9911796707
TMI Blog2019 (7) TMI 1802X X X X Extracts X X X X X X X X Extracts X X X X ..... no return of income was filed inspite of having taxable income, the case was reopened u/s 148 of the Income Tax Act, 1961 ( in short 'the Act') after following due procedure after taking approval of Pr.CIT-4, Hyderabad. A notice u/s 148 of the Act was issued and in response to the said notice, the assessee filed its return of income on 30.12.2015 for the AY 2009-10 by declaring total income of Rs. NIL. Subsequently, notices u/s 143(2) & 142(1) were issued to submit the information called for. In response to the notices the Authorised Representative (AR) of the assessee appeared and furnished the information/ details as called for. After going through the information furnished/produced and after a detailed discussion, the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture. * In the light of the above observations and facts brought on paper, M/ s. PCL Intertech Lenhydro Consortium Joint Venture has not passed on the contract receipts, it got from Tehri Hydro Development Corporation Limited (THDCL) to its members. It can hence be said that all the contract receipts, assessee has received from THDCL, were retained with the assessee itself. That being the case, the contract receipts have to be taxed in the hands of the assessee. This is exactly what the Hon'ble ITAT has suggested in assessee's own case vide PCL Sticco JV & PCL MVR JV ITA No. 1516 and 1517/H/2011 for the AYs 2006-07 & 2007-08, dated 21.09.2012. * Having got the clarity on in whose hands the income has to be taxed it has to be now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rate of 2% estimate be accepted." 4. The CIT(A) after considering the submissions of the assessee as well as following the decision of his predecessor in assessee's own case for AY 2008-09 directed the AO to estimate income @ 2% on gross receipts instead 6% on gross receipts estimated by the AO, by observing as under: "6.1 From the above, it is clear that income has accrued in the hands of the assessee during the previous year relevant to the AY 2009-10. However, the assessee has filed the return of income declaring NIL income. In view of the ratio laid down by the decision mentioned (supra), the assessee earned income from the execution of contracts awarded by the Tehri Hydro Development corporation Limited (THDCL). In this regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot brought on record whether assessee has transferred the TDS deducted by M/s Tehri Hydro Development Corporation. No information was submitted before us. However, we notice that in the immediate previous AY, i.e. AY 2008-09, income of the assessee was estimated @ 2% and there is no change in the business model, in our considered view, AO cannot increase the rate of estimation without any major deviation in the business model of the assessee. Therefore, we are inclined to accept the findings of ld. CIT(A) and accordingly, upholding the order of CIT(A), we dismiss the grounds raised by the revenue.
7. In the result, appeal of the revenue is dismissed.
Pronounced in the open Court on 31st July, 2019. X X X X Extracts X X X X X X X X Extracts X X X X
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