M/S Parv Sales and Service, Ranchi V. ITO,Ward-2(2), Ranchi

ITA 170/RAN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8545 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 12-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 271(1)(c); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI E-COURTAT KOLKATA BEFORE SHRI S.S, GODARA, JM & DR. A.L. SAINI, AM ITA NO.170&171/RAN/2019 ASSESSMENT YEAR:2015-16 M/S. PARV SALES AND SERVICES BLOCK-D2, SAI ASTHA APARTMENT, BANKMAN COLONY, RANI BAGAN, BARIATU, RANCHI / V/S . ITO, WARD-2(2), RANCHI [ PAN NO. AAPFP6207R ] /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI YOGESH KR. AGARWAL, FCA /BY RESPONDENT SHRI A.K. MOHANTI, ADDL. CIT /DATE OF HEARING 14-07-2020 /DATE OF PRONOUNCEMENT 14-07-2020 /O R D E R PER BENCH(ORAL): THESE ASSESSEES TWO APPEALS FOR ASSESSMENT YEAR 2015-16 ARISE AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS), JHARKHANDS SEPARATE ORDERS DATED 17.12.2018 & 20.12.2018 PASSED IN CASE NO.CIT(A),RANCHI/10174/2017-18 & CIT(A),RANCHI/10042/2018-19 INVOLVING PROCEEDINGS U/S 143(3) & 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT); RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. COMING TO THE ASSESSEES QUANTUM APPEAL ITA NO.170/RAN/19, LEARNED AUTHORIZED REPRESENTATIVE IS VERY FAIR AT THE OUTSET IN NOT PRESSING FOR ALL OTHER GROUNDS EXCEPT THAT OF ESTIMATION OF GROSS PROFIT RATE. HE SUBMITS THAT THIS ASSESSEE IS A WHOLESALER IN TRADING OF SOFT DRINKS AND OTHER ALLIED PRODUCTS. IT HAD DECLARED GROSS ITA NO.170&171/RAN/2019 M/S. PARV SALES AND SERVICES ASSESSMENT YEAR:2015-16 PAGE 2 PROFITS @6.38% WHICH HAS BEEN INCREASED TO 50% DURING THE COURSE OF ASSESSMENT AND RESTRICTED TO 25% IN THE LOWER APPELLATE PROCEEDINGS. 3. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THE CLINCHING ASPECT THAT THE IMPUGNED ESTIMATION HAS NOT BEEN GUIDED BY ANY CONTEMPORARY FACTORS SUCH AS SIMILAR LINE OF BUSINESS BY QUOTING RELEVANT COMPARABLE CASES. THE FACT ALSO REMAINS THAT THE ASSESSEE HAS NOT BEEN ABLE TO EXPLAIN ITS PROFIT RATE BY WAY OF COGENT EVIDENCE. WE KEEP IN MIND ALL THESE PECULIAR FACTS AND DEEM IT APPROPRIATE TO RESTRICT THE IMPUGNED GROSS PROFIT RATE FROM 25% TO 9 % WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS PRECEDENT IN ANY OTHER ASSESSMENT YEAR. THE ASSESSING OFFICER SHALL FRAME CONSEQUENTIAL COMPUTATION INCLUDING THAT OF INTEREST AS PER LAW. THIS QUANTUM APPEAL ITA NO.170/RAN/2019 IS PARTLY ALLOWED. 4. COMING TO ITA NO.171/RAN/2019 WHEREIN BOTH THE LOWER AUTHORITIES HAVE INVOKED FURNISHING OF INACCURATE PARTICULARS LIMB U/S 271(1)(C) OF THE ACT, WE ARE OF THE VIEW THAT SINCE THE QUANTUM DISPUTE PERTAINS TO ESTIMATION ONLY, IT CANNOT BE HELD THAT THE TAXPAYER HAD FURNISHED INACCURATE PARTICULARS. WE MAKE IT CLEAR THAT HONBLE APEX COURT HAS SETTLED THE LAW LONG BACK IN RELIANCE PETROPRODUCTSS CASE 322 ITR 158(SC) THAT QUANTUM AND PENALTY PROCEEDINGS ARE PARALLEL WHEREIN EACH AND EVERY DISALLOWANCE /ADDITION MADE IN THE COURSE OF FORMER DOES NOT IPSO FACTO ATTRACT THE LATTER PENAL PROVISION. WE THEREFORE ACCEPT THE ASSESSEES INSTANT PENALTY APPEAL ITA NO.171/RAN/2019. 5. THE ASSESSEE FORMER QUANTUM APPEAL ITA NO.170/RAN/2019 IS PARTLY ALLOWED AND PENALTY APPEAL ITA NO.171/RAN/2019 IS ALLOWED. ORDERED ACCORDINGLY. ORDER PRONOUNCED IN OPEN COURT ON 14/07/2020. SD/- SD/- (A. L. SAINI) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER KOLKATA; DATE: 14/07/2020 RS ITA NO.170&171/RAN/2019 M/S. PARV SALES AND SERVICES ASSESSMENT YEAR:2015-16 PAGE 3 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT- M/S. PARV SALES AND SERVICES 2. /RESPONDENT- ITO, WARD-2(2), RANCHI 3. / CONCERNED CIT 4. - / CIT (A) 5. , / DR, ITAT, 6. [ / GUARD FILE. // TRUE COPY// BY ORDER/ , SR. PRIVATE SECRETARY