VELJI RUPSI FURIA, MUMBAI V. DCIT (OSD II) CEN RG 7, MUMBAI

ITA 4000/MUM/2013

• Counselvise Citation: 400019914 RSA 2013
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 20-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K SINGH
• Assessee Lawyers: KIRIT SHETH
• Keywords: Business income

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./I.T.A. NO.4000/MUM/2013 ( / ASSESSMENT YEAR :2010-11) VELJI RUPSI FURIA, 154, BORA BAZAR STREET, FORT, MUMBAI-400001 / VS. DY. COMMISSIONER OF INCOME TAX (OSD-II), CENTRAL RANGE-7, 4 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD, CHURCHGATE, MUMBAI-400020 ( / APPELLANT) .. ( !' / RESPONDENT) ./ $% ./ PAN/GIRNO.: AAIPS5194D & / APPELLANT BY : SHRI KIRIT SHETH !' ' & /RESPONDENT BY : SHRI P K SINGH ( ) ' * + / DATE OF HEARING : 28.8.2014 ,- ' * + / DATE OF PRONOUNCEMENT : 10.9.2014 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER DATED 26.3.2013 PASSED BY LD CIT(A)-40, MUMBAI AND IT REL ATES TO THE ASSESSMENT YEAR 2010-11. THE ASSESSEE IS AGGRIEVED BY THE DEC ISION OF LD CIT(A) IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN E STIMATING THE PROFIT OF THE ASSESSEE AT RS.3.00 LAKHS. 2. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE R ECORD. WE NOTICE THAT THE ASSESSEE IS ENGAGED IN RETAIL BUSINESS BY NAME M/S MAHAVIR GENERAL STORE. DURING THE YEAR UNDER CONSIDERATION, THE A SSESSEE DECLARED A TURNOVER OF RS.5,18,665/- AND NET PROFIT OF RS.41,528/-. DURIN G THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE DID NOT APPEAR BEFORE THE AO AND ALSO DID NOT FURNISH ANY DETAIL. HENCE, THE AO ESTIMATED THE BUSINESS I NCOME AT RS.3.00 LAKHS. I.T.A. NO.4000/MUM/2013 2 SINCE THE ASSESSEE HAD DECLARED A NET PROFIT OF RS. 41,258/-, THE ASSESSING OFFICER MADE AN ADDITION OF RS.2,58,472/- (RS.3,00,000 (-) RS.41,258/-). THE LD CIT(A) ALSO CONFIRMED THE SAME. 3. BEFORE US, THE LD A.R SUBMITTED THAT THE ASSE SSEES CASE IS COVERED BY THE PROVISIONS OF SEC. 44AF OF THE ACT, WHICH ARE APPLI CABLE TO THE RETAIL TRADERS. HE SUBMITTED THAT THE PROFIT DECLARED BY THE ASSESSEE IS MORE THAN THE RATE OF PROFIT PRESCRIBED U/S 44AF OF THE ACT. ACCORDINGLY, HE SU BMITTED THAT THERE IS NO JUSTIFICATION OF THE PART OF TAX AUTHORITIES IN EST IMATING THE PROFIT AT RS.3.00 LAKHS. WHEN THIS CONTENTION WAS PUT BEFORE LD D.R, THE LEA RNED DEPARTMENTAL REPRESENTATIVE ADMITTED THAT THE CASE OF THE ASSESS EE WAS COVERED BY THE PROVISIONS OF SEC. 44AF OF THE ACT. HOWEVER, THE L D D.R SUBMITTED THAT THE ASSESSING OFFICER WAS CONSTRAINED TO ESTIMATE THE B USINESS INCOME, SINCE THE ASSESSEE DID NOT CO-OPERATE BEFORE THE AO. 4. SINCE THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE PROVISIONS OF SEC. 44AF ARE APPLICABLE TO THE ASSESSEE AND FURTHER THE NET PROFIT DECLARED BY THE ASSESSEE IS MORE THAN THAT PRESCRIBED UNDER THAT SE CTION, WE FIND NO JUSTIFICATION ON THE PART OF THE TAX AUTHORITIES TO ESTIMATE THE BUSINESS INCOME AT RS.3.00 LAKHS, THAT TOO ON A TURNOVER OF RS.5,18,665/-. WE FURTHER NOTICE THAT THE PROVISIONS OF SEC. 44AF HAVE BEEN BROUGHT INTO STAT UTE ONLY TO FACILITATE THE RETAIL TRADERS. ACCORDINGLY, WE DO NOT FIND MERIT IN THE ORDER OF LD CIT(A). ACCORDINGLY, WE SET ASIDE HIS ORDER ON THIS ISSUE AND DIRECT THE AO TO DELETE THE IMPUGNED ADDITION. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 10TH SEPT, 2014 . ,- ( . /0 1 2 10 TH SEPT, 2014 - ' 3) 4 SD SD ( . . / H.L. KARWA ) ( . . , / B.R. BASKARAN) / PRESIDENT / ACCOUNTANT MEMBER / ( ) MUMBAI : 10TH SEPT, 2014 . I.T.A. NO.4000/MUM/2013 3 . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. ( 9 * ( ) / THE CIT(A)- CONCERNED 4. ( :* / CIT CONCERNED 5. 6. ;< 3 !*= , + = , / ( ) / DR, ITAT, MUMBAI CONCERNED 3 > ) / GUARD FILE. ? ( / BY ORDER, TRUE COPY @ $ (ASSTT. REGISTRAR) + = , / ( ) /ITAT, MUMBAI