ACIT, circle-62(1), New Delhi V. Subodh Gupta, Delhi

ITA 3418/DEL/2018

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 116071 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-08-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 08-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK KR. UPADHYAY
• Keywords: Depreciation
• Section: 44AD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Ms. Astha Chandra, Judicial Member ITA No. 3418/Del/2018 : Asstt. Year : 2014-15 ACIT, Circle-62(1), New Delhi-110002 Vs. Subodh Gupta, D-3, East Jyoti Nagar, Loni Road, Shahdara, New Delhi-110093 (APPELLANT) (RESPONDENT) PAN No. AEVPG4646M Assessee by : Ms. Tanya, Adv. Revenue by : Sh. Vivek Kr. Upadhyay, Sr. DR Date of Hearing: 29.08.2023 Date of Pronouncement: 31.08.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the Revenue against the order of ld. CIT(A)-20, New Delhi dated 28.02.2018. 2. Following grounds have been raised by the Revenue: “1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in reducing the percentage of profit to 5% of civil contract works as against 8% of civil contract work upheld by the Hon’ble Delhi High Court in the case of the assessee itself in AY 2009-10. 2. On the facts and in circumstances of the case and in law, the ld. CIT(A) has erred in allowing depreciation of Rs.20,09,838/- when the Assessing Officer had rejected the books of accounts of the assessee.” ITA No. 3418/Del/2018 Subodh Gupta 2 3. Heard the arguments of both the parties and perused the material available on record. 4. The turnover of the assessee during the year was Rs.33.05 Cr. The Assessing Officer estimated 8% as net profit on the gross receipts invoking the provisions of Section 44AD of the Income Tax Act, 1961. 5. The ld. CIT(A)-20, New Delhi, Smt. Sulekha Verma held that the profit determined @ 8% by the AO is excessive and the net profit has been determined @ 5% reduced by the depreciation. 6. Having gone through the order of the ld. CIT(A) and keeping in view the fact that the provisions of Section 44AD of the Income Tax Act, 1961 are not applicable to the case of the assessee owing to the turnover which is above the turnover limits prescribed by the Act and keeping in view the judgment of the Hon’ble Jurisdictional High Court in ITA No. 80/2014 dated 09.12.2014 in assessee’s own case for the A.Y. 2009-10 on the similar issue, we decline to interfere with the reasoned order of the ld. CIT(A). 7. In the result, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 31/08/2023. Sd/- Sd/- (Astha Chandra) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 31/08/2023 *Subodh Kumar, Sr. PS*