Sri Koduru Narasimha Reddy, Hyderabad V. ACIT, Circle-1, Warangal

ITA 932/HYD/2013

• Counselvise Citation: 93222514 RSA 2013
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 04-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ADAGIRI
• Assessee Lawyers: N O N E
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 932 / HYD/201 3 : ASST. YEAR 200 9 - 10 SHRI KODURI NARASIMHA REDDY, HYDERABAD ( PAN - A DFPK 0909 A ) V/S. ASST . COMMISSIONER OF INCOME - TAX, CIRCLE 1 , WARANGAL (APPELLANT) (RESPONDENT) APPELLANT BY : NON E RESPONDENT BY : SHRI B.YADAGIRI DATE OF HEARING 30 . 12 .2013 DATE OF PRONOUNCEMENT 30 .12.2013 O R D E R PER SMT. ASHA VIJAYARAGHAAN, JUDICIAL MEMBER : TH IS APPEAL BY THE ASSESSEE I S DIRECTED AGAINST THE O R DER OF THE COMMISSIONER OF INCOME - TAX(APPEALS) VI, HYDERABAD DATED 26.3.2013 FOR THE ASSESSMENT YEAR 2009 - 10. 2. DESPITE SERVICE OF NOTICE OF HEARING SENT BY R PAD , NONE APPEARED ON BEHALF OF THE ASSESSEE . EV E N ON THE EARLIER OCCASION, VIZ. 17.9.2013, NONE AP P E ARE D ON BEHALF OF THE ASSESSEE DESPITE NOTICE. H ENCE, WE PROCEED TO DISPOSE OF THIS APPEAL, EX - PARTE QUA THE ASSESSEE - ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 3. EFFECTIVE GROUNDS OF THE ASSESSEE IN THIS APPEAL READ AS FOLLOWS - 1. THE LEARNED CIT(A) IS ERRONEOUS IN LAW AND ON THE FACTS OF T HE CA S E. 2. (A) THE LEARN ED CIT(A) IS ERRONEOUS IN LAW IN ESTI M A TI NG THE INCOME FROM SUB CONTRACTS AT 7% ON THE NET SUB - CONTRACT RECEI P T S OF R S .8,67,02,957 / - AS AGAINST 5% CLAIMED BY THE ASSESSEE . ( B) THE L EARNED CIT(A) OUGHT TO HAVE ESTI M A TE D THE INCOME AT 5% OF THE INCOME FROM SUB - CO N T RACTS IN VIEW OF THE VARIOUS JURISDIC TIONAL ITAT PRONOUNC E MEN TS. ITA NO. 932 /HYD/201 3 SHRI KODURI NARASIMHA REDDY, HYDERABAD 2 3. THE LEARNED CIT(A) IS ERRONEOUS IN N O T ALL O W I N G DEPREC I A TION A GAINST T HE E STIMATED PROFITS OF 7% ON THE SUB - CO N T RACT RECEIPTS. 4. 4. W E HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERU SED THE ORDERS OF THE L O W ER A UTHORIT I E S AND OTHER MATERIAL ON RECORD. W E FIND T H A T THE A SSESSEE IS ENGAGED IN THE BUSINESS OF CIVIL CONSTRUCTION AND THE POINT IN DISPUTE IN THIS APPEAL REL ATES T O ESTIMATI N G THE INCOME OF THE ASSESSEE FROM SUB - CONT RACTS AT 7% OF THE SUB - CO N T RACT RE CEI P T S AND NON - ALLOWANCE DEDUCTION ON ACCOUNT OF DEPRECIATION FROM THE INCOME SO DETERMINED. ON CAREFUL CONSIDERATION OF THE MATTER, WE FIND THAT T HE IMPUGNED ORDER OF THE CIT(A) ON BOTH THE I SSUES, VIZ. RATE ADOPTED FOR ESTI M A TION OF PROFITS FROM SUB - CONTRACTS AND NON - ALLOW A N CE OF DEPRECIATION, THE VIEW TAKEN BY THE CIT(A) IS BASED ON T HE DECISION OF THE TRIBUNAL IN THE CA S E OF C.ESHWAR REDDY & CO. IN ITA NOS.668 & 67 0 / HYD/2009 DATED 31.1.2011. THE SAID DECISION OF THE TRIBUNAL IN THE CA S E OF C.ESHWAR R E DDY AND CO. (SUPRA) HAS BEE N C ONS I S TENTLY FOLLOWED BY THE COORDI N A T E BENC HES O F T HE T RIBUNAL IN SIMILAR CA SE S OF CIVIL CONTR A CTORS. O N THE ISSUE OF NON - ALLOWANCE OF DEPRECIATION, THE DE CISION OF THE JUR I S DIC T I ONAL HIGH C O U R T IN T HE CA S E OF INDWELL CO N S TRUCTIO N S ( 232 ITR 776) , AS OBSERVED BY THE CIT(A) IN THE IMPUGNED ORDER, ALSO COV E RS THE ISSUE AGAINST THE ASSESSEE . IN TH IS VIEW OF THE MATT E R, WE FIND NO INFIRMITY IN THE IMP U G N E D O R DER OF THE CIT(A) . WHICH IS ACCORDINGLY CONFIRMED AND THE G ROU ND S O F THE ASSESSEE IN TH I S A PPEAL ARE REJECT ED. 5. IN THE RESULT, APPEAL FO THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF HEARING ON 30 .12.2013 SD/ - SD/ - (B.RAMAKOTAIAH ) ( ASHA VIJAYARAGHAVAN ) ACCOUNTANT MEMBER JUDICIAL MEM B E R DT/ - 30 TH DECEMBER 2013 ITA NO. 932 /HYD/201 3 SHRI KODURI NARASIMHA REDDY, HYDERABAD 3 COPY FORWARDED TO: 1. SHRI KODURI NARASIMHA REDDY, 231 SWAMY AYYAPPA SOCIETY, MADHA PU R, HYDERABAD 500 081 2 . ASST . COMMISSIONER OF INCOME - TAX CIRCLE 1 , WARANGAL 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) - V I , HYDERABAD COMMISSIONER OF INCOME - TAX V, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERAB AD. B.V.S