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2021 (10) TMI 259 - AT - Income TaxCondonation of delay - delay of 122 days - HELD THAT - As delay of 122 days in filing of the assessee s appeal before the Tribunal has occurred due to the files being misplaced and ill health of the assessee s counsel. Hence I am of the view that though there is some negligence on the part of the assessee it deserves some leniency. Therefore, in the interest of Justice we hereby condone the delay of 122 days in filing both the appeals and proceed to adjudicate the matter on merits. Estimation of turnover - scrutiny assessment - income of the assessee on the sale of built-up space - HELD THAT - As revealed that the assessee has not maintained his books of accounts. It was also revealed that the assessee had sold built up space for ₹ 1,21,46,655/-. Since the assessee could not furnish sufficient details to determine the profit arising out of the sale of the built-up space of ₹ 1,21,46,655/- the Ld. AO estimated the income on the sale @15% on the turnover which works out to ₹ 18,22,000/- and brought the same to tax. Even before the Ld. CIT (A) the assessee could not furnish the particulars of his income with respect to the sale of built-up space. Therefore, the Ld. CIT (A) magnanimously relied on the provisions of section 44AD of the Act and sustained the addition at 8% of the Turnover. Neither the assessee nor its representative could furnish any evidence as well for having maintained the books of accounts and relevant documents. Therefore, in this situation find it not necessary to interfere with the order of the Ld. CIT (A) who has already granted generous relief to the assessee. - Decided against assessee.
Issues Involved:
1. Delay in filing appeal before the Tribunal. 2. Estimation of turnover by Assessing Officer. 3. Maintenance of books of accounts by the assessee. 4. Addition to income on sale of built-up space. 5. Relief granted by CIT (A). 6. Adjudication of the matter on merits. Delay in filing appeal before the Tribunal: The appeal filed by the assessee against the order of the Ld. CIT (A) was delayed by 122 days. The reasons for the delay included the Chartered Accountant being preoccupied with filing the income tax return, the appellate order getting mixed up with other files, and the ill health of the advocate handling the appeal preparation. The Tribunal, after considering the reasons for the delay, condoned the delay in the interest of justice and proceeded to adjudicate the matter on merits. Estimation of turnover by Assessing Officer: The Assessing Officer estimated the income of the assessee on the sale of built-up space at ?1,21,46,655 since the assessee failed to provide sufficient details to determine the profit arising from the sale. The AO applied a 15% rate on the turnover, resulting in an addition of ?18,22,000 to the income. The Ld. CIT (A) sustained the addition at 8% of the turnover based on the provisions of section 44AD of the Act, considering the lack of evidence and details provided by the assessee. Maintenance of books of accounts by the assessee: During the scrutiny assessment proceedings, it was revealed that the assessee had not maintained proper books of accounts. The lack of documentation and evidence regarding the income from the sale of built-up space led to the estimation of income by the AO and subsequent confirmation by the Ld. CIT (A) at a reduced rate based on the turnover. Addition to income on sale of built-up space: The assessee, a firm engaged in the business of builders and developers, sold built-up space for ?1,21,46,655. The AO estimated the income on the sale, and the Ld. CIT (A) sustained the addition at 8% of the turnover, granting some relief to the assessee but upholding a portion of the addition made by the AO. Relief granted by CIT (A): The Ld. CIT (A) provided some relief to the assessee by reducing the addition made by the AO on the sale of built-up space. However, considering the lack of maintained books of accounts and evidence provided by the assessee, the Ld. CIT (A) upheld a portion of the addition based on the turnover. Adjudication of the matter on merits: After considering the delay in filing the appeal, the estimation of turnover by the Assessing Officer, the maintenance of books of accounts by the assessee, and the relief granted by the Ld. CIT (A), the Tribunal dismissed the appeal of the assessee. The Tribunal found no evidence presented by the assessee to interfere with the order of the Ld. CIT (A) and upheld the decision based on the circumstances of the case. This comprehensive analysis of the judgment covers the issues involved and the detailed reasoning provided by the Tribunal in adjudicating the matter on merits.
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