TaxTMI 
TaxTMI 
2018 (6) TMI 891
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....16. 2. The only issue to be decided in this appeal is as to whether the ld CITA was justified in deleting the addition of Rs. 47,36,821/- made u/s 69 of the Act for understatement of contractual receipts , in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee company is engaged in civil construction and had filed its return of income for the Asst Year 2013-14 on 28.9.2013 declaring total income of Rs. 83,780/-. During the year under consideration, the assessee company had executed works in terms of tender agreement vide work order dated 25.7.2010 entered into with M/s Murti Housing & Finance Pvt Ltd . The ld AO observed from the audited accounts of the assessee that it had declared income u....
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....l component whereas the assessee had claimed that Rs. 44,16,544/- was material component in the bill raised against the said contractee. One more bill has been listed in the table on page 2 of the assessment order. The ld AO had not given any finding as to why he had treated the whole contractual amount as having no material component inspite of the assessee's said claim before him. The question here to be decided is whether the ld AO's finding treating the whole contract amount as one for service is correct or not. The ld CITA observed that the identical question arose in the Asst Year 2012-13 in assessee's own case and since the same contract was executed in the current year for the same contractee, and that there is no other contract hav....
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....ring, scaffoldings and consumables etc. but exclusive of cement and steel. Any volume of work exceeding the scheduled quantity as per the drawings issued to contractor at the time of tender is to be treated as extra item. The above quoted rated are inclusive of ESI, PF, freight, Excise Duty & royalty etc. but exclusive of taxes like service tax, VAT etc which will be paid extra to the Contractor ,WCT & TDS will be deducted as per the provisions of the respective act and laws of the land. No claim on this account other than what had mentioned in this Work Order will be entertained due to any reason whatsoever. Quoted rates shall also include any or all wastages etc. as applicable and the rates quoted are firm till the completion of work incl....
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.... Finance Pvt. Ltd.. The ld. AO had not given any finding to the effect that the entire sum paid to the assessee by M/s Murti Housing & Finance Pvt. Ltd. were only in respect of contractual payments, except placing reliance on the figures reflected in form no. 26AS subjecting the entire payments to deduction of tax at source. Factually we find that the assessee had received 3.37 crores towards contractual receipts and Rs. 2.18 crores towards sale of materials from M/s Murti Housing & Finance Pvt. Ltd. and both are duly paid under the head 'revenue for operation'. We also find from page 51 of the paper book containing the details of various materials that were supplied by the assessee to M/s Murti Housing & Finance Pvt. Ltd. for the smooth ex....
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.... ld. AO that purchases of other items i.e. other than (sand, stone chips and bricks) to the tune of Rs. 42,09,707/- is duly included in the total cost of materials consumed in the total sum of Rs. 2,47,94,550/- This fact is also evident from the aforesaid stock summery. We find that ultimately the assessee has shown in the closing stock of Rs. 65,90,629/- based on the proper details that were submitted before the ld. AO and which are supported by proper evidences. The ld. AO made arithmetical conclusion and arrived at the closing stock of material figures at Rs. 38,47,212/- only in respect of certain items and compared the same as total closing stock figure of Rs. 65,90,629/- and made an addition of Rs. 27,43,417/- as undisclosed investment....
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....THE PARTY EB1 MURTI HOUSING AND FINANCE LTD. Received against WIP 2,022,768 Received in sales of WIP 1,404,000 SERVICE TAX AS PER BOOK VAT AS PER BOOK TOTAL 177,093 151836 3,755,697 20.05.2011 EB2 MURTI HOUSING AND FINANCE LTD. 518,578 56,000 45,401 6184 626,163 16.05.2011 RA4 MURTI HOUSING AND FINANCE LTD. 4,148,271 2,779,800 363,182 298872 7,590,125 15.06.2011 RA5 MURTI HOUSING AND FINANCE LTD. 5,625,736 3,865,000 467,906 273600 10,232,242 26.08.2011 RA6 MURTI HOUSING AND FINANCE LTD. 6,205,727 3,080,800 516,145 210000 10,012,672 16.12.2011 RA6-PART MURTI HOUSING AND FINANCE LTD. 602,424 1,203,696....