ITA No.845/Del/2019

Parties Involved

Facts Summary

The assessee, TRG-JKS Joint Venture, was formed to execute a contract awarded by the Airport Authority of India for works at Coimbatore airport. The joint venture was between M/s TRG Industries Pvt. Ltd. and M/s JKS Construction Pvt. Ltd. The assessee filed its return of income declaring total income at NIL. The assessment order dated 23.12.2011 determined the total income at Rs. 2,97,54,692/-. The assessee appealed before the CIT(A), who dismissed the appeal. The assessee then approached the ITAT, which sent the matter back to the AO for reconsideration. In the second round, the AO made additions totaling Rs. 2,93,86,816/-. The CIT(A) allowed the assessee's appeal, which the Revenue contested before the ITAT.…

Legal Issues

• 1. Deletion of addition of Rs. 59,64,478/- made by AO by estimating the income of the assessee by applying the profit rate of 8% on the total receipts of Rs. 7,45,55,984/-.
• 2. Deletion of addition of Rs. 2,34,22,138/- made by AO by treating the mobilization advance as the receipts of the assessee.
• 3. Allowing the appeal of the assessee on technical grounds.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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