Shree Krishna Contech Pvt. Ltd., Bhubaneswar V. ITO, Ward-1(4), Bhubaneswar

ITA 354/CTK/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4340 (ITAT-CUTTACK)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-02-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 22-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: P R MOHANTY

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH CUTTACK BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER ./ ITA NO. 354 / CTK /20 1 7 ( / ASSESSMENT YEAR : 20 13 - 20 14 ) SHREE KRISHNA CONTECH PVT. LTD P LOT NO.719, AT/PO: MALIPADA, BHUBANESWAR VS. ITO, WARD - 1(4), VANI VIHAR, BHUBANESWAR ./ ./ PAN/GIR NO. : A AQCS 8622 M ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI P.R.MOHANTY , AR /REVENUE BY : SHRI D.K.PRADHAN , DR / DATE OF HEARING : 28 / 0 2 /201 8 / DATE OF PRONOUNCEMENT 28/02 /201 8 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 1 , BHU BANESWAR , DATED 07.06.2017 FOR THE ASSESSMENT YEAR 2013 - 2014 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN ESTIMATING THE INCOME OF THE ASSESSEE AT 15% OF THE TOTAL REVENUE OF RS. 1,91,05,951/ - IN PLACE OF 20% MADE B Y THE AO. 3. BRIEF FACTS OF THE CASE ARE THAT THE AO OBSERVED THAT THE ASSESSEE HAS SHOWN NET PROFIT @16.93% ON REVENUE FROM OPERATION OF RS.2,82,600/ - IN ASSESSMENT YEAR 2012 - 2013 AND HAS RETURNED AN INCOME OF RS.47,837/ - . HE OBSERVED THAT IN THE YEAR UND ER APPEAL, THE ASSESSEE HAS SHOWN NET PROFIT @ 0.27% ON THE REVENUE FROM OPERATION OF RS.1,91,05,951/ - AND RETURNED AN INCOME OF RS.52,021/ - . THEREFORE, HE OPINED THAT THE NET PROFIT SHOWN BY THE ASSESSEE WAS LOW AND ESTIMATED THE NET PROFIT BY APPLYING RA TE OF 20% ON THE REVENUE FROM OPERATIONS OF ITA NO. 354 /CTK/201 7 2 RS.1,91,05,951/ - AND DETERMINED THE INCOME OF THE ASSESSEE AT RS.38,21,190/ - IN PLACE OF RS.52,021/ - SHOWN BY THE ASSESSEE. 4. ON APPEAL, THE CIT(A) REDUCED THE NET PROFIT RATE FROM 20% TO 15% AND DETERMINED THE INCOME AT RS.28,65,893/ - IN PLACE OF RS.38,21,190/ - DETERMINED BY THE AO AND GRANTED RELIEF OF RS.9,55,297/ - TO THE ASSESSEE. 5. DURING THE COURSE OF HEARING, THE AR OF THE ASSESSEE SUBMITTED THAT THE ESTIMATION OF INCOME AT 15% OF THE REVENUE FROM OPERATI ONS IS ON HIGHER SIDE AND THE SAME MAY BE ESTIMATED AT 3%. 6. ON THE OTHER HAND, THE DR RELIED ON THE ORDER OF CIT(A). 7. I HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IT IS NOT IN DISPUT E THAT THE ASSESSMENT IN THE PRESENT CASE HAS BEEN MADE U/S.144 OF THE ACT AND THE BOOKS OF ACCOUNTS AND RELATED VOUCHERS WERE NOT PRODUCED BEFORE THE AO. THEREFORE, THE AO WAS FULLY JUSTIFIED IN ESTIMATING THE INCOME OF THE ASSESSEE. I FIND THAT THE ESTIM ATION OF INCOME OF THE ASSESSEE AT 15% OF THE REVENUE FROM OPERATIONS IS ON A HIGHER SIDE. IN MY CONSIDERED VIEW IT SHALL MEET THE ENDS OF JUSTICE IF THE SAME IS ESTIMATED AT 5% OF THE REVENUE FROM OPERATIONS. I ACCORDINGLY MODIFY THE ORDER OF THE CIT(A) A ND PARTLY ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 /02 /201 8 . SD/ - (N. S. SAINI) / ACCOUNTANT MEMBER CUTTACK ; DATED 28/02 /201 8 . . / PKM , SENIOR PRIVATE SECRETARY ITA NO. 354 /CTK/201 7 3 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - SHREE KRISHNA CONTECH PVT. LTD PLOT NO.719, AT/PO: MALIPADA, BHUBANESWAR 2. / THE RESPONDENT - ITO, WARD - 1(4), VANI VIHAR, BHUBANESWA R 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//