M/s Kola Kondraju, V. THE ACIT, Rajahmundry

ITA 200/VIZ/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6702 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 16-11-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 25-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R S ARAVINDAKSHM
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 200 / VIZ /201 5 (ASST. YEAR : 20 1 0 - 11 ) M/S. KOLA KONDARAJU, D.NO. 4 - 37, PENUGONDA NAGAR, VEMAGIRI, KADIYAM MANDALAM, EAST GODAVARI DISTRICT. V S . A CIT, CIRCLE - 1, RAJAHMUNDRY . PAN NO. AAGFK 2476 E (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI R.S. ARAVINDAKSHM SR. DR DATE OF HEARING : 12 / 0 9 /201 7 . DATE OF PRONOUNCEMENT : 15 / 0 9 /201 7 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD.CIT(A), RAJAHMUNDRY DATED 27/02/2015 FOR THE ASSESSMENT YEAR 2010 - 11. 2. THERE IS A DELAY OF 07 DAYS IN FILING OF THIS APPEAL. THE ASSESSEE HAS FILED AN AFFIDAVIT , WHEREIN HE EXPLAINED THAT THE DELAY IS NEITHER INTENTIONAL NOR DELIBERATE . WE HAVE ALSO GONE THROUGH THE AFFIDAVIT FILED BY THE ASSESSEE AND FOUND THAT THERE IS A SUFFICIENT CAUSE IN NOT FILING THE APPEAL IN TIME AND THEREFORE, THE DELAY IS CONDONED. 3 . FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF EXECUTING CIVIL CONTRACTS , FILED ITS RETURN OF INCOME BY 2 ITA NO. 200/VIZ/2015 ( M/S. KOLA KONDARAJU ) DECLARING THE TOTAL INCOME OF 49,79,840/ - . THE CASE OF THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE 'ACT') AND SELECTED FOR SCRUTINY AND AFTER FOLLOWING DUE PROCEDURE , ASSESSMENT IS COMPLETED UNDER SECTION 143(3) OF THE ACT. THE ASSESSING OFFICER ASKED THE ASSESSEE TO FILE THE BOOKS OF ACCOUNT, BILLS & VOUCHERS FOR VERIFICATION. IN RESPONSE TO THE NOTICE ISSUED, THE AUTHORIZED REPRESENTATIVE APPEARE D AND ONLY PRODUCED LIMITED VOUCHERS FOR VERIFICATION , WHICH ARE NOT AMENABLE FOR VERIFICATION OF COMPLETE FACTS ; THE VOUCHERS ARE ALSO SELF - MADE AND SOME O F THE EXPENDITURE INCURRED BY THE ASSESSEE IS NOT PROPERLY EXPLAINED . THE ASSESSEE ALSO FAILED TO PRODUCE THE DETAILS AND SUPPORT IVE DOCUMENTS IN RESPECT OF PAYMENTS MADE ON OTHER ELEMENT S OF EXPENDITURE. NO EVIDENCE IS PRODUCED IN SUPPORT OF ADDITION TO FIXED ASSETS AND GENUINENESS OF SUNDRY CREDITORS WAS NOT ESTABLISHED EVEN TO THE EXTENT OF PRODUCING PROPER NAMES AND ADDRESSES. THEREFORE, THE ASSESSING OFFICER WAS PROPOSED TO REJECT THE BOOKS OF ACCOUNT, THE ASSESSEE HAS AGREED FOR THAT. ACCORDINGLY, BY TAKING INTO CONSIDERATION OF ALL THE FACTS AND NATURE OF THE BUSINESS OF THE ASSESSEE , T HE ASSESSING OFFICER HAS ESTIMATED THE INCOME AT 9% OF GROSS CONTRACT RECEIPTS AFTER ALL OWING REMUNERATION AND INTEREST PAID TO THE PARTNERS. 4 . ON APPEAL, THE LD. CIT(A) HAS SCALED DOWN THE ESTIMATION MADE BY THE ASSESSING OFFICER FROM 9% TO 8% WITHOUT ALLOWING DEPRECIATION SEPARATELY. 3 ITA NO. 200/VIZ/2015 ( M/S. KOLA KONDARAJU ) 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 6 . WE FIND THAT THE LD. CIT(A) REASONABLY ESTIMATED 8% OF THE GROSS CONTRACT RECEIPTS WITHOUT ALLOWING DEPRECIATION. WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). THUS, THIS APPEAL FI LED BY THE ASSESSEE IS DISMISSED. 7 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 1 5 T H DAY OF SEP . , 201 7 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 5 T H SEPTEMBER , 201 7 . VR/ - COPY TO: 1. THE ASSESSEE - M/S. KOLA KONDARAJU, D.NO. 4 - 37, PENUGONDA NAGAR, VEMAGIRI, KADIYAM MANDALAM, EAST GODAVARI DISTRICT. 2. THE REVENUE ACIT, CIRCLE - 1, RAJAHMUNDRY. 3. THE CIT, RAJAHMUNDRY. 4. THE CIT(A) - 1, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.