SPR Infrastructure India Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad held that dismissal of appeal by CIT(A) on the ground of non-deposition of self-assessment tax by the assessee needs re-verification since assessee incurred losses and therefore has a reason for not depositing the self-assessment tax. Hence, matter remanded.
Facts-Assessee company is engaged in execution of infrastructure projects and government contracts. The assessee company had not filed its return of income for A.Y .2011-12 despite having contract receipts to the tune of Rs.33,76,72,960/- as per Form 26AS. Based on the information available with this office, the case was re-opened for scrutiny and notice u/s 148 of Income Tax Act, 1961 was served on the assessee.
During the course of assessment, AO found from Form 26AS that the assessee company had contract receipts of Rs.33,74,11,042/- and interest income of Rs.52,35,248/-. Further, a show cause letter was issued to the assessee on 28.11.2018 asking why the assessment cannot be completed by treating 12% of contract receipts as income in addition to the other income available on record. AO completed the assessment by estimating the net profit of the assessee at Rs.4,04,89,325/-, which was 12% of contract receipts Rs.33,74,11,042/- and accordingly, passed order u/s 144 r.w.s 147 of the Act on 14.12.2018.
