Surinder Singh Malik, Sonepat V. DCIT, Sonepat

ITA 5815/DEL/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58526 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 24-01-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 20-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SRUJANI MOHANTY

Judgement Text

ITA NO. 5815/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 5815/DEL/2010 A.Y. : 2007-08 SH. SURINDER SINGH MALIK, 1350, SECTOR-15, SONEPAT-131001 (PAN: AOOPS09990K) VS. DY. COMMISSIONER OF INCOME TAX, SONEPAT (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSESSEE BY : SHRI K. SAMPATH, ADVOCATE DEPARTMENT BY : MRS. SRUJANI MOHANTY, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 17.9.2 010 PERTAINING TO ASSESSMENT YEAR 2007-08. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCOM E TAX (APPEALS) AND LOWER AUTHORITIES HAVE GROSSLY ERRED IN APPLYING NET PROFIT RATE 12%. 3. IN THIS CASE THE ASSESSEE IS A CIVIL CONTRACTOR AND FILED RETURN OF INCOME ON 31.10.2007 DECLARING TOTAL INCOME OF ` 9, 00,516/-. THE ASSESSING OFFICER OBSERVED THAT ASSESSEE HAS NOT D ECLARED ANY WORK IN PROGRESS IN THE BALANCE SHEET AND TRADING ACCOUNT A ND THEREFORE HE ITA NO. 5815/DEL/2010 2 HAS FOLLOWED THE CONTRACT COMPLETION METHOD IN COMPUT ING THE TOTAL INCOME. ASSESSEE INFORMED THAT ASSESSEE IS INVOLV ED IN REPAIRING OF MINOR AND WATER WORKS AND THAT IS WHY THERE IS NO WO RK IN PROGRESS AND PROFIT DECLARED IS 8.11%. AS NO BOOKS OF ACCO UNTS ALONGWITH SUPPORTING DOCUMENTS WERE PRODUCED BEFORE THE ASSES SING OFFICER, ASSESSING OFFICER PROCEEDED TO ESTIMATE THE INCOME . ASSESSING OFFICER APPLIED 12% TO THE GROSS RECEIPT OF THE AS SESSEE TO COMPUTE THE INCOME. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT ASSESSEE DID NOT COOPERATE WITH THE ASSESSING OFFICER, THEREFORE, ASSESSING OFFICER HAS CORRECT LY ESTIMATE THE INCOME AS NO OTHER CHOICE WAS LEFT WITH HIM. CONS IDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. COMMISSIONER OF INC OME TAX (APPEALS) CONFIRMED THE ESTIMATION INCOME @12% OF THE RECEIPTS. 5. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPE AL BEFORE US. 6. WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF THE MATERIAL PRODUCED AND PRECEDENT RELIED UPON. WE FIND THAT ASSESSEE IN THIS CASE IS A SMALL CONTRACTOR AND ENGAGED IN THE REPA IRING OF MINOR AND WATER WORKS. THE ESTIMATION OF PROFIT @12%, IN OUR CONSIDERED OPINION, IS ON HIGHER SIDE. THE PROFIT ALREADY DIS CLOSED IS 8.11% WHICH RESULTED IN INCOME OF ` 9,11,876/- ON A TURNOVER O F ` 1,12,45,671/-. IN ITA NO. 5815/DEL/2010 3 OUR CONSIDERED OPINION, THE PROFIT DECLARED IS COMM ENSURATE WITH THE SIZE AND NATURE OF ASSESSEES ACTIVITIES. IN THE BACKGROUND OF THE AFORESAID DISCUSSION, WE SET ASIDE THE ORDERS OF T HE AUTHORITIES BELOW AND DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/1/2012. SD/- SD/- [ [[ [RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 25/1/2012 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES