Asstt. Commissioner of Income Tax, GONDA V. M/s. K.P.Singh Contractor, Bahraich

ITA 494/LKW/2013

• Counselvise Citation: 49423714 RSA 2013
• Duration Of Justice: 1 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-04-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 02-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAYANK MOHAN MISHRA
• Section: 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.494/LKW/2013 ASSESSMENT YEAR:2010 - 11 M/S K. P. SINGH CONTRACTOR, RAJPUR RAJA, BAHRAICH. PAN:AAIFK7609P VS A.C.I.T., CIRCLE - GONDA. (RESPONDENT) (APPELLANT) SMT. SWATI RAT NA, D. R. APPELLANT BY SHRI MAYANK MOHAN MISHRA, ADVOCATE RESPONDENT BY 15/04/2015 DATE OF HEARING 11 /06/2015 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A) - II, LUCKNOW DATED 04/04/2013 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. THAT THE LD. CIT(A) - II, LUCKNOW HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW BY RESTRICTING THE ESTIMATION AT 4% INSTEAD OF 8% OF THE GROSS RECEIPT. 2. THAT THE LD. CIT(A) - II, LUCKNOW HAS ERRED ON THE FACT AND CIRCUMSTANCES OF THE CASE AND IN LAW BY TAKING INTO CONSIDERA TION THE FINAL BOOKS RESULTS OF THE ASSESSEE WHILE DECIDING THE ESTIMATION OF NET PROFIT RATE AS THE ASSESSING OFFICER HAS ESTABLISHED IN ASSESSMENT ORDER THAT THE ASSESSEE'S BUSINESS RESULT DETAILS/PARTICULARS ARE COMPLETELY ERRONEOUS. 2 3. THAT THE LD. CI T(A) - II, LUCKNOW HAS ERRED ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW BY TREATING THE DETAILS FOR A.Y. 2010 - 11 AS PAST HISTORY FOR DECIDING THE ESTIMATION OF NET PROFIT RATE FOR A.Y. 2010 - 11. 4. THAT THE ORDER DATED 05.04.2013 PASSED BY THE LD. CIT (A) - II LUCKNOW IN APPEAL NO. 20/183/ACIT/GONDA/12 - 13 RELATING TO ASSESSMENT YEAR 2010 - 11 BEING ERRONEOUS IN LAW AND ON FACTS DESERVES TO BE CANCELLED AND ORDER OF THE AO DESERVES TO BE RESTORED. 3. LEARNED D. R. OF THE REVENUE SUPPORTED THE ASSESSMENT OR DER WHEREAS LEARNED A. R. OF THE ASSESSEE SUPPORTED THE ORDER OF LEARNED CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THIS ISSUE WAS DECIDED BY CIT(A) AS PER PARA 4(9) AND 4(10) OF HIS ORDER, WHICH ARE REPRODUCED BELOW FOR THE SAKE OF READY REFERENCE: - 4(9) FOLLOWING THE DECISION OF HON'BLE I.T.A.T., LUCKNOW BENCH, I FIND THAT THE COMPARATIVE POSITION OF THE FINANCIAL STATEMENTS OF THE ASSESSEE FOR EARLIER YEARS AND CURRENT YEARS IS AS UNDER: PARTICULARS A.Y.2009 - 10 A.Y.2010 - 11 -------------- ---------------- ---------------- GROSS RECEIPT 6,52,55,892 6,35,60,600 RATE OF PROFIT 1.55% 3.57% IT IS APPARENT THAT THE TURNOVER OF THE APPELLANT HAS REMAINED MORE OR LESS THE SAME BUT THE PROFIT RATE BEFORE ALLOWING INTEREST AND SALARY TO PARTNERS HAS MORE THAN DOUBLED IN THE CURRENT YEAR AS COMPARED TO IMMEDIATELY PRECEDING YEAR. I FIND THAT THE AS SESSMENT ORDER FOR ASSESSMENT YEAR 2009 - 2010 WAS PASSED UNDER SECTION 143(3) OF THE ACT ON 04/11/2011 MAKING AN ADDITION OF RS.15,00,000/ - TO THE INCOME SHOWN IN THE RETURN OF INCOME. THE ADDITION SO MADE RESULTS IN ESTIMATION OF INCOME @3.85% OF THE TURN OVER. TAKING TOTALITY OF THE CIRCUMSTANCES INTO CONSIDERATION, I FIND IT REASONABLE TO CONFIRM ESTIMATION OF INCOME OF THE APPELLANT @4%. 3 4(10) IN VIEW OF THE DISCUSSION ABOVE, THE INCOME OF THE APPELLANT IS ESTIMATED AS UNDER: GROSS RECEIPTS RS. 6,35,20,600/ - PROFIT @4% RS. 25,40,824/ - LESS :I NTEREST TO PARTNERS RS. 4,76,083/ - SALARY TO PARTNERS RS.1,20,000/ - RS. 5,96,083/ - INCOME OF THE APPELLANT RS. 19,44.741 / - THE ESTIMATED INCOME OF THE APPELLANT IS T HEREFORE CONFIRMED AT RS.19,44,741/ - AS AGAINST RS.50,81,648/ - ESTIMATED BY THE AO. THE APPELLANT GETS A RELIEF OF RS.31,36,907/ - . THE INCOME OF RS.3,13,155/ - UNDER THE HEAD 'INCOME FROM OTHER SOURCES' IS TO BE ADDED TO INCOME ESTIMATED AS ABOVE. GROUNDS O F APPEAL ARE ALLOWED PARTLY. 4.1 FROM THE ABOVE PARAS FROM THE ORDER OF CIT(A), WE FIND THAT IT IS NOTED BY CIT(A) THAT IN ASSESSMENT YEAR 2009 - 10, THE ASSESSMENT ORDER WAS PASSED BY THE ASSESSING OFFICER U/S 143(3) AND AN ADDITION OF RS.15 LAC WAS MADE IN THE INCOME DECLARED BY THE ASSES SEE IN THE RETURN OF INCOME. HE HAS ALSO GIVEN A FINDING THAT AFTER CONSIDERING THE SAID ADDITION OF RS.15 LAC, THE INCOME COMPUTED BY THE ASSESSING OFFICER IN THAT YEAR AMOUNTS TO 3.8% OF THE TURNOVER. IN THAT YEAR, THE INCOME WAS DECLARED BY THE ASSESS EE AT 1.55% WHEREAS THE INCOME SHOWN BY THE ASSESSEE IN THE PRESENT YEAR IS 3.75%. UNDER THESE FACTS, IT WAS HELD BY LEARNED CIT(A) THAT IT IS REASONABLE TO ESTIMATE THE INCOME OF THE ASSESSEE AT 4% IN THE PRESENT YEAR. HE HAS ALSO NOTED THAT THE TURNOVE R OF THE ASSESSEE IN THE PRESENT YEAR IS RS.6,52,55,892/ - AS AGAINST TURNOVER OF RS.6,35,60,600/ - IN ASSESSMENT YEAR 2 009 - 10 AND THEREFORE, THE TURNOVER IN THE PRESENT YEAR IS SIMILAR TO THE TURNOVER IN ASSESSMENT YEAR 2009 - 10. NO DIFFERENCE IN FACTS COUL D BE POINTED OUT BY LEARNED D.R. OF THE REVENUE IN THE PRESENT YEAR IN COMPARISON TO THE FACTS IN ASSESSMENT YEAR 2009 - 10 AND SINCE THE INCOME ESTIMATED BY THE CIT(A) IS MORE THAN THE INCOME ASSESSED BY THE ASSESSING OFFICER IN PERCENTAGE TERMS IN ASSESSME NT YEAR 2009 - 10 IN COURSE OF 4 ASSESSMENT, CONSIDERING ALL THESE FACTS, WE ARE OF THE CONSIDERED OPINION THAT THE ESTIMATION OF CIT(A) IS REASONABLE AND THEREFORE, NO INTERFERENCE IS CALLED FOR IN THE ORDER OF CIT(A). 5. IN THE RESULT, THE APPEAL OF THE REV ENUE STANDS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 11 /06/2015 *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR