9911796707
TMI Blog2017 (10) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor undertaking construction works. Assessee filed its return for the assessment year 2010-11 returning an income of Rs. 4,06,96,700/- and claimed refund of Rs. 32,92,907/- on account of excess tax paid through TDS. The return was selected for scrutiny under Section 143(3) and notice under Section 143(2) was issued to the assessee. After completing the procedural formalities, the Assessing Officer passed Annexure-A order whereby Rs. 1,75,00,000/- was added to the total income returned and the assessment was completed. The assessee filed appeal before the Commissioner of Income Tax (Appeals) who by Annexure-B order found it appropriate to consider gross profit, instead of net profit, as the basis for levy of tax. Thereafter, the first appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee at 16.50% is reduced, the difference comes to 0.44% which has been directed by the Ld. CIT(A) to adopt on the total turnover. While estimating the income, the Ld. CIT(A) has committed an error that cost of material amounting to Rs. 24,39,40,964/- and the cost of shuttering materials at Rs. 5,05,85,544/-, Kerala VAT at Rs. 1,12,17,821/-, Goa VAT at Rs. 3,95,726/- and other expenses where no profit element has been involved, were not excluded which totals to Rs. 31,07,29,889/-. Therefore, the said amount of Rs. 31,07,29,889/- included in the turnover, has to be essentially excluded while estimating the income and accordingly, the Assessing Officer is directed to apply the gross profit rate of 0.44% after excluding the said turnove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as rightly contended by the learned counsel for the Revenue, every part of the turnover, irrespective of its nature, should form part of turnover. If that is the standard to be adopted, there cannot be any justification for excluding any of the items while computing the total turnover of the assessee. 9. Insofar as this case is concerned, the turnover has been returned by the assessee itself and such returned turnover of the assessee included the items which are now ordered to be excluded by the Tribunal. Further, the assessee itself has no case that in the gross turnover for the previous years relied on by the first appellate authority, it had excluded the items which are now ordered to be excluded by the Tribunal. If that be so, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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