Itta/584/2011 Of Commissioner Of Income Tax-Iii v. M/S. Srec Projects Private Limited

HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND HON’BLE SRI JUSTICE K.C. BHANUI.T.T.A.No.584 of 2011 Date: 02-08-2013 Between: Commissioner of Income Tax-III,I.T. Towers, A.C. Guards,Hyderabad. … Appellant And M/s. SREC Projects Private Limited,Flat No.203, Nilgiri, Aditya Enclave,Ameerpet, Hyderabad. … Respondent HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDHON’BLE SRI JUSTICE K.C. BHANU I.T.T.A.No.584 of 2011 JUDGMENT:(Per Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is preferred against the judgment and order of the learned Tribunal dated 27-08-2010 inI.T.A.No.974/Hyd/2009 in relation to the assessment year 2000-01 and is sought to be admitted on the following suggestedquestions of law: i. The order of the Tribunal to the extent went against theDepartment is contrary to law, material on record andprobabilities of the case. ii.the facts and circumstances of the case, whether the IncomeTax Appellate Tribunal is justified in law in granting relief to theRespondent assessee to exclude the receipts from sub-contractworks and cost of material supplied by the Government from the gross receipts while estimating the profits and holding that theestimation of profits at the rate of 10% as reasonable withoutconsidering the fact that the income of the Respondent assesseedetermined after giving effect to its orders would be below theincome returned by the Respondent assessee? iii.In the facts and circumstances of the case, whether thefinding of the Tribunal that the estimation of income at the rate of10% of gross receipts would be reasonable instead of 12.5%adopted by the Assessing Officer without following the decisionsof co-ordinate benches in the cases relied by the Revenue, is noterroneous, perverse in law and liable to be set aside? 2. We have heard Mr. B. Narasimha Sarma, learned standingcounsel for income tax, and have gone through the impugnedjudgment and order of the learned Tribunal. 3. It appears that the learned Tribunal has decided the issueof exclusion of recoveries in the gross receipt, relying on a judgment ofthe Tribunal in the case of A.Venkateswarlu & Co.inI.T.A.No.766/Hyd/2008 dated 23-01-2009. It is also informed by Mr. B.Narasimha Sarma, learned standing counsel for Income Tax, that theappeal filed against the aforesaid judgment of the Tribunal in the caseof A. Venkateswarlu & Co was dismissed by this Court. Therefore, weare of the view that nothing is to be decided on this issue, as the samehas attained finality. 4. The other issue is with regard to the estimation of rate ofprofit without relying on the books of accounts. This sort of exercise is a discretionary one. We do not want tosubstitute or exercise the discretion accordingly. We do not find anyillegality or irregularity in the judgment and order of the Tribunal. Nopoint of law is involved in this matter for adjudication. 5. The appeal is, accordingly, dismissed.There will be noorder as to costs. Miscellaneous Petitions pending, if any, shall standclosed. _________________ K.J. SENGUPTA, CJ Date: 02-08-2013YCR _________________ K.C. BHANU, J