Teja Constructions, Sec'bad, Hyderabad V. JCIT, Range-10, Hyderabad

ITA 958/HYD/2011

• Counselvise Citation: 95822514 RSA 2011
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 18-05-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GOPINATH
• Assessee Lawyers: T CHAITANYA KUMAR
• Keywords: Depreciation
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.958/HYD/2011 : A SSESSMENT YEAR 2006-07 M/S. TEJA CONSTRUCTIONS , SECUNDERABAD. ( PAN AABFT 4261 D ) V/S. JOINT COMMISSIONER OF INCOME- TAX, RANGE-10, HYDERABAD (APP E L L ANT) (RESPONDENT) APPELLANT BY : SHRI T.CHAITANYA KUMAR RESPONDENT BY : SHRI GOPINATH DATE OF HEARING 25.8.2011 DATE OF PRONOUNCEMENT 9.9.2011 O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YE AR 2006-07 IS DIRECTED AGAINST THE ORDER OF THE COMMIS SIONER OF INCOME- TAX(APPEALS) 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER- 1) THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS TO THE EXTENT IT IS PREJUDICIAL TO THE APPELLANT; 2) THE LEARNED CIT(A) ERRED IN CONFIRMING THE ESTIM ATION OF INCOME AT 9% OF THE GROSS RECEIPTS IN RESPECT OF TH E CONTRACTS UNDERTAKEN ON ITS OWN, 8% OF THE GROSS RECEIPTS UND ERTAKEN AS SUB-CONTRACTOR AND 5% ON THE CONTRACTS GIVEN TO THE SUB- CONTRACTORS. 3) THE LEARNED CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THAT THE SAID PERCENTAGE IS HIGHER AND THE ESTIMATION SO MAD E SHOULD BE ON THE NET CONTRACT RECEIPTS. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IN THE GROUNDS OF APPEAL IS COVERED IN ITS FA VOUR WITH THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.308/HYD/2009 FOR ASSESSMENT YEAR 200 5-06. THE ITA NO.958/H/2011 M/S. TEJA CONSTRUCTIONS, SECUNDERA BAD. 2 LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT CONTR OVERT THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSE E. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN V IEW OF THE FACT THAT THE ISSUE OF ESTIMATION OF INCOME OF THE ASSESSEE BY APPLYING A FLAT RATE IS COVERED WITH THE DECISION O F THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE IMMEDIATELY PRECEDING Y EAR CITED SUPRA, AND WE, BEING IN AGREEMENT WITH THE COORDINATE BENC H OF THE TRIBUNAL FOR THAT YEAR, DIRECT THE ASSESSING OFFICER TO EST IMATE THE INCOME ON THE CONTRACTS EXECUTED BY THE ASSESSEE ON ITS OWN A T 9% OF THE GROSS RECEITPS; INCOME ON THE CONTRACTS TAKEN BY THE ASS ESSEE ON SUB- CONTRACT BASIS AT 8% OF THE GROSS RECEIPTS; AND TH E INCOME ON CONTRACTS GIVEN BY THE ASSESSEE TO THIRD PARTIES ON SUBCONTRACT BASIS, AT 4% OF THE GROSS RECEIPTS. WE FURTHER DIRECT, IN CONS ONANCE WITH CORRESPONDING DIRECTIONS IN THE ORDER OF THE TRIBUN AL FOR THE IMMEDIATELY PRECEDING YEAR, CITED SUPRA, THAT THE A SSESSEE WOULD BE ENTITLED FOR DEPRECIATION AND REMUNERATION AND INTE REST TO PARTNERS ON THE INCOME ESTIMATED BY ASSESSING OFFICER AT APPLIC ABLE RATES, BECAUSE THE INCOME ESTIMATED AS ABOVE IS BEFORE DEP RECIATION AND INTEREST & REMUNERATION OF THE PARTNERS. ACCORDING LY, ASSESSING OFFICER IS DIRECTED TO RECOMPUTE THE INCOME FOR THE ASSESSEE AFRESH, AND GROUNDS OF THE ASSESSEE IN THIS APPEAL ARE PART LY ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTL Y ALLOWED. ORDER PRONOUNCED IN THE COURT ON 9.9.2 011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 9 TH SEPTEMBER, 2011 ITA NO.958/H/2011 M/S. TEJA CONSTRUCTIONS, SECUNDERA BAD. 3 COPY FORWARDED TO: 1. M/S. TEJA CONSTRUCTIONS , C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3-6-643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2. JOINT COMMISSIONER OF INCOME - TAX RANGE 10, HYDERABAD 3. COMMISSIONER OF INCOME-TAX(APPEALS)-VI HYDERABAD 4. COMMISSIONER OF INCOME - TAX V , HYDERABAD 5. T HE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S