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TMI Blog2024 (7) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... tead of @8% as adopted by the AO and confirmed by the learned CIT(A). Thus, all the grounds raised by the assessee are partly allowed. - Shri V. Durga Rao, Judicial Member And Shri K.M. Roy, Accountant, Member For the Assessee : Shri Milind Bhusari For the Revenue : Shri Abhay Y. Marathe ORDER PER V. DURGA RAO, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 18/10/2023, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [ learned CIT(A) ], for the assessment year 2005 06. 2. The assessee has raised following grounds: 1) The ld. AO is not justified in assessing the income of the assessee Rs. 53,44,390/-. 2) The Id. Authorities are not correct in ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Brief facts are, the appellant is a civil contractor. For the year under consideration, the assessee filed its return of income on 30/03/2006, declaring loss of ₹ ( ) 93,611. The case was selected for scrutiny. The original assessment under section 143(3) r/w section 144 of the Act was completed on 31/12/2007, by making addition of ₹ 41,32,485, which included addition of ₹ 11.98.065, on account of profit estimated @ 8% of the gross receipts of ₹ 1,48,75,822., and addition of ₹ 29.34,420, on account of disallowance under section 40(a)(ia) of the Act. Against the order passed by the Assessing Officer, the assessee being aggrieved carried the matter before the first appellate authority. 5. During the appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer is erroneous and prejudicial to the interest of the revenue, we are not in agreement with the finding that the flat rate of 8 percent should also be applied on the sub contract portion of assessee's work without further examination. Hence we modify the order of Id CIT. We remit the issue for estimation of examination and rate of income on the sub-contracted portion of the assessee's work to the assessing officer. The Assessing Officer shall make necessary examination and pass an order on veracity of income pertaining to the sub-contracted portion. 7. In compliance to the direction of the Tribunal, the Assessing Officer completed the assessment under section 144 r/w section 254 of the Act vide order dated 08/09/2016, determinin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above discussion, the addition made by the AO is upheld. The ground of appeal raised is dismissed. 7. In the result, the appeal is dismissed. The assessee being aggrieved is in further appeal before the Tribunal. 9. We have heard the rival arguments, perused the material available on record and gone through the orders of the authorities below. We find that the assessee has shown commission income from sub contracting and further examine before estimating income from sub contract work. The assessee has shown commission income from sub contracting of the main contract to M/s. D.V. Mohite and company and M/s. Sonal Construction Pvt. Ltd. as per details given below: Name of the Party Work Receipts Commission Commission in Percentage M/s. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d A.R. pleaded that since the work has been sub contracted, the margin of profit would at most be @ 4% and it appears that the commission to that extent has already been disclosed by the assessee. Since the matter is very old and in view of the forgoing discussion, we deem it fit and proper to adopt @4% on the sub contract work instead of @8% as adopted by the Assessing Officer and confirmed by the learned CIT(A). Consequently, the assessee gets part relief of ₹ 6,72,849 (i.e., ₹ 22,77,495 (+) ₹ 1,45,43,722 = ₹ 1,68,21,217 x 4%). Thus, all the grounds raised by the assessee are partly allowed. 12. In the result, appeal filed by the assessee is partly allowed. Order pronounced in the open Court on 11/07/2024 - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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