THE ITO, WARD - 2,(1) , GUNTUR., Guntur V. M/s Sai Rama Krishna Spun Pipes and Cement Works, Guntur

ITA 414/VIZ/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0229 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 09-11-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N O N E
• Assessee Lawyers: M K SETHI
• Section: 144

Judgement Text

ITA NO.414/VIZAG/2012 & CO 44/VIZAG/2013 SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS, GUNTUR 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM . . . . , ,, , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER . .. ./ // / I.T.A.NO.414/VIZAG/2012 ( / ASSESSMENT YEAR : 2008(09) ITO WARD - 2(1) GUNTUR VS. SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS GUNTUR [ PAN: AAMFS 1802L] (- - - - / APPELLANT) (./- ./- ./- ./- / RESPONDENT ) C.O. NO.44/VIZAG/2013 (ARISING OUT OF I.T.A.NO.414/VIZAG/2012) ( / ASSESSMENT YEAR : 2008(09) SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS GUNTUR VS. ITO WARD - 2(1) GUNTUR ( - - - - / APPELLANT) ( ./- ./- ./- ./- / RESPONDENT ) - 0 / APPELLANT BY : N O N E ./- 0 / RESPONDENT BY : SHRI M.K. SETHI, CIT(DR) 0 5 / DATE OF HEARING : 26.10.2015 0 5 / DATE OF PRONOUNCEMENT : 29.10.2015 ITA NO.414/VIZAG/2012 & CO 44/VIZAG/2013 SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS, GUNTUR 2 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL IS FILED BY THE REVENUE AND CROSS APPE AL BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), GUNTUR DA TED 6.6.2012 FOR THE ASSESSMENT YEAR 2008-09. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE FIRM ENGAGED I N MANUFACTURE OF SPUN PIPES DOING CONTRACT WORKS FILED ITS RETURN OF INCOME BY ADMITTING NIL INCOME. THE ASSESSEES CASE WAS SELE CTED FOR SCRUTINY AND NOTICE U/S 143(2) OF THE INCOME-TAX ACT, 1961 (HERE INAFTER CALLED AS ACT) WAS SERVED ON THE ASSESSEE. THE ASSESSING O FFICER HAS CALLED DETAILS FROM THE ASSESSEE, SUCH AS BOOKS OF ACCOUNT S, BILLS/VOUCHERS, BANK ACCOUNT STATEMENTS, PARTNER LEDGER ACCOUNTS AN D CASE WAS POSTED FOR HEARING ON 4.5.2010. CASE WAS ADJOURNED TO 19. 11.10. THE PARTNERS OF THE FIRM APPEARED ON 19.11.2010 REQUESTED FOR TI ME TILL 26.11.10 TO FURNISH THE INFORMATION AS CALLED FOR. ON THE DATE OF HARING I.E. 26.11.10, NONE APPEARED BEFORE THE ASSESSING OFFICE R. UNDER THOSE CIRCUMSTANCES, ASSESSING OFFICER COMPLETED THE ASSE SSMENT U/S 144 OF THE ACT. ITA NO.414/VIZAG/2012 & CO 44/VIZAG/2013 SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS, GUNTUR 3 3. THE ASSESSING OFFICER HAS OBSERVED THAT DURING T HE RELEVANT ASSESSMENT YEAR 2008-09, THE ASSESSEE HAS SHOWN CON TRACT RECEIPTS OF RS.74,83,519/- AND THE SALE OF PIPES OF RS.9,45,251 /- AND ADMITTED GROSS PROFIT OF RS.25,65,386/- ON THE CONTRACT RECE IPTS. THE ASSESSEE HAS NOT COMPUTED NET PROFIT ON THE CONTRACT RECEIPT S SEPARATELY IN THE ABSENCE OF ANY BOOKS OF ACCOUNTS AND IN VIEW OF THE FACT THAT NO COMPUTATION ARRIVED, NET PROFIT ON CONTRACT RECEIPT THE INCOME FROM CONTRACT RECEIPTS RS.74,83,519/- IS ESTIMATED AT 8% WHICH WORKS OUT TO RS.5,98,681/-. ON APPEAL THE LD. CIT(A) CONFIRMED THE ESTIMATION MADE BY THE AO. HOWEVER, WITH REGARD TO THE ESTIMATION IN RESPECT OF REMUNERATION OF THE PARTNERS AND INTEREST ON PARTNE RS CAPITAL, THE CIT(A) HAS DIRECTED TO DELETE THE ADDITION. 4. ON BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEF ORE THE TRIBUNAL. THE ONLY ISSUE FOR CONSIDERATION IN THIS GROUND OF APPEAL RELATES TO PARTNERS REMUNERATION AND INTEREST. AFTER CAREFUL CONSIDERATION OF THE ASSESSMENT ORDER AS WELL AS THE CIT(A)S ORDER, I F IND THAT NEITHER THE ASSESSING OFFICER NOR THE CIT(A) HAS DISCUSSED THE FACTS RELATING TO PARTNERS REMUNERATION AND INTEREST. IT IS ALSO NO T CLEAR AS TO WHAT IS THE BASIS FOR THE ADDITION MADE BY THE ASSESSING OFFICE R AND WHAT IS THE ITA NO.414/VIZAG/2012 & CO 44/VIZAG/2013 SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS, GUNTUR 4 BASIS FOR THE DELETION MADE BY THE CIT(A) IN ACCORD ANCE WITH LAW. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE, I SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE A.O. TO CONSIDER THE ISSUE AFRESH. ACCORDINGLY, TH IS GROUND OF APPEAL RAISED BY THE REVENUE IS ALLOWED FOR STATISTICAL PU RPOSES. 4. SO FAR AS CROSS APPEAL FILED BY THE ASSESSEE IN RESPECT OF ESTIMATION IN INCOME @ 8% IS CONCERNED, THE ASSESSE E HAS NOT FILED ANY DETAILS INSPITEOF SO MANY OPPORTUNITIES GIVEN BY TH E ASSESSING OFFICER. UNDER THOSE CIRCUMSTANCES THE ASSESSING OFFICER COM PLETED THE ASSESSMENT U/S 144 OF THE ACT. EVEN BEFORE THE CIT (A), THE ASSESSEE FAILED TO SUBSTANTIATE HIS CASE. I FIND THAT THE A SSESSEE NEITHER APPEARED BEFORE THE AO NOR PRODUCED DETAILS AS CALLED BY THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS GIVEN AS MANY AS OPPORTUN ITIES AND THE SAME HAS BEEN INDICATED IN THE ABOVE PARAGRAPH. UNDER T HESE FACTS AND CIRCUMSTANCES, I AM OF THE OPINION THAT THE ADDITIO N MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A), DESE RVES TO BE CONFIRMED. ACCORDINGLY, I CONFIRM THE ORDER PASSED BY THE LD. CIT(A). CROSS APPEAL FILED BY THE ASSESSEE IS DISMISSED. ITA NO.414/VIZAG/2012 & CO 44/VIZAG/2013 SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS, GUNTUR 5 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES AND THE CO FILED BY THE ASSESS EE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 TH OCT15. SD/- ( (( ( . .. . ) )) ) ( (( ( V. DURGA RAO ) )) ) / // / JUDICIAL MEMBER /VISAKHAPATNAM: 8 / DATED : 29.10.2015 VG/SPS 0 . 9 / COPY OF THE ORDER FORWARDED TO :( 1. - / THE APPELLANT THE ITO, WARD-2(1), GUNTUR 2. ./- / THE RESPONDENT M/S. SAI RAMA KRISHNA SPUN PIPES AND CEMENT WORKS, 398/A, 399, NALLAPADU, GUNTUR-522 004. 3. : () / THE CIT, GUNTUR 3. : () / THE CIT(A), GUNTUR 4. ., , / // / DR, ITAT, VISAKHAPATNAM 5 . . . . / GUARD FILE / BY ORDER // TRUE COPY // @A ( SR.PRIVATE SECRETARY ) , / // / ITAT, VISAKHAPATNAM