Satendra Prasad, Baripada V. JCIT, Balasore

ITA 327/CTK/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7604 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 3 month(s) 12 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: 2009-2010
• Appeal Filed On: 09-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABHAY CHARAN ROUT
• Assessee Lawyers: D K SHETH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N. S SAINI, ACCOUNTANT MEMBER ITA NO.327 /CTK/2015 ASSESSMENT YEAR : 2009 - 2010 SATENDRA PRASAD, WARD NO.5, KACHERI ROAD, BARIPADA. VS. THE JCIT, BALASORE RANGE, STATION SQUARE, IB ROAD, BALASORE. PAN/GIR NO. AELPP 6065 K (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI D.K.SHETH, 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) - 1, BHUBANESWAR DATED 19.2.2014 , FOR THE ASSESSMENT YEAR 2009 - 2010 . 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 @ 6% OF GROSS RECEIPTS. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE FILED RETURN OF INCOME DISCLOSING 2 ITA NO.327/CTK/2015 ASSESSMENT YEAR :2009 - 2010 INCOME OF RS.28,68,940/ - BEING INCOME FR OM EXECUTION OF CIVIL CONSTRUCTION WORK. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO PRODUCE BOOKS OF ACCOUNT AND BILLS BUT THE LD A.R OF THE ASSESSEE EXPRESSED HIS INABILITY TO PRODUCE THE CASH BOOK AND BIL LS REQUIRED BY THE ASSESSING OFFICER. THEREFORE, THE BOOK RESULTS OF THE ASSESSEE WAS REJECTED AND INCOME WAS ESTIMATED BY THE ASSESSING O FFICER AT RS.36,82,554/ - @ 6% OF GROSS CONTRACT RECEIPTS OF RS.6,13,75,904/ - , WHICH WAS CONFIRMED IN APPEAL BY THE LD CIT(A). 4. BEFORE ME, LD A.R. OF THE ASSESSEE SUBMITTED THAT THE INCOME OF THE ASSESSEE WAS ESTIMATED BY ITAT, CUTTACK IN THE CASE OF M/S. ROAD AND ROOF CONSTRUCTION, TALCHER FOR A.Y. 2001 - 02 IN ITA NO.169/CTK/2005 AT 4.77% AND @ 4.5% IN THE CASE OF M/S. PHULCHAND AGARWAL AND COMPANY (ITA NO.182/CTK/2005). HE ALSO SUBMITTED THAT IN THE CASE OF THE ASSESSEE IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR I.E. 2008 - 09, THE INCOME WAS ESTIMATED @ 4.2% OF GROSS CONTRACT RECEIPTS. THEREFORE, HE PRAYED THAT IN TH E PRESENT YEAR UNDER APPEAL, THE INCOME SHOULD BE ESTIMATED @ 5% OF GROSS CONTRACT RECEIPTS. 5. ON THE OTHER HAND, LD D.R. RELIED ON THE ORDERS OF LOWER AUTHORITIES. 6. AFTER CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE IN ITS ENTIRETY, I AM OF THE CONSIDERED VIEW THAT AFTER REJECTION OF BOOK RESULTS OF THE ASSESSEE BY INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT, THE 3 ITA NO.327/CTK/2015 ASSESSMENT YEAR :2009 - 2010 INCOME OF THE ASSESSEE SHOULD BE ESTIMATED ON A REASONABLE BASIS. IT IS UNCONTROVERTED BY LD D.R. THAT THE INCOME OF THE ASSES SEE WAS ESTIMATED IN THE IMMEDIATELY PRECEDING YEAR @ 4.2% OF GROSS CONTRACT RECEIPTS. THEREFORE, I ACCEPT THE SUBMISSION OF LD A.R. OF THE ASSESSEE THAT INCOME FOR THE PRESENT YEAR UNDER APPEAL MAY BE ESTIMATED @ 5% OF GROSS CONTRACT RECEIPTS. I, THEREF ORE , MODIFY THE ORDER OF LD CIT(A) ACCORDINGLY. THUS, GROUND OF ASSESSEE IS PARTLY ALLOWED. 7. 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 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : SATENDRA PRASAD, WARD NO.5, KACHERI ROAD, BARIPADA. 2. THE RESPONDENT. THE JCIT, BALASORE RANGE, STATION SQUARE, IB ROAD, BALASORE 3. THE CIT(A) - 1 , BHUBANESWAR. 4. CIT , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//