M/sAhlan Hajj & Umrah Services, Calicut V. The DCIT, Calicut

ITA 425/COCH/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7463 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 10-02-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 01-10-2014
• Court: TRIBUNAL
• Department Lawyers: SHANTOM BOSE
• Assessee Lawyers: C B M WARRIER
• Section: 143(3); 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ./ ././ ./ ITA NO.421, 422 AND 423/COCHIN/2014 / // / ASSTT.YEAR: 2009-2010 TO 2011-12] KERALA ISLAM HAJJ AND UMRAH SERVICES MARKET COMPLEX CALICUT. VS DCIT, CENT.CIR. KOZHIKODE. ./ ././ ./ ITA NO.424/COCHIN/2014 / // / ASSTT.YEAR: 2011-2012] SALAMATH HAJJ GROUP NT BUILDING, MM ALI ROAD CALICUT. VS DCIT, CENT.CIR.1 KOZHIKODE. ./ ././ ./ ITA NO.419 AND 420/COCHIN/2014 / // / ASSTT.YEAR: 2010-2011 AND 2011-12] VAZCO HAJJ GROUP VAZCO CHAMBERS CHALAPURAM CALICUT. VS DCIT, CENT.CIR.1 KOZHIKODE. ./ ././ ./ ITA NO.425 AND 426/COCHIN/2014 / // / ASSTT.YEAR: 2010-2011 AND 2011-12] AHLAN HAJJ & UMRAH SERVICES NIRMAL TOWERS 201, 2 ND FLOOR BORA CAMBA ROAD CONNAUGHT PLAZA NEW DELHI. VS DCIT, CENT.CIR.1 KOZHIKODE. ( (( ( APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI CBM WARRIER, CA REVENUE BY : SHRI SHANTOM BOSE, CIT-DR / // / DATE OF HEARING : 10/02/2016 / // / DATE OF PRONOUNCEMENT: 01/03/2016 ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 2 ! ! ! !/ // / O R D E R PER BENCH: THESE APPEALS OF DIFFERENT ASSESSEES ARISE FROM THE DIFFERENT ORDERS THE LD.CIT(A)-I, KOCHI FOR THE RESPECTIVE ASSTT.YEARS 2 009-10 TO 2011-12. THE ASSESSEE HAS ALSO FILED APPEAL FOR THE ASSTT.YEARS 2009-10 TO 2011-12. SINCE ISSUES IN ALL THE APPEALS ARE IDENTICAL, THEREFORE, ALL THE APPEALS ARE BEING DECIDED BY THIS CONSOLIDATED ORDER. 2. FIRST, WE TAKE UP THE APPEAL IN ITA NO.421/C/201 4 IN THE CASE OF KERALA ISLAM HAJJ AND UMRAH SERVICES FOR THE ASSTT.YEAR 20 09-10. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN THE BUSINESS OF TOURS AND TRAVELS AND IS CONDUCTING HAJ J AND UMRAH SERVICES. THE ASSESSEE FILED ITS RETURN OF INCOME FOR A.Y. 2009-1 0 AT RS. 86,760/-. A SEARCH UNDER SECTION 132 OF THE ACT WAS CONDUCTED AT THE B USINESS PREMISE OF THE ASSESSEE ON 10.11.2011 IN CONNECTION WITH THE SEARC H CONDUCTED AT THE PREMISE OF M/S ALHIND TOURS AND TRAVELS PVT. LTD. C ONSEQUENTLY NOTICES UNDER SECTION 153C OF THE ACT WERE ISSUED TO THE ASSESSEE FOR A.Y. 2005-06 TO 2010- 11. DURING THE COURSE OF THE YEAR, THE ASSESSEE HA D PROVIDED HAJJ SERVICES FOR 394 PERSONS. THE TOTAL COLLECTION THEREOF WAS RS. 5 ,04,04,930/-. THE ASSESSING OFFICER VIDE ORDER DATED 28.03.2013 MADE AN ADDITIO N OF RS. 82,74,000/- ON ACCOUNT OF DISALLOWANCE OF EXCESS FOOD AND ACCOMMOD ATION EXPENDITURE IN THE PROFIT AND LOSS ACCOUNT OF THE ASSESSEE. IT WAS OBSERVED BY THE ASSESSING OFFICER THAT SINCE THE BOOKS OF ACCOUNT WERE NOT MA INTAINED BY PROPER BILLS AND VOUCHERS, THE INCOME HAD TO BE ESTIMATED BY TAKING COMPARABLE CASES OF NONPROFIT ORGANIZATIONS LIKE KERALA HAJJ GROUP, CAL ICUT AND KERALA NADUVATHUAL MUJAHIDEEN. THE SWORN STATEMENTS OF THE AUTHORIZED REPRESENTATIVES OF THESE ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 3 ORGANIZATIONS WERE RECORDED BY THE ASSESSING OFFICE R AND THE FOLLOWING DETAILS WITH RESPECT TO A.Y. 2010-11 WERE GATHERED. DESCRIPTION KERALA HAJJ GROUP, CALICUT (RS.) KERALA NADUVATHUL MUJHAJIDEEN, ANIEE HALL ROAD, CALICUT. A TICKET CHARGE 45,000 42,200 B DD TO MUTAWIFF 13,500 13,500 C TESRI (SERVICE CHARGES) 10,000 12,000 D. HAJJ CLASS BAG 2,000 75 E. EXTRA PAYMENT TO MUTAFWIFF 19,000 5,000 F. STAY AT MECCA 20 DAYS 15,000 - G. STAY AT MADEENA (AROUND 9 DAYS) 9,000 - H. STAY AT AZEEIYA (AROUND 4 TO 6 DAYS) 15,000 48,300 I. FOOD EXPENSES 10,000 J. MECCA MADEENA TOUR 5,000 - K. MEDICAL CHECK UP - 400 TOTAL 1,43,500 1,24,475 STAY AT MECCA, MADEENA AND AZEEZIA 4. THE DISALLOWANCE FOR THE RELEVANT AY 2009-10 WA S MADE ON THE BASIS OF THE DISALLOWANCE MADE IN THE CASE OF THE ASSESSEE I N A.Y. 2010-11. 5. AGGRIEVED BY THE ORDER DATED 20.03.2013, THE AS SESSEE PREFERRED APPEAL BEFORE CIT(A) WHO LIMITED THE ADDITION TO RS. 35,46 ,000/-, TREATING THE SAME TO BE EXCESSIVE EXPENDITURE. 6. THE ASSESSEE IS IN APPEAL BEFORE US AND HAS RAI SED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE APPELLANT IS KERALA ISLAM HAJJ AND UTNRAH S ERVICES, CALICUT IN RESPECT OF A.Y.2009-10, THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, CALICUT HAS FIXED AN INCOME OF RS.1 ,36,19,000/- AND THE COMMISSIONER OF INCOME TAX [APPEALS] HAS SUSTAINED THE ADDITION OF RS.35,46,000/- WHICH IS NOT JUSTIFIED. ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 4 2. THE APPELLANT IS CONDUCTING HAJJ GROUPS ALONG WI TH SEVERAL OTHER AGENCIES. THE ASSESSING OFFICER AND THE COMMISSIONE R OF INCOME TAX (APPEALS) HAS ESTIMATED PROFIT AND ENHANCED AMOUNTS EVEN IN SPITE OF THE EVIDENCES OF EXPENDITURE AS PER THE STATEMENT T AKEN FROM THE TWO OTHER HAJJ GROUPS AFTER THE SEARCH U/S.132. 3. THE COMMISSIONER OF INCOME TAX (APPEALS) HA S GONE WRONG IN DECIDING THAT THERE IS AN EXCESS OF EXPENDITURE OF RS. 35,46,000/- TO BE ADDED TO TOTAL INCOME. 4. FOR THE ABOVE REASONS THE APPELLANT MAY SUB MIT THAT ADDITION OF RS.35,46,000/-TO THE INCOME BY THE ORDER OF COMMISS IONER OF INCOME TAX (APPEALS) IS NOT JUSTIFIED AND MAY BE CANCELLED . 7. THE LD. AR SUBMITS THAT THE DISALLOWANCE MADE IN TH E CASE OF THE ASSESSEE IS UNCALLED FOR AND UNJUSTIFIED. HE THEREF ORE PRAYS THAT THE ADDITION OF RS. 35,46,000/- MADE BY THE CIT(A) SHOULD BE DELETE D. THE LD. DR ON THE OTHER HAND HAS RELIED UPON THE ORDER OF THE CIT(A) TO SUPPORT HIS SUBMISSIONS. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE PART IES. THE ASSESSEE HAD PROVIDED HAJJ SERVICES FOR 394 PERSONS DURING THE R ELEVANT ASSESSMENT YEAR. THE TOTAL COLLECTIONS NOT DISPUTED BY THE REVENUE F ROM THE SERVICES CARRIED .OUT BY THE ASSESSEE IS RS. 5,04,04,930/-. THE AVERAGE C OLLECTION PER PERSON WAS RS 1,27,931/-. THE ASSESSEE HAD SHOWN A PROFIT OF O NLY RS. 220 PER PERSON WHICH IS VERY LOW, CONSIDERING THE NATURE OF BUSINE SS OF THE ASSESSEE. THE ASSESSING OFFICER HAS CONSIDERED THE CASE OF KERALA HAJJ GROUP, A NON PROFIT ORGANIZATION TO COMPARE IT WITH THE CASE OF THE ASS ESSEE. IN THAT CASE THE ORGANIZATION HAD COLLECTED RS. 1,50,000/- PER PERSO N AND THE TOTAL EXPENDITURE INCURRED WAS RS. 1,43,500/-. THE PROFIT EARNED PER PERSON WAS RS. 6,500/- IN THAT CASE. THE SAME IS REASONABLE IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE ALSO AND SHOULD BE APPLIED IN THE CASE OF THE ASSESSEE. 9. IF THE ASSESSED INCOME IS TAKEN AT RS. 36,32,76 0/- AFTER MAKING AN ADDITION OF RS. 35,46,000/- MADE BY THE CIT(A), THE PROFIT PER PERSON COMES OUT TO THE RS. 9,220/-. THE EXCESS THEREOF I.E. THE DIF FERENCE OF RS. 9,220/- AND RS. ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 5 6,500/- DETERMINED BY US SHOULD BE DELETED FROM THE INCOME ASSESSED BY THE CIT(A). 10. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALH IND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUOUS . THE PRESENT ORDER SHALL ONLY BE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. 11. IN THE APPEAL, THE ITA NO.421/C/2014 IS DISMISS ED AS IN FRUCTUOUS . ITA NO.422/COCH/2014 (KERALA ISLAM HAJJ AND UMRAH S ERVICES) 12. THE FACTS OF THE PRESENT CASE ARE SIMILAR TO T HOSE IN ITA NO. 421/C/2014. THE ASSESSEE IN THE PRESENT CASE HAD A TOTAL COLLEC TION OF RS. 5,91,00,000/- AND THE SERVICES OF HAJJ PILGRIMAGE WERE PROVIDED T O 394 PILGRIMS. THE PROFIT PER PERSON WAS DETERMINED AT RS. 6,500/- BY US IN THE C ASE OF THE ASSESSEE FOR A.Y. 2009-10. THE RELEVANT ASSESSMENT YEAR IN THE P RESENT CASE IS 2010-11. 13. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS. 82,74,000/- ON ACCOUNT OF EXCESS FOOD AND ACCOMMODATION EXPENDITUR E. THE LD.CIT(A) LIMITED THE ADDITION TO RS. 35,46,000/-. 14. THE ASSESSEE HAD FILED THE RETURN DECLARING AN INCOME OF RS. 53,45,000/-. THE AVERAGE PROFIT PER PERSON FOR 394 PILGRIMS IS RS. 13,566/-. 15. IN THE CASE OF THE FOLLOWING HAJJ GROUPS CASE S RELIED UPON THE ASSESSEE, THE PROFIT PER PERSON WAS DETERMINED AT RS. 10,000 PER PERSON BY THE ASSESSING OFFICER FOR A.Y. 2012-13. ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 6 A. PERUMPADAPPIL ABDUL SAMAD (KERALA ISLAM HAJJ AND UMRAH SERVICES) (PAN: AKCPA0511G): ORDER DATED 12-02-2015 U/S 143( 3) BY THE INCOME TAX. OFFICER WARD 3, TIRUR. (PAPER BOOK PAGE 3-7) B. M.V. VAZEERUDHEEN (VAZCO HAJJ GROUP) (PAN: AKAPM 6079P): ORDER DATED 12-03-2015 U/S 143(3) BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1, KOZHIKODE. (PAPER BOOK PAGE 8-13 ) C. ABDUL SALAM CHERUVOTH THAZHATH (SALAMAT H HAJJ GROUP) (PAN: AQNPC8555H): ORDER DATED 11-03-2015 U/S 143(3 ) BY INCOME TAX OFFICER, WARD 1(1), KOZHIKODE. (PAPER BOOK PAGE 14-18) 16. ALSO IN THE CASE OF SALAMATH HAJJ, THE PROFIT PER PERSON FOR A.Y. 2013-14 WAS DETERMINED AT RS. 10,000 PER PERSON VIDE ORDER DATED 23.11.2015 PASSED BY THE ASSESSING OFFICER. 17. IN THE SUBSEQUENT YEAR I.E. A.Y. 2012-13 AND 2013-14, THE PROFIT PER PERSON IS DETERMINED IN THE CASE OF HAJJ GROUPS AT RS. 10,000/- PER PERSON. THE ASSESSEE HAD DECLARED A PROFIT OF RS. 13,566/- PER PERSON. THE SAME IS REASONABLE AND NO FURTHER ADDITION IS CALLED FOR IN THE PRESENT CASE ON ACCOUNT OF FOOD AND. ACCOMMODATION EXPENSE. 18. THE ADDITION MADE BY THE CIT(A) IS DELETED. 19. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALHIND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUO US. THE PRESENT ORDER SHALL ONLY BE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. 20. ACCORDINGLY, THE APPEAL BEING ITA NO.422/C/2014 IS DISMISSED AS INFRUCTUOUS. ITA NO.423/COCH/2014 (KERALA ISLAM HAJJ AND UMRAH S ERVICES) ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 7 21. THE FACTS OF THE PRESENT CASE ARE SIMILAR TO T HOSE IN ITA NO. 422/C/0/14. THE ASSESSEE IN THE PRESENT CASE HAD A TOTAL COLLEC TION OF RS. 6,62,59,0007- AND THE SERVICES WERE PROVIDED TO 383 PILGRIMS. THE RELEVANT ASSESSMENT YEAR IN THE PRESENT CASE IS 2011-12. 22. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS. 99,02,848/- ON ACCOUNT OF EXCESS FOOD AND ACCOMMODATION EXPENDITUR E. THE CIT(A) LIMITED THE ADDITION TO RS. 76,60,000/-. 23. THE ASSESSEE HAD FILED THE RETURN DECLARING AN INCOME OF RS. 53,12,320/-. THE AVERAGE PROFIT PER PERSON FOR 383 PILGRIMS IS RS. 13,870/-. 24. IN THE CASE OF THE FOLLOWING HAJJ GROUPS RELIE D UPON THE ASSESSEE, THE PROFIT PER PERSON WAS DETERMINED AT RS. 10,000 PER PERSON BY THE ASSESSING OFFICER FOR A.Y. 2012-13. A. PERUMPADAPPIL ABDUL SAMAD (KERALA ISLAM HAJJ AND UMRAH SERVICES) (PAN: AKCPA0511G): ORDER DATED 12-02-2015 U/S 143( 3) BY THE INCOME TAX. OFFICER WARD 3, TIRUR. (PAPER BOOK PAGE 3-7) B. M.V. VAZEERUDHEEN (VAZCO HAJJ GROUP) (PAN: AKAPM 6079P): ORDER DATED 12-03-2015 U/S 143(3) BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1, KOZHIKODE. (PAPER BOOK PAGE 8-13 ) C. ABDUL SALAM CHERUVOTH THAZHATH (SALAMAT H HAJJ GROUP) (PAN: AQNPC8555H): ORDER DATED 11-03-2015 U/S 143(3 ) BY INCOME TAX OFFICER, WARD 1(1), KOZHIKODE. (PAPER BOOK PAGE 14-18) 25. ALSO IN THE CASE OF SALAMATH HAJJ, THE PROFIT PER PERSON FOR A.Y. 2013-14 WAS DETERMINED AT RS. 10,000 PER PERSON VIDE ORDER DATED 23.11.2015 PASSED BY THE ASSESSING OFFICER. 26. IN THE SUBSEQUENT YEAR I.E. A.Y. 2012-13 AND 2013-14, THE PROFIT PER PERSON IS DETERMINED IN THE CASE OF HAJJ GROUPS AT RS. 10,000/- PER PERSON. FOR AY 2010-11, IN THE CASE OF THE ASSESSEE ITSELF, THE PROFIT PERSON WAS DECLARED AT RS 13,566 AND NO ADDITION HAD BEEN MADE. THE ASS ESSEE HAD DECLARED A PROFIT OF RS. 13,870/- PER PERSON. THE SAME IS REAS ONABLE AND NO FURTHER ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 8 ADDITION IS CALLED FOR IN THE PRESENT CASE ON ACCOU NT OF FOOD AND ACCOMMODATION EXPENSE. 27. THE ADDITION MADE BY THE LD.CIT(A) IS DELETED. 28. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALHIND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUO US. THE PRESENT ORDER SHALL ONLY BE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. 29. THUS, THE PRESENT APPEAL BEING ITA NO.423/COCH/2014 IS DISMISSED AS INFRUCTUOUS. ITA NO.424/COCH/2014 (SALAMATH HAJJ GROUP) 30. THE FACTS OF THE PRESENT CASE ARE SIMILAR TO T HOSE IN ITA NO. 423/C/0/14. THE ASSESSEE IN THE PRESENT CASE HAD A TOTAL COLLEC TION OF RS. 6,34,91,000/- AND THE SERVICES WERE PROVIDED TO 367 PILGRIMS. THE RELEVANT ASSESSMENT YEAR IN THE PRESENT CASE IS 2011-12. 31. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS. 1,19,17,224/- ON ACCOUNT OF EXCESS FOOD AND ACCOMMODATION EXPENDITUR E. THE LD.CIT(A) LIMITED THE ADDITION TO RS. 70,65,117/-. 32. THE ASSESSEE HAD FILED THE RETURN DECLARING AN INCOME OF RS.52,92,900/- . THE AVERAGE PROFIT PER PERSON FOR 367 PILGRIMS IS RS. 14,422/-. 33. IN THE CASE OF THE FOLLOWING HAJJ GROUPS RELIE D UPON THE ASSESSEE, THE PROFIT PER PERSON WAS DETERMINED AT RS. 10,000 PER PERSON BY THE ASSESSING OFFICER FOR A.Y. 2012-13. A. PERUMPADAPPIL ABDUL SAMAD (KERALA ISLAM HAJJ AND UMRAH SERVICES) (PAN: AKCPA0511G): ORDER DATED 12-02-2015 U/S 143( 3) BY THE INCOME TAX. OFFICER WARD 3, TIRUR. (PAPER BOOK PAGE 3-7) ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 9 B. M.V. VAZEERUDHEEN (VAZCO HAJJ GROUP) (PAN: AKAPM 6079P): ORDER DATED 12-03-2015 U/S 143(3) BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1, KOZHIKODE. (PAPER BOOK PAGE 8-13 ) C. ABDUL SALAM CHERUVOTH THAZHATH (SALAMAT H HAJJ GROUP) (PAN: AQNPC8555H): ORDER DATED 11-03-2015 U/S 143(3 ) BY INCOME TAX OFFICER, WARD 1(1), KOZHIKODE. (PAPER BOOK PAGE 14-18) 34. ALSO IN THE CASE OF SALAMATH HAJJ, THE PROFIT PER PERSON FOR A.Y. 2013-14 WAS DETERMINED AT RS. 10,000 PER PERSON VIDE ORDER DATED 23.11.2015 PASSED BY THE ASSESSING OFFICER. 35. IN THE SUBSEQUENT YEAR I.E. A.Y. 2012-13 AND 2 013-14, THE PROFIT PER PERSON IS DETERMINED IN THE CASE OF HAJJ GROUPS AT RS. 10,000/- PER PERSON. IN ITA NO. 423/C/0/14, THE PROFIT DECLARED WAS RS. 13, 870/-, BY ONE OF THE FOUR GROUP FIRMS AND NO ADDITION HAD BEEN MADE. THE ASSE SSEE HAD DECLARED A PROFIT OF RS. 14,422/- PER PERSON. THE SAME IS REAS ONABLE AND NO FURTHER ADDITION IS CALLED FOR IN THE PRESENT CASE ON ACCOU NT OF FOOD AND ACCOMMODATION EXPENSE. 36. THE ADDITION MADE BY THE LD.CIT(A) IS DELETED. 37. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALHIND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUO US. THE PRESENT ORDER SHALL ONLY BE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. 38. THE PRESENT APPEAL IS DISMISSED AS INFRUCTUOUS. ITA NO.419/COCH/2014 (VAZCO HAJJ GROUP) 39. THE FACTS OF THE PRESENT CASE ARE SIMILAR TO T HOSE IN ITA NO. 422/C/0/14. THE ASSESSEE IN THE PRESENT CASE HAD A TOTAL COLLEC TION OF RS. 5,65,50,000/- ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 10 AND THE SERVICES WERE PROVIDED TO 377 PILGRIMS. THE RELEVANT A.Y. IN THE PRESENT CASE IS 2010-11. 40. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS. 92,47,433/- ON ACCOUNT OF EXCESS FOOD AND ACCOMMODATION EXPENDITUR E. THE CIT(A) LIMITED THE ADDITION TO RS.46,82,118/-. 41. THE ASSESSEE HAD FILED THE RETURN DECLARING AN INCOME OF RS.50,36,860/- . THE AVERAGE PROFIT PER PERSON FOR 377 PILGRIMS IS RS. 13,360/-. 42. IN THE CASE OF THE FOLLOWING HAJJ GROUPS RELIE D UPON THE ASSESSEE, THE PROFIT PER PERSON WAS DETERMINED AT RS. 10,000 PER PERSON BY THE ASSESSING OFFICER FOR A.Y. 2012-13. A. PERUMPADAPPIL ABDUL SAMAD (KERALA ISLAM HAJJ AND UMRAH SERVICES) (PAN: AKCPA0511G): ORDER DATED 12-02-2015 U/S 143( 3) BY THE INCOME TAX. OFFICER WARD 3, TIRUR. (PAPER BOOK PAGE 3-7) B. M.V. VAZEERUDHEEN (VAZCO HAJJ GROUP) (PAN: AKAPM 6079P): ORDER DATED 12-03-2015 U/S 143(3) BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1, KOZHIKODE. (PAPER BOOK PAGE 8-13 ) C. ABDUL SALAM CHERUVOTH THAZHATH (SALAMAT H HAJJ GROUP) (PAN: AQNPC8555H): ORDER DATED 11-03-2015 U/S 143(3 ) BY INCOME TAX OFFICER, WARD 1(1), KOZHIKODE. (PAPER BOOK PAGE 14-18) 43. ALSO IN THE CASE OF SALAMATH HAJJ, THE PROFIT PER PERSON FOR A.Y. 2013-14 WAS DETERMINED AT RS. 10,000 PER PERSON VIDE ORDER DATED 23.11.2015 PASSED BY THE ASSESSING OFFICER. 44. IN THE SUBSEQUENT YEAR I.E. A.Y. 2012-13 AND 2013-14, THE PROFIT PER PERSON IS DETERMINED IN THE CASE OF HAJJ GROUPS AT RS. 10,000/- PER PERSON. ALSO, IN ITA NO. 422/C/0/14, THE PROFIT PER PERSON HAD BEEN DECLARED BY ONE OF THE 4 GROUP FIRMS, AT RS 13,566/- AND NO ADDITION H AD BEEN MADE. THE ASSESSEE HAD DECLARED A PROFIT OF RS. 13,360/- PER PERSON. THE SAME IS REASONABLE AND NO FURTHER ADDITION IS CALLED FOR IN THE PRESENT CASE ON ACCOUNT OF FOOD AND ACCOMMODATION EXPENSE. ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 11 45. THE ADDITION MADE BY THE LD.CIT(A) IS DELETED. 46. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALHIND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUO US. THE PRESENT ORDER SHALL ONLY BE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. THUS, THIS A PPEAL IS AS INFRUCTUOUS . ITA NO.420/COCH/2014 (VAZCO HAJJ GROUP) 47. THE FACTS OF THE PRESENT CASE ARE SIMILAR TO T HOSE IN ITA NO. 423/C/0/14. THE ASSESSEE IN THE PRESENT CASE HAD A TOTAL COLLEC TION OF RS. 6,34,91,000/- AND THE SERVICES WERE PROVIDED TO 367 PILGRIMS. THE RELEVANT A.Y. IN THE PRESENT CASE IS 2011-12. 48. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS.1,19,31,170/- ON ACCOUNT OF EXCESS FOOD AND ACCOMMODATION EXPENDITUR E. THE LD.CIT(A) LIMITED THE ADDITION TO RS. 73,65,690/-. 49. THE ASSESSEE HAD FILED THE RETURN DECLARING AN INCOME OF RS.50,06,010/- . THE AVERAGE PROFIT PER PERSON FOR 367 PILGRIMS IS RS. 13,640/-. 50. IN THE CASE OF THE FOLLOWING HAJJ GROUPS RELI ED UPON THE ASSESSEE, THE PROFIT PER PERSON WAS DETERMINED AT RS. 10,000 PER PERSON BY THE ASSESSING OFFICER FOR A.Y. 2012-13. A. PERUMPADAPPIL ABDUL SAMAD (KERALA ISLAM HAJJ AND UMRAH SERVICES) (PAN: AKCPA0511G): ORDER DATED 12-02-2015 U/S 143( 3) BY THE INCOME TAX. OFFICER WARD 3, TIRUR. (PAPER BOOK PAGE 3-7) B. M.V. VAZEERUDHEEN (VAZCO HAJJ GROUP) (PAN: AKAPM 6079P): ORDER DATED 12-03-2015 U/S 143(3) BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1, KOZHIKODE. (PAPER BOOK PAGE 8-13 ) ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 12 C. ABDUL SALAM CHERUVOTH THAZHATH (SALAMAT H HAJJ GROUP) (PAN: AQNPC8555H): ORDER DATED 11-03-2015 U/S 143(3 ) BY INCOME TAX OFFICER, WARD 1(1), KOZHIKODE. (PAPER BOOK PAGE 14-18) 51. ALSO IN THE CASE 'OF SALAMATH HAJJ, THE PROFIT PER PERSON FOR A.Y. 2013-14 WAS DETERMINED AT RS. 10,000 PER PERSON VIDE ORDER DATED 23.11.2015 PASSED BY THE ASSESSING OFFICER. 52. IN THE SUBSEQUENT YEAR I.E. A.Y. 2012-13 AND 2013-14, THE PROFIT PER PERSON IS DETERMINED IN THE CASE OF HAJJ GROUPS AT RS. 10,000/- PER PERSON. IN ITA NO. 423/C/0/14, THE PROFIT DECLARED WAS RS. 13, 870/-, BY ONE OF THE FOUR GROUP FIRMS AND NO ADDITION HAD BEEN MADE. THE ASSE SSEE HAD DECLARED A PROFIT OF RS.13,640/- PER PERSON, THE SAME IS REASO NABLE AND NO FURTHER ADDITION IS CALLED FOR IN THE PRESENT CASE ON ACCOU NT OF FOOD AND ACCOMMODATION EXPENSE. 53. THE ADDITION MADE BY THE LD.CIT(A) IS DELETED. 54. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALHIND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUO US. THE PRESENT ORDER SHALL ONLY BE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. 55. THE PRESENT APPEAL IS DISMISSED AS INFRUCTUOUS . ITA NO.425/COCH/2014 (AHLAN HAJJ AND UMRAH SERVICES ) 56. THE FACTS OF THE PRESENT CASE ARE SIMILAR TO T HOSE IN ITA NO. 422/C/0/14. THE ASSESSEE IN THE PRESENT CASE HAD A TOTAL COLLEC TION OF RS. 58,76,324/-AND THE SERVICES WERE PROVIDED TO 50 PILGRIMS. THE RELE VANT A.Y. IN THE PRESENT CASE IS 2010-11. ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 13 57. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS. 16,16,550/- ON ACCOUNT OF EXCESS FOOD AND ACCOMMODATION EXPENDITUR E. THE LD.CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 58. IN THE CASE OF THE FOLLOWING HAJJ GROUPS RELIE D UPON THE ASSESSEE, THE PROFIT PER PERSON WAS DETERMINED AT RS. 10,000 PER PERSON BY THE ASSESSING OFFICER FOR A.Y. 2012-13. A. PERUMPADAPPIL ABDUL SAMAD (KERALA ISLAM HAJJ AND UMRAH SERVICES) (PAN: AKCPA0511G): ORDER DATED 12-02-2015 U/S 143( 3) BY THE INCOME TAX. OFFICER WARD 3, TIRUR. (PAPER BOOK PAGE 3-7) B. M.V. VAZEERUDHEEN (VAZCO HAJJ GROUP) (PAN: AKAPM 6079P): ORDER DATED 12-03-2015 U/S 143(3) BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1, KOZHIKODE. (PAPER BOOK PAGE 8-13 ) C. ABDUL SALAM CHERUVOTH THAZHATH (SALAMAT H HAJJ GROUP) (PAN: AQNPC8555H): ORDER DATED 11-03-2015 U/S 143(3 ) BY INCOME TAX OFFICER, WARD 1(1), KOZHIKODE. (PAPER BOOK PAGE 14-18) 59. ALSO IN THE CASE OF SALAMATH HAJJ, THE PROFIT PER PERSON FOR A.Y. 2013-14 WAS DETERMINED AT RS. 10,000 PER PERSON VIDE ORDER DATED 23.11.2015 PASSED BY THE ASSESSING OFFICER. 60. IN THE SUBSEQUENT YEAR I.E. A.Y. 2012-13 AND 2013-14, THE PROFIT PER PERSON IS DETERMINED IN THE CASE OF HAJJ GROUPS AT RS. 10,000/- PER PERSON. WE HOLD THAT THE DISALLOWANCE IS TO BE MADE CONSIDERIN G THE PROFIT PER PERSON TO BE RS. 10,000/- ONLY. 61. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALHIND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUOUS . THE PRESENT ORDER SHALL ONLY BE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. 62. THE PRESENT APPEAL IS DISMISSED AS INFRUCTUOUS . ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 14 ITA NO.426/COCH/2014 (AHLAN HAJJ AND UMRAH SERVICES ) 63. THE FACTS OF THE PRESENT CASE ARE SIMILAR TO T HOSE IN ITA NO. 425/C/2014. THE ASSESSEE IN THE PRESENT CASE HAD A TOTAL COLLEC TION OF RS. 69,50,000/-AND THE SERVICES WERE PROVIDED TO 50 PILGRIMS. THE PROF IT PER PERSON WAS DETERMINED AT RS. 10,000/- BY US IN THE CASE OF THE ASSESSEE IN ITA NO. 425/C/0/14 FOR A.Y. 2010-11. THE RELEVANT ASSESSMEN T YEAR IN THE PRESENT CASE IS 2011-12. 64. THE ASSESSING OFFICER HAD MADE AN ADDITION OF RS. 14,70,223/- ON ACCOUNT OF EXCESS FOOD AND ACCOMMODATION EXPENDITUR E. THE LD.CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 65. IN THE CASE OF THE FOLLOWING HAJJ GROUPS RELIE D UPON THE ASSESSEE, THE PROFIT PER PERSON WAS DETERMINED AT RS. 10,000 PER PERSON BY THE ASSESSING OFFICER FOR A.Y. 2012-13. A. PERUMPADAPPIL ABDUL SAMAD (KERALA ISLAM HAJJ AND UMRAH SERVICES) (PAN: AKCPA0511G): ORDER DATED 12-02-2015 U/S 143( 3) BY THE INCOME TAX. OFFICER WARD 3, TIRUR. (PAPER BOOK PAGE 3-7) B. M.V. VAZEERUDHEEN (VAZCO HAJJ GROUP) (PAN: AKAPM 6079P): ORDER DATED 12-03-2015 U/S 143(3) BY DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1, KOZHIKODE. (PAPER BOOK PAGE 8-13 ) C. ABDUL SALAM CHERUVOTH THAZHATH (SALAMAT H HAJJ GROUP) (PAN: AQNPC8555H): ORDER DATED 11-03-2015 U/S 143(3 ) BY INCOME TAX OFFICER, WARD 1(1), KOZHIKODE. (PAPER BOOK PAGE 14-18) 66. ALSO IN THE CASE OF SALAMATH HAJJ, THE PROFIT PER PERSON FOR A.Y. 2013-14 WAS DETERMINED AT RS. 10,000 PER PERSON VIDE ORDER DATED 23.11.2015 PASSED BY THE ASSESSING OFFICER. 67. IN THE SUBSEQUENT YEAR I.E. A.Y. 2012-13 AND 2013-14, THE PROFIT PER PERSON IS DETERMINED IN THE CASE OF HAJJ GROUPS AT RS. 10,000/- PER PERSON. WE ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 15 HOLD THAT THE DISALLOWANCE IS TO BE MADE CONSIDERIN G THE PROFIT PER PERSON TO BE RS. 10,000/- ONLY. 68. AS WE HAVE HELD IN THE CASE OF DCIT VS. M/S ALHIND TOURS AND TRAVELS PVT. LTD., ITA NO. 449/C/14 THAT THE INCOME OF THE HAJJ FIRMS FLOATED BY THE M/S ALHIND TOURS AND TRAVELS PVT. LTD. IS TO BE ASSESSE D IN ITS HAND ONLY, THE PRESENT APPEAL BY THE ASSESSEE HAS BECOME INFRUCTUO US. THE PRESENT ORDER SHALL ONOY GE USED FOR THE PURPOSES OF DETERMINING THE DISALLOWANCE UNDER THE HEAD FOOD AND ACCOMMODATION EXPENSES. 69. THE PRESENT APPEAL IS DISMISSED AS INFRUCTUOUS . 70. IN THE COMBINED RESULT, ALL THE APPEALS OF THE ASSESSEE ARE DISMISSED AS INFRUCTUOUS . ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST MARCH, 2016 AT COCHIN SD/- SD/- (GEORGE GEORGE K.) JUDICIAL MEMBER (B.P. JAIN) ACCOUNTANT MEMBER COCHIN: DATED 01/03/2016 ! '# $ # ! '# $ # ! '# $ # ! '# $ #/ COPY OF THE ORDER FORWARDED TO : 1. %& / THE APPELLANT 2. ''%& / THE RESPONDENT. 3. ( ) / CONCERNED CIT 4. )() / THE CIT(A) 5. #+, ', / DR, ITAT, 6. ,. / / GUARD FILE. ! ! ! ! / BY ORDER, 0 00 0/ // /1 2 1 2 1 2 1 2 ( DY./ASSTT.REGISTRAR) / ITAT ITA NO.421-423/COCHIN/2014 AND 5 OTHERS 16 1. DATE OF DICTATION- 22.02.2016 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 22.02.2016 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S. - 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. : 5. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 6. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. DATE OF DESPATCH OF THE ORDER