The ACIT, Circle-5, Baroda V. M/s. Baroda Prints, Baroda

ITA 448/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6056 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-07-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 11-02-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Section: 143(3)

Judgement Text

ITA NO.448/AHD/2009 A.Y. 2004-05. 1 IN THE INCOME TAX APPELLATE TRIBUNAL DBENCH,AHME DABAD BEFORE SHRI G. D. AGARWAL VICE PRESIDENT & SHRI T. K.SHARMA I.T .A. NO. 448 /AHD/2009 (ASSESSMENT YEAR : 2004-2005 ) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-5, 5 TH FLOOR, AAYAKAR BHAVAN, NR. RACE COURSE CIRCLE, BARODA. (APPELLANT) VS. M/S. BARODA PRINTS, OPP. A. S. MOTORS, SALATWADA MAIN ROAD, BARODA. (RESPONDENT) PAN: AABFB 9676Q APPELLANT BY : SHRI B.L. YADAV, D. R. RESPONDENT BY : NONE ( (( ( )/ )/)/ )/ ORDER PER: SHRI T.K. SHARMA, J.M. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER DATED 17-11-2008 OF LD. COMMISSIONER OF INCOME TAX (APEALS)-V, BARODA FOR THE ASSESSMENT YEAR 2004-05. 2. BRIEF FACTS ARE THAT THE ASSESSEE IS A FIRM ENGAGED IN THE BUSINESS OF CLOTH PRINTING AND SELLING OF DRESS MATERIAL. FOR THE ASSESSMENT YEAR UNDER APPEAL IT FILED RETURN OF INCOME DECLARING TOTAL INCOM E AT RS.10,51,310/-..THE ASSESSING OFFICER FRAMED THE ASSESSMENT U/S. 143(3) ON 19-12 -2006 ON A TOTAL INCOME OF RS. 34,55,040/-. IN THIS ASSESSMENT ORDER THE ASSESSING OFFICER MADE ADDITION OF RS. 13,79,297/- IN RESPECT OF CREDIT IN THE NAME OF M/S. MARUTI GARMENTS AND OTHER CREDITORS. ON APPEAL, I N THE IMPUGNED ORDER, THE LD. CIT(A) RESTRICTED THIS ADDITION TO 25% OF THE AFORESAID ADDITION ITA NO.448/AHD/2009 A.Y. 2004-05. 2 OF RS.13,79,297/-. AGGRIEVED WITH THE ORDER OF THE L D. CIT(A) REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. ON THE DATE FIXED FOR HEARING NONE WAS PRESENT FRO M THE SIDE OF THE ASSESSEE. WE THEREFORE, PROCEED TO DECIDE THIS APPEAL ON THE BASIS OF SUBMISSIONS MADE BY THE LD. DEPARTMENTAL REPRESENTATIVE AND MATERIAL AVAILABLE ON RECORD. 4. SHRI B.L. YADAV, D.R. APPEARED ON BEHALF OF THE REVENUE POINTED OUT THAT BEFORE THE LD. CIT(A) ASSESSEE MERELY FURNISHED CONF IRMATION AND COPY OF ACCOUNT FROM THE BOOKS OF M/S. MARUTI GARMENTS. IN RE SPECT OF OTHER CREDITORS ASSESSEE FAILED TO FURNISH DETAILS OF DOCUMENTAR Y EVIDENCE IN SUPPORT OF THE PURCHASES MADE THEREFORE, ADDITION OF RS. 13,79,297/- WAS RIGHTLY MADE AND LD. CIT(A) IS NOT JUSTIFIED IN RESTRI CTING THE SAME TO 25% OF THE ADDITION FOLLOWING THE DECISION OF N.K. PROTEINS LTD. VS. DCIT (2004) 83 TTJ (AHD) 904. 5. AFTER HEARING THE LD. DR WE HAVE CAREFULLY GONE T HROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN THE IMPUGNED ORDER, THE LD . CIT(A) HAS OBSERVED THAT GROSS PROFIT DECLARED BY THE ASSESSEE IN THE ASSESSMENT YEAR UNDER APPEAL WAS 10.24% WHICH IS ALMOST CONSISTENT FOR ALL THE Y EAR. HE FURTHER OBSERVED THAT ASSESSEE HAS PURCHASED THE GOODS, IF NOT FROM PARTIES MENTIONED, MIGHT BE FROM LOCAL MARKET AND THOUGH GRO SS PROFIT RATIO, PURCHASES AND SALES HAVE BEEN TALLIED. KEEPING IN VIEW A LL THESE FACTS, WE ARE OF THE VIEW THAT LD. CIT(A) IS LEGALLY AND FACTUA LLY CORRECT IN APPLYING THE RATIO OF DECISION OF N. K. PROTEINS LTD.,(SUPRA) AND RE STRICTING THE ADDITION ON ACCOUNT OF BOGUS CREDITORS TO 25% OF SUCH PURCHASES RS. 13,79 ,297/-. ITA NO.448/AHD/2009 A.Y. 2004-05. 3 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON 27 - 07 - 2011. SD/- SD/- (G. D. AGARWAL) (T. K. SHARMA) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD. DATED: 27 - 07 - 2011. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-V, BARODA. 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHMEDABAD. 1.DATE OF DICTATION 27 - 7 -2011 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 27 / 7 / 2011 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S - -2011. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT - -2011 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S - -2011 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK - -2011. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..