The case titled ‘Krishan Kumar Gupta vs ITO, Ward-62(3), New Delhi’ pertains to an appeal against the reassessment order passed by the Income Tax Officer (ITO) for the assessment year 2010-11. The final tribunal order was pronounced on 2022-11-22. This case was filed to appeal against the reassessment of work contract receipts and interest income.
Case Number: ITA 512/DEL/2021
Appellant: Krishan Kumar Gupta, New Delhi
Respondent: ITO, Ward-62(3), New Delhi
Assessment Year: 2010-11
Case Filed On: 2021-05-13
Order Type: Final Tribunal Order
Date of Order: 2022-11-22
Pronounced On: 2022-11-22
Judges: Narendra Kumar Billaiya, Accountant Member and Kul Bharat, Judicial Member
This appeal in ITA No. 512/DEL/2021 is filed by Krishan Kumar Gupta against the order of the Commissioner of Income-tax (Appeals)-38, New Delhi, dated 07.02.2019, pertaining to the assessment year 2010-11. The appeal raises issues related to the addition of work contract receipts and interest income to the returned income.
The appellant, Krishan Kumar Gupta, had not filed his income-tax return for the assessment year 2010-11. However, as per Form 26AS, a sum of Rs. 81,12,754/- was paid to the appellant, on which TDS under Section 194C of the Income Tax Act was deducted. In response to the statutory notice under Section 148, the appellant’s authorized representative attended the proceedings. The Assessing Officer made an addition of Rs. 6,33,832/- on account of the difference between the gross contract receipts and as declared by the appellant in its return of income. Additionally, an interest income of Rs. 2,14,176/- was added, which was not disclosed by the appellant.
The appellant raised the following grounds of appeal:
The appellant argued that the entire work contract receipts should not be added to the income as it does not represent the profit element. The appellant suggested that the profit element should be calculated on an estimated basis or average net profit ratio basis.
The tribunal noted that the Assessing Officer pointed out a difference of Rs. 6,33,832/- in the gross contract receipts. The tribunal acknowledged that the appellant had highlighted that the assessment for the assessment year 2010-11 was completed under Section 143(3) of the Act, and the relevant income was disclosed in the income-tax return filed for the assessment year 2010-11.
The tribunal concluded that the Assessing Officer should not have made an addition of the entire receipts. Instead, the tribunal restricted the addition to 12.5% of the contract receipts, being the profit element embedded in such contractual receipts, which comes to Rs. 79,229/-. The appeal of the appellant was partly allowed.
In conclusion, the tribunal pronounced in the open court that the appeal filed by Krishan Kumar Gupta in ITA number 512/DEL/2021 is partly allowed, restricting the addition to 12.5% of the contract receipts.
Order pronounced in open court during the course of hearing on 22.11.2022.
Sd/- (NARENDRA KUMAR BILLAIYA) ACCOUNTANT MEMBER
Sd/- (KUL BHARAT) JUDICIAL MEMBER
Delhi; Dated: 22.11.2022.
*MP*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi.
Date of dictation: 22.11.2022
Date on which the typed draft is placed before the dictating member: 22.11.2022
Date on which the typed draft is placed before the other member: 22.11.2022
Date on which the approved draft comes to the Sr. PS/PS: 22.11.2022
Date on which the fair order is placed before the dictating member for pronouncement: 22.11.2022
Date on which the fair order comes back to the Sr. PS/PS: 22.11.2022
Date on which the final order is uploaded on the website of ITAT: 22.11.2022
Date on which the file goes to the Bench Clerk: 22.11.2022
Date on which the file goes to the Head Clerk: 22.11.2022
The date on which the file goes to the Assistant Registrar for signature on the order: 22.11.2022
Date of dispatch of the order: 22.11.2022.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform