BIHAR FOUNDAARY & CASTING LTD , RANCHI V. DCIT CIRCLE-1 , RANCHI

ITA 03/RAN/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0247 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 03-01-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NISHA ORAON SINGHMARR J
• Assessee Lawyers: D SANNIGRAHI
• Section: 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 03 / RAN / 201 8 ASSESSMENT YEAR :2013-14 BIHAR FOUNDRY & CASTING LTD. SHANTI NIWAS, MAIN ROAD, RANCHI-834001 [ PAN NO. AABCB 1852 D ] V/S . DCIT, CIRCLE-1, CENTRAL REVENUE BUILDING MAIN ROAD, RANCHI-834001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI D. SANNIGRAHI, CA /BY RESPONDENT SMT. NISHA ORAON SINGHMARR, JCIT-DR /DATE OF HEARING 06-03-2020 /DATE OF PRONOUNCEMENT 06-03-2020 / O R D E R PER BENCH (ORAL):- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-RANCHIS O RDER DATED 01.09.2017 PASSED IN CASE NO.CIT(A)-RANCHI/10033/2016-17 INVOL VING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. HEARD BOTH THE PARTIES. CASE FILE PERUSED 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIE S ACTION ESTIMATING ITS NET PROFIT @ 1% OF THE TURNOVER CULMINATING IN ADDITION AMOUNT OF 58,71,673/- AFTER REJECTING BOOKS OF ACCOUNT. LEARNED COUNSEL I S FAIR ENOUGH IN NOT PRESSING FOR THE ASSESSEES GRIEVANCE SEEKING TO RE VIVE ITS BOOKS OF ACCOUNT PROVIDED THE SAME IS NOT TREATED AS A PRECEDENT IN ANY OTHER ASSESSMENT YEAR. THE REVENUE IS FAIR IN NOT DISPUTING THE ASSE SSEES PLEA ONLY IN THIS ITA NO.03/RAN/2018 A.Y. 2013-14 BIHAR FOUNDRY & CASTING LTD. VS. DCIT CIR. 1, RANCHI PAG E 2 ASSESSMENT YEAR. WE THUS ACCEPT THE ASSESSEES COND ITIONAL CONCESSION MADE IN THE IMPUGNED ASSESSMENT YEAR REGARDING REJE CTION OF BOOKS OF ACCOUNT. 3. THE REVENUES CASE ON THE OTHER HAND IS THAT THE IMPUGNED REJECTION IN THE RELEVANT PREVIOUS YEAR UNDER CHALLENGE WOULD NO T AUTOMATIC APPLY TO OTHER ASSESSMENT YEAR SINCE THE RELEVANT FACTS HAVE TO BE INDEPENDENTLY EXAMINED AFRESH IN EACH ASSESSMENT YEAR. WE THUS AFFIRM THE LOWER AUTHORITIES ACTION REJECTING THE ASSESSEES BOOKS OF ACCOUNT AFTER NOT ICING VARIOUS IRREGULARITIES SUBJECT TO THE FOREGOING CONDITIONS. 4. NEXT COMES YET ANOTHER EQUALLY SIGNIFICANTLY AS PECT OF ESTIMATION OF ASSESSEES NET PROFIT RATE. CASE FILE SUGGESTS THAT THE ASSESSEE IS A COMPANY ENGAGED IN MANUFACTURING STEEL BARS ETC. ITS NET PR OFIT RATIO RIGHT FROM ASSESSMENT YEARS 2011-12 AND 2012-13 AND IN THE IM PUGNED ASSESSMENT YEAR 2013-14 HAS BEEN VERY MUCH FLUCTUATING @ 3.73 TO 0.079% OF THE TURNOVER. WE DO NOT SEE ANY ABNORMALITY IN ASSESSEE S BOOK RESULT PER SE DESPITE THE FACT THAT THE SAME HAVE BEEN REJECTED I N BOTH THE LOWER PROCEEDINGS. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE THAT A LUMP SUM ADDITION OF 35 LAKH OUT OF 58,71,673/- WOULD MEET THE ENDS OF JUSTICE WITH A RIDER THAT SAME SHALL NOT BE TREATED AS A PR ECEDENT IN ANY OTHER ASSESSMENT YEAR. NECESSARY COMPUTATION INCLUDING TH AT OF INTEREST SHALL FOLLOW AS PER LAW. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN THE OPEN COURT AT THE CLOSE OF HEARING ON FRIDAY, 6 TH MARCH 2020 SD/- SD/- ( ) ('# ) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) RANCHI, *DKP SR.P.S. $- 06 / 03 /20 20 ITA NO.03/RAN/2018 A.Y. 2013-14 BIHAR FOUNDRY & CASTING LTD. VS. DCIT CIR. 1, RANCHI PAG E 3 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-BIHAR FOUNDRY&CASTING LTD., SHANTI NIWAS ,MAIN ROAD, RANCHI-834001 2 . /RESPONDENT-DCIT, CIR-1, CENTRAL REVENUE BUILDING, MAIN RD., RANCHI-834001 3. / 2 / CONCERNED CIT RANCHI 4. 2- / CIT (A) RANCHI 5. 5 ##/, /, / DR, ITAT, RANCHI 6. ; / GUARD FILE. BY ORDER/ , SR.PS, (ON TOUR), RANCHI