Smt Nirmala Devi, Bokaro V. ITO WARD-3(2), Bokaro

ITA 244/RAN/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7778 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 27-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH , RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 244 /RAN/201 6 ASSESSMENT YEAR : 2012 - 2013 SMT. NIRMALA DEVI, M/S. BABA STEEL, PUJA NIWAS, SARASWATI NAGAR, CHAS, BOKARO VS. ITO, WARD - 3(2), BOKARO PAN/GIR NO. AGSPD 7467 L (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY: SHRI DEVESH PODDAR, ADV REVENUE BY : SHRI P.K.MONDAL, JCIT DATE OF HEARING : 22 /05 / 201 8 DATE OF PRONOUNCEMENT : 23 /05/ 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 23.6.2016 OF THE CIT (A), H AZARIBAG, JHARKHAND FOR THE ASSESSMENT YEAR 2012 - 2013. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN ESTIMATING THE PROFIT 2 ITA NO.244/RAN/2016 ASSESSMENT YEAR: 2012 - 2013 @0.75% AGAINST THE PROFIT DISCLOSED AS PER BOOKS OF ACCOUNT AT 0.17% WITHOUT REJECTING THE BOOKS OF ACCOUNT OF THE ASSESSEE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS SHOWN 0.17% PROFIT, WHICH WAS TOO LOW AS COMPARED TO THE SAME LINE OF BUSINESS AS NET PROFIT SHOWN BY OTHER ASSESSEES IS 0.62% AND IN THE CASE OF M/S. P.S.ISPAT, INDUSTRIAL AREA BALIDIH, BOKARO, IT HAS BEEN SHOWN AT 0.75&. THEREFOR E, HE ESTIMATED THE NET PROFIT OF THE ASSESSEE BY APPLYING RATE OF 0.75% ON THE GROSS TURNOVER. 4. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT LOOKING TO THE HUGE TURNOVER OF ASSESSEES BUSINESS AT RS.19,11,93,694 / - , HE WAS INCLINED TO UPHOLD THE ESTIMATED PERCENTAGE WORKED OUT BY THE ASSESSING OFFICER IN THE FACTS AND CIRCUMSTANCES OF THE ASSESSEES BUSINESS. 5. THE ARGUMENT OF LD A.R. OF THE ASSESSEE BEFORE US IS THAT NO ESTIMATION OF INCOME OF THE ASSESSEE CAN B E MADE BY THE ASSESSING OFFICER WITHOUT POINTING OUT DEFECTS IN THE REGULARLY MAINTAINED BOOKS OF ACCOUNT OF THE ASSESSEE AND WITHOUT REJECTING THE SAME ON THE GROUND THAT THEY ARE DEFECTIVE AND CORRECT INCOME OF THE ASSESSEE CANNOT BE DEDUCED THEREFROM. 6. LD D.R. SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 3 ITA NO.244/RAN/2016 ASSESSMENT YEAR: 2012 - 2013 7. WE FIND THAT HON'BLE KARNATAKA HIGH COURT IN THE CASE OF T HE INCOME TAX OFFICER VERSUS M/S ANIL KUMAR AND CO ., 386 ITR 702 (KAR) AN D HON'BLE DELHI HIGH COURT IN THE CASE OF DLF HILTON HOTELS (2016) 240 TAXMAN 495 ( DELHI ) HAVE HELD WHEN THE BOOKS OF ACCOUNTS OF THE ASSESSEE HAD NOT BEEN REJECTED AND ASSESSMENT HAVING NOT BEEN FRAMED UNDER SECTION 144 OF THE ACT, THE SAID AUTHORITIES WERE IN ERROR IN RESORTING TO AN ESTIMATION OF INCOME AND SUCH EXERCI SE UNDERTAKEN BY THEM WAS NOT SUSTAINABLE. 8. FURTHER, THE JODHPUR BENCH OF THE TRIBUNAL IN THE CASE OF ACIT V ERCON COMPOSITES ( 2014 ) ITAT JODHPUR 49 TAXMANN.COM 489 (JODH) HAS HELD THAT WHERE THE ASSESSING OFFICER HAD NOT R EJECTED THE BOOKS OF ACCOUNT NOR MENTIONED ANY SPECIFIC DEFECT IN ITS MAINTENANCE, ADDITION ON ESTIMATE BASIS WAS NOT JUSTIFIED. 9. IN THE INSTANT CASE, THE UNDISPUTED FACTS ARE THAT THE ASSESSING OFFICER HAS NOT REJECTED THE BOOKS OF ACCOUNT OF THE ASSESSEE. THEREFORE, IN OUR CONSID ERED VIEW, IN VIEW OF THE ABOVE QUOTED DECISIONS, THE ASSESSING OFFICER WAS NOT JUSTIFIED IN ESTIMATING THE INCOME OF THE ASSESSEE BY APPLYING NET PROFIT RATE OF 0.75%. HENCE, WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DIRECT THE ASSESSING OFFICER T O ACCEPT THE BOOK RESULTS OF THE ASSESSEE AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 4 ITA NO.244/RAN/2016 ASSESSMENT YEAR: 2012 - 2013 10. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 /05 /201 8 SD/ - SD/ - (PAVAN KUMAR GADALE) (N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RANCHI; DATED 23 /05 /201 8 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SMT. NIRMALA DEVI, M/S. BABA STEEL, PUJA NIWAS, SARASWATI NAGAR, CHAS, BOKARO 2. THE RESPONDENT: ITO, WARD - 3(2), BOKARO 3. THE CIT(A), HAZARIBAG, 4. PR. CIT , 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//