SHREE KRISHNA CONTECH PVT. LTD.,BHUBANESWAR vs. ITO, WARD-1(4), BHUBANESWAR

आयकर अपीऱीय अधिकरण, “एस.एम.सी” न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH CUTTACK BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER आयकर अपीऱ सं./ITA No.354/CTK/2017 (नििाारण वषा / Assessment Year :2013-2014) Shree Krishna Contech Pvt. Ltd Vs. ITO, Ward-1(4), Vani Plot No.719, At/PO: Malipada, Vihar, Bhubaneswar Bhubaneswar स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No. : AAQCS 8622 M (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. निर्ााररती की ओर से /Assessee by : Shri P.R.Mohanty, AR राजस्व की ओर से /Revenue by : Shri D.K.Pradhan, DR सुनवाई की तारीख / Date of Hearing : 28/02/2018 घोषणा की तारीख/Date of Pronouncement 28/02/2018 आदेश / O R D E R This is an appeal filed by the assessee against the order of the CIT(A)-1, Bhubaneswar, dated 07.06.2017 for the assessment year 2013- 2014. 2. The sole issue involved in this appeal of the assessee is that the CIT(A) erred in estimating the income of the assessee at 15% of the total Revenue of Rs.1,91,05,951/- in place of 20% made by the AO. 3. Brief facts of the case are that the AO observed that the assessee has shown net profit @16.93% on revenue from operation of Rs.2,82,600/- in assessment year 2012-2013 and has returned an income of Rs.47,837/-. He observed that in the year under appeal, the assessee has shown net profit @ 0.27% on the revenue from operation of Rs.1,91,05,951/- and returned an income of Rs.52,021/-. Therefore, he opined that the net profit shown by the assessee was low and estimated the net profit by applying rate of 20% on the revenue from operations of

2 ITA No.354/CTK/2017 Rs.1,91,05,951/- and determined the income of the assessee at Rs.38,21,190/- in place of Rs.52,021/- shown by the assessee. 4. On appeal, the CIT(A) reduced the net profit rate from 20% to 15% and determined the income at Rs.28,65,893/- in place of Rs.38,21,190/- determined by the AO and granted relief of Rs.9,55,297/- to the assessee. 5. During the course of hearing, the AR of the assessee submitted that the estimation of income at 15% of the revenue from operations is on higher side and the same may be estimated at 3%. 6. On the other hand, the DR relied on the order of CIT(A). 7. I have considered rival submissions and perused the orders of lower authorities and materials available on record. It is not in dispute that the assessment in the present case has been made u/s.144 of the Act and the books of accounts and related vouchers were not produced before the AO. Therefore, the AO was fully justified in estimating the income of the assessee. I find that the estimation of income of the assessee at 15% of the revenue from operations is on a higher side. In my considered view it shall meet the ends of justice if the same is estimated at 5% of the revenue from operations. I accordingly modify the order of the CIT(A) and partly allow the grounds of appeal of the assessee. 8. In the result, appeal filed by the assessee is partly allowed. Order pronounced in the open court on 28/02/2018. Sd/- (N. S. SAINI) ऱेखा सदस्य / ACCOUNTANT MEMBER कटक Cuttack; ददनांक Dated 28/02/2018 प्र.कु.मम/PKM, Senior Private Secretary

3 ITA No.354/CTK/2017 आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : अपीलाथी / The Appellant- 1. Shree Krishna Contech Pvt. Ltd Plot No.719, At/PO: Malipada, Bhubaneswar 2. प्रत्यथी / The Respondent- ITO, Ward-1(4), Vani Vihar, Bhubaneswar 3. आयकर आयुक्त(अपील) / The CIT(A), आयकर आयुक्त / CIT 4. निभागीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, कटक / DR, ITAT, Cuttack 5. गार्ड फाईऱ / Guard file. 6. सत्यापपत प्रतत //True Copy// आदेशािुसार/ BY ORDER,

(Senior Private Secretary) आयकर अपीऱीय अधिकरण, कटक / ITAT, Cuttack