M/s. Bhikha Ram Devrath, JODHPUR V. ITO, CHURU

ITA 245/JODH/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70210 (ITAT-JODHPUR)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 25-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N A JOSHI
• Assessee Lawyers: U C JAIN
• Keywords: Rejection of books of accounts
• Section: 145

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL: JODHPUR BENCH : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NO. 245/JODH/2013 (A.YS. 2008-09) M/S. BHIKHA RAM DEVRATH VS ITO, WARD-1, C/O. SHRI U.C. JAIN, ADVOCATE, CHURU. SHATRUNJAY HARI SINGH NAGAR, PALI ROAD, JODHPUR. PAN NO. AAAFB9386L (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. U.C. JAIN, AND SH. RAJENDRA JAIN. DEPARTMENT BY : SH. N.A. JOSHI- DR. DATE OF HEARING : 19/09/2013. DATE OF PRONOUNCEMENT : 23/09/2013. O R D E R PER HARI OM MARATHA, J.M. : THIS APPEAL OF THE ASSESSEE FOR A.Y. 2008-09, FILE D AGAINST THE ORDER OF LD. CIT(A)-III, JAIPUR, DATED 15/03/2013, RAISE ONLY ONE ISSUE RELATING TO APPLICATION OF A NET RATE OF PROFIT ON THE TURNOVER OF THE ASSESSEE DERIVED FROM THE CIVIL CONTRACTS. 2 2. THE ASSESSEE HAS DISCLOSED NET PROFIT RATE OF 8% ON ITS TOTAL TURNOVER OF RS. 1,21,49,964/-. HOWEVER, THE EXPENSE S DEBITED IN THE P&L ACCOUNT COULD NOT BE SUBSTANTIATED WITH BILLS / VOUCHERS, THE ASSESSEE DID NOT MAINTAIN STOCK REGISTER ETC, THERE FORE, THE AO HAS REJECTED THE BOOKS OF ACCOUNTS AND HAS APPLIED A NE T OF 8.5% WHICH HAS BEEN ENHANCED TO 11.50% BY THE LD. CIT(A). 2.1 BEFORE US, IT WAS ARGUED BY LD. AR SHRI U.C. JA IN THAT AFTER REJECTION OF THE BOOKS OF ACCOUNT THE RATE APPLIED IN THE IMMEDIATELY PAST YEAR IS RELEVANT. WE ARE ALSO IN AGREEMENT WIT H THE ARGUMENT OF LD. AR. WE HAVE TAKEN UMPTEEN OF DECISIONS IN THIS REGARD BY HOLDING THAT AFTER REJECTION OF BOOKS OF ACCOUNT, ONLY ITS PAST HISTORY IS MOST RELEVANT. THE ASSESSEE HAS A PAST HISTORY, ACCORDIN GLY TO WHICH A NET PROFIT RATE OF 8% HAS BEEN CONFIRMED. THE LD. DR SU BMITTED THAT THERE WAS NO SCRUTINY IN A.Y. 2007-08 AND THUS THE RATE O F THAT YEAR CANNOT OPERATE AS A GUIDING FACTOR U/S 145 OF THE ACT. 2.2 AFTER CONSIDERING RIVAL STANDS WE HAVE FOUND IT FOR A FACT THAT AFTER REJECTION OF BOOKS, ASSESSEES PAST HISTORY I S VERY MUCH RELEVANT. IT DOES NOT MATTER IF THE PROFIT RATE WAS ACCEPTED IN A SCRUTINY ASSESSMENT OR IN THE REGULAR ASSESSMENT. ACCORDINGL Y, WE APPLY N.P. RATE OF THE PAST YEAR AND ALLOW THIS APPEAL. 3 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23/09/2013. SD/- SD/- [N.K. SAINI] [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23/09/2013. VL/ COPY TO : 1. THE APPELLANT BY ORDER 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSISTANT REGISTRAR ITAT, JODHPUR