Relogistics(Ahmedabad)Pvt. Ltd., Mumbai V. The Dy.CIT.,Circle-5, Ahmedabad

ITA 2111/AHD/2009

• Counselvise Citation: 211120514 RSA 2009
• Duration Of Justice: 3 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 14-06-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 02-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD TANWANI
• Keywords: Rejection of books of accounts; Opportunity of being heard

Judgement Text

, , , , C , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .% $% % $% % $% % $%, , , , &' ( &' ( &' ( &' ( & ' & ' & ' & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER) ITA NO.2111/AHD/2009 [ASSTT.YEAR : 2005-2006] RELOGISTICS (AHMEDABAD) PVT. LTD. PLOT NO.17, STATE TRANSPORT ROAD NEXT TO KHIRA INDUSTRIAL ESTATE SANTACRUZ (WEST), MUMBAI 400 054. / VS. DCIT, CIR.5 AHMEDABAD. ITA NO.2209/AHD/2009 [ASSTT.YEAR : 2006-2007] DCIT, CIR.5 AHMEDABAD. / VS. RELOGISTICS (AHMEDABAD) PVT. LTD. PLOT NO.17, STATE TRANSPORT ROAD NEXT TO KHIRA INDUSTRIAL ESTATE SANTACRUZ (WEST), MUMBAI 400 054. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ./ 0 1 &/ ASSESSEE BY : SHRI S.N. SOPARKAR WITH SHRI J.T. SHAH ( 0 1 &/ REVENUE BY : SHRI VINOD TANWANI 3 0 /4'/ DATE OF HEARING : 14 TH JUNE, 2012 5%6 0 /4'/ DATE OF PRONOUNCEMENT : 6-7-2012 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2005-2006 AND BY THE REVENU E FOR THE ASSESSMENT YEAR 2006-2007 ARE DIRECTED AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME-TAX (APPEALS)-XI, AHMEDABAD DATED 14.05.2009 . THESE ARE BEING DISPOSED WITH THIS CONSOLIDATED ORDER. ITA NO.2111/AHD/2009 A.Y.2005-2006 (ASSESSEES AP PEAL) ITA NO.2111 AND 2209/AHD/2009 -2- 2. THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: 1. THE CIT(A) ERRED IN CONFIRMING THE ORDER PASSED BY DCIT AND REJECTING THE BOOKS OF ACCOUNTS OF THE APPELLAN T COMPANY BY INVOKING THE PROVISIONS OF SECTION 145(3) OF THE AC T. THE APPELLANT SUBMITS THAT ON THE FACTS AND CIRCUM STANCES OF THE CASE THE AUDITED STATEMENTS OF ACCOUNTS AND BOOKS O F ACCOUNTS AND RESULTANT PROFIT THEREOF OUGHT TO HAVE BEEN ACCEPTE D AS CORRECT AND THERE WAS NO JUSTIFICATION TO REJECT BOOK RESULTS B Y APPLYING THE PROVISIONS OF SECTION 145(3) OF THE IT ACT. 2. THE CIT(A) ERRED IN ESTIMATING THE NET PROFIT AT 1% OF TOTAL RECEIPTS AS AGAINST THE RETURNED LOSS BY THE APPELL ANT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT IN IDENTICAL FACTS IN THE EARLIER ASSESSMENT YEAR 2004-2005, THE ISSUE OF REJECTION OF BOOKS BY APPLYING THE PROVISIONS OF SECTION 145(3) OF THE ACT WAS RESTORED BY THE TRIBUNAL VIDE ITS ORDER DATED 13-8- 2010 IN ITA NO.4233 & 4339/AHD/2007 TO THE FILE OF THE AO. HE SUBMITTE D THAT THE AO VIDE ASSESSMENT ORDER DATED 29.12.2011 FRAMED IN CONSEQU ENCE OF SET ASIDE ORDER OF THE TRIBUNAL DATED 13.08.2010, ACCEPTED TH E RETURNED LOSS OF THE ASSESSEE AND THE BOOK RESULT OF THE ASSESSEE WAS AC CEPTED. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNS EL. HE SUBMITTED THAT IN EARLIER ASSESSMENT YEAR 2004-2005, THE AO V ERIFIED THE BOOKS AND HAS ACCEPTED THE RETURNED LOSS OF THE ASSESSEE AND SIMILARLY IN THIS ASSESSMENT YEAR, THE ASSESSEE BE DIRECTED TO PRODUC E ITS BOOKS OF ACCOUNTS BEFORE THE AO. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS CAREFULLY A ND HAVE PERUSED THE ORDER OF THE TRIBUNAL IN THE CASE OF THE ASSESS EE FOR THE EARLIER ASSESSMENT YEAR 2004-2005 AND ALSO THE ASSESSMENT O RDER DATED 29.12.2011 FRAMED AS PER THE DIRECTIONS OF THE TRIB UNAL, SETTING ASIDE THE ITA NO.2111 AND 2209/AHD/2009 -3- ISSUE TO THE FILE OF THE AO. WE FIND THAT THE FACT S OF THE CASE IN THE RELEVANT ASSESSMENT YEAR 2005-2006 ARE SIMILAR TO T HE FACTS OF THE CASE FOR THE EARLIER ASSESSMENT YEAR 2004-2005 AND ACCORDING LY IT WILL BE IN THE INTEREST OF JUSTICE TO SET ASIDE THE ISSUE IN THE G ROUND OF APPEAL OF THE ASSESSEE TO THE FILE OF THE AO WITH DIRECTION THAT HE MAY VERIFY THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND MAY CALL FOR FURTHE R DETAILS AND RE-DECIDE WHETHER THE BOOKS OF ACCOUNTS OF THE ASSESSEE SHOUL D BE REJECTED OR NOT AFTER GIVING DUE OPPORTUNITY OF HEARING TO THE ASSE SSEE. WE DIRECT THE ASSESSEE TO CO-OPERATE WITH THE DEPARTMENT WITH REG ARD TO FINALISATION OF ITS ASSESSMENT. WE DIRECT ACCORDINGLY. ITA NO.2209/AHD/2009 A.Y.2006-2007 (REVENUES APP EAL) 5. THE GROUNDS OF THE REVENUES APPEAL READ AS UNDE R: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.61,57,515/- ON ACCOUNT OF ESTIMATION OF NET PROFIT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD.CIT(A OUGHT TO HAVE UPHELD THE ORDER OF THE AO. 6. BOTH THE PARTIES BEFORE US SUBMITTED THAT THE IS SUE OF REJECTION OF BOOKS OF ACCOUNTS AND THE ADDITION MADE ON ACCOUNT OF ESTIMATION OF NET PROFIT MAY BE SET ASIDE BEFORE THE AO AS PER THE RA TIO OF THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSM ENT YEAR 2004-05 DATED 13.08.2010 (SUPRA). 7. WE HAVE CONSIDERED RIVAL SUBMISSIONS. IN VIEW O F THE SUBMISSIONS OF THE PARTIES, WE SET ASIDE THE ISSUE IN THE GROUN DS OF THE APPEAL OF THE REVENUE TO THE FILE OF THE AO WITH SIMILAR DIRECTIO NS AS CONTAINED IN OUR ORDER WHILE DISPOSING OF THE APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2005-2006 IN THE FOREGOING PARAGRAPHS OF THIS ORDER AND THE AO ITA NO.2111 AND 2209/AHD/2009 -4- SHALL FRAME THE ASSESSMENT DE NOVO AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE AND THE REVENUE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( #.% $% /A.MOHAN ALANKAMONY) &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD