M/s. Mahavir Power Generation & Construction, Jagatsinghpur v. ITO, Paradeep

ITA 264/CTK/2015 | 2010-2011
Pronouncement Date: 21-10-2016 | Result: Partly Allowed

Appeal Details

RSA Number 26422114 RSA 2015
Assessee PAN AALFM5745R
Bench Cuttack
Appeal Number ITA 264/CTK/2015
Duration Of Justice 1 year(s) 4 month(s) 23 day(s)
Appellant M/s. Mahavir Power Generation & Construction, Jagatsinghpur
Respondent ITO, Paradeep
Appeal Type Income Tax Appeal
Pronouncement Date 21-10-2016
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 21-10-2016
Assessment Year 2010-2011
Appeal Filed On 29-05-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH CUTTACK BEFORE SHRI N. S SAINI ACCOUNTANT MEMBER ITA NO.264 /CTK/2015 ASSESSMENT YEAR : 2010 - 2011 M/S. MAHAVIR POWER GENERATION & CONSTRUCTION COLLEGE SQUARE JAGATSINGHPUR VS. ITO WARD - 1 PARADEEP PAN/GIR NO. AALFM 5745 R (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.R.MOHANTY AR REVENUE BY : SHRI ABHAY CHARAN ROUT DR DATE OF HEARING : 21 /10 / 2016 DATE OF PRONOUNCEMENT : 21 /10 / 2016 O R D E R THIS I S AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - CUTTACK DATED 26.3.2015 FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER IN ESTIMATING THE INCOME OF THE ASSESSEE @ 8% OF THE GROSS CONTRACT RECEIPTS OF RS.2 23 33 723/ - . 2 ITA NO.264/CTK/2015 ASSESSMENT YEAR :2010 - 2011 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE THE ASSESSEE FILED RETURN OF INCOME SHOWING TOTAL INCOME OF RS.5 39 410/ - . DURI NG THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE WAS REQUIRED TO PRODUCE DETAILS OF EXPENSES INCURRED AND PRODUCE THE BOOKS OF ACCOUNT. THE ASSESSEE FAILED TO DO SO AND THEREFORE THE ASSESSING OFFICER ESTIMATED THE INCOME @ 8% OF GROSS CONTRACT REC EIPT OF RS.4 23 33 723/ - . 4. ON APPEAL THE LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. AT THE TIME OF HEARING LD A.R. OF THE ASSESSEE FILED BEFORE ME A COPY OF ORDER DATED 19.6.2013 OF THE LD CIT(A) CUTTACK IN I.T. APPEAL NO.232/2012 - 13 FOR THE ASSESSMENT YEAR 2009 - 2010 WHICH IS THE IMMEDIATELY PRECEDING ASSESSMENT YEAR. HE POINTED OUT THAT IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR THE INCOME OF THE ASSESSEE WAS ESTIMATED @ 5% OF THE GROSS CONTRACT RECEIPTS OF RS.1 15 78 399/ - BY T HE LD CIT(A). HE THEREFORE PRAYED THAT IN THE PRESENT YEAR OF APPEAL ALSO FOLLOWING THE ORDER OF THE LD CIT(A) FOR A.Y. 2009 - 2010 THE INCOME SHOULD BE ASSESSED @ 5% OF THE GROSS CONTRACT RECEIPTS OF THE ASSESSEE. 6. ON THE OTHER HAND LD D.R. COULD NO T CONTROVERT THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. 3 ITA NO.264/CTK/2015 ASSESSMENT YEAR :2010 - 2011 7. AFTER CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES OF THE CASE I AM OF THE CONSIDERED OPINION THAT IN CAS E OF REJECT ION OF BOOK RESULTS THE INCOME OF THE ASSESSEE HAS TO BE ESTIMATED ON T HE BASIS OF PAST ACCEPTED RESULTS OF THE ASSESSEE. THE ASSESSEE BY FILING ORDER DATED 19.6.2015 OF THE LD CIT(A) IN I.T.APPEAL NO.232/2012 - 13 IN ITS OWN CASE IN PAST ASSESSMENT YEAR 2009 - 2010 BEING THE IMMEDIATELY PRECEDING ASSESSMENT YEAR HAS SHOWN THA T THE INCOME OF THE ASSESSEE WAS ESTIMATED @ 5% OF THE GROSS CONTRACT RECEIPTS. THEREFORE I MODIFY THE ORDER OF THE LD CIT(A) AND DIRECT THE ASSESSING OFFICER TO ASSESS THE INCOME OF THE ASSESSEE IN THE PRESENT ASSESSMENT YEAR UNDER CONSIDERATION @ 5% OF THE GROSS CONTRACT RECEIPTS OF RS.2 23 33 723/ - . THUS THE GROUNDS OF APPEAL OF THE ASSESSEE ARE PARTLY ALLOWED. 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 21 /10 /2016 IN THE PRESENCE OF PARTIES. SD/ - ( N. S SAINI ) A CCOUNTANT MEMBER CUTTACK; DATED 21 /10 /2016 B.K.PARIDA SPS 4 ITA NO.264/CTK/2015 ASSESSMENT YEAR :2010 - 2011 COPY OF THE ORDER FORWARDED TO : BY ORDER ASST.REGISTRAR ITAT CUTTACK 1. THE APPELLANT : M/S. MAHAVIR POWER GENERATION & CONSTRUCTION COLLEGE SQUARE JAGATSINGHPUR 2. THE RESPONDENT. ITO WARD - 1 PARADEEP 3. THE CIT(A) CUTTACK 4. CIT CUTTACK 5. DR ITAT CUTTACK 6. GUARD FILE. //TRUE COPY//