Accurex Steel, Yamunanagar V. ITO, Yamunanagar

ITA 1166/CHANDI/2011

• Counselvise Citation: 116621514 RSA 2011
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 1993-1994
• Appeal Filed On: 05-12-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: B M MONGA; SSH AJAY JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDGARH BENCH A BEFORE SHRI H.L. KARWA AND SHRI D.K. SRIVASTAVA ITA NO. 1166/CHD/2011 A.Y. 1993-94 ACCUREX STEEL VS ITO, WARD 4, ROLLING MILLS, YAMUNANAGAR. YAMUNANAGAR. PAN: AAAJFA3084H (APPELLANT) (RESPONDENT) APPELLANT BY :S/SH. AJAY JAIN & B.M. MONGA RESPONDENT BY :SH. AKHILESH GUPTA DATE OF HEARING : 16.01.2012 DATE OF PRONOUNCEMENT : 16.01.2012 O R D E R PER H.L. KARWA: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER OF THE CIT(A), PANCHKULA DATED 16.09.2011 RELATING TO THE ASSESSMENT YEAR 1993-94. 2. THE ONLY GROUND RAISED BY THE ASSESSEE READS AS UNDER THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS HAS ERRED IN LAW AS WELL AS ON FACTS WHILE PARTLY ALLOWING THE APPELLANTS APPEAL BY REDUCING GROS S PROFIT RATE FROM ASSESSED 5.5% TO 5% ONLY, WHEREAS THE APPELLANT DECLARED GROSS PROFIT RATE 4.1% WAS N OT ACCEPTED . 3. WHILE FRAMING THE ASSESSMENT THE AO NOTICED THAT THE GP RATE DECLARED DURING THE YEAR 4.1% WAS MUCH LOWER 2 THEN THE EARLIER YEARS. FURTHER, SHORTAGE CLAIMED W AS ALSO CONSIDERED TO BE ON HIGHER SIDE. THE AO ALSO NOTICE D THAT THE ASSESSEE WAS NOT MAINTAINING DAY TO DAY PRODUCTION/CONSUMPTION RECORDS. AS SUCH, THE TRADIN G RESULT WAS CONSIDERED TO BE ON NOT IN ORDER AND THE BOOKS OF ACCOUNTS WERE REJECTED AND GP RATE OF 5.5% WAS APPLIED. 4. ON THE APPEAL, THE CIT(A) REDUCED THE GP RATE APPLIED FROM 5.5% TO 5% TO MEET THE ENDS OF JUSTICE . 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. BEFORE US, THE SH. AJAY JAIN, LD. COUNSEL FOR THE ASSESSEE FILED G P COMPARISON CHART FOR THE ASSESSMENT YEAR 1992-93 A ND 1993-94 RESPECTIVELY. WE FIND THAT EXPENSES HAVE INCREASED TO 95.88% AND SALES HAVE COME DOWN FROM R S. 3,00,30,000/- TO RS. 2,63,60,000/-. SH AJAY JAIN, L D. COUNSEL FOR THE ASSESSEE POINTED THAT THE MAIN REAS ON FOR INCREASE IN EXPENSES WAS DUE TO INCREASE IN ELECTRI CITY EXPENSES. THIS VERSION OF THE ASSESSEE HAS BEEN ACC EPTED BY THE CIT(A). THERE IS NO MATERIAL ON RECORD TO CO NTROVERT THE ABOVE CONTENTION OF THE ASSESSEE. IT IS CLAIMED THAT THERE WAS INCREASE IN POWER PRICE PER UNIT BY RS. 0 .29/-. CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES OF T HE CASE IT WOULD BE FAIR AND REASONABLE TO REDUCE THE GP RA TE FROM 5% APPLIED BY THE CIT(A) TO 4.5%. THE AO IS DIRECTE D TO 3 RECOMPUTE THE INCOME OF THE ASSESSEE ACCORDINGLY. T HIS GROUND OF APPEAL IS ALLOWED PARTLY. IN THE RESULT, THE APPEAL IS ALLOWED PARTLY. ORDER PRONOUNCED IN THE OPEN COURT ON 16.01.2012. SD/- SD/- (D.K. SRIVASTAVA) (H.L. KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED: 16.01.2012 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR