M/sAl Hind Tours &Travels P.Ltd, Calicut V. The DCIT, Calicut

ITA 428/COCH/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7468 (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
• Keywords: Income from undisclosed sources; Assessment record
• Section: 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.448, 449, 450 AND 451/COCHIN/2014 / // / ASSTT.YEAR: 2008-2009 TO 2011-12] DCIT, CENT.CIR.1 KOZHIKODE. VS M/S.ALHIND TOURS & TRAVELS PVT. LTD. MARKET COMPLEX MAVOOR ROAD KOZHIKODE 673 004. PAN : AADCA 2123 N ./ ././ ./ ITA NO.427, 428 AND 429/COCHIN/2014 / // / ASSTT.YEAR: 2009-2010 TO 2011-12] M/S.ALHIND TOURS & TRAVELS PVT. LTD. MARKET COMPLEX MAVOOR ROAD KOZHIKODE 673 004. 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 !' !' !' !'/ // / O R D E R PER BENCH: THESE FOUR APPEALS OF THE REVENUE ARISE FROM THE DI FFERENT ORDERS THE LD.CIT(A)-I, KOCHI FOR THE ASSTT.YEARS 2008-09 TO 2 011-12. THE ASSESSEE HAS ALSO FILED APPEAL FOR THE ASSTT.YEARS 2009-10 TO 20 11-12. SINCE ISSUES IN ALL THE APPEALS ARE IDENTICAL, THEREFORE, ALL THE APPEA LS ARE BEING DECIDED BY THIS CONSOLIDATED ORDER. ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 2 2. FIRST OF ALL, WE TAKE UP THE REVENUES APPEAL IN ITA NO.449/C/2014 FOR THE ASSTT.YEAR 2009-10 AND OUR ORDER HEREINBELOW SH ALL BE IDENTICALLY APPLICABLE IN ALL OTHER REVENUES APPEAL, SINCE THE MATTER IN ALL OTHER APPEALS IS IDENTICAL TO THE PRESENT APPEAL IN ITA NO.449/C/201 4. ITA NO.449/C/2014 3. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS IN THE BUSINESS OF TOURS AND TRAVELS AND PROVIDES HAJJ AND UMRAH SERVICES TO THE PILGRIMS. THE BUSINESS ACTIVITIES OF THE ASSESSEE COMPANY INCLUDES AIR TIC KET BOOKING, VISA STAMPING FOR HAJJ PILGRIMS, EARNING OF PROFIT FROM FOREIGN E XCHANGE ETC. THE RELEVANT ASSESSMENT YEAR IN THE PRESENT APPEAL IS 2009-10. A SEARCH UNDER SECTION 132 OF THE ACT WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSESSEE COMPANY ON 10.11.2010. SUBSEQUENTLY NOTICES UNDER SECTION 1 53A WERE ISSUED TO THE ASSESSEE FOR SIX YEARS I.E. A.Y. 2005-06 TO 2010-11 . DURING THE COURSE OF SEARCH AT THE PREMISES OF THE ASSESSEE COMPANY, A C OMPUTER BELONGING TO THE ASSESSEE WAS SEIZED IN WHICH COLLECTIONS FROM HAJJ AND UMRAH SERVICES WAS RECORDED AS RS. 118,27,12,252/-. THE ASSESSING OFFI CER OBSERVED THAT THE ASSESSEE HAD NOT ACCOUNTED FOR A TOTAL AMOUNT OF RS . 94,96,37,990/-. IT IS FURTHER REVEALED FROM THE ASSESSMENT RECORD THAT TH E ASSESSEE COMPANY HAD MAINTAINED THREE ACCOUNTS WITH FEDERAL BANK, CALICU T IN WHICH TOTAL DEPOSITS AMOUNTING TO RS. 94,96,37,990/- WAS MADE BETWEEN 20 .04.2007 TO 29.03.2011. THE DETAILS OF THE DEPOSITS IN THE THREE ACCOUNTS O F FEDERAL BANK ARE EXTRACTED HEREIN BELOW:- SL. NO. F.Y. A/C.NO.5501 A/C.NO.4967 A/C.4454 TOTAL 1. 2007-08 - 3,03,500 19,20,25,165 19,23,28,665 2. 2008-09 - 1,89,22,017 18,96,94,988 20,86,17,005 3. 2009-10 9,56,58,499 3,90,09,387 18,07,67,898 31,54,35,784 4. 2010-11 30,24,972 4,09,81,406 18,92,50,158 23,32,56,536 TOTAL 9,86,83,471 9,92,16,310 75,17,38,209 94,96,37,990 ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 3 4. THE ASSESSING OFFICER HELD THAT THESE THREE AC COUNTS DID NOT APPEAR IN THE FINAL ACCOUNTS OF THE ASSESSEE AS PER THE RETURNS O F INCOME FILED. ACCORDINGLY, THE ASSESSING OFFICER TREATED THE ENTIRE BANK DEPOS ITS AMOUNTING TO RS.94,96,37,990/- AS UNDISCLOSED INCOME OF THE ASSE SSEE. FOR THE RELEVANT A.Y. 2009-10 A SUM OF RS. 20,86,17,005/- OUT OF THE AFORESAID AMOUNT WAS ADDED TO THE INCOME OF THE ASSESSEE VIDE ASSESSMENT ORDER DATED 30.03.2013. 5. DURING THE COURSE OF SEARCH, IT WAS NOTICED THA T THE ASSESSEE COMPANY HAD FLOATED FOUR FIRMS NAMELY KERALA ISLAM HAJJ & U MRAH SERVICE, AHLAN HAJJ & UMRAH SERVICES, SALAMAT HAJJ GROUP AND VAZCO HAJJ G ROUP FOR CARRYING OUT HAJJ AND UMRAH SERVICES ON BEHALF OF THE ASSESSEE C OMPANY. THE SAID FIRMS WERE INCORPORATED WITH A VIEW TO CIRCUMVENT THE RES TRICTIONS IMPOSED BY THE GOVERNMENT OF SAUDI ARABIA ON THE NUMBER OF PILGRIM S EACH AGENCY COULD SEND FROM INDIA. THE SAID FIRMS HAD NO BANK ACCOUNT S OF THEIR OWN AND THOUGH THE RECEIPTS OF THESE FIRMS RAN INTO SEVERAL CRORES . CONSIDERING THE AFORESAID FACTS AND ALSO THE FACT THAT THESE CONCERNS DID NOT HAVE SEPARATE INFRASTRUCTURE OF THEIR OWN, THE INCOME OF THESE FOUR FIRMS WERE S UBSTANTIVELY ASSESSED IN THE HANDS OF THE ASSESSEE COMPANY AND PROTECTIVE ASSESS MENT WERE MADE IN THE HANDS OF THE FOUR FIRMS. IN THE A.Y. 2009-10 THE TO TAL INCOME OF THE FOUR FIRMS ADDED SUBSTANTIVELY TO THE INCOME OF THE ASSESSEE C OMPANY WAS RS. 5,95,23,050/-. 6. THE NEXT ADDITION RELEVANT TO THE PRESENT CASE IS PERTAINING TO THE ACCOMMODATION AND FOOD EXPENSES INCURRED BY THE ASS ESSEE. DURING THE RELEVANT PREVIOUS YEAR THE ASSESSEE COMPANY HAD CON DUCTED HAJJ PILGRIM SERVICE IN RESPECT OF 600 PERSONS. THE ASSESSING OF FICER OBSERVED THAT FOOD AND ACCOMMODATION EXPENSES HAD NOT BEEN ENTERED IN THE ASSESSEE'S BOOKS OF ACCOUNT AND RELYING UPON THE ORDERS PASSED IN TH E CASE OF AFORESAID FOUR FIRMS FLOATED BY THE ASSESSEE COMPANY, THE AVERAGE PROFIT PER PERSON EARNED BY THE ASSESSEE COMPANY WAS ESTIMATED AT RS. 32,000 /-. ACCORDINGLY, ADDITION OF RS. 1,92,00,000/-WAS MADE WITH RESPECT TO 600 PI LGRIMS. ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 4 7. AGGRIEVED BY THE ASSESSMENT ORDER DATED 30.03.2 013, THE ASSESSEE COMPANY PREFERRED APPEAL BEFORE THE LD.CIT(A). THE LD.CIT(A) IN ITS ORDER DATED 30.06.2014 OBSERVED THAT THE INCOME OF THE FO UR HAJJ GROUP FIRMS FLOATED BY THE ASSESSEE COMPANY DESERVES TO BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE COMPANY ON SUBSTANTIVE BASIS WHILE MAINTAI NING THE PROTECTIVE ASSESSMENTS IN THE HANDS OF THE FOUR FIRMS AS THE E VIDENCE SUGGESTS THAT IT WAS ONLY THE ASSESSEE COMPANY WHICH HAD BEEN MANAGING T HE AFFAIRS OF PROVIDING HAJJ AND UMRAH SERVICES TO THE PILGRIMS THROUGH ITS NETWORK. 8. BEFORE THE LD.CIT(A), THE ASSESSEE SUBMITTED D ETAILED ANALYSIS OF THE THREE BANK ACCOUNTS MAINTAINED BY IT IN FEDERAL BAN K CALICUT. ACCORDINGLY, THE LD.CIT(A) REFERRED THE SAME TO THE ASSESSING OFFICE R FOR A REMAND REPORT. THE ASSESSING OFFICER REITERATED HIS OBSERVATIONS GIVEN IN THE ASSESSMENT ORDER. AFTER CONSIDERING THE DETAILS SUBMITTED BY THE ASSE SSEE, THE LD.CIT(A) HELD THAT THE BANK ACCOUNTS IN THE NAME OF THE ASSESSEE IN FE DERAL BANK CANNOT BE TREATED AS UNDISCLOSED BANK ACCOUNTS AS THE RECEIPT S AND PAYMENTS WERE VERIFIABLE. HE FURTHER OBSERVED THAT THE ASSESSEE H AD ESTABLISHED A LINK OF INTER RELATED TRANSACTIONS BETWEEN THE GROUP CONCERNS AND THE ASSESSEE COMPANY. ACCORDINGLY, THE ENTIRE ADDITION MADE WITH RESPECT TO THE AFORESAID UNDISCLOSED INCOME IN THE THREE BANK ACCOUNTS WAS DELETED. FOR THE RELEVANT A.Y. 2009-10 A SUM OF RS. 20,86,17,005/- WAS DELETED. 9. AS REGARDS THE ADDITION PERTAINING TO THE FOOD AND ACCOMMODATION EXPENSE, THE LD.CIT(A) ESTIMATED THE AVERAGE PROFIT PER PERSON AT RS. 22,565/- AND CALCULATED THE TOTAL PROFIT FOR 600 PILGRIMS AT RS. 1,35,39,595/-. 10. THE REVENUE IS IN APPEAL BEFORE US AND HAS RAI SED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 1, KOCHI IS OPPOSED TO LAW, WEIGHT OF EVIDENCE AND FACTS OF THE CASE. ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 5 2. THE CIT (A) HAS NOT TAKEN IN TO CONSIDERATION TH E FACT THAT THE ASSESSEE HAS NOT DISCLOSED THE DEPOSIT IN 3 BANK AC COUNTS WITH FEDERAL BANK WHICH ARE THE UNACCOUNTED DEPOSITS IN THE BALA NCE SHEET FOR THE RELEVANT FINANCIAL YEAR. HENCE THE CIT (A) HAS ERRE D IN DISALLOWING THE ADDITION MADE BY THE ASSESSING OFFICER TO THE TUNE OF RS. 20,86,17,005/- ON ACCOUNT OF UNACCOUNTED DEPOSITS. THE THEN AUTHOR IZED REPRESENTATIVE OF THE ASSESSEE WHO HAS AUDITED THE ACCOUNTS OF THE ASSESSEE HAS CLEARLY ADMITTED THAT THE DEPOSITS APPEARING IN THE SAID ACCOUNTS ARE NEITHER ACCOUNTED FOR NOR APPEAR IN THE BOOKS OF AC COUNTS OF THE ASSESSEE. 3. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE COMMISS IONER OF INCOME TAX (A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFI CER MAY BE RESTORED. 11. THE REVENUE HAS CHALLENGED THE DELETION OF AD DITION OF RS.20,86,17,005/- WITH RESPECT TO UNACCOUNTED DEPOS ITS IN THE THREE ACCOUNTS OF THE ASSESSEE COMPANY IN FEDERAL BANK. I T IS THE CASE OF THE REVENUE THAT IN THE ABSENCE OF ANY CONCRETE EVIDENC E SUPPORTING THE DEPOSITS AND WITHDRAWALS WHICH HAVE HAPPENED IN THE AFORESAID BANK ACCOUNTS, THE ENTIRE DEPOSITS HAVE TO BE TREATED AS UNACCOUNTED INCOME OF THE ASSESSEE COMPANY. THE LD. DR ARGUED THAT THE AU DITOR OF THE ASSESSEE COMPANY SHRI M. NARANAYANA KUMAR CA HAD CATEGORICAL LY ACCEPTED THAT THREE ACCOUNTS MAINTAINED IN THE FEDERAL BANK HAD A TOTAL DEPOSIT OF RS. 94,96,37,990/- AND THE SAME HAD NOT BEEN ACCOUNTED IN THE PREPARATION OF FINAL ACCOUNTS. 12. THE LD. AR AT THE OUTSET ADMITS THAT THE INCO ME OF THE FOUR HAJJ FIRMS MAY BE TAKEN AS THE INCOME OF THE ASSESSEE COMPANY ON A SUBSTANTIVE BASIS. THE LD. AR REBUTTING THE SUBMISSIONS MADE BY THE ID. DR ARGUES THAT THE RECEIPTS AS WELL AS THE WITHDRAWALS APPEARING I N THE AFORESAID BANK ACCOUNTS HAVE BEEN ENTERED AND ACCOUNTED FOR IN THE BOOKS OF ACCOUNT OF THE ASSESSEE COMPANY AND ALL THE TRANSACTIONS CARRI ED OUT HAVE BEEN RECORDED IN THE BOOKS. HE SUBMITS THAT THE RECEIPTS COLLECTED BY THE FOUR FIRMS WERE DEPOSITED IN THE THREE ACCOUNTS MENTIONE D AS THE FIRMS DID NOT HAVE BANK ACCOUNTS IN THEIR OWN NAME. THE LD. AR HA S REFERRED TO THE LETTER ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 6 DATED 14.03.2013 BY THE MANAGING DIRECTOR OF THE AS SEESSEE COMPANY WHEREIN IT WAS STATED THAT THE CREDITS IN THE BANK ACCOUNTS WERE REFLECTED IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE COMPANY AND F URTHER WITHDRAWALS FROM THE BANK ACCOUNTS WERE REFLECTED IN THE CASH BOOK MAINTAINED. HE FURT HER SUBMITS THAT THE DETAILED ANALYSIS OF THESE THREE B ANK ACCOUNTS HAD BEEN PRODUCED BEFORE THE LD. CIT(A) WHEREIN THE SOURCE O F DEPOSITS IN THE BANK ACCOUNTS WAS EXPLAINED ALONG WITH COMPLETE DETAILS OF THE WITHDRAWALS. THE SAME WAS VERIFIED BY THE LD. CIT(A) ON RANDOM CHECK BASIS. HE THEREFORE, SUPPORTS THE REASONING GIVEN BY LD. CIT(A) WITH RES PECT TO THE AFORESAID GROUND. 13. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUS ED THE RECORD OF THE CASE. IN VIEW OF THE ADMISSION BY THE ID. AR AS WELL AS T HE FACT THE FOUR HAJJ FIRMS FLOATED BY THE ASSESSEE COMPANY HAD NO INFRASTRUCTU RE OF THEIR OWN AND THEY DID NOT EVEN HAD THEIR OWN BANK ACCOUNTS, THE INCOM E OF THE HAJJ FIRMS IS TO BE ASSESSED IN THE HANDS OF THE ASSESSEE COMPANY ONLY. 14. AS REGARDS THE MERITS OF THE ADDITION IS CONC ERNED, THE ASSESSEE 'COMPANY HAD PRODUCED THE DETAILS OF ALL THE TRANSA CTIONS PERTAINING TO THE THREE ACCOUNTS MAINTAINED IN FEDERAL BANK CALICUT A LONG WITH THE COPY OF CASH BOOK, PROFIT AND LOSS ACCOUNT AND BALANCE SHEET OF THE COMPANY. THE ASSESSEE HAS FURTHER FILED THE DETAILED ANALYSIS OF THE TRANSACTIONS CARRIED OUT IN THE AFORESAID BANK. 15. THE CASH DEPOSITS OF RS. 1,19,10,141/- MADE I N THE ACCOUNTS OF FEDERAL BANK HAVE BEEN LINKED TO THE WITHDRAWAL MADE FROM T HE CASH BOOK MAINTAINED BY THE ASSESSEE. AS REGARDS THE OTHER DEPOSITS OF R S. 19,77,91,201/- AND RS. 1,84,05,701/- IN ACCOUNT NOS. 4454 AND 4967 RESPECT IVELY, THE ASSESSEE SUBMITS THAT THEY RELATE TO THE RECEIPTS FROM HAJJ AND UMRAH PILGRIMAGE. THE ASSESSEE HAS ESTABLISHED THE LINK BETWEEN THE DEPOS ITS PERTAINING TO THE FOUR HAJJ GROUPS. THE CREDITS IN THE THREE BANK ACCOUNTS WHICH IS SOUGHT TO BE ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 7 TREATED AS UNDISCLOSED INCOME BY THE REVENUE ARE RE FLECTED IN THE BOOKS OF FOUR HAJJ GROUP FIRMS. 16. THE CONTENTION OF THE REVENUE, THAT THE STATE MENT GIVEN BY THE AUDITOR OF THE ASSESSEE COMPANY, SH. M. NARAYANA KUMAR CA, HAS TO BE LOOKED INTO AND ACCORDINGLY, THE ADDITION OF RS. 20,86,17,005/- MAD E BY THE ASSESSING OFFICER SHOULD BE CONFIRMED, CANNOT BE ACCEPTED. THE ASSESS ING OFFICER DID NOT METHODICALLY EXAMINE THE TRANSACTIONS CARRIED OUT I N THE BANK ACCOUNTS. HE HAD SIMPLY ADDED THE ENTIRE DEPOSITS TO THE INCOME OF THE ASSESSEE. DESPITE THE DETAILED ANALYSIS AVAILABLE WITH HIM AT THE TIM E OF REMAND BY THE LD.CIT(A), THE ASSESSING OFFICER DID NOT CONSIDER THE SAME AND MERELY REITERATED THE ASSESSMENT ORDER. THE ASSESSEE HAD FILED THE COPIES OF DETAILS OF ALL THE BANK TRANSACTIONS, DETAILS OF SALES OF AIR TICKET AND EX PENSES PERTAINING TO HAJJ AND UMRAH SERVICES FOR RELEVANT ASSESSMENT YEAR ALONG W ITH THE STATEMENT OF CASH FLOW. THE LD.CIT(A) HAS VERIFIED THE DETAILS OF THE BANK ACCOUNTS AND FOUND NO INFIRMITY IN THE DETAILS GIVEN BY THE ASSESSEE COMP ANY. THE OBJECTION OF THE REVENUE THAT THE RELIANCE SHOULD SOLELY BE PLACED O N THE STATEMENT OF SH. M. NARAYANA KUMAR IS MISPLACED. THE ASSESSING OFFICER WENT ON A WRONG PREMISE AND ADDED THE ENTIRE DEPOSITS APPEARING IN THE BANK ACCOUNTS WITHOUT DEDUCTING THE WITHDRAWALS MADE. IT IS A SETTLED PRI NCIPLE OF LAW THAT ONLY THE REAL INCOME OF THE ASSESSEE HAS TO BE TAXED AND NOT NOTI ONAL INCOME. IN ANY CASE, THE ASSESSEE COULD NOT HAVE BEEN SUBJECTED TO TAX O NLY ON THE DEPOSITS IN THE BANK ACCOUNTS. 17. AS FAR AS THE DETAILS FURNISHED BY THE ASSESS EE COMPANY BEFORE THE LD.CIT(A) IS CONCERNED FOR WHICH REMAND REPORT WAS REQUESTED FROM THE ASSESSING OFFICER, NO ADVERSE OBJECTIONS HAD BEEN R AISED BY THE ASSESSING OFFICER. THE LD.CIT(A) HAS OBSERVED THAT THE SOURCE OF THE RECEIPTS IN THE BANK ACCOUNTS ARE VERIFIABLE. WE, THEREFORE, FIND NO INF IRMITY IN THE ORDER PASSED BY THE CIT(A) WITH RESPECT TO THE AFORESAID ADDITION. THE ADDITION PERTAINING TO THE DEPOSITS MADE IN FEDERAL BANK WAS RIGHTLY DELETED B Y THE LD.CIT(A). ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 8 18. IN RESULT THEREOF, GROUNDS NOS.1 TO 3 RAISED BY THE REVENUE ARE DISMISSED. THE APPEAL BEING ITA NO.449/C/2014 IS DI SMISSED. 19. NOW WE TAKE UP THE APPEAL OF THE REVENUE IN ITA NO.448/C/2014, 450/C/2014 AND 451/C/2014. 20. THE FACTS AND THE ISSUES RAISED IN THE PRESENT APPEALS ARE IDENTICAL TO THOSE IN ITA NO. 449/C/2014. AS WE HAVE DISMISSED T HE APPEAL OF THE REVENUE IN ITA NO. 449/C/2014 FOR THE REASONS RECORDED THER EIN, ACCORDINGLY, OUR ORDER THEREIN IS IDENTICALLY APPLICABLE IN THESE APPEALS, AND THEREFORE, THE APPEAL OF THE REVENUE BEING ITA NO.448, 450 AND 451/C/2014 AR E DISMISSED. 21. NOW WE TAKE UP THE APPEALS OF THE ASSESSEE IN I TA NOS.427, 428 AND 429/C/2014. 22. FIRST WE TAKE UP THE APPEAL OF THE ASSESSEE IN ITA NO.427/C/2014 FOR THE ASSTT.YEAR 2009-10. 23. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TOURS AND TRAVELS AND IS CONDUCTING HAJJ AND UMR AH SERVICES. THE RELEVANT ASSESSMENT YEAR IS A.Y.2009-10. THE FACTS OF THE PR ESENT CASE ARE SIMILAR TO THE FACTS STATED IN THE CASE OF THE REVENUE IN ITA NO. 449/C/14 WHEREIN THE REVENUE HAD FILED THE APPEAL AGAINST THE ORDER OF L D.CIT(A). 24. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL BEFORE US. 1. THE APPELLANT IS M/S.AI HIND TOURS & TRAVELS (P ) LTD., MARKET COMPLEX, MAVOOR ROAD, CALICUT AND IN REGARD TO THE ASSESSMENT YEAR 2009-10, THE DEPUTY COMMISSIONER OF INCOME TAX, CEN TRAL CIRCLE-1, KOZHIKODE HAS COMPLETED THE ASSESSMENT WITH AN INCO ME OF RS. 33,53,44,91 0/-AND MADE AN ADDITION OF HAJJ INCOME IN RESPECT OF KERALA ISLAM HAJJ AND UMRAH SERVICES RS. 35,46,000/- AND T HE COMMISSIONER OF INCOME TAX (APPEALS) HAS GONE WRONG IN CONFIRMING T HE PROFIT @ RS.1,35,39,595/- IN RESPECT OF HAJJ PILGRIMAGE COND UCTED BY THE APPELLANT COMPANY. ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 9 2. THE INCOME ESTIMATED BY THE COMMISSIONER OF INCO ME TAX(APPEALS), CALICUT IN RESPECT OF KERALA ISLAM HA JJ AND UMRAH SERVICES FOR THE A.Y. 2009-10 IS HIGHLY EXCESSIVE A ND THE APPEAL FILED IN RESPECT OF KERALA ISLAM HAJJ AND UMRAH SERVICES BEF ORE THE HON'BLE BENCH. THE EXPENDITURE IN RESPECT OF FOOD & ACCOMMO DATION AND OTHER EXPENDITURE IN RESPECT OF ONE PERSON IS RS. 50,431/ - AS AGAINST THE EXPENDITURE OF RS. 63,387/- CONSIDERED AS REASONABL E EXPENDITURE IN THE ASSESSMENT OF KERALA ISLAM HAJJ AND UMRAJ SERVICES AND HENCE THE ADDITION OF RS.35,46,000/- IS WITHOUT BASIS AND MAY BE CANCELLED. 3. IN RESPECT OF 600 PILGRIMS THE INCOME IS ESTIMA TED @ RS. 1,35,39,595/- ON THE BASIS OF PROFIT ESTIMATED FROM ONE PERSON @ RS. 22,565/- FOR 600 PILGRIMS. THE AMOUNT OF INCOME EST IMATED @ RS.1,35,39,595/- IS HIGHLY EXCESSIVE CONSIDERING TH E INCOME EARNED BY THE OTHER HAJJ GROUPS. FOR THE ABOVE REASONS AND OTHER ARGUMENTS THOSE MAY BE PUT FORWARD AT THE TIME OF HEARING THE APPELLANT MAY SUBMIT THAT T HE ASSESSMENT OF RS.35,46,000/- IN RESPECT OF INCOME FROM KERALA ISL AM HAJJ AND UMRAJ SERVICES, CALICUT AND THE INCOME ESTIMATE @ RS. 1,3 5,39,595/- MAY BE. 25. THE GROUND NO.1 & 2 RAISED BY THE ASSESSEE AREA ALREADY ADJUDICATED BY US IN THE APPEAL FILED BY REVENUE IN ITA NO.449/C/2 014 WHEREIN, WE HAVE HELD THAT SUBSTANTIVE ASSESSMENT IN RESPECT OF FOUR FIRM S FLOATED BY THE ASSESSEE, VIZ. KERALA ISLAM HAJJ AND UMRAH SERVICE, AHLAN HAJ J AND UMRAH SERVICES, SALAMAT HAJJ GROUP AND VAZCO HAJJ GROUP, IS TO BE M ADE IN THE HANDS OF THE PRESENT ASSESSEE ONLY. IN VIEW, THEREFORE, THE ISS UE IS REMANDED TO THE FILE OF THE AO TO DETERMINE THE SUBSTANTIVE INCOME OF THE A SSESSEE AFRESH IN ACCORDANCE WITH THE ASSESSMENT OF FOUR FIRMS STATED HEREINABOVE, AT THE RATES DETERMINED THEREIN. THUS, GROUNDS TO THAT EXTENT A RE ALLOWED FOR STATISTICAL PURPOSE. 26. GROUNDS NO. 3 PERTAIN TO THE ESTIMATION OF INC OME AT RS. 32,000/-PER PERSON BY THE ASSESSING OFFICER. THE LD.CIT(A) ESTI MATED THE INCOME PER PERSON AT RS. 22,565/- AND SUSTAINED THE ADDITION O F RS.. 1,35,39,595/-. 27. IN ITA NO. 421/C/14, M/S KERALA ISLAM HAJJ & UMRAH SERVICES VS. DCIT, WE HAVE ESTIMATED THE PROFIT PER PERSON AT RS. 6,50 0/-. IN VIEW OF THE SIMILARITY ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 10 OF FACTS, THE SAME IS APPLIED IN THE PRESENT CASE A LSO. GROUNDS NO.3 IS PARTLY ALLOWED. 28. THE APPEAL IS PARTLY ALLOWED FOR STATISTICAL P URPOSE. 29. NOW, WE TAKE UP THE APPEAL THE ASSESSEE IN ITA NO.428/C/2014 FOR THE ASSTT.YEAR 2010-2011. 30. BRIEF FACTS OF THE CASE ARE THAT T HE ASSESSEE IS ENGAGED IN THE BUSINESS OF TOURS AND TRAVELS AND IS CONDUCTING HAJJ AND UMR AH SERVICES. THE RELEVANT ASSESSMENT YEAR IS 2010-11. THE FACTS OF THE PRESEN T CASE ARE ALREADY STATED IN THE CASE OF THE ASSESSEE IN ITA NO. 449/C/14 WHE REIN THE REVENUE HAD FILED THE APPEAL AGAINST THE ORDER OF CIT(A). 31. THE GROUND NO.1 & 2 RAISED BY THE ASSESSEE AREA ALREADY ADJUDICATED BY US IN THE APPEAL FILED BY REVENUE IN ITA NO.449/C/2 014 WHEREIN, WE HAVE HELD THAT SUBSTANTIVE ASSESSMENT IN RESPECT OF FOUR FIRM S FLOATED BY THE ASSESSEE, VIZ. KERALA ISLAM HAJJ AND UMRAH SERVICE, AHLAN HAJ J AND UMRAH SERVICES, SALAMAT HAJJ GROUP AND VAZCO HAJJ GROUP, IS TO BE M ADE IN THE HANDS OF THE PRESENT ASSESSEE ONLY. IN VIEW, THEREFORE, THE ISS UE IS REMANDED TO THE FILE OF THE AO TO DETERMINE THE SUBSTANTIVE INCOME OF THE A SSESSEE AFRESH IN ACCORDANCE WITH THE ASSESSMENT OF FOUR FIRMS STATED HEREINABOVE, AT THE RATES DETERMINED THEREIN. THUS, GROUNDS TO THAT EXTENT A RE ALLOWED FOR STATISTICAL PURPOSE. 32. GROUND NO.3 PERTAINS TO THE ESTIMATION OF INCO ME AT RS. 32,000/- PER PERSON BY THE ASSESSING OFFICER. THE ASSESSING OFFI CER ASSESSED THE TOTAL PROFIT AT RS. 1,31,52,000/-. THE CIT (A) DISMISSED THE APP EAL OF THE ASSESSEE. 33. IN ITA NO. 425/C/14, M/S AHLAN HAJJ AND UMMRA H SERVICES VS. DCIT, WE HAVE ESTIMATED THE PROFIT PER PERSON AT RS. 10,000/ -. IN VIEW OF THE SIMILARITY OF FACTS, THE SAME IS APPLIED IN THE PRESENT CASE ALSO . GROUNDS 3 IS PARTLY ALLOWED. 34. THE APPEAL IS PARTLY ALLOWED FOR STATISTICAL P URPOSE. ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 11 35. NEXT APPEAL OF THE ASSESSEE IS ITA NO.429/C/201 4 FOR THE ASSTT.YEAR 2011-12. 36. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TOU RS AND TRAVELS AND IS CONDUCTING HAJJ AND UMRAH SERVICES. THE RELEVANT A. Y. IS 2011-12. THE FACTS OF THE PRESENT CASE ARE ALREADY STATED IN THE CASE OF THE ASSESSEE IN ITA NO. 449/C/14 WHEREIN THE REVENUE HAD FILED THE APPEAL A GAINST THE ORDER OF CIT(A). 37. THE GROUND NO.1 & 2 RAISED BY THE ASSESSEE AREA ALREADY ADJUDICATED BY US IN THE APPEAL FILED BY REVENUE IN ITA NO.449/C/2 014 WHEREIN, WE HAVE HELD THAT SUBSTANTIVE ASSESSMENT IN RESPECT OF FOUR FIRM S FLOATED BY THE ASSESSEE, VIZ. KERALA ISLAM HAJJ AND UMRAH SERVICE, AHLAN HAJ J AND UMRAH SERVICES, SALAMAT HAJJ GROUP AND VAZCO HAJJ GROUP, IS TO BE M ADE IN THE HANDS OF THE PRESENT ASSESSEE ONLY. IN VIEW, THEREFORE, THE ISS UE IS REMANDED TO THE FILE OF THE AO TO DETERMINE THE SUBSTANTIVE INCOME OF THE A SSESSEE AFRESH IN ACCORDANCE WITH THE ASSESSMENT OF FOUR FIRMS STATED HEREINABOVE, AT THE RATES DETERMINED THEREIN. THUS, GROUNDS TO THAT EXTENT A RE ALLOWED FOR STATISTICAL PURPOSE. 38. THE APPEAL IS PART ALLOWED FOR STATISTICAL PURP OSE. 39. IN THE COMBINED RESULT, ALL THE APPEALS OF THE REVENUE ARE DISMISSED AND THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSE. 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 ITA NO.448,449, 450 AND 451/COCHIN/2014 ITA NO.427, 428 AND 429/COCHIN/2014 12 !' #$ %!$ !' #$ %!$ !' #$ %!$ !' #$ %!$/ 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 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