K. Beeran Kutti, Tirupathi, Tirupathi V. ITO, Ward-1(1). Tirupathi], Tirupathi

ITA 715/HYD/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2665 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 26-04-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N SWAPNA
• Section: 143(3); 145

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 715/HYD/2017 ASSESSMENT YEAR: 2010-11 M/S BEERAN KUTTI, TIRUPATI PAN AAFF1370E VS. INCOME-TAX OFFICER, WARD 1(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SMT. N. SWAPNA DATE OF HEARING : 24-01-2018 DATE OF PRONOUNCEMENT : 24-01-2018 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF CIT(A), TIRUPATI, DATED 01/02/ 2017 FOR AY 2010-11 . 2. ON PERUSAL OF RECORD, WE FIND THAT INITIALLY TH IS CASE WAS POSTED FOR HEARING ON 04/12/2017 AND AT THE REQUEST OF BOT H THE PARTIES THE CASE WAS ADJOURNED TO 04/12/2017, THE DATE OF WHICH WAS ANNOUNCED IN THE OPEN COURT. ON 04/12/2017, NONE APPEARED ON BEHALF OF THE ASSESSEE AND THE CASE WAS ADJOURNED TO 24/01/2018, FOR WHICH NOTICE WAS ISSUED BY RPAD VIDE ACKNOWLEDGMENT CARD IS ON R ECORD SHOWING THAT THE ASSESSEE HAS RECEIVED THE NOTICE. HOWEVER, ON 24/01/2018, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR THERE IS A REQUEST FOR ADJOURNMENT OF THE CASE. IN THESE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ASSESSEE IS NOT INTERESTED IN PROSECUTING HIS APPEAL. IT HAS BEEN HELD BY THE HONBLE SUPREME COURT IN THE C ASE OF B.N. BHTTACHARGEE & ANR., 118 ITR 461 THAT APPEAL DOES NOT MEAN ONLY FILING OF MEMO OF APPEAL BUT ALSO PURSUING I T EFFECTIVELY. IN CASES WHERE THE ASSESSEE DOES NOT WANT TO PURSUE TH E APPEAL, 2 ITA NO. 715 /HYD/2017 M/S K. BEERANI KUTTI, TIRUPATI COURT/TRIBUNAL HAVE INHERENT POWER TO DISMISS THE A PPEAL FOR NON- PROSECUTION AS HELD BY HONBLE HIGH COURT OF MUMBAI IN THE CASE OF M/S CHEMIPOL VS. UNION OF INDIA IN EXCISE APPEAL NO . 62 OF 2009. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF T HE TRIBUNAL IN THE CASE OF MULTIPLAN (INDIA) LTD., (38 ITD 320) AND MA DHYA PRADESH HIGH COURT IN LATE TUKOJIRAO HOLKAR (223 ITR 480), WE DI SMISS THIS APPEAL OF THE ASSESSEE FOR WANT OF PROSECUTION. 3. EVEN ON MERITS, IT IS OBSERVED THAT THE ASSESS EE IS A FIRM AND IS A DIET CONTRACTOR FOR SVRR HOSPITAL, TIRUPATI AND EXT ENDED SERVICES TO THE OTHER GOVT. HOSPITALS AT TIRUPATI. IT FILED ITS RETURN OF INCOME FOR AY 2010-11 ON 14/10/2010, ADMITTING AN INCOME OF RS . 1,00,000/- AFTER CLAIMING REMUNERATION TO ITS PARTNERS U/S 40( B) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT). THE ASSESSMENT U/S 143(3) WAS COMPLETED ON 07/03/2013 DETERMINING ASSESSED INCOME OF RS. 5,94,230/- BY MAKING AN ADDITION OF RS. 4,94,230/- BY ESTIMATING THE INCOME @8% OF SALES, AFTER DEDUCTING RS. 1,00,000/- , WHICH WAS ALREADY ADMITTED IN THE RETURN OF INCOME. 3.1 ON PERUSAL OF THE TRADING, PROFIT & LOSS ACCOUN T SUBMITTED BY THE ASSESSEE FIRM DURING THE COURSE OF ASSESSMENT P ROCEEDINGS, THE AO NOTICED THAT THE ASSESSEE FIRM RECEIVED GROSS RE CEIPTS OF RS. 74,27,885/- BY PERFORMING CONTRACT WORKS AND CLOSIN G STOCK WAS SHOWN AT RS. 3,15,640/-. OUT OF THE TOTAL RECEIPTS , THE ASSESSEE FIRM CLAIMED EXPENDITURE AGGREGATING TO RS. 69,95,725/- AND OPENING STOCK WAS SHOWN AT RS. 2,95,608/-. WHEN ASKED TO FU RNISH BILL/VOUCHERS AND OTHER DOCUMENTS TO SUBSTANTIATE T HE CLAIM OF EXPENDITURE, THE AR OF THE ASSESSEE FIRM SUBMITTED THE BOOKS OF ACCOUNTS AND BANK ACCOUNT STATEMENTS AND STATED THA T THE BILLS/VOUCHERS EVIDENCING THE EXPENDITURE INCURRED BY THE ASSESSEE FIRM WERE NOT READILY AVAILABLE WITH IT. THE AO, TH EREFORE, REJECTED THE BOOK RESULTS U/S 145 AND THE NET PROFIT OF THE ASSE SSEE WAS ESTIMATED @ 8% OF THE GROSS RECEIPTS FROM BUSINESS, WHICH WAS ACCEPTED BY THE ASSESSEE. 3 ITA NO. 715 /HYD/2017 M/S K. BEERANI KUTTI, TIRUPATI 3.2 HOWEVER, THE AO NOTICED FROM THE TDS CERTIFICAT ES PRODUCED BY THE ASSESSEE FIRM THAT THE ASSESSEE FIRM WAS ACTUAL LY IN RECEIPT OF GROSS SALES/RECEIPTS AMOUNTING TO RS. 76,12,144/- D URING THE FY 2009-10 RELEVANT TO AY 2010-11. ACCORDINGLY, A SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE CALLING FOR AN EXPLANATI ON FOR THE DIFFERENCE IN THE GROSS RECEIPTS ADMITTED. IN RESPO NSE, THE MANAGING PARTNER OF THE ASSESSEE FIRM VIDE HIS LETTER DATED 28/12/2012 SUBMITTED THAT AN AMOUNT OF RS. 2,42,946/- PERTAINS TO THE CONTRACT SERVICES OFFERED DURING THE PREVIOUS YEARS AND THE SAME WERE ADMITTED DURING THE RESPECTIVE ASSESSMENT YEARS. AF TER VERIFICATION OF THE EXPLANATION OFFERED BY THE ASSESSEE WAS FOUND T O BE IN ORDER BY THE AO AND HENCE, THE GROSS RECEIPTS WERE TAKEN AT RS. 74,27,885/-. ACCORDINGLY, THE NET PROFIT OF THE ASSESSEE FIRM WA S ESTIMATED AT 8% OF THE SALES I.E. ON RS. 74,27,885/-, WHICH COMES T O RS. 5,94,230/-. SINCE THE ASSESSEE HAD ALREADY ADMITTED AN EXPENDIT URE OF RS. 1,00,000/-, THE BALANCE AMOUNT OF RS. 4,94,230/- WA S BROUGHT TO TAX BY THE AO. ON APPEAL, THE CIT(A) CONFIRMED THE ACTI ON OF THE AO. 4. SINCE, THERE IS NO REPRESENTATION FROM THE ASSESSEE AND THE FINDINGS OF THE REVENUE AUTHORITIES ARE UNCONTROVER TED, WE UPHOLD THE ORDER OF CIT(A) AND DISMISS THE APPEAL OF THE ASSES SEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 24 TH JANUARY, 2018. SD/- SD/- (D. MANMOHAN) (S. RIFAUR RAHMAN) VICE PRESIDENT A CCOUNTANT MEMBER HYDERABAD, DATED: 24 TH JANUARY, 2018. KV 4 ITA NO. 715 /HYD/2017 M/S K. BEERANI KUTTI, TIRUPATI COPY TO:- 1) M/S K. BEERAN KUTTI, 24, KOLA STREET, TIRUP ATI 2) ITO, WARD 1(1), HYDERABAD 3) CIT (A), TIRUPATI 4) PR. CIT, TIRUPATI. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., H YDERABAD. 6) GUARD FILE S.NO. DESCRIPTION DATE INTLS 1. DRAFT DICTATED ON SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER