Tag Motors Ltd., Ludhiana V. ACIT, Ludhiana

ITA 190/CHANDI/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5145 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 28-08-2018
• Assessment Year: 2003-2004
• Appeal Filed On: 27-01-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAGADISH GOYAL

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NOS. 190 TO 193/CHD/2017 / ASSESSMENT YEARS : 2003-04 TO 2006-07 M/S TAG MOTORS LTD., 254-R. MODEL TOWN, LUDHIANA THE ACIT, CENTRAL CIRCLE-II, LUDHIANA ./PAN NO: AABCT6450F / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. DEEPAK AGGARWAL, ADVOCATE ' ! / REVENUE BY : SH. JAGADISH GOYAL, CIT DR # $ % /DATE OF HEARING : 29.08.2018 &'() % / DATE OF PRONOUNCEMENT : 29.08. 2018 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE CAPTIONED APPEALS HAVE BEEN PREFERRED BY THE AS SESSEE AGAINST THE SEPARATED ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS), BHATINDA [HEREINAFTER REFERRED TO AS CIT(A)] DATE D 28.10.2016. 2. THE SOLE ISSUE RAISED IN ALL THE APPEAL IS REGAR DING THE ESTIMATION OF THE NET PROFIT PERCENTAGE FOR THE ASSESSMENT YEAR U NDER CONSIDERATION OF THE ASSESSEE. 3. THE ASSESSEE DECLARED NET PROFIT FOR ASSESSME NT YEAR 2003-04 @ -1.0%, FOR ASSESSMENT YEAR 2004-05 @ -4.81%, FOR ASSESSMENT YEAR 2005-06 @ 0.30% AND FOR ASSESSMENT YEAR 2006-07 @ 2 .31%. HOWEVER, ITA NOS. 190 TO 193/CHD/2017- M/S TAG MOTORS LTD., LUDHIANA 2 THE ASSESSING OFFICER WAS OF THE VIEW THAT THE ASSE SSEE HAD WRONGLY DECLARED THE NET PROFIT AT A VERY LOWER RATE. HE, THEREFORE, ESTIMATED THE NET PROFIT FOR ASSESSMENT YEARS 2003-04 & 2004-05 @ 2.50% AND FOR ASSESSMENT YEARS 2005-06 & 2006-07 @ 3.0%. THE ASS ESSEE CHALLENGED THE AFORESAID ESTIMATION OF NET PROFIT BY THE ASSESSING OFFICER BEFORE THE LD. CIT(A), HOWEVER, REMAINED UNSUCCESSFUL. 3. BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS FURN ISHED THE DETAILS OF THE PREVIOUS YEARS AS WELL AS OF THE SUBSEQUENT YE ARS TO THE ASSESSMENT YEARS UNDER CONSIDERATION, WHEREFROM IT IS GATHERED THAT IN THE EARLIER ASSESSMENT YEARS, THE NET PROFIT RATE RETURNED BY THE ASSESSEE WAS IN NEGATIVE, WHEREAS, IN THE SUBSEQUENT ASSESSMENT YEA RS, THE ASSESSEE HAS SHOWN POSITIVE INCOME DECLARING NET PROFIT RATE RAN GING FROM 4.35% IN THE ASSESSMENT YEAR 2007-08 TO 0.53% FOR ASSESSMENT YE AR 2017-18. 4. CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES AND THE PAST AND FUTURE NET PROFIT RETURNED BY THE ASSESSEE, IN OUR VIEW, INTEREST OF JUSTICE WILL BE WELL SERVED IF THE NET PROFIT FOR ASSESSME NT YEARS 2003-04 & 2004-05 IS TAKEN @ 2.00% AS AGAINST 2.50% ESTIMATED BY THE ASSESSING OFFICER AND FOR ASSESSMENT YEARS 2005-06 & 2006-07 @ 2.5% AS AGAINST 3% ESTIMATED BY THE ASSESSING OFFICER. THE ASSESSING OFFICER IS, THEREFORE, DIRECTED TO ASSESS THE INCOME OF THE ASSESSEE ACCOR DINGLY FOR THE AFORESAID ASSESSMENT YEARS 2003-04 TO 2006-07. ITA NOS. 190 TO 193/CHD/2017- M/S TAG MOTORS LTD., LUDHIANA 3 IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE TREA TED AS PARTLY ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29.08.201 8 SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 28.11.2018 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR