Aryavart Transport Pvt Ltd, New Delhi V. ITO Ward -3(2), New Delhi

ITA 2304/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3219 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 15-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC, NEW DELHI BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER ITA NO. 2304/DEL/2019 ASSESSMENT YEAR: 2015-16 M/S ARYAVART TRANSPORT PVT. LTD., 139, POCKET A-3, SECTOR-8, ROHINI, NEW DELHI (PAN: AAACA1643C) VS. ITO, WARD 3(2), NEW DELHI ROOM NO. 381, C.R. BUILDING, NEW DELHI (APPELLANT) (RESPONDENT) ORDER THE ASSESSEE HAS FILED THE APPEAL AGAINST THE IMP UGNED ORDER DATED 20.02.2019 PASSED BY LD. CIT(A)-32, DELHI RE LEVANT TO ASSESSMENT YEAR 2015-16 ON THE FOLLOWING GROUNDS:- 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN UPHOLDING THE REJECTION OF BOOKS OF ACCOUNT BY THE AO. 2. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN UPHOLDING THE ESTIMATION F INCOME @8% BY THE AO. 3. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN UPHOLDING THE ADDITION OF RS. 17,74,544/-. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSES SEE COMPANY IS ENGAGED IN THE BUSINESS OF TRANSPORTATION. ASSESSEE HAS FI LED ITS RETURN OF INCOME ON 30.9.2015 FOR AY 2015-16 DECLARING AN INCOME OF RS. 1,02,130/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY WITH THE MAIN REASON OF LOW ASSESSEE BY SH. NAVEEN KUMAR GOYAL, CA DEPARTMENT BY SH. PRADEEP SINGH GAUTAM, SR. DR. 2 PROFIT SHOWN BY TRANSPORTER. THEREAFTER, THE ASSE SSMENT WAS COMPLETED U/S. 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) ON 28.11.2017 AT A TOTAL INCOME OF RS. 18,76,676/- AGAINST THE RETUR NED INCOME OF RS. 1,02,130/-. AO IN HIS ASSESSMENT ORDER, ESTIMATED THE INCOME OF THE ASSESSEE AT 8% OF GROSS RECEIPTS OF RS. 2,34,58,450 /- AND MADE AN ADDITION OF RS. 17,74,544/- AFTER ADJUSTING THE IN COME DECLARED BY THE ASSESSEE. AGAINST THE ASSESSMENT ORDER DATED 28.11. 2017, ASSESSEE APPEALED BEFORE THE LD. CIT(A), WHO VIDE HIS IMPUGN ED ORDER DATED 20.02.2019 HAS SUSTAINED THE ACTION F THE AO BY HO LDING THAT APPLICATION OF 8% AT GROSS RECEIPT IS REASONABLE AND UPHELD TH E SAME. AGAINST THE IMPUGNED ORDER DATED 20.2.2019, ASSESSEE IS IN APPE AL BEFORE THE TRIBUNAL. 3. LD. A.R. FOR THE ASSESSEE HAS STATED THAT LD. CI T(A) ERRED IN UPHOLDING THE REJECTION OF BOOKS OF ACCOUNT BY THE AO AND ALSO ERRED IN UPHOLDING THE ESTIMATION OF INCOME @8% BY THE AO, A S A RESULT THEREOF THE ADDITION OF RS. 17,74,544/- WAS SUSTAINED. HE STA TED THAT THE ESTIMATION OF GP IS VERY EXCESSIVE WHICH MAY BE REDUCED APPROP RIATELY. 4. ON THE CONTRARY, LD. DR HEAVILY SUPPORTED THE OR DER OF THE LD. CIT(A) AND SUBMITTED THAT AO HAS REASONABLY ESTIMA TED THE GP RATE @8%, WHICH THE LD. CIT(A) HAS RIGHTLY UPHELD, WHICH DOES NOT NEED ANY INTERFERENCE. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND GO NE THROUGH THE ORDERS OF LOWER AUTHORITIES. I FIND THAT THE SOLE ISSUE FO R ADJUDICATION IS ESTIMATION OF GP RATE @ 8%. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JU STICE, I DEEM JUST AND PROPER TO ESTIMATE THE GP RATE @5% INSTEAD OF GP R ATE @8%. I HOLD AND DIRECT ACCORDINGLY. THE AO IS DIRECTED TO RE-C OMPUTE THE ASSESSEES INCOME AND ASSESS THE GP @5% AND THEN COMPUTE THE I NCOME OF THE ASSESSEE, IN ACCORDANCE WITH LAW. 3 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWE D. THE DECISION IS PRONOUNCED ON 11-03-2020. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 11.03.2020 SRB COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI