SINGHAL BUILDERS, Jaipur V. ACIT, BHARATPUR

ITA 374/JPR/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59513 (ITAT-JAIPUR)
• Duration Of Justice: 42 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2012
• Appeal Filed By: Assessee
• Assessment Year: misc
• Appeal Filed On: 01-01-1970
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Assessee Lawyers: MAHENDER GARGIEYA
• Keywords: Depreciation

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SH. R.K. GUPTA, JUDICIAL MEMBER AND SH. N.L. KALRA, ACCOUNTANT MEMBER I.T.A. NO.374 /JP/2011 ASSESSMENT YEAR : 1995-96 PAN:AAPFS9809Q M/S. SINGHAL BUILDERS, VS. ASSTT. COMMR. OF INCOME -TAX, BHARATPUR. CIRCLE, BHARATPUR. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. MAHENDER GARGIEYA, AR RESPONDENT BY :SH. D.K. MEENA, DR DATE OF HEARING :16.01.2012 DATE OF PRONOUNCEMENT: 20.01.2012 ORDER PER N.L. KALRA, AM THE PRESENT APPEAL FILED BY THE ASSESSEE IS DIRECT ED AGAINST THE ORDER OF THE CIT(A), ALWAR, DATED 24.02.2011 RELATING TO ASSESSM ENT YEAR 1995-96. 2. THE FIRST GROUND OF APPEAL WAS NOT PRESSED AND, THEREFORE, THE SAME IS DISMISSED. 3. THE SECOND GROUND OF APPEAL IS AGAINST CONFIRMAT ION OF ADDITION OF RS.67,652/- AFTER INVOKING THE PROVISIONS OF SECTIO N 145(3) OF THE INCOME-TAX ACT, 1961 ( IN SHORT, THE ACT). THE LD. COUNSEL FOR TH E ASSESSEE HAS NOT PRESSED 2 AGAINST INVOKING THE PROVISIONS OF SECTION 145(3), THEREFORE, IT IS HELD THAT THE BOOKS OF ACCOUNT HAVE BEEN RIGHTLY REJECTED. 3.1. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CIV IL CONSTRUCTION WORK. THE AO IN HIS ORDER HAS GIVEN THE CHART SHOWING THE QUANTU M OF PAYMENTS RECEIVED, RATE SHOWN BY THE ASSESSEE, RATE APPLIED BY THE AO, LD. CIT(A) AND THE ITAT. FOR THE ASSESSMENT YEAR 1995-96, THE AO APPLIED NET PROFIT RATE OF 10.9%. THE LD. CIT(A) DIRECTED TO APPLY NET PROFIT RATE OF 21% AND THE TR IBUNAL DIRECTED THE AO TO FRAM FRESH ASSESSMENT AFTER ALLOWING AN OPPORUTNITY OF B EING HEARD TO THE ASSESSEE. 3.2. BEFORE THE AO, IT WAS SUBMITTED THAT THE TRIBU NAL IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 1998-99 APPLIED THE RATE OF 10%, THEREFORE, 10.9% SHOWN BY THE ASSESSEE SHOULD BE ACCEPTED. THE AO APPLIED THE NET PROFIT RATE OF 13%. THE LD. CIT(A) NOTICED THAT THE ITAT HAS UPHELD THE RAT E OF 11.08% IN THE ASSESSMENT YEAR 1994-95 AND 10.05% FOR THE ASSESSMENT YEAR 19 92-93. THE LD. CIT(A) APPLIED TE NET PROFIT RATE OF 11.1% FOR THE ASSESSM ENT YEAR 1993-94. SINCE THE PRECEDING YEAR NET PROFIT RATE WAS APPLIED AT 11.1% , THEREFORE, THE LD. CIT(A) DIRECTED THE AO TO APPLY NET PROFIT RATE OF 11.1% SUBJECT TO DEPRECIATION, INTEREST TO THE THIRD PARTY, SALARY AND INTEREST TO THE PART NER. 4. WE HAVE HEARD BOTH THE PARTIES. FOR THE ASSESSME NT YEAR 1992-93, THE ASSESSEE HAS SHOWN NET PROFIT RATE OF 9.1% AND THE TRIBUNAL UPHELD THE RATE OF 10.5%. IN THE ASSESSMENT YEAR 1993-94, THE ASSESSEE SHOWED NET PROFIT RATE OF 3 11.1% AND THE SAME WAS UPHELD BY THE TRIBUNAL. SIMI LARLY, FOR THE ASSESSMENT YEAR 1994-95, THE ASSESSEE SHOWED NET PROFIT RATE OF 11. 08% AND THE SAME WAS UPHELD BY THE TRIBUNAL. FOR THE ASSESSMENT YEARS 1992-93 T O 1994-95, THE RECEIPTS VARIED FROM RS.30 LACS TO RS.47 LACS. HOWEVER, IN THE ASSE SSMENT YEAR UNDER CONSIDERATION, THE RECEIPTS ARE TO THE EXTENT OF RS .1,02,77,380/-. THE ASSESSEE HAS SHOWN NET PROFIT RATE OF 10.97% AS PER WRITTEN SUBM ISSIONS FILED BY THE LD. COUNSEL FOR THE ASSESSEE. LOOKING TO THE FACT THAT RATE OF PROFIT SHOWN BY THE ASSESSEE HAS BEEN ACCEPTED BY THE TRIBUNAL IN THE EARLIER AND PR ECEDING ASSESSMENT YEAR AND CONSIDERING THE INCREASE IN RECEIPTS, WE FEEL THAT THE NET PROFIT RATE SHOWN BY THE ASSESSEE IS REASONABLE. HENCE, THE ADDITION CONFIRM ED BY THE LD. CIT(A) TO THE EXTENT OF RS.67,652/- IS DELETED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAP RTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 /01/201 2 SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:20/01/2012 /SKR/ COPY OF THE ORDER IS FORWARDED TO: 1. THE ASSESSEE: M/S. SINGHAL BUILDERS, BHARATPUR 2. THE ACIT, BHARATPUR. 3. THE CIT(A) 4. THE CIT 5. THE SR DR, ITAT, ASR 6. GUARD FILE ITA NO.374/JP/2011 4