Sh. Ram Bansal, Morena V. I.T.O., Shivpuri

ITA 45/AGR/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76561 (ITAT-AGRA)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-05-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 10-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RADHA RANI
• Assessee Lawyers: RAJENDRA SHARMA; MANUJ SHARMA S
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER ITA NOS. 45,46,47,48/AGRA/ 2014 ASSESSMENT YEARS 2003-04, 2004-05, 2005-06, 2006-07 SHRI RAM BANSAL PROP. VS. INCOME TAX OFFICER, M/S MAHALAXMI TRADERS SHIVPURI (M.P.) OPP. BUS STAND KAILARAS DISTT. MORENA. (PAN AGOPB 1325 K) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJENDR A SHARMA & SHRI MANUJ SHARMA, ADVOCATES RESPONDENT BY : SMT. RADHA R ANI, JR.D.R. DATE OF HEARING : 01.05.2014 DATE OF PRONOUNCEMENT : 02.05.2014 ORDER PER BENCH: 1. ALL THE ABOVE APPEALS BY ASSESSEE ARE DIRECTED A GAINST DIFFERENT ORDERS OF LD. CIT(A), GWALIOR DATED 30.12.2013 FOR ABOVE ASSESSME NT YEARS. ITA NOS.45,46,47,48/AGRA./2014 2 2. WE HAVE HEARD LEARNED REPRESENTATIVES OF BOTH TH E PARTIES AND PERUSED THE FINDINGS OF AUTHORITIES BELOW. SINCE THE ISSUES ARE COMMON IN ALL THE APPEALS, THEREFORE, ALL APPEALS ARE DECIDED THROUGH THIS COM MON CONSOLIDATED ORDER. 3. ON GROUND NO.1 IN ALL THE APPEALS, THE ASSESSEE HAS CHALLENGED THE ESTIMATE OF SALES AND APPLIED PROFIT RATE OF 0.5% AND FOR MA KING ADDITION ON ACCOUNT OF EXTRA PROFIT. 4. IT IS STATED THAT THE ASSESSEE PRODUCED BOOKS OF ACCOUNT AND RELATED DOCUMENTS BEFORE A.O. AND EXPLAINED THE BANK TRANSA CTIONS AS WELL AS TURNOVER. THE A.O. HOWEVER, WITHOUT REJECTING THE BOOKS OF AC COUNT ESTIMATED THE SALES AS AGAINST THE SALES DISCLOSED BY THE ASSESSEE AND APP LIED NET PROFIT RATE OF 1% FOR THE PURPOSE OF COMPUTING THE BUSINESS INCOME OF ASSESSE E. THE LD. CIT(A) HAS NOT DISTURBED THE SALES AS ESTIMATED BY THE A.O., HOWEV ER, HE HAS APPLIED NET PROFIT RATE AT THE RATE OF 0.5% AS AGAINST 1% APPLIED BY THE A. O. AND CONFIRMED PART ADDITION. LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED A CHART SHOWING THE DETAILS OF INCOME RETURNED, ASSESSED AND ADDITION MADE BY THE A.O. AN D REDUCED BY THE LD. CIT(A). THE SAME IS REPRODUCED AS UNDER:- ITA NOS.45,46,47,48/AGRA./2014 3 CHART SHOWING THE DETAILS OF THE INCOME RETURN, ASS ESSED, AND ADDITION MADE BY AO AND REDUCED IN APPEAL BY C.I.T.(APPEALS) A/V INCOME RETURNED SALES DISCLOSED SALES ESTIMATED BY A.O. & C.I.T. APPL. NET PROFIT RATE APPLIED BY TOTAL INCOME ASSESSED BY AO ADDITION MADE BY AO NET PROFIT APPLIED BY CIT APPL. ADDITION SUSTAINED BY C.I.T. APPL. 03-04 39400/- 1,35,17,566/- 2,50,00,000/- 1% 2,50,0 00/- 2,10,600/- 0.5% 85,600/- 04-05 46950/- 2,19,89,498/- 2,30,00,000/- 1% 2,30,0 00/- 1,83,050/- 0.5% 68,050/- 05-06 48750/- 3,92,80,905/- 4,00,00,000/- 1% 4,00,0 00/ 3,51,250/- 0.5% 1,51,250/- 06-07 65980/- 2,89,26,405/- 3,15,00,000/- 1% 3,15,0 00/- 2,50,020/- 0.5% 91,520/- 5. CONSIDERING THE SUBMISSIONS OF THE PARTIES, WE A RE OF THE VIEW, THE ADDITIONS ON ACCOUNT OF BUSINESS INCOMES ARE WHOLLY UNJUSTIFI ED. THE A.O. HAS NOT GIVEN ANY REASON AS TO HOW BOOK RESULT IS NOT ACCEPTABLE TO H IM. IT IS ADMITTED FACT THAT BOOK RESULT HAS NOT BEEN REJECTED UNDER SECTION 145(3) O F THE ACT. THEREFORE, THERE IS NO JUSTIFICATION TO ESTIMATE HIGHER SALES OF ASSESSEE OR TO APPLY HIGHER PROFIT RATE FOR THE PURPOSE OF MAKING THE ABOVE ADDITION. IN VIEW O F ABOVE, WE SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND DELETE ALL THE ADDITIONS I N ALL ASSESSMENT YEARS UNDER APPEALS. 6. IN THE RESULT, GROUND NO.1 OF ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. ITA NOS.45,46,47,48/AGRA./2014 4 7. ON GROUND NO.2 IN ALL THE APPEALS, THE ASSESSEE CHALLENGED THE ADDITION OF RS.6,000/- RS.12,000/- RS.18,000/- AND RS.28,000 /- OF LOW HOUSEHOLD WITHDRAWALS. THE A.O. MERELY NOTED IN THE ASSESSMEN T ORDER THAT HOUSEHOLD EXPENDITURE SHOWN BY THE ASSESSEE APPEARS TO BE VER Y LOW FOR WHICH NO EXPLANATION IS MADE. LD. CIT(A) CONFIRMED THE ADDIT IONS. 8. ON CONSIDERATION OF RIVAL SUBMISSIONS, WE ARE OF THE VIEW, ALL THE ADDITIONS ARE WHOLLY UNJUSTIFIED. A.O. HAS NOT GIVE N ANY FINDING OF FACT AGAINST THE ASSESSEE IN ASSESSMENT ORDER SO AS TO JUSTIFY T HE ADDITION ON ACCOUNT OF LOW HOUSEHOLD EXPENSES. THE A.O. HAS NOT DISCUSSED THE SIZE OF FAMILY AND ESTIMATED EXPENSES OF ASSESSEE IN THE ASSESSMENT OR DER FOR MAKING THE ADDITIONS. CONSIDERING THE SMALLNESS OF THE RETURN OF INCOME FILED BY THE ASSESSEE, IT APPEARS THAT THE ADDITIONS MADE ARE AD HOC IN NATURE WITHOUT GIVING ANY FINDING OF FACT AGAINST THE ASSESSEE. IN THE AB SENCE OF ANY MATERIAL ON RECORD, WE DO NOT FIND ANY JUSTIFICATION TO SUSTAIN ANY ADDITIONS. ALL THE ADDITIONS ON ACCOUNT OF LOW HOUSEHOLD WITHDRAWALS A RE DELETED. IN THE RESULT, GROUND NO.2 OF ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. ITA NOS.45,46,47,48/AGRA./2014 5 9 IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE AR E ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT) SD/- SD/- (PRAMOD KUMAR) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER AMIT/ COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY