Shri Rameshbhai Ishwarbhai Patel, Ahmedabad V. The Income Tax Officer, Ward-2., Patan

ITA 2703/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7913 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 08-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R P MAURYA
• Assessee Lawyers: AJIT P SANDESARA
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE, SHRI N. K. BILLAIYA , ACCOUNTANT MEMBER AND SHRI S. S. GODARA, JUDICIAL MEMBER ITA NO. 2703/AHD/2014 (ASSESSMENT YEAR: 2011-12) SHRI RAMESHBHAI ISHWARBHAI PATEL C/O. A. P. SANDESARA & CO., CHARTERED ACCOUNTANTS, 104, MAURYA COMPLEX, NEAR C. U. SHAH COLLEGE, OFF. ASHRAM ROAD, AHMEDABAD 380014 APPELLANT VS. INCOME TAX OFFICER, WARD 2, PATAN RESPONDENT PAN: ABZPP0416H /BY ASSESSEE : SHRI AJIT P. SANDESARA, A.R. /BY REVENUE : SHRI R. P. MAURYA, SR. D.R /DATE OF HEARING : 12.12.2017 /DATE OF PRONOUNCEMENT : 18.12.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12 ARISES AGAINST THE CIT(A), GANDHINAGARS ORDER DATED 22.08.2014 IN CAS E NO. ITA NO. 2703/AHD/14 [SHRI RAMESHBHAI I. PATEL VS. I TO] A.Y. 2011-12 - 2 - CIT(A)/GNR/423/2013-14, AFFIRMING ASSESSING OFFICER S ACTION MAKING ADDITION OF RS.24,40,009/- AS UNDISCLOSED INCOME IN HIS ORDER DATED 31.12.2013, IN PROCEEDINGS U/S. 143(3) OF THE INCOM E TAX ACT, 1961; IN SHORT THE ACT. 2. RELEVANT FACTS ARE IN A NARROW COMPASS. THERE I S NO DISPUTE THAT THIS ASSESSEE IS A CIVIL CONTRACTOR ENGAGED IN CONSTRUCT ION BUSINESS. HIS PROFIT & LOSS ACCOUNT DISCLOSED GROSS CONTRACT RECEIPT OF RS .86,15,906/- WHEREAS VARIOUS GOVERNMENT AGENCIES TDS AS WELL AS FORM 26A S WOULD STATE THE SAID AMOUNT TO BE OF RS.1,37,20,757/-. THE SAME RE SULTED IN DIFFERENCE OF RS.51,04,851/-. LEARNED COUNSEL REPRESENTING ASSES SEE IS FAIR ENOUGH IN STATING THAT HE COULD NOT RECONCILE THE AMOUNT IN Q UESTION OF RS.24,40,009/- MAKING THE ASSESSING OFFICER TO TREAT IT AS UNDISC LOSED CONTRACT INCOME IN QUESTION. THE CIT(A) AFFIRMS THE ASSESSING OFFICER S ACTION MAKING THE IMPUGNED ADDITION. 3. WE HAVE HEARD BOTH THE PARTIES. THE ASSESSEE CO NCEDES THAT THE AMOUNT IN DISPUTE REPRESENTS HIS CIVIL CONSTRUCTION CONTRACT INCOME IN THE COURSE OF HEARING. HIS ONLY PLEA IS THAT ONCE THIS IS THE CASE, THE IMPUGNED ADDITION COULD BE MADE ONLY QUA THE NET PROFIT ELEM ENT @8% AS PER SECTION 44 AD OF THE ACT. LEARNED DEPARTMENTAL REPRESENTAT IVE FAILS TO DISPUTE THE CRUCIAL FACT THAT THE IMPUGNED SUM REPRESENTS ASSES SEES BUSINESS INCOME ONLY. WE PROCEED IN THIS BACKDROP TO NOTICE THAT T HE ASSESSEE HAS DECLARED GROSS PROFITS @ 12.45% AND 10.04% IN THE PRECEDING TWO ASSESSMENT YEARS AND @ 11.89% IN THE IMPUGNED ASSESSMENT YEAR. WE A CCORDINGLY DEEM IT APPROPRIATE THAT AN ESTIMATED GROSS PROFIT ADDITION @ 12% IN THE IMPUGNED ASSESSMENT YEAR QUA THE AMOUNT IN QUESTION OF RS.24 ,40,009/- WOULD BE JUST AND PROPER. LEARNED COUNSEL FAIRLY ACCEPTS THE SAM E IN THE COURSE OF HEARING. WE ORDER ACCORDINGLY WITH A RIDER THAT OU R INSTANT ESTIMATION WOULD ITA NO. 2703/AHD/14 [SHRI RAMESHBHAI I. PATEL VS. I TO] A.Y. 2011-12 - 3 - NOT BE TREATED AS A PRECEDENT IN ANY PRECEDING OR A NY SUCCEEDING ASSESSMENT YEAR. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. [PRONOUNCED IN THE OPEN COURT ON THIS THE 18 TH DAY OF DECEMBER, 2017.] SD/- SD/- ( N. K. BILLAIYA ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD: DATED 18/12/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0