Gudiwada Rajya Lakshmi, Rayagada V. ITO, Rayagada

ITA 472/CTK/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6334 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 19-10-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 30-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUVENDU DUTTA
• Assessee Lawyers: J M PATTNAIK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N. S SAINI, ACCOUNTANT MEMBER ITA NO.472/CTK/2013 ASSESSMENT YEAR : 2009 - 2010 SMT. GUDIWADA RAJYA LAKSHMI, AT: J.K.ROAD, RAYAGARA, VS. ITO, RAYAGARA WARD, RAYAGARA PAN/GIR NO. AJRPR 2481 G (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI J.M.PA T TNAIK REVENUE BY : SHRI SUVENDU DUTTA , DR DATE OF HEARING : 1 9 /10 / 2016 DATE OF PRONOUNCEMENT : 1 9 /10 / 2016 O R D E R THIS I S AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - BERHAMPUR, DATED 18.9.2012, FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN ESTIMATING THE INCOME FROM GINNING AND P RESSING OF COTTON, SALE OF COTTON SEEDS AND COTTON LINK @ 10% OF TOTAL TURNOVER OF RS.1,40,28,331/ - . 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE FAILED TO PRODUCE THE BOOKS OF ACCOUNT AND VOUCHERS FOR EXPENSES CLAIMED IN THE PROFIT AND LOSS 2 ITA NO.472/CTK/2013 ASSESSMENT YEAR :2009 - 2010 ACCOUNT AND, THEREFORE, HE REJECTED BOOK RESULTS OF THE ASSESSEE AND ESTIMATED THE INCOME AT 10% OF TOTAL TURNOVER OF RS.1,40,28,331/ - , WHICH WAS CONFIRMED IN APPEAL BY THE LD CIT(A). 4. AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE SUBMITTED THAT AS PER PROVISIONS OF SECTION 44AF OF THE ACT, IN CASE OF AN ASSESSEE ENGAGED IN RETAIL TRADE IN ANY GOODS, WHOSE TURNOVER DOES NOT EXCEED RS.40 LAKHS DURING THE YEAR, A SUM EQUAL TO FIVE PERCENT OF TOTAL TURNOVER IN THE PREVIOUS YEAR ON ACCOUNT OF SUCH BUSINESS SHALL BE DEEMED TO BE THE PROFITS AND GAINS OF SUCH BUSINESS CHARGEABLE TO TAX UNDER THE HEAD PROFITS AND GAINS OF BUSINESS OR PROFESSION. HE SUBMITTED THAT SINCE THE BOOKS RESULTS OF THE ASSESSEE WAS REJECTED, THEREFORE, IT WOULD BE APPROPRIATE TO ESTIMATE THE INCOME OF THE ASSESSEE @ 5% AS PROVIDED IN SECTION 44AF OF THE ACT. 5. ON THE OTHER HAND, LD D.R. DID NOT SERIOUSLY OBJECT TO THE ABOVE SUBMISSIO NS OF LD A.R. OF THE ASSESSEE. 6. `IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE AND CONSIDERING THE PAPER BOOK FILED BY THE ASSESSEE, WHEREIN, THE ASSESSEE HAS FILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING 31.3.2007 AND 31.3.2008, WHICH ARE RELEVA NT TO THE ASSESSMENT YEARS 2007 - 08 AND 2008 - 09 BEING THE IMMEDIATELY PRECEDING ASSESSMENT YEARS TO THE YEAR UNDER CONSIDERATION, IT IS OBSERVED THAT THE ASSESSEE HAD SHOWN NET PROFIT @ 1.41% FOR THE ASSESSMENT YEAR 2007 - 08 AND NET PROFIT @ 1.54% FOR THE A SSESSMENT YEAR 2008 - 09, 3 ITA NO.472/CTK/2013 ASSESSMENT YEAR :2009 - 2010 WHICH WAS ACCEPTED BY THE DEPARTMENT UNDER SECTION 143(1) OF THE ACT. THEREFORE, I FIND THAT THE SUBMISSION OF LD A.R. OF THE ASSESSEE THAT IN THE PRESENT YEAR, INCOME SHOULD BE ESTIMATED @ 5% OF THE TOTAL TURNOVER OF THE ASSESSEE AS REASONABLE AND JUSTIFIED. I, THEREFORE, SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DIRECT THE AO TO COMPUTE THE INCOME OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION @ 5% OF THE TOTAL TURNOVER OF RS.1,40,28,331/ - AND ALLOWED THE GROUNDS OF APPEAL IN PART. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 1 9 /10 /2016 IN THE PRESENCE OF PARTIES. SD/ - ( N. S SAINI ) A CCOUNTANT MEMBER CUTTACK; DATED 1 9 /10 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT :SMT. GUDIWADA RAJYA LAKSHMI, AT: J.K.ROAD, RAYAGARA, 2. THE RESPONDENT. ITO, RAYAGARA WARD, RAYAGARA 3. THE CIT(A), B ERHAMPUR 4. CIT , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//