K.MEENAKSHI, PONDICHERRY V. ITO WARD-4, PONDICHERRY

ITA 3462/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4067 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2016-2017
• Appeal Filed On: 27-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Keywords: Rejection of books of accounts

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , . , ( BEFORE SHRI MAHAVIR SINGH , VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ./ ITA NO.3462/CHNY/2019 )* * /ASSESSMENT YEAR: 2016-17 SMT. K. MEENAKSHI, NO.18, KUMARAN NAGAR, KOONICHAMPET, THIRUKANUR, PONDICHERRY-605 501. [PAN: AGLPM 5769 P] VS. THE INCOME TAX OFFICER, WARD-4, PONDICHERRY. ( - /APPELLANT) ( ./- /RESPONDENT) - 0 / APPELLANT BY : MR. N.ARJUN RAJ, CA ./- 0 /RESPONDENT BY : MRS.VIJAYA PRABHA, JCIT 0 /DATE OF HEARING : 26.02.2020 0 /DATE OF PRONOUNCEMENT : 26.02.2020 / O R D E R PER M. BALAGANESH, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-PUDUCHERRY, IN ITA NO.426/CIT(A)-PDY/2018-19 DATED 20.11.2019 FOR THE AY 2016-17. 2. THOUGH THE ASSESSEE HAS RAISED SEVERAL GROUNDS, THE ONLY EFFECTIVE GROUND TO BE DECIDED IN THIS APPEAL IS AS TO WHETHE R THE LD.CIT(A) WAS JUSTIFIED IN CONFIRMING THE ACTION OF THE AO IN DET ERMINATION OF ESTIMATED GROSS PROFIT PERCENTAGE @9.3% IN THE FACTS AND CIRC UMSTANCES OF THE CASE. ITA NO.3462/CHNY/2019 :- 2 -: 3. THE ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUS INESS OF LIQUOR TRADING UNDER THE NAME AND STYLE OF M/S.HIMALAYAN L IQUORS. SHE HAD FILED RETURN OF INCOME FOR THE AY 2016-17 ADMITTING A TOT AL INCOME OF `7,20,540/-. THE ASSESSEE HAD ADMITTED GROSS PROFIT @4.21%, WHICH, IN THE OPINION OF THE LD.AO, WAS VERY LOW WHEN COMPARE D TO THE PREVIOUS YEARS. THE LD.AO DURING THE COURSE OF ASSESSMENT PR OCEEDINGS CALLED FOR THE REASONS FOR REDUCTION IN GROSS PROFIT PERCENTAG E TOGETHER WITH DETAILS OF CLOSING STOCK WITH BOTH QUANTITY AND VALUE. THE LD.AO OBSERVED THAT THE ASSESSEE HAD NOT SUBMITTED THE SAID DETAILS BEF ORE HIM. THE LD.AO REJECTED THE BOOKS OF ACCOUNTS OF THE ASSESSEE AND PROCEEDED TO ESTIMATE THE GROSS PROFIT @9.3% BEING THE AVERAGE GROSS PROFIT PERCENTAGE OF THE LAST THREE YEARS AND DETERMINED THE TAXABLE INCOME ACCORDINGLY. THIS ACTION OF THE LD.AO WAS UPHELD BY THE LD.CIT(A). A GGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT THE LD.AR PLACED ON RECORD A COPY OF SHOW CAUSE NOTICE ISSUED BY THE LD.AO THROUGH E-MAI L DATED 18.12.2018, WHEREIN, THE LD.AO HAD SOUGHT TO REJECT THE BOOKS O F ACCOUNTS OF THE ASSESSEE AND ESTIMATE THE GROSS PROFIT @9.3% FOR DE TERMINATION OF TOTAL INCOME. IN THE SAID SHOW CAUSE NOTICE, THE NEXT DA TE OF HEARING WAS SCHEDULED ON 20.12.2018 AT 12:30 P.M. THE LD.AR DR EW OUR ATTENTION THAT THE SAID SHOW CAUSE NOTICE WAS RECEIVED THROUG H E-MAIL ON 18.12.2018 AT 07:34 P.M. SEEKING FOR DETAILS ON 20. 12.2018 AT 12:30 P.M. ITA NO.3462/CHNY/2019 :- 3 -: AND ASSESSMENT WAS FINALLY COMPLETED ON 21.12.2018 AS EVIDENT FROM THE ASSESSMENT ORDER. HE ARGUED THAT THE PURCHASE AND SALES REPORTED BY THE ASSESSEE WERE ACCEPTED BY THE LD.AO AND WERE DU LY SUBJECTED TO TAX COLLECTION AT SOURCE (TCS). 5. WE HAVE GONE THROUGH THE ABOVE DOCUMENT AND WE F IND LOT OF FORCE IN THE ARGUMENT OF THE LD.AR THAT THE ASSESSEE WAS NOT PROVIDED SUFFICIENT TIME BY THE LD.AO IN THE INSTANT CASE TO FURNISH TH E REQUISITE DETAILS. HENCE, IN THE INTEREST OF JUSTICE, WE DEEM IT FIT A ND APPROPRIATE, TO REMIT BACK THIS ISSUE TO FILE OF THE LD.AO FOR DE NOVO AD JUDICATION IN ACCORDANCE WITH LAW. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 26 TH DAY OF FEBRUARY, 2020, IN CHENNAI. SD/- SD/- ( ) (MAHAVIR SINGH) /VICE PRESIDENT ( . ) ( M. BALAGANESH ) ( /ACCOUNTANT MEMBER /CHENNAI, 6 /DATED: 26 TH FEBRUARY, 2020. TLN 0 .)7 87 /COPY TO: 1. - /APPELLANT 4. 9 /CIT 2. ./- /RESPONDENT 5. 7 .)) /DR 3. 9 ( ) /CIT(A) 6. * /GF