The DCIT Circle-5(1) Visakhapatnam, Visakhapatnam V. Sri B Sandeep, Visakhapatnam

ITA 258/VIZ/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56861 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-12-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 04-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D KOMALI KRISHNA
• Assessee Lawyers: N O N E
• Keywords: Rejection of books of accounts; Depreciation

Judgement Text

ITA NO.258/VIZ/2011 B. SANDEEP, VIZAG PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.258/VIZAG/2011 ASSESSMENT YEAR: 2006-07 DCIT CIRCLE-5(1) VISAKHAPATNAM B. SANDEEP VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AIMPB 9588J APPELLANT BY: SMT. D. KOMALI KRISHNA, SR.DR RESPONDENT BY: N O N E DATE OF HEARING: 13.12.2011 DATE OF PRONOUNCEMENT: 13.12.2011 ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE O RDER DATED 24.5.2011 PASSED BY LEARNED CIT(A), VISAKHAPATNAM A ND IT RELATES TO THE ASSESSMENT YEAR 2006-07. NONE APPEARED ON BEHALF OF THE ASSESSEE, THOUGH NOTICE OF HEARING WAS SERVED UPON THE ASSESS EE THROUGH THE DEPARTMENT BY AFFIXTURE. HENCE, WE PROCEED TO DISP OSE THE APPEAL EX- PARTE, QUA THE ASSESSEE. 2. IN THIS APPEAL, THE REVENUE IS ASSAILING THE DEC ISION OF LD. CIT(A) IN REDUCING THE INCOME FROM TRANSPORT CONTRACT FROM 8% OF THE GROSS RECEIPTS TO 2%. 3. THE FACTS RELATING TO THE CASE ARE STATED IN BRI EF. THE ASSESSEE IS A TRANSPORT CONTRACTOR. HE FILED A RETURN OF INCOME F OR THE YEAR UNDER CONSIDERATION DISCLOSING A LOSS OF RS.24,10,590/-. DURING THE COURSE OF SCRUTINY PROCEEDINGS, THE ASSESSEE COULD NOT FURNIS H ALL THE DETAILS THAT WERE CALLED BY THE ASSESSING OFFICER. ACCORDINGLY, THE ASSESSING OFFICER REJECTED THE BOOKS OF ACCOUNTS AND ESTIMATED THE NE T PROFIT FROM TRANSPORT ITA NO.258/VIZ/2011 B. SANDEEP, VIZAG PAGE 2 OF 3 CONTRACT AT 8% OF THE GROSS RECEIPTS. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE LD. CIT(A). THE FIRST APPELLATE AUTH ORITY TOOK NOTICE OF THE FACT THAT THE ASSESSEE HAD ACQUIRED 17 TRUCKS DURIN G THE YEAR UNDER CONSIDERATION WHICH WOULD ENTITLE THE ASSESSEE TO C LAIM HUGE AMOUNT OF DEPRECIATION AND FINANCE CHARGES. HENCE, THE LD CI T(A) TOOK THE VIEW THAT THE ESTIMATE OF 8% MADE BY THE ASSESSING OFFICER IS ON THE HIGHER SIDE AND ACCORDINGLY DIRECTED THE A.O. TO ESTIMATE THE INCOM E AT 2% OF THE GROSS RECEIPTS. AGGRIEVED BY THE ORDER OF LD CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD LD DR AND ALSO CAREFULLY PERUSED T HE RECORD. WE NOTICE THAT THE LD CIT(A) HAS MAINLY TAKEN INTO CON SIDERATION THE FACT THAT THE ASSESSEE WOULD BE ENTITLED TO CLAIM HUGE AMOUNT OF DEPRECIATION AND ALSO FINANCE CHARGES ON THE TRUCKS NEWLY PURCHASED DURING THE YEAR UNDER CONSIDERATION IN ORDER TO ESTIMATE THE INCOME OF TH E ASSESSEE AT 2% OF THE GROSS RECEIPTS. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE ASSESSEE HAD ACQUIRED 17 TRUCKS DURING THE YEAR UNDER CONSID ERATION. SINCE THE TRUCKS USED IN TRANSPORT BUSINESS ARE ENTITLED FOR HIGHER RATE OF DEPRECIATION, IN OUR VIEW, THE LEARNED CIT(A) IS RE ASONABLE IN TAKING THE VIEW CITED ABOVE. BESIDES THE ABOVE, THE REVENUE D ID NOT FILE ANY OTHER MATERIAL BEFORE US EITHER TO CONTROVERT THE DECISIO N OF LD CIT(A) OR TO COMPEL US TO INTERFERE WITH HIS DECISION. IN VIEW OF THE FOREGOING DISCUSSIONS, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE DECISION OF THE LD CIT(A). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 13.12.2011. SD/- SD/- (D. MANMOHAN) (B R BASKARAN) VICE PRESIDENT ACCOUNTANT M EMBER VG/SPS VISAKHAPATNAM, DATE: 13 TH DECEMBER, 2011 ITA NO.258/VIZ/2011 B. SANDEEP, VIZAG PAGE 3 OF 3 COPY TO 1 THE DCIT, CIRCLE-5(1), VISAKHAPATNAM 2 SRI B. SANDEEP, D.NO.19-24-29/5, KRISHNA COMPLEX, RAMAKRISHNA NAGAR, BESIDE RAMALINGESWARA TEMPLE, SANKARAMATAM R OAD, VISAKHAPATNAM 3 4. THE CIT, VISAKHAPATNAM THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM