M/s. Lila Sons Contractor, JAIPUR V. ITO, SRIGANGANAGAR

ITA 221/JODH/1999

• Counselvise Citation: 22123314 RSA 1999
• Duration Of Justice: 12 year(s) 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-11-2011
• Assessment Year: 1993-1994
• Appeal Filed On: 31-03-1999
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Assessee Lawyers: SHAFI MOHD
• Section: 234B

Judgement Text

1 ITA 221(2)-99 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH SMC JODHPUR. ( BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER ) ITA NO. 221 & 222/JODH/1999 ASSTT. YEAR : 1993-94 & 96-97. M/S. LILA SONS CONTRACTOR, VS. THE INCOME-TAX OF FICER, OLD ABADI, SRIGANGANAGAR. WARD-1, SRIGANGANAGAR . (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SHAFI MOHD. RESPONDENT BY : SHRI G.R. KOKANI ORDER DATED : 30.11.2011. THESE ARE TWO APPEALS BY ASSESSEE AGAINST THE ORDE R OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 1993-94 AND 96-97. 2. THE ASSESSEE IS A CONTRACTOR DOING THE BUSINESS OF SUPPLYING BAJRI, GRIT ETC. CERTAIN DISCREPANCIES WERE NOTED BY THE ASSESSING OFFICER. THEREFORE, BOOKS OF ACCOUNT WERE REJECTED. 3. FOR ASSESSMENT YEAR 1993-94, THE ASSESSING OFFIC ER APPLIED GP RATE OF 9.36% AGAINST GP RATE OF 5.77%. FOR ASSESSMENT YEAR 199 6-97 THE ASSESSING OFFICER APPLIED GP RATE OF 8% AGAINST GP RATE OF 4.6% SHOWN BY ASSE SSEE. 4. THE LD. CIT (A) REDUCED THE ADDITION BY RS. 30,0 00/- FOR A.Y. 1993-94. 5. FOR ASSESSMENT YEAR 1996-97, THE LD. CIT (A) DIR ECTED THE ASSESSING OFFICER TO APPLY 6% GP RATE. THESE ADDITIONS MADE AND CONFIRM ED BY ASSESSING OFFICER AND LD. 2 CIT (A) ON ACCOUNT THAT PROPER BOOKS OF ACCOUNT ARE NOT MAINTAINED AND THERE ARE CERTAIN DEFECTS IN THE MAINTENANCE OF BOOKS OF ACCOUNT. 6. AFTER CONSIDERING THE ORDERS OF THE ASSESSING OF FICER AND LD. CIT (A)AND SUBMISSIONS OF BOTH THE PARTIES, I FIND THAT ASSESS EE DESERVES TO SUCCEED IN THESE APPEALS IN PART. FOR A.Y. 1993-94 THE ADDITION OF RS. 1,11 ,750/- HAS BEEN SUSTAINED BY APPLYING A HIGHER GP RATE. I FEEL THAT THE DISALLOWANCE MADE BY ASSESSING OFFICER WHICH IS RESTRICTED BY LD. CIT (A) IS ON HIGHER SIDE. ASSESSEE HAS SHO WN GP RATE OF 5.77%. IN THE ASSESSMENT YEAR 1996-97, THE LD. CIT (A) HAS DIRECT ED TO APPLY 6% GP RATE. HOWEVER, IN THIS YEAR THE LD. CIT (A) HAS CONFIRMED ALMOST THE SAME GP RATE APPLIED BY THE ASSESSING OFFICER I.E. 9.3% AS HE REDUCED ONLY RS. 30,000/-. I FEEL THAT IF AN ADDITION OF RS. 50,000/- IS SUSTAINED ON ACCOUNT OF CERTAIN DEFECTS IN THE B OOKS OF ACCOUNT AND CERTAIN UNVOUCHED EXPENSES, THAT WILL MEET THE ENDS OF JUSTICE. I OR DER ACCORDINGLY. 7. FOR ASSESSMENT YEAR 1996-97 ALSO, I FEEL THAT IF AN ADDITION OF RS. 50,000/- IS SUSTAINED AGAINST THE TOTAL SUSTAINED ADDITION BY L D. CIT (A), THAT WILL MEET THE ENDS OF JUSTICE. I ORDER ACCORDINGLY. 8. FOR A.Y. 1993-94, THERE IS ONE MORE GROUND I.E. DISALLOWANCE OF RS. 25,856/- AND RS. 5,000/- ON ACCOUNT OF TRUCK EXPENSES ETC. 9. AN ADDITION HAS ALREADY BEEN SUSTAINED BY APPLYI NG HIGHER GP RATE. THEREFORE, IN MY VIEW, DISALLOWANCE ON ACCOUNT OF OTHER EXPENSES IS NOT JUSTIFIED. ACCORDINGLY DISALLOWANCES REVENUE DELETED. 10. REMAINING ISSUE IN THE A.Y. 1996-97 IS AGAINST CHARGING OF INTEREST UNDER SECTION 234B & 234C WHICH IS CONSEQUENTIAL IN NATURE. 11. THE ASSESSING OFFICER IS DIRECTED TO ALLOW CONS EQUENTIAL RELIEF. 3 12. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED IN PART. 13. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30 .11.2011. SD/- ( R.K. GUPTA ) JUDICIAL MEMBER JODHPUR, COPY FORWARDED TO :- M/S. LILA SONS CONTRACTOR, SRIGANGANAGAR. THE ITO WARD-1, SRIGANGANAGAR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 221(2)/JODH/1999) BY ORDER, AR ITAT JODHPUR.