Suman Choudhari, Visakhapatnam V. DCIT, Circle-1(1), Visakhapatnam

ITA 378/VIZ/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8756 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 20-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P S MURTHY
• Section: 143(3); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO.302/VIZ/2016 (ASST. YEAR : 2010 - 11) AND ITA NO S . 378 & 379 / VIZ /201 7 (ASST. YEAR : 20 0 9 - 1 0 & 20 12 - 1 3 ) SUMAN CHOUDHARI, PROPRIETRIX : TRIVENI TRANSPORT, DNO. 10 - 1 - 43, SIRIPURAM FORT, SAMPATH VINAYAKA TEMPLE ROAD, VISAKHAPATNAM. VS. 1. 2. DCIT, CIRCLE - 1(1), VISAKHAPATNAM. A CIT, CIRCLE - 1(1), VISAKHAPATNAM PAN NO. ADIPC 8524 C (APPELLANT) (RESPONDENT S ) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI P.S. MURTHY SR. DR DATE OF HEARING : 22 / 02 /201 8 . DATE OF PRONOUNCEMENT : 23 / 02 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH E S E APPEAL S BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDER S OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , VISAKHAPATNAM , DATED 23 /0 3 /201 6 FOR THE ASSESSMENT YEAR 2 ITA NO S . 378 & 379 /VIZ/2017 ITA NO.302/VIZ/2016 ( SUMAN CHOUDHARI ) 20 1 0 - 11 ; AND DATED 21/03/2017 FOR THE ASSESSMENT YEARS 2009 - 10 & 2012 - 13 . ASSESSMENT YEAR 2009 - 10 : 2. FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE IS IN THE BUSINESS OF TRANSPORT CONTRACTOR, FILED HIS RETURN OF INCOME BY DECLARING TOTAL INCOME OF RS. 14,45,030/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND AFTER FOLLOWING DUE PROCEDURE , ASSESSMENT IS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') . DURING THE C OURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER HAS ISSUED A NOTICE UNDER SECTION 143(2) OF THE ACT. IN RESPONSE TO THE NOTICE, THE ASSESSEE PRODUCED BOOKS OF ACCOUNT, BILLS & VOUCHERS FOR VERIFICATION. THE ASSESSING OFFICER HAS NOTED , UPON EXAMINATION OF THE BILLS AND VOUCHERS , THAT MOST OF THE BILLS/ VOUCHERS FOR LORRY HIRE CHARGES ARE SELF - MADE AND COM P LETE DETAILS ARE NOT AVAILABLE FOR LORRY OWNERS , TO WHOM THESE CHARGES ARE PAID . MOST OF THE BILLS CONTAIN ONLY SOME LORRY NUMBERS A ND OWNER NAMES WITH NEITHER PAN NOR COMPLETE ADDRESS PARTICULARS OF LORRY OWNERS . BY OBSERVING THE ABOVE, THE ASSESSING OFFICER HAS ESTIMATED THE INCOME OF THE ASSESSEE AT 5% OF THE GROSS RECEIPTS AND ASSESSMENT IS COMPLETED. 3 ITA NO S . 378 & 379 /VIZ/2017 ITA NO.302/VIZ/2016 ( SUMAN CHOUDHARI ) 3 . ON APPEAL, LD. CIT(A) RESTRICTED THE ESTIMATION MADE BY THE ASSESSING OFFICER FROM 5% TO 4.5%. 4 . BEFORE US, LD . COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT ESTIMATION MADE BY THE ASSESSING OFFICER AND RESTRICTED BY THE LD.CIT(A) IS ON HIGHER SIDE, THE SAME MAY BE REDUCED. 5. O N THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 6 . WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 7 . THE ASSESSEE IS IN BUSINESS OF TRANSPORT CONTRACT OR , FILED HIS RETURN OF INCOME ADMITTING TOTAL INCOME OF RS. 14,45,030/ - . THE ASSESSEE HAS ALSO FILED ALL THE DETAILS BEFORE THE ASSESSING OFFICER , SUCH AS, BOOKS OF ACCOUNT, BILLS & VOUCHERS . A FTER VERIFICATION , THE ASSESSING OFFICER ESTIMATED THE BUSINESS PROFIT AT 5% OF GROSS RECEIPTS, WHICH WAS REDUCED TO 4.5% BY THE LD. CIT(A). BY CONSIDERING THE BUSINESS CARRIED BY THE ASSESSEE, WE ARE OF THE OPINION THAT ESTIMATION OF THE BUSINESS PROFIT OF THE ASSESSEE AT 4% IS REASONABLE. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND DIRECT THE ASSESSING OFFICER TO ESTIMATE THE BUSINESS PROFIT OF THE ASSESSEE AT 4% ON GROSS CONTRACT RECEIPTS . THUS, THIS APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED . 4 ITA NO S . 378 & 379 /VIZ/2017 ITA NO.302/VIZ/2016 ( SUMAN CHOUDHARI ) ASSESSMENT YEARS 2010 - 11 & 2012 - 13 8 . IN REGARD TO ASSESSMENT YEARS 2010 - 11 & 2012 - 13 ARE CONCERNED, IN VIEW OF OUR DECISION IN ASSESSMENT YEAR 2009 - 10, THE ASSESSING OFFICER IS DIRECTED TO FOLLOW THE SAME IN THESE ASSESSMENT YEARS ALSO. 9 . IN THE RESULT, APPEAL S FILED BY THE ASSESSEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 3 R D DAY OF FEB . , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 3 R D FEBRUARY , 201 8 . VR/ - COPY TO: 1. THE ASSESSEE - SUMAN CHOUDHARI, PROPRIETRIX : TRIVENI TRANSPORT, DNO. 10 - 1 - 43, SIRIPURAM FORT, SAMPATH VINAYAKA TEMPLE ROAD, VISAKHAPATNAM. 2. THE REVENUE - 1) DCIT, CIRCLE - 1(1), VISAKHAPATNAM 2) ACIT, CIRCLE - 1(1), VISAKHAPATNAM 3. THE PR. CIT - 1, VISAKHAPATNAM. 4. THE CIT(A) - 1, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM. 5 ITA NO S . 378 & 379 /VIZ/2017 ITA NO.302/VIZ/2016 ( SUMAN CHOUDHARI )