DCIT, BIKANER V. M/s. Choudhary Builders & Consulting Engineering, BIKANER

ITA 297/JODH/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70367 (ITAT-JODHPUR)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 04-12-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 07-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N A JOSHI
• Assessee Lawyers: SHAFI MOHAMMED CHOUHAN
• Keywords: Rejection of books of accounts; Business income; Depreciation
• Section: 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER ITA NO.297/JODH/2013 ASST. YEAR: 2009-10 DY. COMMISSIONER OF INCOME TAX, VS. M/S CHOUDHARY BUILDERS & CIRCLE-1, BIKANER. CONSULTING ENGINEERING, PAREK CHAOWK, BIKANER. (PAN: AAAFC 8619 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.A. JOSHI, D.R. RESPONDENT BY : SHRI SHAFI MOHAMMED CHOUHAN DATE OF HEARING : 04.12.2013 DATE OF PRONOUNCEMENT : 09.12.2013 ORDER PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE FOR A.Y. 2009-10 IS DIR ECTED AGAINST THE ORDER OF LD. CIT(A), BIKANER DATED 26.02.2013. 2. THE ONLY ISSUE RAISED IN THIS APPEAL READS AS UN DER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN:- 2 ITA NO.297/JODH/2013 A.Y. 2009-10 I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE LD. CIT(A) HAS ERRED IN DELETING ADDITION OF RS.41,10,076/- BY DIRECTING TO APPLY 8% N.P. RATE ON GROSS RECEIPTS AGAINST 11% N.P. RATE A PPLIED BY THE A.O. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS A FIRM WHICH CARRIES ON WORK ON CONTRACT BASIS. FOR A.Y. 2009-1 0 IT FILED ITS RETURN OF INCOME ON 26.09.2009 DECLARING TOTAL INCOME OF RS.55,06,670/- . DURING THE RELEVANT PERIOD THE ASSESSEE HAS DECLARED N.P. OF 9.18% ON GROSS CO NTRACT RECEIPT OF RS.13.71 CRORES FURTHER SUBJECT TO INTEREST AND REMUNERATION TO PARTNERS AND DEPRECIATION. FROM THE P&L ACCOUNT IT WAS NOTICED THAT SUBSTANTIA L AMOUNT OF INTEREST ON FDRS AMOUNTING TO RS.16,20,743/- IS ALSO INCLUDED IN THE RECEIPTS OF THE YEAR. ACCORDING TO A.O. IF THIS AMOUNT IS REDUCED FROM THE BUSINESS INCOME SHOWN, THE N.P. RATE COMES TO 8% FURTHER SUBJECT TO INTEREST AND REMUNER ATION TO PARTNERS AND DEPRECIATION. THE A.O. AFTER EXAMINING THE BOOKS O F ACCOUNT, VOUCHERS ETC, HAS CONCLUDED THAT THE FACTS ARE NOT CORRECT AND RELIAB LE, THEREFORE, HE HAS INVOKED PROVISIONS OF SECTION 145 OF THE ACT AND HAS APPLIE D N.P. RATE OF 11% AND HAS MADE THE IMPUGNED ADDITION. 4. AGGRIEVED THE ASSESSEE FILED APPEAL AND GOT DESI RED RELIEF. THE LD. CIT(A) HAS DIRECTED TO APPLY N.P. OF 8% INSTEAD OF 11% ON THE GROSS RECEIPTS WHICH HAS RESULTED INTO DELETION OF ADDITION OF RS.41,10,076/ -. THE REVENUE HAS CHALLENGED THIS DELETION IN THE SECOND APPEAL. 3 ITA NO.297/JODH/2013 A.Y. 2009-10 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ENTIRE RECORD. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND WITHOUT GOING TO THE JUSTIFICATION FOR REJECTION OF BOOKS OF ACCOUNTS RESTRICTING OURSELF TO THE GROUND RAISED BEFORE US BY THE REVENUE. WE FIND THAT AFTER REJECTION OF BOOKS OF ACCOUNT, NO FURTHER ADDITION IS WARRANTED BECAUSE N.P. RATE DISCLOSED IN THIS YE AR IS 8% AS COMPARED TO 7.98% IN THE IMMEDIATELY PRECEDING A.Y. SINCE THE N.P. R ATE IS BETTER THAN THE LAST YEARS EVEN AFTER REJECTION OF BOOKS OF ACCOUNT NO FURTHER ADDITION IS WARRANTED. THIS IS A CONSISTENT VIEW OF COURTS INCLUDING THIS APPELLATE TRIBUNAL. ACCORDINGLY, WE DO NOT FIND ANY MERIT IN THIS APPEAL FILED BY THE REVE NUE. ACCORDINGLY, WE DISMISS THIS APPEAL. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE STAND S DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 09.12.2013) SD/- SD/- (N.K. SAINI) (HARI OM MARATHA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 9 TH DECEMBER, 2013 PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, JODHPUR BENCH, JODHPUR 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE T RIBUNAL, JODHPUR