Agarwal Transport Corporation, Cuttack V. JCIT, Cuttack

ITA 341/CTK/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3811 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 10 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-04-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 21-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: D K SHETH
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ( CUTTACK BENCH, CUTTACK ) BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH , JUDICIAL MEMBER I TA N O . 3 4 1 / CTK/2015 (ASSESSMENT YEAR : 20 1 4 - 1 5 ) M/S. AGGARWAL TRANSPORT CORPORATION, VS. JCIT, RANGE 2, MANGL ABAG, CUTTACK. CUTTACK 753 001. ( PAN : AAFFA2795K ) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI D.K. SHETH , AR REVENUE BY : SHRI D.K. PRADHAN , DR D ATE OF HEARING : 2 4 . 0 4 .2017 DATE OF PRONOUNCEMENT : 29 . 0 5 .2017 O R D E R PER KULDI P SINGH , JUDICIAL MEMBER : THE APPELLANT, M/S. AGGARWAL TRANSPORT CORPORATION (HEREINAFTER REFERRED TO AS THE ASSESSEE ) BY FILING THE AFORESAID APPEAL SOUGHT TO SET ASIDE THE ORDER DATED 1 9 .0 6 .201 5 PASSED BY THE COMMISSIONER OF INCOME - TAX (APPEALS) , CUTTACK QUA THE ASSESSMENT YEAR 20 1 4 - 1 5 ON THE GROUNDS INTER ALIA THAT : - 1. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE ASSESSMENT AS MADE U/S. 144 IS ARBITRARY, AND UNJUSTIFIED AND THEREFORE BAD - IN - LAW. ITA NO . 3 4 1 / CTK ./2015 2 2. FOR THAT THE ADDITION OF R S.29,60,102/ - AS MADE BY THE LEARNED AO AND AS SUSTAINED BY THE LEARNED COMMISSIONER UNDER HEAD 'SUPPRESSED INCOME' BY WAY OF ESTIMATE OF NET PROFIT IS UNJUSTIFIED AND THE INCOME RETURNED SHOULD HAVE BEEN ACCEPTED. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICATION OF THE CONTROVERSY AT HAND ARE : ASSESSEE IS INTO THE TRANSPORT BUSINESS AND STATED TO HAVE MAINTAINED BOOKS OF ACCOUNT AND CASH BOOK LEDGER BUT HAS FAILED TO PRODUCE THE SAME BEFORE ASSESSING OFFICER. DU R ING ASSESSMENT PROCEEDINGS, THE ASSESSEE PRODUCED ONLY BANK STATEMENT AND RESULTANTLY, THE AO PROCEEDED TO COMPLETE THE ASSESSMENT U/S 144 OF THE INCOME - TAX ACT, 1961 (FOR SHORT THE ACT). 3. ASSESSEE DECLARED GROSS RECEIPT OF RS.28,65,272/ - WITH NET PROFIT OF RS.14,68,272/ - AFTER PAYI NG PARTNER INTEREST OF RS.7,63,467/ - AND PARTNERS SALARY OF RS.5,40,000/ - AND DECLARED NET INCOME AT RS.14,68,272/ - I.E. 0.5123% OVER GROSS TURNOVER. AO, AFTER CONSIDERING ALL THE FACTS AND TRANSACTION OF THE CASE, ESTIMATED THE RATE OF INCOME AT 2% OF TH E GROSS TURNOVER WHICH COMES TO RS.57,31,841/ - . 4 . ASSESSEE CARRIED THE MATTER BY WAY OF FILING AN APPEAL BEFORE THE LD. CIT (A) WHO HAS PARTLY ALLOWED THE APPEAL . FEELING ITA NO . 3 4 1 / CTK ./2015 3 AGGRIEVED, THE ASSESSEE HAS COME UP BEFORE THE TRIBUNAL BY FILING THE PRESENT APPEA L. 5 . WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS RELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN THE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 6. AO, WHILE PROCEEDING U/S 144 OF THE ACT, ESTIMATED THE RATE OF INCOME AT 2% OF THE GROSS TURNOVER ON FAILURE OF THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT AND OTHER SUPPORTING DOCUMENTS. ASSESSEE CHALLENGED THE ADDITION OF RS.29,60,102/ - UNDER THE HEAD SUPPRESSED INCOME M ADE BY THE AO ON ESTIMATE BASIS @ 2% ON THE GROUND THAT IN ASSESSEES OWN CASE FOR AY 2008 - 09 IN ITA NO.279/CTK/2013 DATED 11.06.2013 , ITAT, CUTTACK HAS DIRECTED THE ACIT TO COMPUTE THE TOTAL RECEIPT INCOME AT 1% OF GROSS FREIGHT RECEIPT PLUS RECEIPT OF TH E TIPPER HIRING. 7. THE AFORESAID DECISION RENDERED BY THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2008 - 09 WAS DULY CONSIDERED BY THE LD. CIT (A) AND FOUND TO BE DISTINGUISHABLE ON FACTS. IN AY 2008 - 09, UNDISPUTEDLY, THE AO HIMSELF HAS ESTIMATED THE NET PROFIT OF ASSESSEE @ 1% OF ITS GROSS TURNOVER BUT HAS NOT ALLOWED S ALARY AND INTEREST TO THE PARTNER BY COMPLETING THE ASSESSMENT U/S 144 OF THE ACT. AO AS WELL AS CIT (A) HAVE ITA NO . 3 4 1 / CTK ./2015 4 REITERATED THE FACT THAT IN THE TRANSPORT BUSINESS, INCO ME USED TO BE FROM 2% TO 5% OF THE GROSS TURNOVER. 8. WHEN THE ASSESSEE HAS HIMSELF DECLAR ED HUGE GROSS RECEIPT OF RS.28,65,272/ - FOR THE YEAR UNDER ASSESSMENT, IT IS BEYOND COMPREHENSION AS TO WHY ASSESSEE HAS NOT PRODUCED BOOKS OF ACCOUNT, LEDGER, ETC. B EFORE THE AO DESPITE AVAILING NUMEROUS OPPORTUNISMS AND CONSEQUENTLY, THE AO PROCEED ED U/S 144 OF THE ACT. EVEN D URING THE APPELLATE PROCEEDINGS BEFORE LD. CIT (A) AS WELL AS BEFORE THE TRIBUNAL, THE ASSESSEE HAS NOT PREFERRED TO DISCLOSE THE REAL PICTURE BY OPTING TO PRODUCE THE BOOKS OF ACCOUNT / LEDGER ETC. SO, IN THESE CIRCUMSTANCES, WE ARE OF THE CONSIDERED VIEW THAT AO AS WELL AS CIT (A) HAVE RIGHTLY ESTIMATED THE RATE OF INCOME @ 2% OF THE GROSS TURNOVER. SO, FINDING NO ILLEGALITY OR PERVERSITY IN THE FINDINGS RETURNED BY THE LD. CIT (A), PRESENT APPEAL FILED BY THE ASSESSEE IS HEREBY DISMISSED. ORDER PRONOUNCED IN OPEN COURT 29 TH DAY OF MAY , 201 7 . SD/ - SD/ - ( N.S. SAINI ) ( KULDIP SINGH ) ACCOUNTANT MEMBER JUDICI AL MEMBER DATED THE 29TH DAY OF MAY , 201 7 TS ITA NO . 3 4 1 / CTK ./2015 5 COPY OF THE ORDER FORWARDED TO: 1.APPELLANT - M/S. AGGARWAL TRANSPORT CORPORATION, MANGLABAG, CUTTACK 753 001. 2.RESPONDENT - JCIT, RANGE 2, CUTTACK. 3.CIT 4.CIT (A) , CUTTACK. 5.DR (ITAT), CUTTAC K . 6. GUARD FILE //TRUE COPY// BY ORDER SR. PRIVATE SECRETARY , ITAT , CUTTACK