ACIT, Cir-10(1), Hyderabad V. Sri G. Narasimha Prasad, Secunderabad

ITA 602/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66496 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 08-04-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIDISHA KALRA
• Section: 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NOS.602 & 603/HYD/2011- ASSTT. YEARS:2006-07 2007-08 ACIT, CIR-10(1), HYDERABAD. .... APPELLANT VS. SRI G. NARASIMHA PRASAD, LOTHUKUNTA, SECUNDERABAD. PAN:AJUPG 1081D RESPONDENT APPELLANT BY : SMT. VIDISHA KALRA RESPONDENT BY : NONE DATE OF HEARING : 26-11-2012 DATE OF PRONOUNCEMENT : 26-11- 2012 ORDER PER CHANDRA POOJARI, AM: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AGA INST DIFFERENT ORDERS OF CIT (A) PERTAINING TO ASSESSMEN T YEARS 2006-07 & 2007-08.SINCE COMMON ISSUE IS INVOLVED IN THESE TWO APPEALS, THESE ARE CLUBBED TOGETHER AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. NONE APPEARED ON BEHALF OF THE ASSESSEE- RESPONDENT. HENCE, WE HAVE DECIDED THE MATTER EX P ATE ON MERITS AFTER HEARING THE LEARNED DR. 2 ITA NOS.602 & 603 OF 2011 SRI G. NARASIMHA PRASAD, SECBAD. 2. THE REVENUE HAS RAISED THE FOLLOWING COMMON GROU NDS BEFORE US:- 1. THE CIT (A) ERRED IN DIRECTING THE AO TO ADOPT 5% OF GROSS CONTRACT RECEIPTS AS INCOME AS AGAINST 10% AS ESTIMATED BY THE AO AS THERE IS NO BASIS FOR REDUCING THE PERCENTAGE OF ESTIMATION. 2. THE ITAT HAS DIRECTED THE AO TO ADOPT 8% OF GR OSS CONTRACT RECEIPTS AS ESTIMATED INCOME IN THE CASE O F M/S ESSAY CONSTRUCTIONS WHO IS ALSO SUB CONTRACTOR FOR AY 2006-07 WHEREAS IN THIS CASE THE CIT (A) HAS DIRECTED TO ADOPT 5% GROSS RECEIPTS AS ESTIMATED INCOME OF THE ASSESSEE. AFTER HEARING THE LEARNED DR, WE ARE OF THE VIEW T HAT SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THIS TRIBUNAL IN T HE CASE OF ESSVY CONSTRUCTIONS, SECUNDERABAD IN ITA NO.149/HYD/2010 DATED 16-7-2010 WHEREIN IT HELD THAT INCOME OF THE ASSESSEE OF THIS KIND TO BE ASSESSED AT 9% OF GROSS RECEIPTS ON THE MAIN CONTRACTS AND 8 % ON THE SUB CONTRACT RECEIPTS AND THEREAFTER THE ASSESSEE IS EN TITLED FOR DEDUCTION TOWARDS REMUNERATION AND INTERESTS TO PARTNERS ON THE PROFIT ESTIMATED. BEING SO, IN OUR OPINION, IT IS APPROP RIATE TO ESTIMATE THE INCOME AS ABOVE AND THEN THE ASSESSEE IS NOT ENT ITLED FOR DEDUCTION U/S 32 OF THE ACT WITH REFERENCE TO THE DEPRECIATIO N, DEDUCTION ALLOWABLE UNDER THE PROVISIONS OF SECTIONS 30 TO 43 D SHALL BE DEEMED TO HAVE BEEN ALREADY GIVEN FULL EFFECT AND NO FUR THER DEDUCTION ALLOWED U/S 32 OF THE ACT. HOWEVER, THE ASSESSEE I S ENTITLED FOR DEDUCTION AS PER SECTION 40(B) OF THE ACT IN RESPEC T OF INTEREST AND REMUNERATION PAID TO THE PARTNERS SUBJECT TO THE CO NDITIONS MENTIONED IN THE PARTNERSHIP DEED. 3 ITA NOS.602 & 603 OF 2011 SRI G. NARASIMHA PRASAD, SECBAD. 3. IN THE RESULT, THE REVENUES APPEALS IN ITA NOS. 602 AND 603/HYD/2011 ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 26 -11-2012. SD/- (SAKTIJIT DEY) JKUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANTMEMBER HYDERABAD, DATED THE 26 TH NOVEMBER, 2012. COPY TO:- 1) ACIT, CIRCLE-10(1), HYDERABAD. 2)SRI G. NARASIMHA PRASAD, H.NO.281/4, INDFIRA NAGA R COLONY, LOTHUKUNTA, SECUNDERABAD. 3) THE CIT (A)-VI, HYDERABAD. 4) THE CIT CONCERNED, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABA D. JMR*