Deputy Commissioner of Income Tax Officer Circle-2(1), Mysore V. M/s Mandya District Co-operative Milk Producers Socities Union Ltd , Mandya

ITA 1512/BANG/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5236 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-02-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 03-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S V RAVISHANKAR
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO.1512/BANG/2017 (ASSESSMENT YEAR: 2012 13) DCIT, CIRCLE 2 (1), MYSORE. . APPELLANT. VS. M/S. MANDYA DISTRICT CO OP. MILK PRODUCERS SOCIETIES UNION LTD., GEJJALGERE, MADDUR TALUK,, MANDYA DISTRICT. PAN : AAAAM4981H .. RESPONDENT. ASSESSEE BY : SHRI S. V. RAVISHANKAR, ADVOCATE REVENUE BY : MS NEERA MALHOTRA , CIT DR DATE OF HEARING : 05.02.2020. DATE OF PRONOUNCEMENT : 20.02.2020. O R D E R PER A. K. GARODIA, A.M. : THIS APPEAL AT THE INSTANCE OF THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) MYSURU DT. 31.01.2017. 2. ALTHOUGH THE REVENUE HAS RAISED AS MANY AS SIX GROUNDS BUT THE GRIEVANCE IS ONLY ONE ABOUT DELETION OF THE ADDITION OF RS. 755,93,125/- MADE BY THE AO ON ACCOUNT OF LOW G. P. AND N. P. 3. IN COURSE OF HEARING, LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER AND LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF CIT (A). HE ALSO SUBMITTED THAT THE REASONS FOR FALL IN GP AND NP WAS EXPLAINED BY THE ASSESSEE BEFORE THE AO AS NOTED BY HIM ON PAGE 3 OF THE ASSESSMENT ORDER THAT THE MARKET PRICE OF MILK SOLD BY THE ASSESSEE WAS LESS IN THE PRESENT YEAR AS COMPARED TO THE PRECEDING YEAR AND FOR THIS REASON, NET PROFIT IS REDUCED ALTHOUGH THE TOTAL TURNOVER HAS INCREASED BY 26%. HE PLACED RELIANCE ON THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CIT VS. ANIL KUMAR & CO., 386 ITR 702. HE 2 ITA NO. 1512 /BANG/2017 POINTED OUT THAT IN THIS CASE, IT WAS HELD THAT IF THE BOOKS ARE NOT REJECTED AND ASSESSMENT IS NOT FRAMED U/S 144, INCOME CANNOT BE ESTIMATED. HE SUBMITTED THAT IN THE PRESENT CASE ALSO, THE BOOKS ARE NOT REJECTED AND THE ASSESSMENT IS NOT FRAMED U/S 144 AND THEREFORE, THE ESTIMATED ADDITION MADE BY THE AO IS RIGHTLY DELETED BY CIT (A) AND HIS ORDER SHOULD BE CONFIRMED. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT LEARNED CIT (A) HAS FOLLOWED THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CIT VS. ANIL KUMAR & CO. (SUPRA). THIS IS ADMITTED POSITION OF FACT THAT BOOKS ARE NOT REJECTED IN THE PRESENT CASE AND THE ASSESSMENT IS NOT COMPLETED U/S 144. THE AO HAS SIMPLY ADOPTED THE GP AND NP RATE OF THE PRECEDING YEAR. HENCE, WE DECLINE TO INTERFERE IN THE ORDER OF CIT (A). 5. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (N. V. VASUDEVAN) (ARUN KUMAR GARODIA) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE, DATED, THE 20 TH FEBRUARY, 2020. /MS/ 3 ITA NO. 1512 /BANG/2017 COPY TO: 1. APPELLANT 4. CIT (A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.