Sri Surya Constructions, Suryapet, Hyderabad V. ITO, Suryapet, Suryapet

ITA 504/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6271 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 11-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Assessee Lawyers: S RAMA RAO
• Section: 143(3)

Judgement Text

ITA 504 OF 2016 SRI SURYA CONSTRUCTIONS HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER & SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.504/HYD/2016 (ASSESSMENT YEAR: 2009-10) SRI SURYA CONSTRUCTIONS SURYAPET PAN: ABKFS 1420 P VS. INCOME TAX OFFICER SURYAPET (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SHRI K.E. SUNIL BABU, DR DATE OF HEA R ING : 26.07.2016 DATE OF PRONOUNCEMENT : 24 .08.2016 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2009-10 AGAIN ST THE ORDER OF THE CIT (A) CONFIRMING THE PENALTY LEVIED BY THE AO U/S 271A OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A PARTNERSHIP FIRM, FILED ITS RETURN OF INCOME FOR THE RELEVANT A .Y ON 14.05.2010 DECLARING A TOTAL INCOME AT RS.33,900. THE ASSESSME NT WAS COMPLETED U/S 143(3) OF THE ACT DETERMINING THE TOT AL INCOME OF THE FIRM AT RS.22,38,100. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE AO NOTICED T HAT THE ASSESSEE FIRM DID NOT MAINTAIN ANY BOOKS OF ACCOUNT S AS REQUIRED TO BE MAINTAINED U/S 44AA OF THE I.T. ACT AND DID NOT GET THE AUDIT REPORT AS REQUIRED U/S 44AB, THOUGH I TS GROSS ITA 504 OF 2016 SRI SURYA CONSTRUCTIONS HYDERABAD PAGE 2 OF 3 RECIPTS WERE RS.69,02,000. THEREFORE, THE AO LEVIED PENALTY U/S 271A FOR FAILURE TO KEEP, MAINTAIN OR RETAIN BOOKS OF ACCOUNT, DOCUMENTS ETC. ACCORDINGLY, A SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE ON 6.1.2012. THERE WERE A NUMBER OF NO TICES ISSUED TO THE ASSESSEE, BUT THERE WAS NO RESPONSE FROM THE ASSESSEE. ON 13.06.2012, ASSESSEE APPEARED AND FILED ITS EXPLANA TION STATING THAT THE BOOKS OF ACCOUNT WERE NOT MAINTAINED DURIN G THE YEAR UNDER CONSIDERATION AND REQUESTED FOR DROPPING OF P ENALTY PROCEEDINGS. THE AO, OBSERVED THAT THE ASSESSEE WAS INTO THE BUSINESS OF CIVIL CONSTRUCTION AND THE TURNOVER WAS EXCEEDING THE SPECIFIED LIMIT OF RS.40.00 LAKHS AND THEREFORE, PR OVISIONS OF SECTION 44AA CLEARLY APPLIES TO THE ASSESSEE AS THE BOOKS OF ACCOUNT NEED TO BE MAINTAINED. FURTHER, HE ALSO OBS ERVED THAT THE RETURN OF INCOME FILED BY THE ASSESSEE WAS NOT VOLUNTARY, AS IT WAS FILED CONSEQUENT TO A SURVEY OPERATION U/S 1 33A ON 8.3.2010. HE OBSERVED THAT THE RETURN WAS FILED ON 14.5.2010 AND THAT THE ASSESSEE FIRM DID NOT EVEN TRY TO PREP ARE THE BOOKS OF ACCOUNT ATLEAST DURING THE PERIOD FROM THE DATE OF SURVEY TO THE DATE OF FILING THE RETURN. HE THEREFORE, IMPOSE D PENALTY OF RS.25,000 U/S 271A OF THE ACT. AGGRIEVED, THE ASSES SEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO CONFIRMED THE PENA LTY AND THE ASSESSEE IS IN SECOND APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE, WHILE REIT ERATING THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW, STAT ED THAT THE ASSESSEE COULD NOT MAINTAIN BOOKS OF ACCOUNT BUT HA S OFFERED THE INCOME ON ESTIMATE BASIS AND THEREFORE, THE PENALTY MAY BE DELETED. AS WE ARE NOT CONVINCED WITH THE REASON GI VEN BY THE ASSESSEE FOR NOT MAINTAINING THE BOOKS OF ACCOUNT, EVEN THOUGH ITA 504 OF 2016 SRI SURYA CONSTRUCTIONS HYDERABAD PAGE 3 OF 3 ITS TURNOVER/GROSS RECEIPTS CROSSED THE LIMIT SPECI FIED U/S 44AA OF THE ACT. IN VIEW OF THE SAME, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT (A). ASSESSEES APPEAL IS ACCORDINGLY DISMISSED. 4. IN THE RESULT ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH AUGUST, 2016. S D/ - S D/ - (S.RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 24 TH AUGUST, 2016. VNODAN/SPS COPY TO: 1. SHRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS E LEGANCE, 3-6-643 STREET NO.9 HIMAYATNAGAR, HYDERABAD 500029 2. INCOME TAX OFFICER SURYAPET, NALGONDA DISTT. TELANG ANA 3. CIT(A) -3 HYDERABAD 4. PR. CIT 3 HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER