Shantilata Singh, Cuttack V. ITO, Ward-2, Paradeep

ITA 97/CTK/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7245 (ITAT-CUTTACK)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 22-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D.K.PRADHAN
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 97 /CTK/2016 ASSESSMENT YEAR : 2010 - 2011 SHANTILATA SINGH, W/O LT GOKUL KUMAR SINGH, BADAHAT, KENDRAPARA. VS. ITO, WARD - 2, PARADEEP. PAN/GIR NO. AGVPS 3311 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI S.N.SAHU, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 05 /01/ 2017 DATE OF PRONOUNCEMENT : 0 5 /01/ 2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - CUTTACK, DATED 25.1.2016 , FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE ONLY GRIEVANCE IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN ESTIMATING THE INCOME OF THE ASSESSEE @ 8% OF GR OSS CIVIL CONTRACT RECEIPTS IN AN ORDER PASSED U/S.144 OF THE ACT IS EXCESSIVE. 2 ITA NO. 97/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CONTRACT WORKS AND THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO PRODUCE ITS BOOKS OF ACCOUNT, ETC FOR VERIFICATION. THE ASSESSING OFFICER ALLOWED A NUMBER OF OPPORTUNITIES TO THE ASSESSEE BUT THE ASSESSEE FAILED TO COMPLY WITH THE NOTICE OF HEARING ISSUED BY THE ASSESSING OFFICER AND, THEREFORE, THE ASSESSMENT WAS MADE U/S.144 OF THE ACT BY ESTIMATING THE INCOME OF THE ASSESSEE APPLYING THE RATE OF 8% TO THE GROSS CONTRACT RECEIPTS OF RS.1,21,00,287/ - AND ESTIMATING THE INC OME AT RS.9,68,023/ - . 4. ON APPEAL, LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. BEFORE ME, THE SUBMISSION OF LD A.R. OF THE ASSESSEE IS THAT DURING THE YEAR UNDER APPEAL, THE ASSESSEE HAS SHOWN INCOME @ 5.59% OF GROSS CIVIL CONTRACT RECEIPT S. HE SUBMITTED THAT THIS BENCH OF THE TRIBUNAL IN THE CASE OF OTHER ASSESSES IN SIMILAR LINE OF BUSINESS HAS HELD THE ESTIMATION OF INCOME APPLYING THE RATE OF 4.5% TO 5% OF GROSS CIVIL CONTRACT RECEIPTS TO BE REASONABLE. HENCE, HE PRAYED THAT THE INCOM E OF THE ASSESSEE SHOULD BE ESTIMATED AT 6% OF THE GROSS CIVIL CONTRACT RECEIPTS. 6. ON THE OTHER HAND, LD D.R. RELIED ON THE ORDERS OF LOWER AUTHORITIES. 3 ITA NO. 97/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 7. I FIND THAT THE REJECTION OF BOOKS OF ACCOUNT BY TH E ASSESSING OFFICER IS NOT CHALLENGE D BEFORE ME. THE ONLY ISSUE TO BE ADJUDICATED BY ME IS WHETHER APPLYING THE RATE OF 8% TO THE GROSS CIVIL CONTRACT RECEIPTS BY THE ASSESSING OFFICER IN ESTIMATING THE INCOME OF THE ASSESSEE IS REASONABLE OR NOT. THE LD A.R. OF THE ASSESSEE HAS SUBMITTED T HAT THE ASSESSEE HIMSELF HAS DISCLOSED INCOME @ 5.59% OF GROSS CIVIL CONTRACT RECEIPTS. IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE CONSIDERED OPINION THAT IT WOULD MEET THE ENDS OF JUSTICE, IF THE INCOME OF THE ASSESSEE IS ESTIMATED BY APPLYING THE RATE OF 7% TO THE GROSS CIVIL CONTRACT RECEIPTS. I , THEREFORE, MODIFY THE ORDER OF THE LD CIT(A) ACCORDINGLY. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 05 /01/2017 IN THE PRESENCE OF PARTIES. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 05 /01 /2017 B.K.PARIDA, SPS 4 ITA NO. 97/CTK/2016 ASSESSMENT YEAR : 2010 - 2011 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : SHANTILATA SINGH, W/O LT GOKUL KUMAR SINGH, BADAHAT, KENDRAPARA 2. THE RESPONDENT :ITO, WARD - 2, PARADEEP. 3. THE CIT(A), CUTTACK 4. CIT , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//