DCIT, CENTRAL CIRCLE-1, VISAKHAPATNAM vs. SBEC PROJECTS PVT. LTD., VISAKHAPATNAM

ITA 220/VIZ/2025Status: DisposedITAT Visakhapatnam09 September 2026AY 2020-2120 pages
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What did the Tribunal hold?

The Tribunal held that the AO failed to justify the rejection of books of accounts and the estimation of profit. It also directed that interest on fixed deposits, used for securing bank guarantees, should be treated as business income.

What were the facts?

The assessee company, engaged in civil contract works, declared a loss for AY 2020-21. During a survey, discrepancies were noted, and the assessee agreed to declare 7% profit for prior years. The AO rejected the assessee's books and estimated profit at 8.03% on direct contracts and 2% on sub-contracts.

What were the issues?

Whether the rejection of the assessee's books of accounts and the estimation of profit by the AO were justified, and whether interest on fixed deposits should be treated as business income.

Which sections of the Income-tax Act were involved?

Section 145,Section 133A

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Heard together (2 matters)

ITA 220/VIZ/2025
CO 47/VIZ/2025

Read from the judgment's own cause title. This page is filed under one of them.

आयकरअपीलीयअधिकरण, विशाखापत्तनम पीठ, विशाखापत्तनम INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM BENCH: DIVN BEFORE SHRI VIJAY PAL RAO, HON’BLE VICE PRESIDENT AND SHRI MANJUNATHA G, HON’BLE ACCOUNTANT MEMBER ITA 220/VIZ/2025 (निर्धारणवर्ा/AssessmentYear:2020-21) DCIT, CENTRAL CIRCLE-1 SBEC PROJECTS PVT. LTD. 5TH FLOOR, DIRECT TAXES 55-14-103, APSEB COLONY, BUILDING, MVP COLONY, SEETHAMMADHARA, Vs. VISAKHAPATNAM-530017, VISAKHAPATNAM-530013, ANDHRA PRADESH ANDHRA PRADESH अपीलधर्थीAppellant प्रत्यर्थी Respondent

Permanent Account Number of Assessee: AAJCS1064Q

अपीलधर्थी द्वारा/Appellant represented by: Sri A.P.Babu, Sr AR प्रत्यर्थी द्वारा/Respondentrepresented by: CA C Kameswara Rao

CO 47/VIZ/2025 [ARISING OUT OF ITA 220/VIZ/2025Assessment Year: 2020-21) SBEC PROJECTS PVT. LTD. DCIT, CENTRAL CIRCLE-1 55-14-103, APSEB COLONY, 5TH FLOOR, SEETHAMMADHARA, DIRECT TAXES BUILDING VISAKHAPATNAM-530013, Vs. MVP COLONY ANDHRA PRADESH VISAKHAPATNAM-530017, ANDHRA PRADESH अपीलधर्थी Appellant प्रत्यर्थी Respondent

Permanent Account Number of Assessee: AAJCS1064Q

अपीलधर्थीद्वारा/Appellant represented by: CA C Kameswara Rao प्रत्यर्थीद्वारा/Respondent represented by: Sri A.P

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