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2016 (5) TMI 1178 - ITAT CUTTACK

2016 (5) TMI 1178 - ITAT CUTTACK - [2016] 48 ITR (Trib) 41 - Income from works contract and machine hiring charges - AO estimated the net profit at 10 per cent. of gross contract receipts on the ground of unverifiable nature of account, from which, he has allowed salary and interest to partners - Held that:- It is the case of the assessee that the authorities below have estimated the income from contract works at 10 per cent. as against 8 per cent. before allowing bank interest and depreciation, .....

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8 per cent. will be reasonable. Therefore, we set aside the order of the learned Commissioner of Income-tax (Appeals) on this issue and direct to estimate the net profit at 8 per cent. as against 10 per cent. adopted by the authorities below.

Addition under section 68 made on account of Shaym Trading Co. and Sahoo Enterprises - Held that:- We observe that although the assessee is pleading that sundry creditors are genuine, but it is on record that the sundry creditors have denied any .....

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Asst. CIT [2013 (12) TMI 295 - ITAT CUTTACK ] wherein the Tribunal has held that it is necessary to direct the Assessing Officer to verify the TDS certificate by the assessee or partners in the return for the purpose of claiming credit for TDS, when the Assessing Officer has accepted the income was to be given credit to the assessee being the firm returning the income for claiming the advance tax paid but deducted at source. The Assessing Officer in that order is directed to give credit to the .....

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014 - Dated:- 23-2-2016 - R. C. Sharma (Accountant Member) And Partha Sarathi Chaudhury (Judicial Member) For the Petitioner : S. N. Sahu For the Respondent : Suvendu Dutta ORDER Partha Sarathi Chaudhury (Judicial Member) 1. This is an appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals)-1, Bhubaneswar, dated May 13, 2014, in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2010-11. 2. The assessee has filed .....

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ection 68 made on account of Shaym Trading Co. and Sahoo Enterprises without giving opportunity of cross-examination. 5. The third ground raised by the assessee is that the authorities below have erred in not giving credit of the TDS ₹ 9,10,269 and levying interest under sections 234B and 234C of the Act. 6. All the remaining grounds are supporting grounds highlighting the above three issues. 7. Facts in brief of this case are that the assessee-firm derives income from works contract and m .....

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g Officer found that the net profit shown in respect of the works contract and machine hiring charges is around 6.30 per cent. The Assessing Officer asked the assessee to produce details of expenditure, ledger, cash book and bills and vouchers. However, the assessee failed to produce the ledger with supporting bills and vouchers and cash book before the Assessing Officer. In view of the same, the Assessing Officer was of the view that the correctness and completeness of the books of account coul .....

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reditors, namely, Shyam Trading Co. and M/s. Sahoo Enterprises have denied that they have anything to receive or to pay the assessee. Since the assessee failed to establish the genuineness of transaction, the Assessing Officer added sundry creditors of ₹ 9,50,120 under section 68 of the Act. The Assessing Officer completed the assessment under section 143(3) of the Act and assessed the income at ₹ 31,54,286. In the first appeal, the assessee did not get any relief. Hence, the assesse .....

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e income substantially, therefore, the learned Commissioner of Income-tax (Appeals) upheld, the same. It is the case of the assessee that the authorities below have estimated the income from contract works at 10 per cent. as against 8 per cent. before allowing bank interest and depreciation, which is arbitrary and excessive. We observe that the order of the learned Commissioner of Income-tax (Appeals) does not put forth any reasons and views specifically for which he has confirmed the order of t .....

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. adopted by the authorities below. This ground is allowed. 9. Ground No. 2 relates to the addition of ₹ 9,50,100 under section 68 made on account of Shaym Trading Co. and Sahoo Enterprises. 10. We have heard the rival contentions and perused the record of the case. Before the learned Commissioner of Income-tax (Appeals), the assessee submitted that M/s. Shaym Trading Co. and Sahoo Enterprises are genuine parties and the addition has been made under section 68 on the ground that the assess .....

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is the contention of the learned authorised representative that once the Departmental authorities have estimated the income, no further addition can be made under section 68 of the Act. For this proposition, reliance was placed on the following decisions : (i) Income-tax Appellate Tribunal, Hyderabad in the case of Teja Construction v. Asst. CIT [2010] 129 TTJ (Hyd) 57 (UO) ; (ii) Indwell Constructions v. CIT [1998] 232 ITR 776 (AP) ; (iii) CIT v. Banwari Lal Banshidhar [1998] 229 ITR 229 (All). .....

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