Ghanshyam Infrastructure Private Limited Vs DCIT (ITAT Ahmedabad)
The Income Tax Appellate Tribunal adjudicated an appeal concerning Assessment Year 2010–11 arising from an order of the Commissioner of Income Tax (Appeals). The appeal was delayed by 176 days, which was condoned after the assessee demonstrated that the delay occurred due to lack of communication from its consultant regarding the appellate order.
On merits, the case involved reopening of assessment under Section 147 based on information from Form 26AS showing contractual receipts of ₹4.37 crore on which tax was deducted, despite no return being filed. The Tribunal upheld the validity of reopening, holding that the Assessing Officer had sufficient material at the time to form a reasonable belief of income escaping assessment. It rejected arguments that reasons were vague or that approval under Section 151 was improperly obtained.
Regarding additions, the Tribunal held that the contractual income pertained to the relevant assessment year since the assessee failed to prove it was accounted for in an earlier year, despite invoice timing. However, it found no justification for applying a 12% profit rate and accepted the assessee’s 8% rate, directing deletion of the excess addition. Disallowance of finance-related losses was upheld due to lack of supporting evidence. The appeal was partly allowed.
