SHRI SUDHIR KUMAR AIREN, Neemuch V. THE ACIT, Ratlam

ITA 668/IND/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5765 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-07-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 29-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: SANJEEV GOYAL
• Section: 234B

Judgement Text

SUDHIR KUMAR AIREN ITA NO. 668/IND/2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JM & SHRI O.P. MEENA, AM ITA NO.668/IND/2014 A.Y.2006-07 SUDHIR KUMAR AIREN NEEMUCH PAN AAMPA 6203B ::: APPELLANT VS ACIT RATLAM ::: RESPONDENT APPELLANT BY SHRI SANJEEV GOYAL RESPONDENT BY SHRI MOHD. JAVED DATE OF HEARING 27.7.2016 DATE OF PRONOUNCEMENT 27.7.2016 O R D E R PER SHRI D.T. GARASIA, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A), UJJAIN, DATED 1.8.2014. SUDHIR KUMAR AIREN ITA NO. 668/IND/2014 2 2. THE ASSESSEE HAS CHALLENGED THE ADOPTION OF NET PROFIT RATE OF 8% BY THE AUTHORITIES BELOW. THE SHOR T FACTS OF THE CASE ARE THAT THE ASSESSEE IS A BOREWELL CONTRACTO R AND WORKING WITH THE BOARDING MACHINE BELONGING TO OTH ER PERSONS ON LABOUR JOB BASIS. THE ASSESSEE CLAIMED EXPENSES ON ACCOUNT OF WAGES AMOUNTING TO RS.39 LACS. OUT OF THIS, RS.26,60,000/- WAS CLAIMED AS OUTSTANDING WHICH WAS ABOUT 69% OF THE TOTAL WAGES. THE WAGES PERTAINING TO THE MONTH OF APRIL REMAINED OUTSTANDING TILL MARCH. IN SUPPORT OF THE CLAIM, THE ASSESSEE NEVER PRODUCED ANY VOUCHERS IN RESPECT OF WAGES. THE ASSES SING OFFICER, THEREFORE, REJECTED THE CLAIM OF THE ASSESS EE. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS DONE DOUBLE THE WORK THAN LAST YEAR WHICH RESULTED IN LOWER PROFIT AND ALL TH E ACCOUNTS WERE DULY AUDITED U/S 44AB OF THE ACT AND ALL SUDHIR KUMAR AIREN ITA NO. 668/IND/2014 3 EXPENSES ARE VOUCHED. THE LEARNED COUNSEL FOR THE ASSE SSEE FURTHER SUBMITTED THAT SECTION 145(3) IS NOT APPLICABL E IN THE CASE OF AUDITED ACCOUNTS U/S 44AB. IN SUPPORT, THE LEARNED COUNSEL FOR THE ASSESSEE RELIED UPON THE DECI SION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. HCL COMNET SYSTEM (2008) 219 CTR (SC) 222. HE FURTHER SUBMITTED THAT ALL THE WORK HAS BEEN DONE WITH GOVERNMENT DEPARTMENTS. ON THE OTHER HAND, THE LEARNE D DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE SI DES. WE FIND THAT THE ASSESSEE HAS DONE ALL THE WORKS WITH GOVERNMENT DEPARTMENTS AND NO PRIVATE WORK WAS DONE. AFTER CONSIDERING THE OVERALL FACTS OF THE CASE, WE T HINK IT PROPER TO APPLY 5% NET PROFIT RATE. THE ASSESSING O FFICER IS DIRECTED TO APPLY THE SAME. SUDHIR KUMAR AIREN ITA NO. 668/IND/2014 4 5. SO FAR AS THE INTEREST CHARGED UNDER SECTIONS 234B AND 234C OF THE ACT IS CONCERNED, IT IS MANDATORY IN N ATURE AND AS SUCH REQUIRES NO ADJUDICATION. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. PRONOUNCED IN OPEN COURT ON 27 TH JULY 216 SD/- SD/- (O.P. MEENA) (D.T. G ARASIA) ACCOUNTANTMEMBER JUDICIAL MEMB ER 8 SEPTEMBER, 2016 DN/- SUDHIR KUMAR AIREN ITA NO. 668/IND/2014 5