M/S. LAXMI STEEL, Ujjain V. THE ACIT 2(1), Ujjain

ITA 346/IND/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5799 (ITAT-INDORE)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 21-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G S GAUTAM
• Assessee Lawyers: NITIN GARUD; AMIT CHOUDHARY CAS
• Keywords: Gross profit estimation
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO.346/IND/2015 A.Y. : 2011-12. M/S.LAXMI STEEL, ACIT, UJJAIN VS. 2(1), UJJAIN APPELLANT RESPONDENT PAN NO. AACFL6151F APPELLANTS BY : SHRI NITIN GARUD AND SHRI AMIT CHOUDHARY, CAS RESPONDENT BY : SHRI G.S.GAUTAM, DR O R D E R PER D.T.GARASIA, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A),UJJAIN, DATED 19.02.2015 FOR THE ASSESSME NT YEAR 2011-12. DATE OF HEARING : 31.12.2015 DATE OF PRONOUNCEMENT : 09 .0 2 .2016 M/S.LAXMI STEEL, UJJAIN VS. ACIT, 2(1), UJJAIN I. T.A.NO. 346/IND/2015 A.Y. 2011-12. 2 2 2. THE ONLY GROUND TAKEN BY THE ASSESSEE, WHICH READS AS UNDER :- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN SUSTAINING THE ADDITION MAD E AT RS. 3,86,922/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF LOWER GROSS PROFIT RATE IN POST SURVEY PERIOD WITHOUT ACCEPTING THE EXPLANATIONS OFFERED B Y THE ASSESSEE. 3. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE I S ENGAGED IN MANUFACTURING OF IRON BARS, ANGLES, ETC. FROM IRON SCRAP. THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 38,64,250/- WAS FILED ON 25.09.2011. THE AO HAS MAD E THE ADDITION OF RS 3,86,922/- ON ACCOUNT OF LOW GROSS P ROFIT. THE AO HAS APPLIED GROSS PROFIT AT 11.33 % ON THE POST SURVEY TURNOVER AND HE MADE THE ADDITION. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS DISMISSED THE APPEAL. M/S.LAXMI STEEL, UJJAIN VS. ACIT, 2(1), UJJAIN I. T.A.NO. 346/IND/2015 A.Y. 2011-12. 3 3 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE AO HAS APPLIED GROSS PROFIT RATE A T 11.33% FROM PRE SURVEY PERIOD. THE FIRM HAS MAINTAINED QUA NTITATIVE DETAILS OF RAW MATERIALS AND FINISHED GOODS, WHICH WERE SUBJECT TO AUDIT U/S 44AB OF THE ACT. WE FIND THAT A SURVEY U/S 133A HAS BEEN CARRIED OUT AT BUSINESS PREMISES OF THE ASSESSEE ON 24.09.2010. THE AO MADE ADDITION ON ACC OUNT OF LOW GROSS PROFIT ON THE BASIS OF BIFURCATED TRADIN G AND PROFIT AND LOSS ACCOUNT UP TO DATE OF SURVEY FROM 1.4.2010 TO 24.9.2010 AND POST SURVEY I.E. 25.09.2010 TO, 31.03 .2011. THE AO HAS APPLIED GROSS PROFIT @ 11.33 % ON THE POST S URVEY TURNOVER OF RS. 82,56,189/- AND WORKED OUT THE GROS S PROFIT OF RS. 9,35,498/-. DURING THE COURSE OF HEARING BEFORE US, THE ASSESSEE DID NOT FURNISH ANY REASON FOR FALL IN GRO SS PROFIT FOR POST SURVEY PERIOD. WE ALSO FIND THAT WHILE CALCULA TING THE GROSS PROFIT, THE STOCK DECLARED DURING THE SURVEY WAS REMOVED AND GROSS PROFIT WAS RECALCULATED. WE ALSO FIND THA T WHILE CALCULATING THE GROSS PROFIT, THE ASSESSEE DID NOT PRODUCE ANY M/S.LAXMI STEEL, UJJAIN VS. ACIT, 2(1), UJJAIN I. T.A.NO. 346/IND/2015 A.Y. 2011-12. 4 4 EVIDENCE FOR FALL IN GROSS PROFIT. THEREFORE, IN OU R OPINION, THE ADDITION MADE BY THE ASSESSING OFFICER AND CIT(A) I S JUSTIFIED AND OUR INTERFERENCE IS NOT REQUIRED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMIS SED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 9 TH FEBRUARY, 2016. SD/- (B.C.MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 9 TH FEBRUARY,2016. CPU*