M/S. RATHI & TYAGI ENTERPRIESES, RAIGARH(CG) V. THE ITO - 1, RAIGARH(CG)

ITA 86/BIL/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0204 (ITAT-RAIPUR)
• Duration Of Justice: 3 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 20-08-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K JAIN
• Assessee Lawyers: S R RAO
• Section: 144

Judgement Text

1 ITA NO. 86/RPR/2013. IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. (S.M.C.) I.T.A. NO. 86 / RPR /201 3 ASSESSMENT YEAR : 200 8 - 09. M/S RATHI & TYAGI ENTERPRISES, THE INCOME - TAX OFFICER - I, TARAIMAL, DIST. RAIGARH (C.H.). VS. RAIGARH. PAN AAKFR4999R. APPELLANT. RESPONDENT. APPELLANT BY : SHRI S.R. RAO. RESPONDENT BY : S HRI D.K. JAIN. DATE OF HEARING : 17 - 10 - 2016 DATE OF PRONOUNCEMENT : 01 - 11 - 2016. O R D E R. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS), BILASPUR DATED 26 - 12 - 2012 AND PERTAINS TO ASSESSMENT YEAR 2008 - 09 . THE GROUNDS OF APPEAL READ AS UNDER : 1. THE LD. COMMISSIONER OF INCOME TAX (APPE A LS) IS NOT JUSTIFIED IN CONFIRMING THE ASSESSMENT OF NET PROFIT @ 5% OF THE RECEIPTS AND CONSEQUENTLY CONFIRMING THE ADDITION OF RS.3,56,926/ - MADE BY THE A.O. WITHOUT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CAS E IN THEIR ENTIRETY. 2. THE ORDER OF THE LD. COMMISSIONER OF INCOME - TAX (APPEALS) IS BAD IN LAW IN SO FAR AS HE DID NOT DECIDE GROUND NO.2 OF THE GROUNDS OF APPEAL, WHEREIN THE ASSESSMENT WAS ASSAILED AS BAD IN LAW FOR WANT OF SERVICE OF REQUISITE NOTICES U/S 142(1)((II) OR 143(2) OFFERING JURISDICTION TO MAKE THE ASSESSMENT U/S 144 OF THE ACT. 2. AT THE OUTSET LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT HE SHALL NOT BE PRESSING GROUND NO.2 ABOVE. HENCE THIS GROUND IS DISMISSED AS NOT PRESSED. 2 ITA NO. 86/RPR/2013. 3. IN THIS CA SE THE ASSESSEE IS A FIRM ENGAGED IN EXECUTION OF CIVIL CONTRACT WORKS. ASSESSMENT WAS FRAMED U/S 144 OF THE I.T. ACT. OUT OF GROSS RECEIPTS OF RS. 91,65,926/ - NET PROFIT WAS SHOWN AT RS.1,01,370/ - I.E. JUST 1.11% OF THE TURNOVER. THE AO ESTIMATED THE INCOM E AT 5% OF THE TURNOVER. 4. UPON ASSESSEES APPEAL, LEARNED CIT(APPEALS) CONFIRMED THE ADDITION. 5. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 6. I HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. LEARNED COUNSEL OF THE ASSE SSEE SUBMITTED THAT THE ASSESSEE WILL BE SATISFIED IF RS.16.06 LAKHS DEDUCTED BY THE DEPARTMENT IS TAKEN OUT OF THE GROSS RECEIPTS AND THEREAFTER ESTIMATED RATE MAY BE ADOPTED. 7. PER CONTRA LEARNED D.R. DID NOT HAVE ANY SERIOUS OBJECTION TO THIS PROPOSI TION. 8. ACCORDINGLY I REMIT THIS ISSUE TO THE FILE OF THE AO. THE AO SHALL EXAMINE THE ACTUAL QUANTUM OF SUM DEDUCTED FROM THE RECEIPTS OF THE ASSESSEE BY THE DEPARTMENT AND THEREAFTER APPLY THE RATE OF PROFIT . 9. IN THE RESULT, THIS APPEAL BY THE ASSES SEE STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 1 ST DAY NOV. , 2016. SD/ - ( SHAMIM YAHYA) ACCOUNTANT MEMBER. DATED: 01 - 11 - 2016. 3 ITA NO. 86/RPR/2013. COPY FORWARDED TO : 1. M/S RATHI & TYAGI ENTERPRISES, C/O SHRI CHARAN SINGH RATHI, NALWA STEEL & POWER LTD., RARAIMAL, DIST. RAIGARH (C.G.) 2. I.T.O. - I, RAIGARH. 3. C.I.T. , BILASPUR. 4. CIT(APPEALS), BILASPUR. 5. D.R., ITAT, RAIPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. WAKODE.