9911796707
TMI Blog2023 (2) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... x which in case of regular assessment is a tax on total income determined under such regular assessment. Nowhere in this provision, it is stated that Section 234B of the Act, in the case of regular assessment, is to be computed on the returned income and not on the assessed income. Though the assessee has referred to the judgment in the case of Ajay Prakash Verma [ 2013 (1) TMI 140 - JHARKHAND HIGH COURT] however he failed to convince us that the said judgment is applicable in the instant case pertaining to AY 2010-11, for which the position of law is very clear as provided u/s 234B of the Act. Therefore, we are inclined to hold that interest for default in payment of advance tax u/s 234B of the Act in the case of regular assessment needs to be computed on the assessed tax as provided in Explanation 1 to Section 234B(1) of the Act. Thus, ground no. 3 raised by the assessee is dismissed. - I.T.A. No.: 45/RAN/2020 - - - Dated:- 9-2-2023 - Dr. Manish Borad, Accountant Member And Sonjoy Sarma, Judicial Member For the Assessee : Sh. Devesh Poddar, Adv. For the Revenue : Sh. Rupesh Agarwal, D/R, ACIT ORDER PER MANISH BORAD, ACCOUNTANT MEMBER: This appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies could not controvert the contentions made by the assessee. 5. We have heard rival contentions and perused the records placed before us. We observe that the assessee is a private limited company engaged in retail trading in iron steel, welding spares etc. Income of Rs. 1,75,850/- declared in the e-return filed on 14.10.2010. In the scrutiny proceedings ld. AO rejected the book results and applied the net profit rate of 8% on the gross receipts. The assessee carried the matter before ld. CIT(A) who sustained the addition to the extent of applying net profit rate of 6% which was requested by the assessee relying on the judgment of Hon'ble Patna High Court in the case of Shyam Bihari vs. Commissioner of Income-tax reported in 345 ITR 283. Before ld. CIT(A), the assessee also relied on other decisions of co-ordinate Bench Patna in the case of M/s. Salauddin in ITA No. 90/PAT/2008 wherein also in similar types of cases net profit was estimated @ 6% of the gross contract receipts. The relevant extract from the order of ld. CIT(A) is reproduced below: During the course of appellate proceeding, the AR of the appellant filed written submission as under: THE HUMBLE WRITT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h has also confirmed the order of Ld. CIT(A) vide ITA No. 90/Pat/2008 (copy enclosed). Hence this issue is also covered by the above mentioned order and fit to be allowed. 1. That further same view has been taken by hon'ble high court Patna in the case of M/S Shyam Bihari vs Commissioner Of Income Tax Others and observed as under Before the Tribunal the appellant- assessee objected to inclusion of interest income being assessed as income from other sources on the ground that income was from money deposited in FDR and NSC which was required to be furnished by way of security for securing the contract work and therefore it should have been treated as income from business and not from other sources. The other grievance of the assessee was that he should have been allowed depreciation allowance out of the net contractual receipt finally estimated at the rate of 6% on account of clear direction to this Effect by the Board of Direct Taxes vide circular dated 31.8.1965. We have been taken through the provisions of circular of the Board dated 31.8.1965. According to that circular which is binding on the department and its authorities, where it is proposed to estimate the profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... farpur, In MA No.808 of 2011 dated 07.05.2012 On a careful consideration of the facts and submissions it is a fact that the AO has not pointed a single defect which is not verifiable in any of the bills / vouchers submitted and instead directly rejected the books of accounts u/s.145(3) and resorted to ad-hoc disallowance and estimated the profit arbitrarily @ 8% of the gross receipts. Under these circumstances I tend to agree with the submission of the appellant and therefore by squarely relying on the decisions cited by the appellant (supra), the AO is directed to compute profit @ 8% of Gross receipts after allowing depreciation. In other words the net addition sustained is Rs.26,34,060/-(Rs.41,43,171 - 15,09,111) as against addition made of Rs.55,24,228/- and the appellant gets a part relief of Rs. 28,90,168/-. Accordingly, this ground is partly allowed. 6. Now, before us, ld. Counsel for the assessee has referred to the decision of this Tribunal in assessee s own case for AY 2012-13 contending that net profit rate of 1% has been accepted by this Tribunal. However, we on perusal of the order dated 30.11.2021 in the case of the assessee in ITA No. 46/RAN/2020 for AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,- (i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income; (ia) any relief of tax allowed under section 89; (ii) any relief of tax allowed under section 90 on account of tax paid in a country outside India; (iii) any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) any deduction, from the Indian income-tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) any tax credit allowed to be set off in accordance with the provisions of section 115JAA or section 115JD. 9. On perusal of the above provision along with Explanation 1, we observe that it refers to assessed tax which in case of regular assessment is a tax on total income determined un ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
