Daka Padmavathi, Hyd, Hyderabad V. ITO, Ward-8(3), Hyd, Hyderabad

ITA 539/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6106 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 18-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U MINICHANDRAN
• Assessee Lawyers: S RAMA RAO
• Section: 143(3); 145

Judgement Text

ITA NO 539 OF 2016 SMT DAKA PADMAVAT HI HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.539/HYD/2016 (ASSESSMENT YEAR: 2010-11) SMT. DAKA PADMAVATHI, PROP: SUJA PROJECTS HYDERABAD PAN: AQZPD 1724 D VS INCOME TAX OFFICER WARD 8(3) HYDERABAD FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SMT. U. MINICHANDRAN, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2010-11. IN T HIS APPEAL, THE ASSESSEE IS AGGRIEVED ONLY BY THE FIGUR E OF GROSS RECEIPTS TAKEN BY THE AO AND ADOPTED BY THE CIT (A) WHILE ESTIMATING THE INCOME OF THE ASSESSEE AT 5% OF THE G ROSS RECEIPTS. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, DERIVING INCOME FROM SUB CONTRACTS OF C IVIL WORKS, FILED HER RETURN OF INCOME ON 14.10.2010 DECLARING AN INC OME OF RS.12,24,700 AFTER CLAIMING CHAPTER VI A DEDUCTION OF RS.49,095. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE AO HELD THAT THE BOOK RESULT OF THE ASSESSEE CANNOT BE RELIED UPON AS MOST OF THE EXPENSES DEBITED TO P&L A/C ARE NOT SUP PORTED BY DATE OF HEARING : 18.10.2016 DATE OF PRONOUNCEMENT : 26.10.2016 ITA NO 539 OF 2016 SMT DAKA PADMAVAT HI HYDERABAD PAGE 2 OF 3 PROPER BILLS AND VOUCHERS. THEREFORE, THE BOOK RESU LTS WERE REJECTED U/S 145 OF THE ACT AND THE AO ESTIMATED TH E PROFIT AT 8% OF THE GROSS RECEIPTS OF RS.3,36,25,934. AGAINST TH E ORDER OF THE AO, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO RESTRICTED THE ESTIMATION OF INCOME TO 5% OF THE GROSS RECEIPTS OF RS.3,36,25,934. AGAINST THIS ORDER OF THE CIT (A), THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE IS ACCEPTING THE RATE OF PROFIT OF EST IMATION OF INCOME AT 5% OF THE GROSS CONTRACT RECEIPTS. THE GRIEVANCE OF THE ASSESSEE IS ONLY AGAINST THE ADOPTION OF FIGURE OF GROSS CON TRACT RECEIPTS. ACCORDING TO HIM, THE GROSS CONTRACT RECEIPTS SHOUL D BE REDUCED BY THE RECOVERIES MADE BY THE PRINCIPAL CONTRACTOR AND ONLY ON THE BALANCE SHOULD THE INCOME OF THE ASSESSEE BE ES TIMATED. HE HAS ALSO DRAWN OUR ATTENTION TO THE FACT THAT THE A SSESSEE HAS RAISED THIS ISSUE AT GROUND NO.4 BEFORE THE CIT (A) AND THAT THE CIT (A) HAS NOT GIVEN ANY FINDING ON THIS CONTENTIO N OF THE ASSESSEE. THE LEARNED DR WAS ALSO HEARD. 4. HAVING GONE THROUGH THE RECORD AND HAVING REGARD TO THE RIVAL CONTENTIONS, WE ARE SATISFIED THAT THE AS SESSEE HAS RAISED THE GRIEVANCE BEFORE THE CIT (A) HAS FAILED TO ADDR ESS THIS GRIEVANCE. THE CONTENTION OF THE ASSESSEE REQUIRES VERIFICATION OF FACTS BY THE AO. THEREFORE, IN THE INTEREST OF JUST ICE, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE A O FOR DETERMINING THE ACTUAL GROSS CONTRACT RECEIPTS IN A CCORDANCE WITH LAW AND THEREAFTER THE AO SHALL ESTIMATE THE PROFIT AT 5% OF THE GROSS CONTRACT RECEIPTS. ITA NO 539 OF 2016 SMT DAKA PADMAVAT HI HYDERABAD PAGE 3 OF 3 5. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH OCTOBER, 2016. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 26 TH OCTOBER, 2016. VINODAN/SPS COPY TO: 1 SHRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCE, 3-6- 643 STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 INCOME TAX OFFICER WARD 8(3) IT TOWERS, AC GUARDS , HYDERABAD 3 CIT (A)-2 HYDERABAD 4 PR. CIT 2 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER