Shri Narayan Agarwal, V. I.T.O.,

ITA 14/RAN/2014

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9977 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 06-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Assessee Lawyers: S K PODAR DEVESH PODAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 14 /RAN/2014 ASSESSMENT YEAR : 2009 - 2010 SHREE NARAYAN AGARWAL, WARD NO.7, KUMHAR PATTI, CHAKARDHARPUR, WEST SINGHBHUMI, JHARKHAND VS. ITO, WARD 2(3), JAMSHEDPUR PAN/GIR NO. ADXPA 3700 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI S.K.PODAR /DEVESH PODAR , AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 7 /12/ 2016 DATE OF PRONOUNCEMENT : 7 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 30.10.2013 , FOR THE ASSESSMENT YEAR 2009 - 2010 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ACTION OF THE ASSESSING OF FICER IN ESTIMATING THE PROFIT @ 8% OF T HE GROSS TURNOVER OF THE ASSESSEE AND MAKING ADDITION OF RS.21,72,055/ - TO THE INCOME OF THE ASSESSEE. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASS ESSING OFFICER OBSERVED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE BOOKS OF ACCOUNT 2 ITA NO. 14 /RAN/2014 ASSESSMENT YEAR : 2009 - 2010 WERE NOT PRODUCED FOR VERIFICATION. FURTHER ON RECONCILIATION OF GROSS RECEIPTS, IT APPEARS THAT THE ASSESSEE HAS NOT DISCLOSED RECEIPT OF RS.44,175/ - IN THE GROSS RECEIPT OF THE YEAR UNDER CONSIDERATION AS DISCLOSED AND RECONCILE WITH FORM 26SS. THEREFORE, HE COMPUTED THE GROSS RECEIPT OF FROM THE CONTRACT BUSINESS AT RS.3,64,14,760/ - AND MADE AN ADDITION OF RS.29,13,180/ - TO THE INCOME OF THE ASSESSEE AS AGAINST RS.7,41,125/ - SHOWN BY THE ASSESSEE. 4. ON APPEAL, LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSIN G OFFICER. 5. BEFORE ME, LD A.R. OF THE ASSESSEE HAS FLED A CHART AND SUBMITTED THAT IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2007 - 08 , THE ASSESSE E HAD SHOWN NET PROFIT AT 1.64% AND FOR THE ASSESSMENT YEAR 2008 - 09 , THE NET PROFIT WAS SHOWN AT 2.69%. I T WAS FURTHER SUBMITTED THAT IN A.Y. 2010 - 2011, WHICH IS THE IMMEDIATELY SUCCEEDING A SSESSMENT YEAR, THE ASSESSEE HAS SHOWN THE NET PROFIT AT 2.47% . HENCE, IT WAS HIS PRAYER THAT CONSIDERING THE PAST RECORDS OF THE ASSESSEE DURING THE YEAR UNDER APPEAL, T HE PRO FIT SHOULD BE ESTIMATED AT 3% OF THE GROSS TURNOVER OF THE ASSESSEE. 6. LD D.R. ALSO CONCURRED WITH THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. 7. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, I MODIFY THE ORDERS OF LOWER AUTHORITIES AND DIR ECT THE ASSESSING OFFICER TO COMPUTE THE PROFIT OF THE ASSESSEE BY APPLY ING THE NET PROFIT RATE AT 3% ON THE GROSS 3 ITA NO. 14 /RAN/2014 ASSESSMENT YEAR : 2009 - 2010 RECEIPTS OF RS.3,64,14,760/ - AND PARTLY ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PA RTLY ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON 7 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RAN CHI ; DATED 7 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SHREE NARAYAN AGARWAL, WARD NO.7, KUMHAR PATTI, CHAKARDHARPUR, WEST SINGHBHUMI, JHARKHAND 2. THE RESPONDENT. ITO, WARD 2(3), JAMSHEDPUR 3. THE CIT(A) RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//