M/s Vishnu Shankar Ojha, Bhojpur V. ITO, Ward-1, Ara

ITA 24/PAT/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6211 (ITAT-PATNA)
• Duration Of Justice: 2 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 12-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: A K RASGORI
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PATNA VIRTUAL COURTAT KOLKATA BEFORE SHRI S.S. GODARA, JM & DR. A. L. SAINI, AM ITA NO.24/PAT/2018 ASSESSMENT YEAR:2010-11 M/S VISHNU SHANKAR OJHA VILL-KATAYAN, PS-BIHIA, BHOJPUR, BIHAR-802152 / V/S . ITO, WARD-1, ARA PAN NO.AAEFB8040M /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI A.K. RASGORI, ADVOCATE /BY RESPONDENT SHRI AJAY KUMAR, ADDL.CIT, SR. DR /DATE OF HEARING 14-09-2020 /DATE OF PRONOUNCEMENT 14-09-2020 /O R D E R PER BENCH(ORAL): THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS), PATNAS ORDER DATED 27.12.2017 PASSED IN CASE NO.128/CIT(A)-1/2012-13 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WITH THE ABLE ASSISTANCE OF BOTH THE LEARNED REPRESENTATIVES, WE NOTICE DURING THE COURSE OF HEARING THAT THE ASSESSING OFFICER AS WELL AS CIT(A) HAVE PROCEEDED TO DISALLOW/ADD VARIOUS EXPENSES ITEMS IN ASSESSEES CIVIL CONSTRUCTION BUSINESS AFTER ITA NO.24/PAT/2018 M/S VISHNU SHANKAR OJHA PAGE 2 OBSERVING THAT HIS BOOKS AND VOUCHERS; ALTHOUGH MAINTAINED, COULD NOT BE SUBJECTED TO FACTUAL VERIFICATION. FACED WITH THIS SITUATION, MR. RASTOGIS ONLY PLEA DURING THE COURSE OF HEARING IS THAT ALTHOUGH THIS TAXPAYER HAS RAISED FORMER ISSUE OF CORRECTNESS OF THE IMPUGNED DISALLOWANCE/ADDITION(S), HE HOWEVER RESTRICTS ITS GRIEVANCE ONLY TO THE EXTENT OF RE-ESTIMATION OF NET PROFIT RATE IN CIVIL CONSTRUCTION BUSINESS. WE THEREFORE REJECT THE ASSESSEES BOOKS OF ACCOUNTS DUE TO LACK OF FACTUAL VERIFICATION OF BILLS AND VOUCHERS IN VIEW OF HONBLE JURISDICTIONAL HIGH COURTS DECISION IN DCIT VS. M/S RISHI BUILDERS INDIA PVT. LTD.; MA NO.694 OF 2010 DATED 23.04.2018 TO PARTLY DECLINE LEARNED DEPARTMENTAL REPRESENTATIVES ARGUMENTS SUPPORTING BOTH THE LEARNED LOWER AUTHORITIES ACTION UNDER CHALLENGE TO THIS EFFECT. WE THUS DIRECT THE ASSESSING OFFICER TO RE-ESTIMATE THE ASSESSEES NET PROFIT RATE @ 7.5% (GOING BY MR. RASTOGIS CONCESSION DURING THE COURSE OF HEARING) AS PER LAW IN CONSEQUENTIAL PROCEEDINGS. IT IS MADE CLEAR THAT THE ASSESSEES PARTNERS REMUNERATION ETC. SHALL ALSO BE CONSIDERED FOR GRANTING THE IMPUGNED RELIEF. 3. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 14/09/2020 AT THE TIME OF HEARING. SD/- SD/- (A. L. SAINI) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER KOLKATA; DATE: 14/09/2020 RS / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT- M/S VISHNU SHANKAR OJHA 2. /RESPONDENT- ITO, WARD-1, ARA ITA NO.24/PAT/2018 M/S VISHNU SHANKAR OJHA PAGE 3 3. / CONCERNED CIT 4. - / CIT (A) 5. , / DR, ITAT, 6. [ / GUARD FILE. //TRUE COPY// BY ORDER/ , SR. PRIVATE SECRETARY, ITAT, KOLKATA.