M/S. LODDHA LIME P. LTD, V. THE ITO WD- 6(3)(2),

ITA 398/MUM/2005

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 8489 (ITAT-MUMBAI)
• Duration Of Justice: 6 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 19-01-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 17-01-2005
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P N DEVDASAN
• Assessee Lawyers: P V DESAI
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, J, MUMBAI BEFORE SHRI R V EASWAR, PRESIDENT AND SHRI B RAMAKOTAIAH, ACCOUNTANT MEMBER I T A NO: 398/MUM/2005 (ASSESSMENT YEAR: 2001-02) LADDHA LIME PVT. LTD., MUMBAI APPELLANT (PAN: AAACL7637H) VS INCOME TAX OFFICER 6(3)(2), MUMBAI RESPONDENT APPELLANT BY: SHRI JITENDRA JAIN & SHRI P V DESAI RESPONDENT BY: SHRI P N DEVDASAN O R D E R R V EASWAR, PRESIDENT: THIS APPEAL BY THE ASSESSEE RELATES TO THE ASSESSM ENT YEAR 2001-02. THE ASSESSEE IS A PRIVATE LIMITED COMPANY TRADING IN CLOTH. IT FILED THE RETURN OF INCOME DECLARING TOT AL INCOME OF ` 9,296/-. THE ASSESSING OFFICER EXAMINED THE BOOKS OF ACCOUNT AND FOUND THAT THE PROVISIONS OF SECTION 143(3) OF THE INCOME TAX ACT, 1961, WERE APPLICABLE. HE NOTED THAT THEY DID NOT REFLEC T THE TRUE NATURE OF THE ACTIVITIES INDULGED IN BY THE ASSESSEE. HE ACCORDINGLY REJECTED THE BOOKS OF ACCOUNT AND ADDED ` 30,46,991/- UNDER THE HEAD INCOME FROM OTHER SOURCES. THIS WAS ON THE FOOTING THAT THE ASSESSEE WAS INDULGING IN HAWALA TRANSACTIONS AND A N ESTIMATED ADDITION OF 10% OF THE HIGHEST TURNOVER DECLARED BY THE ASSESSEE WAS REQUIRED TO BE MADE. 2. ON APPEAL, THE CIT(A) CONFIRMED THE REJECTION OF THE BOOKS OF ACCOUNT BUT REDUCED THE ESTIMATE OF PROFIT FROM 10% OF THE GROSS TURNOVER TO 2.5%. ITA NO: 398/MUM/2005 2 3. THE ASSESSEE IS IN FURTHER APPEAL BEFORE THE TRI BUNAL. THERE SEEMS TO BE NO APPEAL BY THE DEPARTMENT AGAINST THE RELIEF GRANTED BY THE CIT(A). AFTER CAREFULLY CONSIDERING THE FAC TS AND THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THERE IS NO CA SE FOR ANY FURTHER RELIEF MADE OUT. THE ESTIMATE OF 10% AS PROFIT ON THE GROSS SALES HAS BEEN REDUCED BY THE CIT(A) TO 2.5%, WHICH SEEMS EMINENTLY REASONABLE CONSIDERING THE NATURE OF THE ASSESSEES BUSINESS, NAMELY, WHOLESALE TEXTILE TRADE AND COMMISSION AGEN CY. ACCORDINGLY WE CONFIRM THE ORDER OF THE CIT(A) AND DISMISS THE APPEAL FILED BY THE ASSESSEE. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH FEBRUARY 2011. SD/- SD/- (B RAMAKOTAIAH) (R V EASWAR) ACCOUNTANT MEMBER PRESIDENT MUMBAI, DATED 15 TH FEBRUARY 2011 SALDANHA COPY TO: 1. LADDHA LIME PVT. LTD. CHAWL NO.8A, ROOM NO.3, NEW GIRGAON KARWADI, SITLADEVI TEMPLE ROAD MAHIM (WEST), MUMBAI 400 016 2. ITO 6(3)(2), MUMBAI 3. CIT-6, MUMBAI 4. CIT(A)-XXVI, MUMBAI 5. DR J BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI