DCIT, Circle-3(2), Hyderabad, Hyderabad V. Superbuild India Private Limited, Hyderabad, Hyderabad

ITA 814/HYD/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1865 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 02-12-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 11-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN KATTA
• Keywords: Depreciation
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI D. KARUNAKARA RAO , ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ITA NO. 814 /HYD/201 7 ASSESSMENT YEAR: 20 11 - 12 DY. COMMISSIONER OF INCOME - TAX, HY DERABAD. VS. SUPERBUILD INDIA PVT. LTD., HYDERABAD. PAN AAMCS8004P ( APPELLANT ) (RESPONDENT) REVENUE BY : SHRI KIRAN KATTA ASSESSEE BY : NONE DATE OF HEARING : 02 / 1 2 /201 9 DATE OF PRONOUNCEMENT : 06 / 1 2 / 201 9 O R D E R PER V. DURGA RAO , J .M. : T H IS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A) 3 , DATED 13/ 0 3/ 201 7 , HYDERABAD FOR AY 20 11 - 12 . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE ENGAGED IN THE BUSINESS OF INFRASTRUCTURE, FILED ITS RETURN OF INCOME DECLARING THE INCOME OF RS. 6,08,21,475/ - ON 30/05/2012. AS THE ASSESSEE COULD NOT PRODUCE BOOKS OF ACCOUNT AND OTHER INFORMATION CALLED FOR BY AO, THE AO ESTIMATED THE INCOME OF THE ASSESSEE AT 12.5% OF THE TURNOVER AND THEREAFTER, DEPRECIATION AND BROUGHT FORWARD LOSSES WERE ALLOWED AND NET INCOME WAS DETERMINED AT RS. 10,57,45,600/ - . 3. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, DIRECTED THE AO ESTIMATE THE PROFIT @ 10% ON TURNOVER AND THEN ALLOW DEPRECIATION AND BROUGHT FORWARD LOSSES. ITA NO. 814 /HYD/1 7 SUPERBUILD INDIA PVT. LTD., HYD. . 4. AGGRIEVED BY THE ORDER OF CIT(A), THE REVENUE IS IN APPE AL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE LD. CIT(A) ERRED BOTH IN LAW AND ON FACTS OF THE CASE. 2. THE LD. CIT(A) ERRED IN REDUCING THE RATE OF ESTIMATION FROM 12.5 % TO 10 % WITHOUT GIVING ANY REASONS FOR REDUCTION OF PROFIT RATE. 3 THE LD. CIT(A) ERRED IN DIRECTING THE ASSESSING OFFICER TO ESTIMATE THE INCOME O F THE ASSESSEE @10 % OF THE TOTAL TURNOVER IN PLACE OF 12.5 % AFTER ALLOWING DEPRECIATION AND CARRIED FORWARD LOSSES OF EARLIER YEARS. 4 ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME OF HEARING. 5. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME HEARING BEFORE US. HOWEVER, WE PROCEED TO DECIDE THE APPEAL AFTER HEARING THE LD. DR AND ON MERITS OF THE CASE. 6. AFTER HEARING THE LD. DR, WE ARE OF THE VIEW THAT THE CIT(A) HAS RIGHTLY DIRECTED THE AO TO ESTIMATE THE PROFIT @ 10% ON TURNOVER AND THEN ALLOW DEPRECIATION AND BROUGHT FORWARD LOSSES. THEREFORE, WE DO NOT FIND ANY INFIRMITY IN GIVING DIRECTION TO THE AO TO ESTIMATE THE PROFIT @ 10% ON TURNOVER AND ACCORDINGLY, WE DISMISS THE GROUNDS RAISED BY THE REVENUE. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 6 TH DECEMBER , 201 9 . SD/ - SD/ - ( D. KARUNAKARA RAO ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 6 TH DECEMBER , 201 9 KV ITA NO. 814 /HYD/1 7 SUPERBUILD INDIA PVT. LTD., HYD. . C OPY TO: - 1) DCIT, CIRCLE 3(2), 7 TH FLOOR, SIGNATURE TOWERS, KONDAPUR, HYDERABAD. 2) M/S SUPERBUILD INDIA PVTG. LTD., PLOT NO. 335, ROAD NO. 79, PHASE III, JUBILEE HILLS, HYDERABAD. 3) CIT(A) 3 , HYDERABAD. 4) PR. CIT - 3 , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE