Sh. Bahadur Singh,, Mohali v. ITO,, Mohali

ITA 919/CHANDI/2010 | misc
Pronouncement Date: 04-08-2010

Appeal Details

RSA Number 91921514 RSA 2010
Assessee PAN ALKPS2596N
Bench Chandigarh
Appeal Number ITA 919/CHANDI/2010
Duration Of Justice 40 year(s) 7 month(s) 3 day(s)
Appellant Sh. Bahadur Singh,, Mohali
Respondent ITO,, Mohali
Appeal Type Income Tax Appeal
Pronouncement Date 04-08-2010
Appeal Filed By Assessee
Assessment Year misc
Appeal Filed On 01-01-1970
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI G.S.PANNU ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA JUDICIAL MEMBER ITA NO. 919/CHD/2010 ASSESSMENT YEAR: 2006-07 SH.BAHADUR SINGH VS. THE INCOME TAX OFFICER H.NO.417 VILLAGE FARTULLAPUR WARD-6(1) TEH KHARAR DISTT. MOHALI. PAN NO.ALKPS2596N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIL KUMAR BATRA RESPONDENT BY: SHRI N.K.SAINI ORDER PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) CHANDIGARH DATED 12.4.2010 RELATING TO ASSESSMENT Y EAR 2006-07 AGAINST THE ORDER PASSED UNDER SECTION 144 OF THE I.T. ACT. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- THE LD. COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN SUSTAINING ADDITION OF RS.1 99 975/- B EING @ 5% F THE EXPENSES INCURRED TOWARDS (A) BUILDING MATERIAL 29 61 108/- (B) FREIGHT & CARRIAGE AT RS.58 423/- (C) LABOUR CHARGES RS.74 389/- (D) SALA RY RS.1 83 270/- AND (E) TRAVELLING & CONVEYANCE RS.5 284/- THEREBY GIVING AN AVERAGE OF 12.31% ON TURNOVER OF RS.46 39 038/-. THE ASSESSED INCOME BE ING ON THE HIGHER SIDE APPROPRIATE RELIEF MAY BE ALLOWE D. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS CARRYING ON THE BUSINESS OF CIVIL CONSTRUCTION. THE ASSESSEE HAD D ECLARED GROSS PROFIT OF RS.16 77 956/- ON TOTAL CONTRACT PAYMENT OF RS.46 3 9 038/-. THE ASSESSEE HAD CLAIMED EXPENSES OF RS.13 06 833/- AND HAD SHOW N NET PROFIT 2 OF RS.3 71 123/- DECLARING NET PROFIT RATE OF 8%. IN THE COMPUTATION OF INCOME FILED ALONGWITH THE RETURN OF INCOME THE ASS ESSEE HAD SHOWN INCOME @ 8% OF THE CONTRACT PAYMENT UNDER THE PROVI SIONS OF SECTION 44AF OF THE ACT. THE ASSESSING OFFICER WAS OF THE VIEW THAT AS THE TOTAL TURNOVER OF THE ASSESSEE EXCEEDED RS.40 LACS THE P ROVISIONS OF SECTION 44AF WERE NOT APPLICABLE. THE ASSESSEE FAILED TO P RODUCE THE BOOKS OF ACCOUNTS AND VOUCHERS BEFORE THE ASSESSING OFFICER. IN THE ABSENCE OF THE BOOKS OF ACCOUNT AND SUPPORTING VOUCHERS THE ASSES SING OFFICER MADE PART DISALLOWANCE OF 10% OF THE EXPENSES OUT OF THE UNDERMENTIONED EXPENSES :- (A) BUILDING MATERIAL RS.29 61 108/- (B) FREIGHT & CARRIAGE RS. 58 423/- (C) LABOUR CHARGES RS. 74 389/- (D) SALARY RS. 1 83 270/- (E) TRAVELLING & CONVEYANCE RS. 5 284/- 4. THE CIT(A) RESTRICTED THE DISALLOWANCE TO 5% OF THE EXPENSES RESULTING IN NET PROFIT RATE OF 12.31%. 5. THE LD. AR FOR THE ASSESSEE SUBMITTED THAT THE N .P. RATE OF 12.31% WAS ON THE HIGHER SIDE IN THE LINE OF BUSINESS CARR IED BY THE ASSESSEE. THE LD. DR FOR THE REVENUE PLACED RELIANCE ON THE O RDER OF THE CIT(A) AND SUBMITTED THAT IN THE ABSENCE OF BOOKS OF ACCOU NT AND VOUCHERS THE DISALLOWANCE WAS MERITED. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE WAS CARRYING ON THE BUSINESS OF CIVIL CONS TRUCTION. THE ASSESSEE FAILED TO PRODUCE ANY BOOKS OF ACCOUNT OR SUPPORTIN G VOUCHERS DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND CONSEQUENTLY THE ASSESSING OFFICER RESORTED TO THE PROVISIONS OF SECTION 144 OF THE AC T AND MADE DISALLOWANCE TO THE EXTENT OF 10% OF THE EXPENSES C LAIMED UNDER VARIOUS 3 HEADS AS MENTIONED IN THE PARA HEREINABOVE. THE A SSESSEE CLAIMS THAT THE RESULTS SHOWN BY IT ARE BACKED BY THE TAX AUDIT REP ORT AND THE SAME SHOULD BE ACCEPTED IN ENTIRETY. THE CIT(A) HAD RESTRICTED THE PART DISALLOWANCE OUT OF EXPENDITURE @ 5% INSTEAD OF 10% RESULTING IN A NET PROFIT RATE OF 12.31%. THE ASSESSEE FAILED TO PRODUCE ANY EVIDENC E JUSTIFYING ITS CLAIM OF EXPENDITURE BEFORE THE AUTHORITIES OR EVEN BEFOR E US. THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT NOR THE SUPPORTIN G VOUCHERS JUSTIFYING ITS CLAIM OF EXPENDITURE UNDER VARIOUS HEADS. IN T HE ABOVE-SAID CIRCUMSTANCES WE ARE OF THE VIEW THAT CERTAIN ESTI MATION OF INCOME IS NECESSITATED. ACCORDINGLY WE ARE IN CONFORMITY W ITH THE ORDER OF CIT(A) IN DISALLOWING 5% OUT OF VARIOUS EXPENDITUR E INCURRED BY THE ASSESSEE RESULTING IN ADDITION OF RS.1 99 975/-. W E UPHOLD THE ORDER OF CIT(A) AND DISMISS THE GROUND OF APPEAL RAISED BY T HE ASSESSEE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 4 TH AUGUST 2010. SD/- SD/- (G.S.PANNU) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 4 TH AUGUST 2010 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR