Shri Prem Kumar Agrwal, Bokaro V. DCIT CIRCLE-3, Bokaro

ITA 219/RAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0006 (ITAT-RANCHI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-07-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.219 /RAN/2016 ASSESSMENT YEAR : 2010 - 2011 SRI PREM KUMAR AGARWAL, M/S. TIRUPATI TRANSPORT, DHARMSHALA MARKET, BYE - PASS ROAD CHAS, BOKARO VS. DCIT, CIRCLE - 3, BOKARO PAN/GIR NO. AEJPA 4443 E (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI S.K.PODAR, AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 8 /12/ 2016 DATE OF PRONOUNCEMENT : 8 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - HAZARIBAG , DATED 25.5.2016 , FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. IN GROUND NOA.1 & 2 OF THE APPEAL , THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.24,44,474/ - BEING DISALLOWANCE AT THE RATE OF 2.5% OF TRANSPORTATION CHARGES. IN GROUND NO.3, THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF 10% OF VEHICLE MAINTENANCE EXPENSES. 2 ITA NO.219/RAN/2016 ASSESSMENT YEAR :2010 - 2011 3. I HAVE HEARD THE RIVAL SUBMISS IONS, PERUSED THE ORDERS LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE FAILED TO PRODUCE BOOKS OF ACCOUNT. HE, THEREFORE, ASSESSED THE INCOME OF THE ASSESSEE BY DISA LLOWING TRANS PORTATION CHARGES @ 2.5% OF THE TOTAL TRANSPORTATION RECEIPTS OF RS. 9,77,78,974/ - AND MADE DISALLOWANCE OF RS.24,44,474/ - . SIMILARLY, HE DISALLOWED 10% OUT OF VEHICLE MAINTENANCE OF RS.22,28,023/ - AND MADE AN ADDITION OF RS.2,22,802/ - TO THE INCOME OF TH E ASSESSEE. 4. ON APPEAL, LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. BEFORE ME, LD A.R. SUBMITTED THAT TOTAL CONTRACT RECEIPTS SHOWN BY THE ASSESSEE WAS RS.11,29,02,831/ - AND NET PROFIT WAS DISCLOSED AT RS.33,11,773/ - , WHICH WORKS OUT TO 3 % OF THE TRANSPORTATION RECEIPTS. IN THE ASSESSMENT YEAR 2009 - 2010, THE NET PROFIT SHOWN BEFORE DEPRECIATION WAS 1.75%. HE SUBMITTED THAT THE RESULTS OF THE ASSESSEE COMPARES FAVOURABLY WITH THE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2009 - 2010 A N D N O D I S A L L O W A N C E S H O U L D B E M A D E . 6. LD D.R. SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 7. I FIND THAT THE DISALLOWANCE OF EXPENSES WAS MADE BY THE ASSESSING OFFICER AS HE FOUND THAT THE ASSESSEE FAILED TO PRODUCE BOOKS OF ACCOUNT . IF THE DISALLOWANCE OF EXPENSES OF RS..24,44,474/ - OUT OF TRANSPORTATION CHARGES AND RS.2,22,802 OUT OF VEHICLE MAINTENANCE IS TAKEN INTO 3 ITA NO.219/RAN/2016 ASSESSMENT YEAR :2010 - 2011 CONSIDERATION, THEN THE PROFIT OF THE ASSESSE E IS WORKED OUT TO 6.11%. CONSIDERING THE PAST ACCEPTED RESULTS OF THE ASSESSEE WHICH IS AT MUCH HIGHER SIDE, I AM OF THE CONSIDERED VIEW THAT IT WOULD MEET THE ENDS OF JUSTICE IF THE NET PROFIT IS ESTIMATED AT 4% OF THE GROSS TRANSPORTATION RECEIPTS OF THE YEAR UNDER CONSIDERATION. I ORDER ACCORDINGLY. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON 8 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 8 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SRI PREM KUMAR AGARWAL, M/S. TIRUPATI TRANSPORT, DHARMSHALA MARKET, BYE - PASS ROAD CHAS, BOKARO 2. THE RESPONDENT. DCIT, CIRCLE - 3, BOKARO 3. THE CIT(A) HAZARIBAG 4. CIT , HAZARIBG 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//