M/S. KUMUD BANDHU MOHAPATRA,BHADRAK vs. ACIT, BALASORE

PER KULDIP SINGH, JUDICIAL MEMBER : Since common questions of facts and law have been raised

in both the aforesaid appeals, the same are being disposed off by

way of consolidated order to avoid repetition of discussion.

referred to as ‘the assessee’) by filing the present appeals sought to

set aside the impugned orders dated 17.12.2014 & 22.01.2015

ITA No.176/CTK./2015 2 ITA No.177/CTK./2015 passed by the Commissioner of Income-tax (Appeals), Cuttack qua

the assessment years 2010-11 & 2011-12 respectively on the

grounds inter alia that :-

“ITA NO.176/CTK/2015 (AY 2010-11)

“ITA NO.177/CTK/2015 (AY 2011-12)

ITA No.176/CTK./2015 3 ITA No.177/CTK./2015 3. Briefly stated the facts necessary for adjudication of the

controversy at hand are : assessee is a civil contractor and

Assessing Officer from the P&L account noticed gross receipts to

the tune of Rs.14,20,11,759/- and Rs.13,09,38,616/- in AY 2010-

11 and AY 2011-12 respectively and shown income from other

sources to the tune of Rs.10,53,900/- for AY 2010-11. Assessee

claimed depreciation on number of machinery items to the tune of

Rs.2,22,162/- in AY 2010-11 and deduction on royalties and sales-

tax from the gross bill to the tune of Rs.1,00,00,000/- and shown

the margin of profit at 2.5% which is not accepted by the AO being

on lower side and estimated the net profit @ 6% which comes to

Rs.85,20,705/-. Similarly, for AY 2011-12, assessee declared net

profit @ 1.93% of the total turnover of Rs.13,09,38,616/-, which is

also rejected by AO being on lower side and estimated the net

profit at 5% of turnover.

filing appeals who has dismissed the appeals and also in AY 2010-

11, the CIT (A) estimated the net profit @ 8% and enhanced the

income of assessee by Rs.22,04,392/- but affirmed the net profit at

5% for AY 2011-12 as assessed by the AO. Feeling aggrieved, the

assessee has come up before the Tribunal by filing the present

appeals.

ITA No.176/CTK./2015 4 ITA No.177/CTK./2015 5. We have heard the ld. Authorized Representatives of the

parties to the appeal, gone through the documents relied upon and

orders passed by the revenue authorities below in the light of the

facts and circumstances of the case.

by the coordinate Bench of the Tribunal in ITA No.268/CTK/2013

in assessee’s own case contended that in this line of the business,

net profit @ 6% is not feasible and the Tribunal has already

estimated the assessee’s net profit @ 4.5% in AY 2008-09.

proceeded to assess the net income at 6% on estimation basis as

against the net profit of 2.5% shown by the assessee in P&L

account, the same requires to be examined in the light of the net

profit shown in the earlier year. In the face of the facts that books

of accounts have been rejected and in the totality of facts and

circumstances of the case, we are of the considered view that net

profit of the assessee should be estimated at 4.5% for both the

assessment years i.e. 2010-11 & 2011-12 following the coordinate

Bench decision in assessee’s own case in AY 2008-09 as there is

not an iota of evidence on record, that in the similar line of

business some extraordinary circumstances have come on record to

ITA No.176/CTK./2015 5 ITA No.177/CTK./2015 assess the net profit at 8% by the ld. CIT (A) for 2010-11 and 5%

by AO for AY 2011-12.

for the assessee, hence determined against the assessee.

allowed. Order pronounced in open court on this 29th day of May, 2017.

Sd/- sd/- (N.S. SAINI) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated the 29th day of May, 2017 TS

Copy of the order forwarded to: 1.Appellant - M/s. Kumud Bandhu Mohapatra, Sarasatia, Ranital, Bhadrak. 2.Respondent ACIT, Balsore Circle, Balasore. 3.CIT 4.CIT (A)-II, Bhubaneswar 5.DR(ITAT), Cuttack. 6.Guard File //True Copy//

BY ORDER

SR. PRIVATE SECRETARY, ITAT, CUTTACK