M/s. Green Tops, Vijayawada V. The ITO, Vijayawada

ITA 273/VIZ/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6385 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 10-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 273 / VIZ /201 6 (ASST. YEAR : 20 11 - 1 2 ) M/S. GREEN TOPS, D.NO. 57 - 9 - 10 , NEW POSTAL COLONY, PATAMATA, VIJAYAWADA . VS. ITO , WARD - 2(3), VIJAYAWADA. PAN NO. AACFG 0266 E (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. SUBRAHMANYAM FCA . DEPARTMENT BY : SHRI M.K. SETHI SR. DR DATE OF HEARING : 02 / 0 3 /201 7 . DATE OF PRONOUNCEMENT : 24 / 03 /201 7 . O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), VIJAYAWADA , DATED 25/02 /201 6 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS IN THE BUSINESS OF CARRYING LABOUR CONTRACT WORKS OF HORTICULTURE FOR CENTRAL GOVERN MENT , BHARAT DYNAMIC LTD. , BHARAT HEAVY ELECTRICAL LTD. , NUCLEAR FUEL COMPLEX LTD. ETC. , FILED ITS RETURN OF INCOME BY DECLARING TOTAL INCOME OF 10,17,820/ - . THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE ACT , T HEREAFTER CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY. AFTER DUE PROCEDURE, ASSESSMENT WAS COMPLETED UNDER SE CTION 143(3) OF THE ACT. IN THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER ASKED THE ASSESSEE TO 2 ITA NO. 273/VIZ/2016 (M/S. GREEN TOPS) PRODUCE BOOKS OF ACCOUNT, BILLS AND VOUCHERS . THE ASSESSEES CHARTERED ACCOUNTANT APPEARED AND SUBMITTED THAT BOOKS OF ACCOUNT, BILLS AND VOUCHERS WERE MISPLACED AT WORKING PLACE . B Y CONSIDERING THE EXPLANATION OF THE ASSESSEE, THE ASSESSING OFFICER HAD ESTIMATED THE INCOME OF THE ASSESSEE AT 8% ON MAIN - CONTRACTS, 5% ON SUB - CONTRACTS. 3. BEING AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPE AL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AND SUBMITTED THAT ESTIMATION MADE BY THE ASSESSING OFFICER WAS ON HIGHER SIDE AND THE SAME MAY BE REDUCED. THE COMMISSIONER OF INCOME TAX (APPEALS) AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE HELD AS UNDER: - 5.2 I HAVE PERUSED THE SUBMISSION OF APPELLANT, COPIES OF WORK ORDER AND VARIOUS CASE LAWS CITED BY IT. AT THE OUTSET, IT IS NOTED THAT APPELLANT DID NOT PRODUCE THE BOOKS OF ACCOUNT, BILLS/VOUCHERS, ETC. EITHER DURING ASSESSMENT PROCEEDINGS O R APPELLATE PROCEEDINGS CLAIMING THAT THEY WERE MISPLACED. IN THE ABSENCE OF BOOKS OF ACCOUNT, ASSESSING OFFICER IS JUSTIFIED IN HOLDING THE VIEW THAT IT WAS DIFFICULT TO ASCERTAIN THE TRUE PROFIT OF THE FIRM. THE BOOKS OF ACCOUNT, THE VERY BASIC ASPECT IN ARRIVING AT THE COMPUTATION OF INCOME, WERE NOT MA - M - AVAILABLE BEFORE ASSESSING OFFICER INDICATED THAT THERE IS SERIOUS DEFECT IN APPELLANT'S MAINTENANCE OF - BOOKS OF ACCOUNT. IT IS FOR THE APPELLANT TO PROVE THAT THE INCOME ADMITTED BY IT IS CORRECT AND I N THE ABSENCE OF BOOKS OF ACCOUNT, VOUCHERS FOR EXPENDITURE, ETC. ASSESSING OFFICER IS LEFT WITH NO OPTION BUT TO ESTIMATE THE INCOME. IN MY VIEW, ASSESSING OFFICER HAS RIGHTLY DONE SO BY ADOPTING ESTIMATED INCOME @8% ON MAIN CONTRACT RECEIPTS AND @ 5% ON SUB - CONTRACT RECEIPTS DULY FOLLOWING DECISIONS OF ITAT, HYDERABAD & VISAKHAPATNAM ON THIS ISSUE. 4 . I HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW . IN THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER ASKED THE ASSESSEE TO PRODUCE BOOKS OF ACCOUNT, BILLS AND VOUCHERS . IT WAS SUBMITTED BEFORE THE ASSESSING OFFICER THAT BOOKS OF ACCOUNT, BILLS AND 3 ITA NO. 273/VIZ/2016 (M/S. GREEN TOPS) VOUCHERS WERE MISPLACED. IN ABSENCE OF BOOKS OF ACCOUNT, BILLS AND VOUC HERS , THE ASSESSING OFFICER HAS ESTIMATED THE INCOME AT 8% ON MAIN - CONTRACT RECEI P TS AND 5% ON SUB - CONTRACT RECEIPTS, THE SAME WAS CONFIRMED BY THE COMMISSIONER OF INCOME TAX (APPEALS). I FIND THAT THERE IS NO REASON TO INTERFERE WITH THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) . THUS, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS DISMISSED. 5 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 4 T H DAY OF MARCH, 201 7 . S D / - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 2 4 T H MARCH , 201 7 . VR/ - COPY TO: 1 . THE ASSESSEE - M/S. GREEN TOPS, D.NO. 57 - 9 - 10, NEW POSTAL COLONY, PATAMATA, VIJAYAWADA. 2 . THE REVENUE - ITO, WARD - 2(3), VIJAYAWADA. 3 . THE P CIT , VIJAYAWADA. 4 . THE CIT(A) , VIJAYAWADA . 5 . THE D.R . , VISAKHAPATNAM . 6 . GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY , I.T.A.T., VISAKHAPATNAM