M/S. R.K. MONDAL & BROTHERS,BURDWAN vs. ITO, WARD -1(1) DURGAPUR, DURGAPUR

The Assessee is a partnership firm. It carries on business as contractor. For A.Y.2012-13 the assessee filed return of income declaring total income of Rs.3,54,680/- . In the course of assessment proceedings the AO noticed that the assessee had declared gross receipts of Rs.2,62,59,598/- from Eastern Coalfields Ltd. On verification from Eastern Coalfields Ltd, in its letter dated 27.11.2014 confirmed that the assessee had raised bills for Rs.2,73,98,756/- during the relevant previous year. The AO pointed out certain defects in the books of account and ultimately rejected the book results and added 6% of gross receipts of Rs.2,73,98,756/- which was gross receipts as per the letter of Eastern Coalfields Ltd.

On appeal by the assessee the CIT(A) confirmed the order of the AO.

Aggrieved by the order of CIT(A) the assessee has preferred the present appeal before the Tribunal.

At the time of hearing of the appeal the ld. Counsel for the assessee filed before me Form No.16A which is a certificate of TDS issued by Eastern Coalfields Ltd for the period from 01.04.2011 to 31.03.2012. This certificate shows that the amount paid to M/s R.K.Mondal & Brothers A.Yr.2012-13 the assessee was for the previous year relevant to A.Y.2012-13 was only Rs.l2,62,59,598/- which was the gross receipts shown by the assessee in its books of accounts. The assessee has also filed Form 26AS for the Assessment year 2012-13 which also reflects the same gross receipts. The ld. Counsel also filed before me Form 26AS for the assessment year 2013-14 which shows that on 31.05.2012 a sum of Rs.11,39,158/- (difference between Rs.23,73,98,756/- confirmed by Eastern Coalfields in their letter filed before the AO and Rs.2,62,59,598/- gross receipt declared by the assessee in the return of income for assessment year 2012-13) has been paid to the assessee and TDS had been deducted thereon. It is thus clear that a sum of Rs.11,39,158/- do not pertain to A.Y.2012-13 and therefore could not have been included in the gross receipts in that year. Consequently the estimation of income of the assessee at 6% should be made on the gross receipts of Rs.2,62,59,598/- as declared by the assessee. I hold accordingly and allow the appeal of the assessee to the extent indicated above. The ld. Counsel did not press for adjudication of any other issue.

In the result the appeal of the assessee is partly allowed. Order pronounced in the Court on 03.01.2018. Sd/- [ N.V.Vasudevan ] Judicial Member Dated : 03.01.2018. [RG Sr.PS] Copy of the order forwarded to: