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TMI Blog2024 (9) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... per to remand the matter back to the file of the CIT (A) to decide the issue on merit after affording reasonable opportunities of being heard to the appellant considering the non-compliance due to Covid-19 Pandemic. The appellant is also directed to make compliance before the Ld. CIT (A) and explain its case on merit. - Shri Narendra Kumar Choudhry, Judicial Member And Shri Ratnesh Nandan Sahay, Accountant Member For the Assessee : Ms. Vinita Shah, A.R. For the Revenue : Ms. Nayana Krishnakumar- Sr. A.R. ORDER PER: RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER: 1. This appeal has been filed by the appellant against the Order of the Ld. CIT (Appeals) passed u/s. 250 of the Income Tax Act [the Act in short] vide DIN Order No. ITBA/NFAC/S/250/2024 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion) including construction of new Brahmaputra Bridge on EPC basis in the State of Assam under the Phase A of SaRDP-NE Project. As per the terms of the Joint Venture, the party shall execute the said contract jointly. Further as per the terms of Joint Venture, each party shall share the work in ratio of 55% and 45% respectively. Various notices were sent to the assessee seeking details of the Sales, Sub-Contracting Expenses, Finance cost and other expenses incurred in relation to the work executed. Query were also raised seeking an explanation as to why the results declared in the books of account be rejected and profit be estimated @ 8% of the revenue as the major payments were made to the related parties. 4. The assessee has filed return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The JV Partners did not make any capital contribution or investment into JV for execution of the contract awarded to it. iii. The JV did not have any plant and machinery, equipments or any other infrastructure to execute the contract awarded to it. iv. The JV did not incur any expenses for the execution of the sub-contract works. v. The JV did not have even an office or set up for execution of the contract works. vi. The JV does not have the required technical qualified personnel on its rolls to execute the contract works vii. The JV did not have any funds/ resources or capital contribution from its members for execution of contract works. viii. The JV did not have requisite banking facilities by way of term loan, working capital loan, guar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be firmly stated that the assessee is not sure of the results of its own books of accounts. The financial statement produced before us shows that assessee has claimed Subcontracting expenses of Rs. 63,07,71,227/- and other expenses of Rs. 18,85,837/- which ultimately leaves the profit of Rs. 1,32,46,651/-, which works out to be 2.06% of the Gross Revenue of Rs. 64,45,41,284/-. The AO has further stated that when the entire work was sub-contracted, the assessee should not claim any other expenses. The assessee has also failed to establish its claim of 1% net profit by producing any evidence to that effect. The work was executed by the members and their associates and sub-contract expenses have been charged against revenue, it is not righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT (A). The Ld. CIT(A) dismissed the appeal of the assessee on the ground that the assessee did not pursue his appeal before the Ld. CIT(A) and did not furnish any supporting documentary evidence or written submission despite having been given sufficient opportunity of being heard. 10. Aggrieved by the order of the Ld. CIT (A), this appeal has been filed. During the appellant proceedings before us, the assessee filed an affidavit as under:- Shri Anupam Das, Indian Habitant, Adult, and Member of Gammon-SPSCPL JV, having Office situated at Gammon House, Veer Savarkar Marg, Prabhadevi 5.0, Mumbai 400025, Maharashtra, India do hereby state on solemn affirmation as under: 1) That, the appellant above named had filed an appeal before the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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