Classic Logistics, Hyderabad V. Income Tax Officer, Ward-9(1), Hyderabad

ITA 1223/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7699 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-03-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 06-08-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N. ESTHER
• Assessee Lawyers: KUMAR PAL JAIN
• Keywords: Depreciation
• Section: 143(3); 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A - SMC BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODA R A, JUDICIAL MEMBER ITA NO. 1223 /HYD./20 19 ASSESSMENT YEAR: 201 5 - 16 M/S CLASSIC LOGISTICS VS. ITO, WARD 9 (1) HYDERABAD HYDERABAD [PAN: AA GFC4963Q ] (APPELLANT) (RESPOND ENT) FOR ASSESSEE : SHRI KUMAR PAL JAIN, AR FOR REVENUE : S MT. N. ESTHER, D.R. DATE OF HEARING : 23 /0 3 /2021 DATE OF PRONOUNCEMENT : 30 /0 3 /2021 O R D E R TH IS ASSESSEES APPEAL FOR A.Y. 2015 - 16 ARISE S AGAINST THE C OMMISSIONER OF INCOME TAX (APPEALS) [CIT(A) ] 7, HYDERABAD S ORDER DATED 27.05.2019 PASSED IN CASE NO. 031/ 201 8 - 19 , IN PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. COMING TO THE ASSESSEES FORMER SUBSTANTIVE GRIEVANCE THAT LEARED LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN REJECTING HIS BOOKS OF ACCOUNTS U/S 143(3), LEARNED COUNSEL IS FAIR ENOUGH THAT THE SAME BE DECLINED AS NOT PRESSED. ORDERED ACCORDINGLY . 3 COMING TO THE ASSESSEES LATER ISSUE OF CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION ESTIMATING THE PROFIT ELEMENT @ 11.0% OF TURNOVER IN ITA NO. 1223/ HYD/ 20 19 AY 201 5 - 16 M/S CLASSIC LOGISTICS, , HYD. 2 TRANSPORT BUSINESS, LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY CONTENDED THAT THE A SSESSING A UTHORITY HAS RIGHTLY GONE BY THE EARLIER BOOK RESULTS. THE FACT ALSO REMAIN S THAT NEITHER THE ASSESSMENT ORDER NOR THE LOWER APPELLATE ORDER TAKE S INTO CONSIDERATION THE ASSESSEES CORRESPONDING EXPENSES AS WELL IN ALL THESE ASSESSMENT YEARS BEFORE INVOKING SEC145(3) OF THE ACT. FACED WITH THIS SITUATION, I DEEM IT APPROPRIATE TO RESTRICT INCOME ESTIMATION ELEMENT TAKEN AS 11.0% TO 8% ON LUMPSUM BASIS WITH A RIDER THAT THE SAME SHALL NOT BE TAKEN AS A PRECEDENT IN ANY OTHER ASSESSMENT YEAR. IT IS MADE CLEAR THAT THE ABOVE ESTIMATED RATE WILL BE BEFORE DEPRECIATION CLAIM ONLY A S ASSESSED BY THE ASSESSING OFFICER. NECESSARY COMPUTATION TO FOLLOW AS PER RULES. THIS ASSESSEES APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 30 /0 3 /2021. SD/ - (S.S. GODARA) JUDICIAL MEMBER DATED: 30 TH MARCH, 2021 GMV COPY OF ORDER FORWARDED TO: 1. M/S CLASSIC LOGISTICS, 4 - 10 - 179, PLOT NO.1, BLOCK NO.3, AUTO NAGAR, HYDERABAD 500 035 . 2. ITO, WARD 9 (1), HYDERABAD 3 . ACIT, RANGE 9 , HYDERABAD 4. CIT(A) - 7 , HYDERABAD. 5. PR.CIT - 7 , HYDERABAD 6 D.R. ITAT HYDERABAD 7. GUARD FILE