Income Tax Officer, V. M/s Mallikarjun Nirman,

ITA 69/RAN/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85439 (ITAT-RANCHI)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2014
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 10-02-2014
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAM JCITLD

Judgement Text

1 ITA NO.69/RAN/14 M/S. MALLIKARJUN NIRMAN INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT M EMBER ITA NO . 6 9/RAN/201 4 A.Y 200 5 - 06 INCOME - TAX OFFICER, WARD 3(3) VS. M/S. MALLIKARJUN NIRMAN DALTONGANJ PALAMU,PAN AAEFM 9123C ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT : SH RI CH OUDHARY ORAM, JCIT, LD.DR FOR THE RESPONDENT : NONE DATE OF HEARING : 25 - 11 - 2014 DATE OF PRONOUNCEMENT: 25 - 11 - 201 4 ORDER SHRI B.R. BASKARAN, ACCOUNTANT M EMBER : THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 18.11.2013 PASSED BY LD CIT(A), RANCHI FOR ASSESSMENT YEAR 2005 - 06. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN REDUCING THE PROFIT ESTIMATED BY THE AO FROM 8% TO 5% OF THE GROSS CONTRACT RECEIPTS . NON E APPEARED ON BEHALF OF THE ASSESSEE AND HENCE WE PROCEED TO DISPOSE THE APPEAL EX - PARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. 2. WE HEARD LD D.R AND PERUSED THE RECORD. THE ASSESSEE FIRM IS A CONTRACTOR AND EXECUTED CONTRACT WORK FOR HINDALCO. SINCE T HE ASSESSEE DID NOT COMPLY WITH THE NOTICES ISSUED BY THE AO AND ALSO DID NOT FURNISH PROPER DETAILS, THE AO REJECTED THE BOOKS OF THE ASSESSEE AND ESTIMATED THE PROFIT FROM CONTRACT AT 8% OF THE GROSS RECEIPT OF RS.68.67 LAKHS. IN THE APPELLATE PROCEEDIN GS, THE LD CIT(A) NOTICED THAT THE ASSESSEE HAS GOT ITS ACCOUNTS AUDITED. FURTHER, IT WAS SUBMITTED BY THE ASSESSEE THAT THE CONTRACT WAS ACCEPTED WITH LOW MARGIN. 2 ITA NO.69/RAN/14 M/S. MALLIKARJUN NIRMAN HENCE, THE LD CIT(A) CONSIDERED THE PAST RECORDS AND ESTIMATED THE NET PROFIT AT 5% OF THE CONTRACT RECEIPTS. THE REVENUE IS AGGRIEVED BY THE SAID DECISION. 3. WE NOTICE THAT THE LD CIT(A) HAS CONSIDERED THE PROFIT DECLARED IN THE PAST. HE ALSO NOTED THAT THE ASSESSEE HAS UNDERTAKEN THE CONTRACT WORK AT A LOW MARGIN. HE HAS FURTHER NOTE D THAT THE ACCOUNTS OF THE ASSESSEE HAS BEEN AUDITED. ON THESE SET OF FACTS ONLY, THE LD CIT(A) HAS REDUCED THE ESTIMATE TO 5% OF THE CONTRACT RECEIPTS. BEFORE US, THE LD D.R COULD NOT FURNISH ANY OTHER MATERIAL TO COMPEL US TO INTERFERE WITH THE ORDER O F LD CIT(A). ACCORDINGLY, WE AFFIRM HIS ORDER ON THIS ISSUE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 - 11 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DATE: 25.11.2014 PLACE : RANCHI PP, SPS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : THE ITO, W 3(3), BYE PASS ROAD, DALTONGANJ 2 THE RE SPONDENT: M/S MALLIKARJUN NIRMAN, GARHWA ROAD, REHLA, PALAMU 3. .THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 3 ITA NO.69/RAN/14 M/S. MALLIKARJUN NIRMAN 1. DATE OF DICTATION ............. 2 5 - 11 - 2014 ....................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER ....... 26 - 11 - 2014 ........................ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. .......... ........... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT................... 25 - 11 - 14 .................................................................. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ..............................................................