Mangat Trehan S/O Sh. Charan Dass, Hoshiarpur V. The Assistant Commissioner of Income Tax, Hoshiarpur

ITA 262/ASR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9559 (ITAT-AMRITSAR)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 03-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAWANI SHANKAR
• Assessee Lawyers: V K MALHOTRA
• Keywords: Opportunity of being heard; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLA TE TRIBUNAL AMRITSAR BENCH; AMRITSAR (CAMP AT JALANDHAR) BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A NO. 262 (ASR)/2016 ASSESSMENT YEAR: 2009-10 MANGAT TREHAN S/O SH. CHARAN DASS, C/O M/S TREHAN CONSTRUCTION CO., MILAP NAGAR, HOSHIARPUR. PAN: ACAPT2109H VS. ASST. CIT, HOSHIARPUR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. V.K. MALHOTRA (ADV.) RESPONDENT BY: SH. BHAWANI SHANKAR (DR) DATE OF HEARING: 26.06.2016 DATE OF PRONO UNCEMENT: 15.09.2016 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORD ER OF LEARNED CIT(A), JALANDHAR DATED 08.03.2016 FOR ASST. YEAR: 2009-10. 2. AT THE OUTSET, THE LEARNED AR INVITED OUR ATTENT ION TO APPLICATION FOR ADDITIONAL EVIDENCE IN THE FORM OF COPY OF FORM NO. 26AS AND ALSO COPY OF FORM NO.16A FROM INTERNATIONAL CONTRACTORS LTD., FOR THE PROPOSITION THAT A PART OF GROSS RECEIPTS WERE ALRE ADY DECLARED IN EARLIER YEAR I.E., ASST. YEAR 2008-09, THEREFORE, THE TAXAB ILITY OF THIS INCOME IN THE PRESENT YEAR WAS NOT JUSTIFIED. THE LEARNED AR ALSO INVITED OUR ATTENTION TO THE AMENDED GROUNDS OF APPEAL WHEREIN AGAIN THE ASSESSEE HAS SUBMITTED THAT AN AMOUNT OF RS.64,19,761/- INCL UDED IN THE GROSS ITA NO.26 2 (ASR)/2016 ASST. YEA R: 2009-10 2 RECEIPTS WAS RELATING TO EARLIER YEAR. THEREFORE, IT WAS PRAYED THAT THE CASE OF THE ASSESSEE BE SET ASIDE TO ASSESSING OFFI CER FRESH ADJUDICATION IN VIEW OF THE ADDITIONAL EVIDENCE AND IN VIEW OF T HE ADDITIONAL GROUNDS OF APPEAL. 4. THE LEARNED DR, HAD NO OBJECTION IF THE MATTER I S SENT BACK TO ASSESSING OFFICER FOR RE-ADJUDICATION. 5. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT ASSESSEE I S ENGAGED AS CONTRACTOR. DURING ASSESSMENT PROCEEDINGS, THE ASSE SSING OFFICER CALCULATED THE NET PROFIT @ 12% INSTEAD OF 8% DECLA RED BY ASSESSEE. BEFORE US, THE LEARNED AR HAS ARGUED THAT THE GROSS RECEIPTS CALCULATED BY ASSESSING OFFICER AND FURTHER UPHELD BY LEARNED CIT(A) WERE NOT CORRECT GROSS RECEIPTS AND IN THIS RESPECT HAS FILE D ADDITIONAL EVIDENCE TO DEMONSTRATE THE CORRECT GROSS RECEIPTS RELATING TO PRESENT YEAR. FURTHER, WE FIND THAT THE LEARNED CIT(A) HAS REDUCED THE NET PROFIT RATIO FROM 12% TO 10% WITHOUT RECORDING ANY FINDING. THE HONBLE P UNJAB & HARYANA HIGH COURT IN THE CASE OF TELELINKS VS. CIT, BATHI NDA (ITA NO.269 OF 2014) HAS LAID DOWN THE FOLLOWING CRITERIA IN THE C ASE OF CIVIL GOVT. CONTRACTORS, TO BE CONSIDERED WHILE APPLYING NET PR OFIT RATE. (I) PAST TAX HISTORY OF THE ASSESSEE. (II) ASSESSMENT ORDERS PASSED BY AND ACCEPTED BY TH E DEPARTMENT. (III) THE NATURE OF ASSESSEES BUSINESS. ITA NO.26 2 (ASR)/2016 ASST. YEA R: 2009-10 3 (IV) AN APPRAISAL OF THE VALUE OF THE CONTRACT. (V) PREVAILING ECONOMIC CONDITIONS VIS--VIS THE AS SESSEES BUSINESS. (VI) THE PRICE OF RAW MATERIAL AND LABOURSE ETC. (VII) THE RISE IN PRICE INDEX AS NOTIFIED BY THE CE NTRAL GOVERNMENT FROM TIME TO TIME. (VIII) ASSESSMENT OF OTHER ASSESSEES ENGAGED IN SIM ILAR BUSINESS. IN VIEW OF THE ABOVE, WE DEEM IT APPROPRIATE TO REM IT THE MATTER BACK TO ASSESSING OFFICER FOR FRESH ADJUDICATION. THE ASSE SSING OFFICER SHOULD CONSIDER THE ADDITIONAL EVIDENCE AS WELL AS THE HON BLE HIGH COURTS DECISION CITED ABOVE TO ARRIVE AT APPROPRIATE RATE OF NET PROFIT ON THE CORRECT FIGURE OF GROSS RECEIPTS. NEEDLESS TO SAY THAT ASSESSEE WILL BE PROVIDED SUFFICIENT OPPORTUNITY OF BEING HEARD. 6. IN VIEW OF THE ABOVE, THE APPEAL FILED BY THE AS SESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 .09.2016. SD/- SD/- (A.D. JAIN) ( T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED:15.09.2016. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER