M/S APARAJITA CONSTRUCTION,BALLIA vs. DY. CIT, CIRCLE - 02, VARANASI

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ITA 237/VNS/2019Status: DisposedITAT Varanasi27 September 2023AY 2014-20152 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found merit in the assessee's prayer for profit estimation at 6%, aligning with previous years' consistent practice. The AO was directed to estimate profit at 6% of gross contract receipts.

What were the facts?

The assessee, a contractor, had its books of account rejected by the AO who estimated income at 8% of gross receipts. The assessee did not appear before the CIT(A), leading to the dismissal of its appeal. Before the ITAT, the assessee requested profit estimation at 6%, consistent with prior years.

What were the issues?

The primary issue was whether the profit estimation rate for the assessee's contracting business should be consistent with prior assessment years, especially after the CIT(A) dismissed the appeal due to non-appearance.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CIRCUIT BENCH : VARANASI

Before: SHRI B.R. BASKARAN & SHRI AMIT SHUKLA

For Appellant: Shri Arvind Shukla, Advocate
For Respondent: Shri A.K. Singh, Sr. DR
Hearing: 26.09.2023Pronounced: 27.09.2023

ORDER

PER B.R. BASKARAN, AM:

1.

The assessee has filed this appeal challenging the order dated 16.08.2019 passed by Ld CIT(A), Varanasi and it relates to the assessment year 2014-15.

2.

The assessee is a contractor and filed his return of income declaring total income at Rs.16,35,240/-. The AO rejected the books of account of the assessee and estimated the income @ 8% of gross contractual receipt. Before the ld.CIT(A), the assessee did not appear and, hence, the ld.CIT(A) dismissed the appeal of the assessee.

3.

Before us, the ld. AR submitted that the ld.CIT(A) has estimated the profit of the assessee in assessment year 2012-13 and 2013-14 @ 6%. Accordingly he prayed that the income from business may be estimated @ 6% in this year also.

4.

We heard the parties and perused the record. Since the ld.CIT(A) has been consistently estimating the profit at 6% of the contract receipts, we are of the view that there is merit in the above said prayer of the assessee. The Ld D.R also did not object to the said request. Accordingly, we set aside the order passed by Ld CIT(A) in this year and direct the AO to estimate the profit at the very same rate of 6% of the gross contract receipts.

5.

In the result, the appeal filed by the assessee is partly allowed.

Order pronounced in the open court on 27.09.2023.

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