KUMAR BUILDERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 25.9.2013 (Annexure A -4) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 1357/Chd/2012, for the assessment year 2006 -07, claiming the following substantial questions of law: - -

(2.) PUT shortly, the facts necessary for disposal of the present appeal as mentioned therein are that the assessee is a firm engaged in the business as Civil Contractor based at Ludhiana and filed its return of income on 31.10.2006 for the assessment year 2006 -07 declaring taxable income at Rs. 57,49,202/ -. The assessee also filed revised return where the returned income remained unchanged. The assessee claimed the credit of Tax Deducted at Source (TDS) at Rs. 2,66,292/ - whereas the TDS certificates annexed with the return of income showed total receipts of Rs. 1,18,87,936/ -. The Assessing Officer called for the information from the Executive Engineer, PWD, Sirhind and as per the information received, the total contract receipts were Rs. 1,40,42,320/ - against which TDS of Rs. 3,14,551/ - was deducted. The assessee was, thus, found to have suppressed the contract receipts to the extent of Rs. 21,54,387/ -. Accordingly, the assessee was issued show cause notice to explain the difference. The assessee filed reply by pleading that the difference of Rs. 20,52,268/ - be added to the gross receipts on which GP rate be applied. The plea of the assessee before the Assessing Officer was that the said mistake had taken place due to non -receipt of Form No. 16 -A. Thereafter, the assessee vide letter dated 24.11.2008 surrendered a sum of Rs. 2,15,439/ - as income on gross receipts of Rs. 21,54,387/ -. Another communication dated 8.12.2008 was submitted by the assessee that due to bonafide mistake, Rs. 10 lacs was credited to the security account while for the balance amount, profit @ 5.36% was offered for taxation. The case of the assessee was referred under Section 142(2A) of the Act for special audit by the Assessing Officer and made an addition of Rs. 21,54,387/ - on account of suppression of receipts from PWD, Sirhind vide assessment order dated 28.5.2009 (Annexure A -1). Another addition was made by the Assessing Officer by rejecting the books of account and income of the assessee was estimated @ 12% on total turnover of Rs. 9,59,16,586/ -. The addition made on account of suppression of receipts was telescoped with the total addition made while estimating the net profit @ 12%. The penalty proceedings were also initiated and penalty of Rs. 17,32,335/ - was imposed upon the assessee vide order dated 27.1.2011 (Annexure A -2) on the total assessed income. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [hereinafter referred to as "the CIT(A)"]. The CIT(A) vide order dated 31.10.2012 (Annexure A -3) deleted the penalty on account of addition made on estimate basis but confirmed the addition made on account of suppression of receipts to the extent of Rs. 21,54,387/ -. Being dissatisfied, the revenue as well as the assessee filed appeals before the Tribunal. The revenue filed appeal against the deletion of penalty by the CIT(A) which was on account of concealed income in pursuance to estimation of profits whereas the assessee filed the appeal against penalty sustained by the CIT(A) on suppression of receipts to the tune of Rs. 21,54,387/ -. The Tribunal vide order dated 25.9.2013 (Annexure A -4) dismissed both the appeals. Hence, the present appeal by the assessee.

(3.) ON the other hand, learned counsel for the revenue supported the order passed by the Tribunal.