Itta/474/2012 Of The Commissioner Of Income Tax v. M/S.a.venkateswarlu And Co

THE HONOURABLE SRI JUSTICE GODA RAGHURAMANDTHE HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAO ITTA No.474 of 2012 Dated: 06-12-2012 Between: The Commissioner of Income Tax,Guntur. And M/s A. Venkateswarlu and Co.,Ongole, Prakasam Dist. …Appellant …Respondent. THE HONOURABLE SRI JUSTICE GODA RAGHURAMANDTHE HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAO ITTA No. 474 of 2012 Judgment:(Per Hon’ble Sri Justice Goda Raghuram) We see no question of law let alone a substantial question oflaw arising in this appeal preferred by the Revenue under Section 260-A of the Income Tax Act, 1961. The Revenue preferred this appeal against the order dated 23-1-2009 of the Income Tax Appellate Tribunal, Hyderabad ‘B’ Bench inITA No. 766/Hyd/2008. The only issue presented for consideration inthis appeal is “whether the Tribunal erred in estimating the net profitsof the assessee (for the Assessment year 2004-05) at 8% as againstthe Assessing Officer’s estimate of 12.5%”. The Tribunal has recorded cogent reasons for arriving at the netprofits, at 8% of the gross receipts. The Tribunal stated that the rate of12.5% assumed by the Assessing Officer is excessive since a similarassessee, one A.Venkateswarlu who undertakes similar type of worksas the present assessee was assessed to profits at 5% of the grossreceipt. In the circumstances above, the Tribunal on a rationalassessment of the relevant circumstances and on a comparativeanalysis of the view taken in respect of similarly placed contractors, inwhose case the assessing officer had himself taken a view that thepercentage of profits would be 5% of the gross receipts, arrived at theestimated net income at 8% of the gross receipts. This is a finding of fact on analysis of the relevant criteria, not amenable to appellatescrutiny as a substantial question of law. The appeal is accordingly dismissed at the stage of admission. _________________________ GODA RAGHURAM, J 6[th] December, 2012 GRR _______________________________ M.S.RAMACHANDRA RAO, J