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Income Tax Appellate Tribunal - Delhi

Ito, New Delhi vs M/S. United India Construction & ... on 7 November, 2017

                        INCOME TAX APPELLATE TRIBUNAL
                           DELHI BENCH "D": NEW DELHI
                    BEFORE SHRI H.S.SIDHU, JUDICIAL MEMBER
                                      AND
                SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER

                                 ITA No. 5815/Del/2015
                               (Assessment Year: 2010-11)
                     ITO,                  Vs.     M/s. United India Construction &
             Ward-27(1), New Delhi                     Communication Pvt Ltd,
                                                   4-D, Citizen Enclave, Sector-14,
                                                         Ext. Rohini, Delhi-85
                  (Appellant)                                (Respondent)



                   Revenue by :                         Shri Shravan Gotru, Sr. DR
                   Assessee by:                                    None
                 Date of Hearing                                28/08/2017
              Date of pronouncement                             07/11/2017


                                           ORDER

PER PRASHANT MAHARISHI, A. M.

1. This is an appeal filed by the revenue against the order of the ld CIT(A)-22, New Delhi dated 21.08.2015 for the Assessment Year 2010-11 raising solitary ground of appeal as under:-

"1. On the facts and in the circumstances of the case and in law the ld CIT(A) has erred in reducing the addition of Rs. 14190746/- to Rs. 9167043/- made by AO on account of S. Creditors."

2. The brief facts of the case is that the assessee is a private limited company engaged in the business of civil contractor who filed its return of income on 15.10.2010 declaring income of Rs. 359318/-. The assessment u/s 144 of the Act was passed on 15.03.2013 determining total income of the assessee at Rs. 15052851/-. The main addition was made on account of sundry creditors of Rs. 14190746/-. On appeal before the ld CIT(A) the addition was restricted to Rs. 9167043/- and therefore, against the relief granted by the ld CIT(A) the revenue is in appeal.

3. The ld ld Departmental Representative submitted that assessee has not given any details before the ld Assessing Officer and therefore, at the end of the year creditors of the assessee were Rs. 19150158/- compared to Rs. 4959412/- in the beginning of the year and therefore, the addition of Rs. 14190746/- is added. It was further stated that despite repeated opportunities none appeared on behalf of the assessee to provide this information. The ld CIT(A) on the same set of facts has deleted the part of the addition. She referred to para No. 7 of the order of the ld CIT(A) and stating that addition cannot be deleted determining the profit of the assessee.

4. Despite notice none appeared on behalf of the assessee and therefore, the issue is decided on merits of the case as per information available on record. It is further to be noted that assessee has remained absolutely non-cooperative before the ld Assessing Officer, ld CIT(A) and before us. In the present case the ld CIT(A) has deleted the addition holding that assessee has turnover of Rs. 3.78 crores and thereafter estimating profit of 25%. The profit was estimated at Rs. 9473273/-. As the addition of Rs. 306230 was already sustained by him he upheld the addition of Rs. 9167043/-. The approach of the ld CIT(A) could not be found fault with. In view of this we confirm the order of the ld CIT(A) in confirming the addition of Rs. 9167043/- out of addition made by AO of Rs. 14190746/-.

5. In the result appeal of the revenue is dismissed.

Order pronounced in the open court on 07/11/2017.

                 -Sd/-                                                        -Sd/-
             (H.S.SIDHU)                                              (PRASHANT MAHARISHI)
          JUDICIAL MEMBER                                             ACCOUNTANT MEMBER

Dated:07/10/2017
A K Keot

Copy forwarded to

     1.   Applicant
     2.   Respondent
     3.   CIT
     4.   CIT (A)
     5.   DR:ITAT
                                                                            ASSISTANT REGISTRAR
                                                                             ITAT, New Delhi




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