AVAZY REALCON PVT. LTD., MUMBAI V. ITO, 6(1)(4), MUMBAI

ITA 2159/MUM/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0501 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 05-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 04-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T A KHAN
• Assessee Lawyers: SHASHI KANT BAGWE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'F' BENCH, MUMBAI BEFORE SHRI P K BANSAL, VICE PRESIDENT AND SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.2159 /MUM/2016 (ASSESSMENT YEAR: 2011-12) M/S. AVAZY REALCON P. LTD. VS. INCOME TAX OFFICER - 6(1)(4) 396, KAMAT INDL. ESTATE VEER SAVARKAR MARG PRABHADEVI, MUMBAI 400013 MUMBAI PAN AAGCA2557F APPELLANT RESPONDENT APPELLANT BY: SHRI SHASHI KANT BAGWE RESPONDENT BY: SHRI T.A. KHAN DATE OF HEARING: 06.07.2017 DATE OF PRONOUNCEMENT: 08.08.2017 O R D E R PER D.T. GARASIA, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-12, MUMBAI DATED 18.01.2016 FOR A.Y. 2011-12 . 2. THE ONLY GROUND RAISED BY THE ASSESSEE PERTAINS TO THE ACTION OF THE LEARNED CIT(A) UPHOLDING THE ORDER OF THE ASSESSING OFFICER MAKING AN AD- HOC ADDITION OF ` 87,18,063/- ALLEGEDLY ON ACCOUNT OF LOWER GROSS PRO FIT RATIO. 3. THE BRIEF FACTS OF THE CASE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY CARRYING ON BUSINESS AS AGENT WHO BOOKS ORD ERS AND ASKS THE SUPPLIER TO SUPPLY GOODS TO THE BUYERS DIRECTLY. DU RING THE YEAR UNDER CONSIDERATION THE AO HAS CALLED FOR THE DETAILS OF PURCHASE, SALE, SUNDRY DEBTORS, SUNDRY CREDITORS, STOCK REGISTER AND BOOKS OF ACCOUNTS FOR VERIFICATION. THE ASSESSEE DID NOT SUBMIT THE REQUI RED DETAILS. THE BOOKS OF ACCOUNT WERE NOT PRODUCED FOR VERIFICATION. ACCORDI NGLY THE AO REJECTED THE BOOKS OF ACCOUNT AND ESTIMATED THE GP AND MADE AN A DDITION OF ITA NO. 2159/MUM/2016 M/S. AVAZY REALCON P. LTD. 2 ` 87,18,063/-. THE MATTER WAS CARRIED TO THE CIT(A) A ND THE CIT(A) DISMISSED THE APPEAL. 4. DURING THE COURSE OF HEARING BEFORE US, ONE SHRI S HASHI KANT BAGWE, FROM THE ASSESSEE COMPANY REMAIN PRESENT BEF ORE US AND SUBMITTED THAT THE ASSESSEE IS NOW READY TO PRODEUC E THE BOOKS OF ACCOUNT BEFORE THE AO AND HE HAS REQUESTED TO RESTORE THIS MATTER TO THE AO FOR FRESH ADJUDICATION. THE LEARNED D.R. FAIRLY AGREED TO IT. 5. HAVING HEARD BOTH THE PARTIES WE FIND THAT THE ASS ESSEE COMPANY IS SUBJECT TO ONLY STATUTORY AUDIT UNDER THE PROVISION S OF COMPANIES ACT, 1956 AND ONLY THE ACCOUNTS HAVE BEEN PREPARED. THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNT BEFORE THE AO. THEREF ORE, THE ASSESSEE IS DIRECTED TO PRODUCE THE BOOKS OF ACCOUNT BEFORE THE AO FOR VERIFICATION AND THE AO IS DIRECTED TO DECIDE THE MATTER AFRESH AFTE R GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH AUGUST, 2017. SD/ - SD/ - (P.K. BANSAL) (D.T. GARASIA) VICE PRESIDENT JUDICIAL MEMBER MUMBAI, DATED: 8 TH AUGUST, 2017 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -12, MUMBAI 4. THE PR. CIT - 6, MUMBAI 5. THE DR, F BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.