MEGA ENGINEERS & BUILDERS,PORT BLAIR vs. DCIT, CIR. 3(2) , PORT BLAIR

ITA 312/KOL/2024Status: DisposedITAT Kolkata09 October 2024AY 2017-18Bench: Shri Rajesh Kumar (Accountant Member), Shri Pradip Kumar Choubey (Judicial Member)26 pages
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What did the Tribunal hold?

The Tribunal found the addition to be purely estimation-based without concrete material. It noted that the assessee's total salary and labor expenses were significantly lower than the estimated labor element for work-in-progress, making the addition unrealistic.

What were the facts?

The assessee, engaged in civil construction, was assessed for work-in-progress. The AO added Rs. 14,19,352/- to the income, estimating work-in-progress on an ad hoc basis without including labour costs. The CIT(A) upheld this addition.

What were the issues?

Whether the addition made by the AO towards work-in-progress on an estimated basis, without proper valuation of labour costs, is justified.

Which sections of the Income-tax Act were involved?

Section 194C

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Income Tax Appellate Tribunal, “SMC” BENCH: KOLKATA

Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]

Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 20.12.2023 for the AY 2017-18. 2. Issue raised in ground no. 1 is against the confirmation of addition of Rs. 14,19,352/- by the Ld. CIT(A) as made by the AO towards work-in-progress on ad hoc and estimated basis.

2 Assessment Year: 2017-18 Mega Engineers & Builders

3.

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