptive taxation of small civil contractors brought in with a presumptive profit percentage of 8%, therefore, the assessee who is having a much higher turnover cannot have such a high percentage of taxable income as much as 12.5%. In this regard, it is our considered view that the average percentage of profit of the assessee’s own data will be the most appropriate in the assessee’s own case, therefore, we deem it fit to send back the issue to the file of AO with a direction to apply a net profit percentage after taking the average of the last three immediately preceding years net profit of the assessee and re-adjudicate the issue as per law. The assessee shall be given sufficient opportunity of hearing. The assessee is also directed to cooperate with the AO for early disposal of the case. Thus, we allow the issue raised by the assessee for statistical purposes. ITA No.184/RPR/2017 4 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 20/07/ 2022. Sd/- (RAVISH SOOD) Sd/- (ARUN KHODPIA) न्यधनयक सदस्य / JUDICIAL MEMBER लेखध सदस्य /ACCOUNTANT MEMBER Raipur; नििाांक Dated 20/07/2022 Prakash Kumar Mishra, Sr.P.S.(on tour) आदेश की प्रनिनलनप अग्रेनर्ि/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) ITAT Raipur Bench, Raipur 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकि आयुक्त(अपील) / The CIT(A), 4. आयकि आयुक्त / CIT 5. नवभागीय प्रनतनिनर्, आयकि अपीलीय अनर्किण, Raipur / DR, ITAT, Raipur 6. गार्ा फाईल / Guard file. सत्यानपत प्रनत //True Copy//