Sujata Sahu, Gajapati V. ITO, Ward-2, Berhampur

ITA 153/CTK/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7201 (ITAT-CUTTACK)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 02-02-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 25-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO S. 153 & 154 /CTK/2016 ASSESSMENT YEAR S : 2008 - 09 & 2009 - 2010 SUJATA SAHU, PROP. M/S. BABA GRANITE CUTTING & POLISHING INDUSTRY, GUMMAGEDDA, KASHINAGAR ROAD, PARALEKHEMUNDI. VS. ITO, WARD - 2, BERHAMPUR PAN/GIR NO. ASHPS 1526 J (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 02 /02 / 2017 DATE OF PRONOUNCEMENT : 02 /02 / 2017 O R D E R THESE ARE APPEAL S F ILED BY THE ASSESSEE AGAINST SEPARATE ORDER S OF CIT(A) - 1, BHUBANESWAR , BOTH DATE D 6.1.2016 , FOR THE ASSESSMENT YEAR S 2008 - 09 & 2009 - 2010 . 2. THE APPEALS WERE FIXED FOR HEARING ON 8.11.2016 AND 4.1.2017, WHEN NONE APPEARED ON BEHALF OF THE ASSESSEE. HENCE, THE APPEALS WERE AGAIN ADJOURNED TO 2.2.2017 AND NOTICE OF HEARING WAS SENT TO THE ASSESSEE BY RPAD ON 5.1.2017. TODAY WHEN THE CASE WAS CALLED FOR HEARING, NONE APPEAR ED O N BEHALF OF THE ASSESSEE NOR ANY ADJOURNMENT PETITION IS 2 ITA NOS. 153 & 154/CTK/2016 ASSESSMENT YEARS :2008 - 09 & 2009 - 2010 FILED. THEREFORE, THE APPEALS WERE HEARD EXPARTE QUA THE APPELLANT - ASSESSEE AND DISPOSED OF CONSIDERING THE SUBMISSION OF LD D.R. AND MATERIALS AVAILABLE O N RECORD. 3. IN BOTH THE APPEALS, THE GRIEVANCE OF THE ASSESSEE IS THAT ESTIMATION OF NET PROFIT BY THE ASSESSING OFFICER AND CONFIRMATION BY THE CIT(A) IS NOT JUSTIFIED. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE ASSESSMENT YEAR 2008 - 09, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS SHOWN NET PROFIT OF RS.10,15,560/ - ON TURNOVER OF RS.1,41,17,480/ - , WHICH COMES TO 7.19%. THE ASSESSEE FAILED TO PRODUCE BOOKS OF ACCOUNT, BILLS AND VOUCHERS IN SUPPORT OF THE EXPENDITURE CLAIMED. THEREFORE, THE ASSESSING OFFICER REJECTED THE BOOK RESULTS OF THE ASSESSEE BY INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT AND ESTIMATED THE PROFIT BY A PPLYING THE RATE OF 9% TO THE TURNOVER OF RS.1,41,17,480/ - AND DETERMINED THE INCOME AT RS.12,70,573/ - . 5. ON APPEAL, THE CIT(A) OBSERVED THAT IN ASSESSMENT YEAR 2010 - 2011, THE ASSESSEE HAD SHOWN THE NET PROFIT AT 8.77%, IN ASSESSMENT YEAR 2009 - 10, THE ASS ESSEE HAD SHOWN NET PROFIT AT 8.94%. HENCE, HE DETERMINED THE RATE OF PROFIT AT 8.3% ON THE TURNOVER OF RS.1,41,17,480/ - AND DETERMINED THE INCOME AT RS.11,71,750/ - AND ACCORDINGLY, ALLOWED RELIEF OF RS.98,822/ - TO THE ASSESSEE. 3 ITA NOS. 153 & 154/CTK/2016 ASSESSMENT YEARS :2008 - 09 & 2009 - 2010 6. SIMILARLY, IN ASSESSMEN T YEAR 2009 - 10, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAD SHOWN NET PROFIT OF RS.8,05,812/ - O N A TURN OVER OF RS.90,90,180/ - , WHICH COMES TO 8.94%. SINCE THE ASSESSEE FAILED TO PRODUCE BOOKS OF ACCOUNT, BILLS AND VOUCHERS IN SUPPORT OF THE EXPENDI TURE CLAIMED THE ASSESSING OFFICER REJECTED THE BOOKS OF ACCOUNT BY INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT AND ESTIMATED THE NET PROFIT AT 9% OF THE TURNOVER OF RS.90,90,180/ - AND DETERMINED THE INCOME AT RS.8,10,826/ - . 7. ON APPEAL, THE CIT( A) OBSERVED THAT THE ASSESSEE HAS DISCLOSED NET PROFIT AT 8.94% OF THE TURNOVER. THE ASSESSING OFFICER ESTIMATED THE NET PROFIT AT 9%. THE ASSESSEE HAS NOT GIVEN ANY REASON AS TO WHY THE PROFIT DISCLOSED SHOULD BE CONSIDERED AS REASONABLE. THEREFORE, HE CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 8. BEFORE ME, NO MATERIAL HAS BEEN BROUGHT ON RECORD TO CONTROVERT THE FINDINGS OF THE CIT(A). HENCE, I DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFERE WITH THE ORDERS OF THE CIT(A) FOR BOTH THE ASS ESSMENT YEARS UNDER APPEAL. 9. IN THE RESULT, THE APPEAL S FILED BY THE ASSESSEE ARE DISMISSED. . ORDER PRONOU NCED IN THE OPEN COURT ON 02 /02 /2017 . SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 02 /02 /2017 B.K.PARIDA, SPS 4 ITA NOS. 153 & 154/CTK/2016 ASSESSMENT YEARS :2008 - 09 & 2009 - 2010 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : SUJATA SAHU, PROP. M/S. BABA GRANITE CUTTING & POLISHING INDUSTRY, GUMMAGEDDA, KASHINAGAR ROAD, PARALEKHEMUNDI. 2. THE RESPONDENT: ITO, WARD - 2, BERHAMPUR 3. THE CIT(A)1 BHUBANESWAR. 4. PR.CIT - 1, BHUBANESWAR. 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//