M/s RS Pabbla Constructions Pvt. Ltd., Visakhapatnam v. The ACIT, Circle-4(1), Visakhapatnam

ITA 481 OF 2010 AND SA 6 F 10 RS PABBLA CONSTRUCTION S VIZAG PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.481/VIZAG/2010 ASSESSMENT YEAR: 2006-07 M/S. RS PABBLA CONSTRUCTIONS (P) LTD. VISAKHAPATNAM VS. ACIT CIRCLE-4(1) VISAKHAPATNAM (APPELLANT) PAN NO: AACCR 6632 C (RESPONDENT) SA NO.6/VIZAG/2010 (ARISING OUT OF ITA NO.481/VIZAG/2010) ASSESSMENT YEAR: 2006-07 M/S. RS PABBLA CONSTRUCTIONS (P) LTD. VISAKHA PATNAM VS. ACIT CIRCLE-4(1) VISAKHAPATNAM (APPELLANT) PAN NO: AACCR 6632 C (RESPONDENT) APPELLANT BY: SHRI K.J.D. SRINIVAS CA RESPONDENT BY: SHRI D.S.SUNDER SINGH SR.DR ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 21.06.2010 PASSED BY LEARNED CIT(A) VISAKHAPATNAM AND IT RELATES TO THE ASSESSMENT YEAR 2006-07. THE APPEAL FILED BY THE A SSESSEE IS BARRED BY LIMITATION BY 11 DAYS. THE ASSESSEE HAS MOVED A PET ITION FOR CONDONATION OF ABOVE CITED DELAY WHEREIN INTER ALIA IT HAS BEEN STATED THAT THE MANAGING DIRECTOR OF THE COMPANY WAS AWAY FROM THE CITY IN C ONNECTION WITH SUPERVISION OF WORKS CARRIED OUT IN OTHER STATES WH ICH HAS RESULTED IN THE ABOVE SAID DELAY IN FILING THE APPEAL BEFORE THE TR IBUNAL. HAVING REGARD TO THE SUBMISSIONS MADE IN THE PETITION WE CONDONE TH E DELAY AND ADMIT THE APPEAL OF THE ASSESSEE. 2. THE SOLITARY EFFECTIVE GROUND RAISED BY THE ASSE SSEE READS AS UNDER: ITA 481 OF 2010 AND SA 6 F 10 RS PABBLA CONSTRUCTION S VIZAG PAGE 2 OF 3 GROUND NO.1 : DELETION OF RS.14 70 922/- AS ADDITI ON MADE BY THE ASSESSING OFFICER UNDER THE HEAD OTHER INCOME A ND TO ESTIMATE INCOME @ 5% ON SUB-CONTRACT AMOUNT OF RS.14 70 922/-. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF ENGINEERING C ONTRACT WORKS. IT FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATI ON DECLARING A TOTAL INCOME OF RS.8 21 754/-. DURING THE COURSE OF ASSE SSMENT PROCEEDINGS THE ASSESSING OFFICER REJECTED THE BOOKS AND ESTIMATED INCOME FROM CONTRACT WORKS. THE ASSESSING OFFICER ESTIMATED THE INCOME @ 10% RECEIPTS FROM MAIN CONTRACT WORKS AND AT 5% OF RECEIPTS ON THE SU B CONTRACT WORKS. BESIDES THE ABOVE THE ASSESSING OFFICER SEPARATELY ASSESSED A SUM OF RS.14 70 922/- SHOWN AS OTHER INCOME IN THE PROFI T & LOSS ACCOUNT. BEFORE THE ASSESSING OFFICER THE ASSESSEE CLAIMED THAT THE OTHER INCOME CITED ABOVE ALSO REPRESENTS CONTRACT RECEIPTS BUT IT COULD NOT SUBSTANTIATE ITS CLAIM. HENCE THE ASSESSING OFFICER DID NOT ACC EPT THE CLAIM OF THE ASSESSEE AND ASSESSED THE SAME SEPARATELY. THE LEAR NED CIT(A) ALSO CONFIRMED THE ADDITION OF RS.14 70 922/- AS THE AS SESSEE COULD NOT FURNISH ANY EVIDENCE IN SUPPORT OF ITS CLAIM THAT THE SAME REPRESENT CONTRACT RECEIPTS. AGGRIEVED BY THE ORDER OF THE LEARNED CIT (A) THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS WRONGLY SHOWN THE AMOUNT OF RS.14 70 922/- AS OTHER INCOME IN ITS PROFIT AND LOSS ACCOUNT AND THE SAME WAS BROUGHT TO THE NOTICE OF THE ASSESSING OFFICER IN THE LETTER DATED 10.11.2008 FI LED WITH HIM. HE FURTHER SUBMITTED THAT THE ASSESSEE COULD NOT FURNISH THE N ECESSARY DETAILS IN THAT REGARD BEFORE THE TAX AUTHORITIES AND NOT IT WOULD BE IN A POSITION TO FURNISH THE NECESSARY DETAILS IF AN OPPORTUNITY IS GIVEN. ACCORDINGLY HE PLEADED THAT THE ISSUE MAY BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER FOR CARRYING OUT NECESSARY VERIFICATION. THE LEARNED DE PARTMENTAL REPRESENTATIVE ALSO DID NOT OBJECT TO THE PLEA MADE BY THE LEARNED AUTHORISED REPRESENTATIVE. ITA 481 OF 2010 AND SA 6 F 10 RS PABBLA CONSTRUCTION S VIZAG PAGE 3 OF 3 5. HAVING REGARD TO THE SUBMISSIONS MADE BY THE PAR TIES WE SET ASIDE THE ORDER OF THE LEARNED CIT (A) ON THE IMPUGNED IS SUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER WITH A DI RECTION TO CONSIDER THE MATTER OF ASSESSABILITY OF RS.14 70 922/- AFRESH AF TER TAKING INTO ACCOUNT THE DETAILS THAT MAY BE FURNISHED BY THE ASSESSEE. THE ASSESSEE ALSO DIRECTED TO FURNISH THE NECESSARY DETAILS TO THE AS SESSING OFFICER IN THIS REGARD AND IN CASE THE ASSESSEE FAILS TO FURNISH A NY EXPLANATION/DETAIL THE IMPUGNED ADDITION STANDS CONFIRMED. 6. SINCE THE MAIN APPEAL HAS BEEN DISPOSED OF THE S TAY APPLICATION FILED BY THE ASSESSEE IS DISMISSED. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSES AND THE STAY APPLICATION IS DI SMISSED. PRONOUNCED IN THE OPEN COURT ON 28-02-2011 SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 28-02-2011 COPY TO 1 M/S R.S. PABBLA CONSTRUCTIONS PVT. LTD. 26-50-3 PABBLA HOUSE BC ROAD NEW GAJUWAKA VISAKHAPATNAM 530 026 2 THE ACIT CIRCLE - 4(1) VISAKHAPATNAM 3 4. THE CIT 2 VISAKHAPATNAM THE CIT(A) VISAKHAPATNAM 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM