The ITO, Vijayawada V. Sri Padmavathi Transport, Jaggaiahpet

ITA 72/VIZ/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6620 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 17-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y SESHA SRINIVAS
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 72 / VIZ /201 7 (ASST. YEAR : 20 12 - 13 ) ITO, WARD - 1(3), VIJAYAWADA. V S . SRI PADMAVATHI TRANSPORT , 13 - 52, PRABHAT MANSION, JAGGAIAHPETA, KRISHNA DISTRICT. PAN NO. AALFS 2811 G (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C. SUBRAHMANYAM FC A. DEPARTMENT BY : SHRI Y. SESHA SRINIVAS SR. DR DATE OF HEARING : 26 / 0 9 /201 7 . DATE OF PRONOUNCEMENT : 06 / 1 0 /201 7 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , VIJAYAWADA , DATED 2 8 / 1 0/201 6 FOR THE ASSESSMENT YEARS 20 12 - 13 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE IS ENGAGED IN THE BUSINESS OF PLYING OF LORRIES AND TIPPERS FOR TRANSPORTATION OF GOODS AS TRANSPORT CONTRACTOR S . THE ASSESSEE FILED ITS RETURN OF INCOME BY ADMITTING NIL INCOME . THE ASSESSING OFFICER HAS OBSERVED THAT THE ASSESSEE - FIRM FAILED TO FURNISH THE VOUCHERS/BILLS FOR EXPENSES , HENCE REJECTED THE BOOKS OF ACCOUNT BY INVOKING THE PROVISIONS OF SECTION 2 ITA NO. 72/VIZ/2017 ( SRI PADMAVATHI TRANSPORT ) 145(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE 'ACT') AND ESTIMATED THE INCOME OF THE ASSESSEE AT 9% OF THE GROSS RECEIPTS AS ADMITTED BY THE ASSESSEE AND DISALLOWED OTHER CLAIMS MADE BY THE ASSESSEE. 3 . ON APPEAL , LD. CIT(A) BY FOLLOWING THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN T HE CASE OF CIT VS. INTER CONTINENTAL CONSTRUCTIONS [(2015) 372 ITR 141 (AP)] , DIRECTED THE ASSESSING OFFICER TO ADOPT BUSINESS PROFIT AT 10% OF GROSS RECEIPTS AND ALSO DIRECTED TO ALLOW DEPRECIATION , INTEREST & REMUNERATION PAID TO THE PARTNERS . 4 . ON BEING AGGRIEVED, REVENUE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 6 . THE ASSESSEE IS IN THE BUSINESS OF TRANSPORT CONTRACT OR . HE HAS NOT MAINTAINED PROPER BILLS/VOUCHERS, THEREFORE , ASSESSING OFFICER REJECTED THE BOO KS OF ACCOUNT AND ESTIMATED THE GROSS PROFIT AT 9% WITHOUT ALLOWING OTHER CLAIMS MADE BY THE ASSESSEE. ON APPEAL, LD.CIT(A) BY F O LLOWING THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF INTER CONTINENTAL CONSTRUCTIONS (SUPRA) AND ALSO BY CONSIDERING THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2013 - 14, DIRECTED THE ASSESSING OFFICER TO ADOPT THE BUSINESS PROFIT AT 10% OF GROSS RECEIPTS AND ALSO DIRECTED TO ALLOW DEPRECIATION OF 1,69,77,147/ - INTEREST PAID TO THE PARTNERS OF 17,58 ,250/ - AND REMUNERATION TO THE PARTNERS RESTRICTED TO ALLOWABLE LIMITS OF 1,50,000/ - . WE FIND THAT THE 3 ITA NO. 72/VIZ/2017 ( SRI PADMAVATHI TRANSPORT ) LD. CIT(A) BY CONSIDERING THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2013 - 14 AS ADOPTED BY THE ASSESSING OFFICER AND ALSO BY CONSIDERING THE DECI SION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF INTER CONTINENTAL CONSTRUCTIONS (SUPRA) , DIRECTED THE ASSESSING OFFICER TO ADOPT BUSINESS PROFIT AT 10% OF GROSS RECEIPTS AND ALSO DIRECTED TO ALLOW OTHER DEDUCTIONS. THEREFORE, W E FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). THUS, THIS APPEAL FILED BY THE REVE N UE IS DISMISSED. 7 . IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 0 6 T H DAY OF OCTOBER , 201 7 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 6 T H OCTOBER , 201 7 . VR/ - COPY TO: 1. THE ASSESSEE - SRI PADMAVATHI TRANSPORT, 13 - 52, PRABHAT MANSION, JAGGAIAHPETA, KRISHNA DISTRICT. 2. THE REVENUE - ITO, WARD - 1(3), VIJAYAWADA. 3. THE P CIT , VIJAYAWADA. 4. THE CIT(A) , VIJAYAWADA. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.