Mrs. Priti Krishnagopal Chandak., Ahmednagar V. ITO, Ahmednagar

ITA 2499/PUN/2012

• Counselvise Citation: 249924514 RSA 2012
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 17-12-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.2499/PN/2012 A.Y. 2009-10 MRS. PRITI KRISHNAGOPAL CHANDAK PROP. M/S. CHANDAK PATRAVALI BHANDAR, 3009, ADATE BAZAR, AHMEDNAGAR PAN: ABAPC7535M APPELLANT VS. ITO, WARD 1, AHMEDNAGAR RESPONDENT APPELLANT BY : SHRI PRAYAG JHA RESPONDENT BY : SHRI S.P . WALIMBE DATE OF HEARING: 08.01.2014 DATE OF ORDER : 15.01.2014 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEAL)-I, [SHORT CI T(A)-I] PUNE, DATED 30.07.2012 FOR A.Y. 2009-10 ON THE FOLLOWING GROUNDS. 1. THE ID. CIT(A) ERRED IN SUSTAINING THE ESTIMATION O F APPELLANT'S SALES TURNOVER AT RS 35,00,000/- THOUGH THERE WAS NO MATERIAL TO HOLD THAT HER TURNOVER WAS MORE THAN RS.26,04,000/- 2. THE ID. CIT(A) GROSSLY ERRED IN UPHOLDING THE ESTIM ATION OF APPELLANT'S NET PROFIT @ 10% OF SALES, THOUGH SE CTION 44AF OF THE ACT SPECIFICALLY PROVIDES FOR COMPUTATI ON OF NET PROFIT @ 5% IN A CASE OF RETAIL BUSINESS IN WHICH T HE APPELLANT WAS ENGAGED. 3. THE GROUNDS OF APPEAL ARE WITHOUT PREJUDICE TO EACH OTHER 4. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, MODIFY OR DELETE ANY GROUND OF APPEAL. 2 2. THE ASSESSEE HAS BEEN RUNNING A SHOP IN THE NAM E AND STYLE OF M/S. CHANDAK PATRAVALI BHANDAR. SHE DEALS IN PLATES MADE OF TREE LEAVES. THE ASSESSING OFFICER HAS CON DUCTED A SURVEY IN THE ASSESSEES PREMISES. AFTER SURVEY, T HE ASSESSING OFFICER HAS ISSUED A NOTICE U/S.148 CALLING FOR RET URN OF INCOME FOR A.Y 2009-10. IN RESPONSE TO THE NOTICE, THE AS SESSEE DID NOT FILE HER RETURN. THE ASSESSING OFFICER ESTIMATED T HE ASSESSEE'S TURN OVER AT RS.35,00,000/- AS AGAINST THE TOTAL DE POSIT OF RS.26,04,000/-(AS AGAINST CORRECT AMOUNT OF THE F.Y BEING RS. 24,77,500/-) IN HER A/C WITH THE RENUKAMATA CO-OP. CREDIT SOCIETY. HE ALSO ESTIMATED HER NET PROFIT AT RS.3, 50,000/- BEING 10% OF THE ESTIMATED TURNOVER. HE COMPLETED THE AS SESSMENT U/S.144 OF THE I T ACT. THE MATTER WAS CARRIED BEF ORE THE CIT, WHEREIN, THE ORDER OF THE ASSESSING OFFICER WAS CON FIRMED. 2.1 THE ASSESSEE BEFORE US HAS CHALLENGED THE ESTIM ATION OF TURNOVER AT RS.35,00,000/-. SHE ALSO DISPUTED THE ESTIMATION OF NET PROFIT @ 10% AS AGAINST 5% PRESCRIBED IN SECTIO N 44AF OF THE IT ACT. 2.2 IT IS NOT IN DISPUTE THAT THE ASSESSEE HAS A SM ALL LITTLE BUSINESS, ITS ACCOUNTS WERE NOT MAINTAINED AND AS A CONSEQUENCE OF SURVEY, THE ASSESSING OFFICER HAS ES TIMATED TURNOVER OF RS.35,00,000/- AND ASSESSED THE INCOME AT 10% AT RS.3,50,000/-. IT IS CORRECT THAT THE INCOME HAS T O BE ESTIMATED IN THE ABSENCE OF BOOKS OF ACCOUNTS, BUT IN SUCH A SITUATION, THE ADDITION HAS TO BE BASED ON CERTAIN DEFINITE FINDIN GS I.E. ON THE BASIS OF COMPARABLE CASES, BUT IN THE INSTANT CASE DEPOSIT OF RS.26,04,000/- WAS NOT ACCOUNTED FOR, WHICH WAS DET ECTED AS CONSEQUENCE TO SURVEY. SO, TAKING ALL FACTS AND CI RCUMSTANCES INTO CONSIDERATION, INCOME OF THE ASSESSEE SHOULD B E ASSESSED AS NET PROFIT @ 6% OF SALES. THE ASSESSING OFFICER IS DIRECTED ACCORDINGLY. 3 3. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS P ARTLY ALLOWED AS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT ON THIS THE DAY 15 TH OF JANUARY, 2014. SD/- SD/- (R.K. PANDA) (SHAILENDRA KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 15 TH JANUARY, 2014 GCVSR COPY TO:- 1) ASSESSEE 2) DEPARTMENT 3) THE CIT(A)-I, PUNE 4) THE CIT-I, PUNE 5) THE DR, B BENCH, I.T.A.T., PUNE. 6) GUARD FILE BY ORDER //TRUE COPY// SENIOR PRIVATE SECRETARY, I.T.A.T., PUNE