M/s. Mahavir Power Generation & Construction, Jagatsinghpur V. ITO, Paradeep

ITA 264/CTK/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7600 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 29-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABHAY CHARAN ROUT
• Assessee Lawyers: P R MOHANTY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N. S SAINI, ACCOUNTANT MEMBER ITA NO.264 /CTK/2015 ASSESSMENT YEAR : 2010 - 2011 M/S. MAHAVIR POWER GENERATION & CONSTRUCTION, COLLEGE SQUARE, JAGATSINGHPUR VS. ITO, WARD - 1, PARADEEP PAN/GIR NO. AALFM 5745 R (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.R.MOHANTY, AR REVENUE BY : SHRI ABHAY CHARAN ROUT , DR DATE OF HEARING : 21 /10 / 2016 DATE OF PRONOUNCEMENT : 21 /10 / 2016 O R D E R THIS I S AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - CUTTACK , DATED 26.3.2015 , FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER IN ESTIMATING THE INCOME OF THE ASSESSEE @ 8% OF THE GROSS CONTRACT RECEIPTS OF RS.2,23,33,723/ - . 2 ITA NO.264/CTK/2015 ASSESSMENT YEAR :2010 - 2011 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE FILED RETURN OF INCOME SHOWING TOTAL INCOME OF RS.5,39,410/ - . DURI NG THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS REQUIRED TO PRODUCE DETAILS OF EXPENSES INCURRED AND PRODUCE THE BOOKS OF ACCOUNT. THE ASSESSEE FAILED TO DO SO AND, THEREFORE, THE ASSESSING OFFICER ESTIMATED THE INCOME @ 8% OF GROSS CONTRACT REC EIPT OF RS.4,23,33,723/ - . 4. ON APPEAL, THE LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE FILED BEFORE ME A COPY OF ORDER DATED 19.6.2013 OF THE LD CIT(A), CUTTACK IN I.T. APPEAL NO.232/2012 - 13 FOR THE ASSESSMENT YEAR 2009 - 2010, WHICH IS THE IMMEDIATELY PRECEDING ASSESSMENT YEAR. HE POINTED OUT THAT IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR, THE INCOME OF THE ASSESSEE WAS ESTIMATED @ 5% OF THE GROSS CONTRACT RECEIPTS OF RS.1,15,78,399/ - BY T HE LD CIT(A). HE, THEREFORE, PRAYED THAT IN THE PRESENT YEAR OF APPEAL ALSO, FOLLOWING THE ORDER OF THE LD CIT(A) FOR A.Y. 2009 - 2010, THE INCOME SHOULD BE ASSESSED @ 5% OF THE GROSS CONTRACT RECEIPTS OF THE ASSESSEE. 6. ON THE OTHER HAND, LD D.R. COULD NO T CONTROVERT THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. 3 ITA NO.264/CTK/2015 ASSESSMENT YEAR :2010 - 2011 7. AFTER CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE CONSIDERED OPINION THAT IN CAS E OF REJECT ION OF BOOK RESULTS, THE INCOME OF THE ASSESSEE HAS TO BE ESTIMATED ON T HE BASIS OF PAST ACCEPTED RESULTS OF THE ASSESSEE. THE ASSESSEE BY FILING ORDER DATED 19.6.2015 OF THE LD CIT(A) IN I.T.APPEAL NO.232/2012 - 13 IN ITS OWN CASE IN PAST ASSESSMENT YEAR 2009 - 2010, BEING THE IMMEDIATELY PRECEDING ASSESSMENT YEAR, HAS SHOWN THA T THE INCOME OF THE ASSESSEE WAS ESTIMATED @ 5% OF THE GROSS CONTRACT RECEIPTS. THEREFORE, I MODIFY THE ORDER OF THE LD CIT(A) AND DIRECT THE ASSESSING OFFICER TO ASSESS THE INCOME OF THE ASSESSEE IN THE PRESENT ASSESSMENT YEAR UNDER CONSIDERATION @ 5% OF THE GROSS CONTRACT RECEIPTS OF RS.2,23,33,723/ - . THUS, THE GROUNDS OF APPEAL OF THE ASSESSEE ARE PARTLY ALLOWED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 21 /10 /2016 IN THE PRESENCE OF PARTIES. SD/ - ( N. S SAINI ) A CCOUNTANT MEMBER CUTTACK; DATED 21 /10 /2016 B.K.PARIDA, SPS 4 ITA NO.264/CTK/2015 ASSESSMENT YEAR :2010 - 2011 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : M/S. MAHAVIR POWER GENERATION & CONSTRUCTION, COLLEGE SQUARE, JAGATSINGHPUR 2. THE RESPONDENT. ITO, WARD - 1, PARADEEP 3. THE CIT(A), CUTTACK 4. CIT , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//