The ITO, Ward-9(4), Ahmedabad V. Shri Triloksing G.Dhillion, Ahmedabad

ITA 1096/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85723 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-02-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 13-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Assessee Lawyers: U S BHATTI
• Keywords: Assessment record

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. ITA. NO.1096/AHD/2011 (ASSESSMENT YEAR:2006-07) THE ITO, WARD-9(4), AHMEDABAD APPELLANT VS. SHRI TRILOKSING G. DHILLON PROP. MAHARASHTRA LORRY SERVICE 4, PARASNAGAR, VIBHAG-2, ISANPUR VATVA ROAD, ISANPUR, AHMEDABAD RESPONDENT PAN: AFDPD6472M /BY APPELLANT : SHRI ROOPCHAND, SR. D.R. /BY RESPONDENT : SHRI U. S. BHATTI, A.R. !' /DATE OF HEARING : 19.02.2015 #$% !' /DATE OF PRONOUNCEMENT : 26.02.2015 ITA NO. 1096/AHD/11 A.Y. 06-07 [ITO VS. SHRI TRILOKSING G. DHILLON] PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-XI, AHMEDABAD, DATED JUNE 02.02.2011 FOR A.Y. 2006-07 O N THE FOLLOWING GROUNDS: 1) THE LD. COMMISSIONER OF INCOME-TAX (A)-XI, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 10,05,755/- MADE BY THE ASSESSI NG OFFICER ON ACCOUNT OF TRANSPORT CHARGES. 2) THE LD. COMMISSIONER OF INCOME-TAX (A)-XI, AHMEDABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS. 1,85,993/- MADE BY THE ASSESSIN G OFFICER ON ACCOUNT OF NET PROFIT. 2. ASSESSEE IS ENGAGED IN THE BUSINESS OF FREIGHT B OOKING. ASSESSING OFFICER MADE ADDITION BY OBSERVING AS UND ER: FURTHER AS PER THE AIR DETAILS GENERATED FROM ITD, THE ASSESSEE HAS RECEIVED RS.14,08,794/- TOWARDS CONTRA CT RECEIPTS FROM VARIOUS PARTIES. HOWEVER FROM THE PE RUSAL OF THE TDS CERTIFICATES ATTACHED WITH THE RETURN OF IN COME AND FURTHER DETAILS FURNISHED BY THE ASSESSEE IT IS NOT ICED THAT THE ASSESSEE HAS NOT ACCOUNTED FOR RECEIPTS OF RS.10,26,280/- WITH THE TOTAL RECEIPTS SHOWN BY THE ASSESSEE. THE ASSESSEE VIDE LETTER DATED 13.10.200 8 HAS ADMITTED THE SAID FACT THAT THE ASSESSEE HAS CARRIE D OUT THE WORK OF THE SAID PARTIES BUT NOT ACCOUNTED FROM IN THE TOTAL RECEIPTS. ACCORDINGLY, AN AMOUNT OF RS.10,26,280/- IS ADDED TO TOTAL INCOME OF THE ASSESSEE. ITA NO. 1096/AHD/11 A.Y. 06-07 [ITO VS. SHRI TRILOKSING G. DHILLON] PAGE 3 ASSESSING OFFICER OBSERVED THAT ASSESSEE VIDE HIS L ETTER DATED 13.10.2008 ADMITTED THE SAID RECEIPTS. HOWEVER, DU RING COURSE OF APPELLATE PROCEEDING, STAND OF ASSESSEE H AS BEEN THAT OBSERVATION OF ASSESSING OFFICER IS TOTALLY INCORRE CT. HE FURNISHED FREE ENGLISH TRANSLATION OF THE LETTER DA TED 13.10.2008 ADDRESSED TO ASSESSING OFFICER WHICH IS REPRODUCED BELOW: WITH RESPECT, WE INFORM YOU REGARDING YOUR INTERNA L ENQUIRY OF GAHIR PAPER MILLS AND OTHER PARTIES, WE INFORM THAT WE HAVE NOT CLAIMED TDS OF THE SAID COMPANIES AND WE HAVE NOT RECOVERED TDS FROM THE COMPANIES. IT IS NECESSARY TO GIVE YOU THE CLARIFICATION IN WR ITING. OUR BUSINESS IS COMMISSION WORK. WE ARE GETTING 2% COMMISSION FROM THIS WORK. DUE TO THAT WE REQUEST YOU TO ADD 2% COMMISSION AMOUNT TO OUR INCOME. ON PERUSAL OF ASSESSMENT RECORDS, ABOVE CONTENTION WAS FOUND CORRECT BY CIT(A). THEREFORE, ASSESSEES CONTENTIO N THAT IMPUGNED AMOUNT IS NOT PART OF RECEIPTS, IT IS ONLY COMMISSION @ 2% RECEIVED BY HIM, WHICH WAS ACCOUNTED FOR IN TH E BOOKS THAT NO CLAIM FOR TDS ON THE SAID AMOUNT WAS MADE W HICH REMAIN UNCONTROVERTED. HOWEVER, ASSESSEE HIMSELF A GREED FOR FURTHER ADDITION OF COMMISSION @ 2%, WHICH COMES TO RS.20,525/-, WAS UPHELD AND BALANCE AMOUNT WAS DELE TED. THIS REASONED FINDING OF CIT(A) NEEDS NO INTERFEREN CE FROM OUR SIDE. WE UPHOLD THE SAME. ITA NO. 1096/AHD/11 A.Y. 06-07 [ITO VS. SHRI TRILOKSING G. DHILLON] PAGE 4 3. NEXT ISSUE IS WITH REGARDS TO ADDITION OF RS.1,8 5,993/- ON ACCOUNT OF NET PROFIT. ACCORDING TO ASSESSING OFFI CER, ASSESSEE HAS SHOWN NE PROFIT RATIO OF 5.11% AS AGAINST 16.53 % OF IMMEDIATELY PRECEDING YEAR. THE RECEIPTS OF ASSESS EE HAS BEEN INCREASED TO RS.38,01,633/- AS AGAINST RS.4,59,565/ -. ASSSESSEE DID NOT FURNISH ANY SUPPORTING DOCUMENTAR Y EVIDENCES TO SUBSTANTIATE THE FALL IN NET PROFIT. THEREFORE, ASSESSING OFFICER MADE ADDITION OF RS.1,85,993/-. 4. MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AU THORITY, WHEREIN IT WAS SUBMITTED ON BEHALF OF ASSESSEE THAT ASSESSING OFFICER WAS NOT JUSTIFIED IN MAKING AD HOC ADDITION OF RS. 1,85,993/- MERELY ON THE GROUND THAT RATE OF NET PR OFIT DURING YEAR UNDER CONSIDERATION IS LOWER AS COMPARED TO TH AT OF EARLIER YEARS. ASSESSING OFFICER FOUND NO DISCREPANCY IN T HE BOOKS OF ACCOUNT MAINTAINED BY ASSESSEE. ASSESSEE ALSO MAIN TAINED TRANSPORT CHARGES DETAILS, THEREFORE, NO AD HOC ADD ITION CAN BE MADE JUST BECAUSE OF LOW NET PROFIT. IN NATURE OF TRANSPORT BUSINESS, NET PROFIT RATIO CAN NOT BE ASCERTAINED W ITH COMPARISONS OF PREVIOUS YEARS. CIT(A) HAVING CONSI DERED THE SUBMISSION ON BEHALF OF ASSESSEE OBSERVED THAT ASSE SSING OFFICER HAS NEITHER POINTED OUT ANY DEFECTS IN BOOK S OF ACCOUNT NOR DID HE REJECT THE BOOKS. NO EXPENDITURE WAS FO UND TO BE BOGUS. THERE WAS NO BASIS ON WHICH NET PROFIT WAS ESTIMATED, HENCE, THE IMPUGNED ADDITION WAS DELETED. THIS REA SONED ITA NO. 1096/AHD/11 A.Y. 06-07 [ITO VS. SHRI TRILOKSING G. DHILLON] PAGE 5 FINDING OF CIT(A) NEEDS NO INTERFERENCE FROM OUR SI DE. WE UPHOLD THE SAME. 5. AS A RESULT, APPEAL FILED BY THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 26 TH DAY OF FEBRUARY, 2015. SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 26/02/2015 TRUE COPY S.K.SINHA & & & & ' ' ' ' ('% ('% ('% ('% / COPY OF ORDER FORWARDED TO:- 1. +, / REVENUE 2. / ASSESSEE 3. // 0 / CONCERNED CIT 4. 0- / CIT (A) 5. '45 , , / DR, ITAT, AHMEDABAD 6. 589 :; / GUARD FILE. BY ORDER / & ,