SHERKHAN BABUKHAN PATHAN,PUNE vs. INCOME TAX OFFICER WARD 8(3), PUNE, PUNE

आदेश /ORDER

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2016-17 on 17/10/2025, emanating from the Assessment Order u/s 143(3) of the Act, dated 23/12/2018.

The Ld. AR filed paper book. The Ld. AR submitted that during the year, the Assessee had received work contract from M/s. Larson and Turbo Ltd. Due to some disputes, the M/s. Larson and Turbo Ltd. had not paid the amounts. However, the amount was appearing in Form No. 26AS hence, the Assessing Officer added the amount. Ld. AR submitted that the amount was never received by the Assessee. The Ld. AR also submitted that the entire receipt is not Assessee’s income. The Ld. AR pleaded that if at all any addition is to be made then only GP should be added.

ITA No. 3101/PUN/2025

2.1 The Ld. AR filed a chart showing net profit of the Assessee for five years. The Ld. AR also filed a certificate of an Architect certifying approximate profit in the contract. The Ld. AR admitted that this particular certificate is an additional evidence but requested to allow to file it as an additional evidence.

The Departmental Representative relied on the order of the Assessing Officer and Ld. CIT(A).

We have heard the Ld. Representatives of the parties and perused the record. In this case, the Assessee had filed return of income declaring total income at Rs.2,63,950/- for AY 2016-17. The Assessing Officer noticed that the Assessee had not disclosed certain receipts which were appearing in Form No. 26AS. The Assessee had not disclosed receipts appearing from Larson & Tourbo Limited; Kappa Infra Ventures Private Limited and Pramod Rajendra Suryawanshi.

4.1 Accordingly, the Assessing Officer made addition after providing opportunity to the Assessee of Rs.1,22,16,761/-. The Assessee filed an appeal before the Ld. CIT(A) who confirmed the addition. It was submitted by the Assessee before the Ld. CIT(A) that the Assessee had not received those amounts due to disputes. However, the Ld. CIT(A) confirmed the assessment order. Aggrieved by the same, the Assessee filed an appeal before the ITAT. In this case, it is an admitted fact that the Assessee had not shown certain receipts which were appearing in Form No. 26AS. The Assessee filed letter of intent issued by the M/s. Larson and Turbo Ltd. describing the work to be done. The Assessee also submitted that due to disputes, the amount was not received. It is a fact that after addition of the amount of Rs.1,22,16,761/- the Assessee GP has abnormally increased. The Assessee filed a certificate of an Architect certifying that normally in this kind of civil work profit is between 8-12%. Admittedly, the said certificate was not filed before the Assessing Officer and Ld. CIT(A). We have also perused the chart filed by the Assessee, showing the net profit for five years, the same is as under :

ITA No. 3101/PUN/2025

F.Y. TURNOVER NET PROFIT PROFIT % 2013-14 85,60,726 4,17,335 4.87% 2014-15 98,95,335 5,02,324 5.08% 2015-16 98,57,089 2,63,951 2.68% 2016-17 1,40,06,296 5,19,430 3.71% 2017-18 74,05,006 4,48,380 6.06%

4.2 Since, the Assessee has filed an additional evidence, in the interest of justice, we set aside the assessment order to the Assessing Officer for de-novo adjudication.

4.3 Ld. Assessing Officer shall provide opportunity of hearing to the Assessee. Assessee shall file all the details before Assessing Officer. Accordingly, grounds of appeal raised by the Assessee are allowed or statistical purposes.

Order pronounced in the open Court on 15th June, 2026

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER

पुणे/Pune; दिन ांक/Dated : 15-06-2026 Ravi Kumar Ravi Kumar Digitally signed by Ravi Kumar Date: 2026.06.15 13:25:41 +05'30' आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, ‘B’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण,पुणे / ITAT, Pune

ITA No. 3101/PUN/2025

S.No. Details Date Designation 1 Draft dictated on Sr. PS/PS 2 Draft placed before author Sr. PS/PS Draft proposed & placed before the Second 3 JM/AM Member 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Office 9 Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order