SHRI HITESH KUMAR VASANI, Bhopal V. The ACIT 1(2), Bhopal

ITA 495/IND/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5692 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 11-07-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: N D PATWA
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 495/IND/2014 A.Y. : 2007-08 SHRI HITESH KUMAR VASANI, ACIT, 1(2), BHOPAL VS. BHOPAL APPELLANT RESPONDENT PAN NO. AALPV2210Q A PPELLANT S BY : SHRI N.D.PATWA, ADV. RESPONDENT BY : SHRI R.A.VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-II, BHOPAL, DATED 07.11.2013 FOR THE ASSE SSMENT YEAR 2007-08. 2. THE FOLLOWING GROUND HAS BEEN TAKEN BY THE ASSESSEE :- DATE OF HEARING : 23 .02. 20 16 DATE OF PRONOUNCEMENT : 29 .02. 2016 SHRI HITESH KUMAR VASANI, BHOPAL VS. ACIT, 1(2), BH OPAL I.T.A.NO. 495/IND/2014 A.Y. 2007-08 2 2 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. LOWER AUTHORITIES HAVE ERRED AND WERE NOT JUSTIFIED IN NOT ACCEPTING THE CONTENTION OF TH E APPELLANT AS THE PROVISIONS OF SECTION 44AE ARE NOT APPLICABLE IN THE CASE OF THE APPELLANT AND THEREBY ESTIMATING THE INCOME FROM TRUCK PLYING BUSINESS AT RS. 539440/- AND THE LD. CIT(A) HAS CONFIRMED THE ADDITION OF RS. 2,85,525/-. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE H AS FILED RETURN ON 20.03.2008 DECLARING INCOME OF RS. 1,06,440/-. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRANSPOR TATION CARRIED IN THE NAME AND STYLE OF M/S. AMARDEEP TRAN SPORT CO. FOR THE YEAR UNDER CONSIDERATION, HE HAS DECLARED T RANSPORT COMMISSION AT RS. 1,75,000/- ALONGWITH INCOME PLYIN G OF ONE TRUCK AT RS. 42,000/- U/S 44AE OF THE INCOME-TAX AC T, 1961. VIDE THE IMPUGNED ASSESSMENT ORDER, THE AO HAS ESTI MATED COMMISSION INCOME AT RS. 4,00,000/- INCOME FROM TRANSPORTATION HAS BEEN ESTIMATED AT RS. 5,00,000/- AND ACCORDINGLY ADDITION OF RS. 2,25,000/- & 2,08,000/- BEEN MADE. SHRI HITESH KUMAR VASANI, BHOPAL VS. ACIT, 1(2), BH OPAL I.T.A.NO. 495/IND/2014 A.Y. 2007-08 3 3 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS CONFIRMED THE ADDITION OF RS. 2,85,525/- BY OBS ERVING AS UNDER :- 5.3 HAVING SAID THIS IT IS FURTHER SEEN THAT THE AO HAS ALSO NOT GIVEN ANY BASIS/JUSTIFICATION FOR MAKING ESTIMATED ADDITION OF RS. 2,25,000/- TO COMMISSION INCOME AND RS. 2,08,000/- TO COMPUTE TRUCK PLYING BUSINESS INCOME AT RS. 5,00,000/- WHILE MAKING IMPUGNED SEPARATE ADDITIONS. FROM PERUSAL OF RECORDS, PAST HISTORY OF THE APPELLANT AND KEEPING IN VIEW FACTS AND CIRCUMSTANCES OF THE CASE, IT WOULD BE REASONABLE AND JUSTIFIED TO ESTIMATE APPELLANTS TOTAL INCOME @ 8% OF TOTAL BANK DEPOSITS OF RS. 59,44,073/- WHICH COMES TO RS. 4,75,525/- AS AGAINST TOTAL INCOME OF RS. 2,17,000/- DECLARED BY THE APPELLANT AND ASSESSED AT RS. 5,39,440/- BY THE ASSESSING OFFICER. ACCORDINGLY, ADDITION OF RS. 2,85,525/- ( RS. 4,75,525 RS. 2,17,000/- ) IS, HEREBY CONFIRMED OUT OF RS. 4,33,000/- MADE BY THE ASSESSING OFFICER. 5. THE LD. AUTHORIZED REPRESENTATIVE CONTENDED THAT SECTION 44AE ARE NOT APPLICABLE IN THE CASE OF THE ASSESSEE SHRI HITESH KUMAR VASANI, BHOPAL VS. ACIT, 1(2), BH OPAL I.T.A.NO. 495/IND/2014 A.Y. 2007-08 4 4 AND AT ANY EVENT THE INCOME AS DECLARED BY THE ASSE SSEE SHOULD HAVE BEEN ACCEPTED. 6. THE LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIE S BELOW. 7. HAVING HEARD BOTH THE PARTIES, IT WOULD MEET THE EN DS OF JUSTICE IF A FURTHER RELIEF OF RS. 50,000/- OUT OF RS. 2,85,525/- IS GIVEN. ACCORDINGLY, ADDITION OF RS. 2 ,35,525/- ( RS. 2,85,525/- (-) RS. 50,000/-) IS, HEREBY CONFI RMED OUT OF RS. 2,85,525/- MADE BY THE CIT(A). 8. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 29 TH FEBRUARY, 2016, SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 29 TH FEBRUARY, 2016. CPU* 2326