ITO 22(3)(1), NAVI MUMBAI V. HITESH L PANDYA, NAVI MUMBAI

ITA 5504/MUM/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0494 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 16-02-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 01-09-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M C OMI NINGSHEN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SHRI RAVISH SOOD (JM) I.T.A. NO. 5504 /MUM/20 14 (ASSESSMENT YEAR 20 09 - 10 ) ITO 22(3)(1) 3 RD FLOOR, TOWER NO. 6 VASHI RAILWAY STATION COMPLEX, VASHI NAVI MUMBAI - 400 070 5. VS. SHRI HITESH L. PANDYA E - 8/4:1, OPP VASHI PLAZA, SECTOR 1 VASHI NAVI MUMBAI 400 703 ( APPELLANT ) ( RESPONDENT ) PAN NO . AGEPP7974Q ASSESSEE BY NONE DEPARTMENT BY S HRI M.C. OMI NINGSHEN DATE OF HEARING 03.8 . 201 7 DATE OF PRONOUNCEMENT 03 . 8 . 201 7 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 2.6.2014 PASSED BY THE LEARNED CIT(A) - 33, MUMBAI AND IT RELATES TO A.Y. 2009 - 10. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THOU GH NOTICE OF HEARING WAS SENT BY THE REGISTRY BY REGISTERED POST ON MORE THAN ONE OCCASION AND FURTHER THE ASSESSEE WAS ALSO SERVED NOTICE THROUGH THE ASSESSING OFFICER. HENCE, WE PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT PRESENCE OF THE ASSESSEE. 3. WE HEARD LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RECORD. THE ASSESSEE IS CARRYING ON BUSINESS THROUGH FIVE PROPRIETARY CONCERNS AS DETAILED BELOW: - 2 SR.NO PROPRIETARY NATURE OF BUSINESS CONCERN 1. PARAM DISTRIBUTION OF HINDUSTHAN COLA PRODUCTS 2. PARAM TRANSPORT AS TRUCK OPERATOR TRANSPORT CONTRACTOR 3. PARAM AGENCY DISTRIBUTION FOR AIRTEL PRODUCTS, PREPAID VOUCHERS, GSM HANDSETS 4. SUN AGENCY DISTRIBUTOR OR RELIANCE COM MUNICATION, BPL PRODUCTS 5. NIHAL AGENCY DISTRIBUTOR OF AIRTEL PRODUCTS, PREPAID VOUCHERS AND HANDSET. 4. THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION DECLARING TOTAL INCOME OF ` 12.47 LAKHS. RETURN OF INCOME WAS TAKEN UP FOR SCRUTINY BY THE ASSESSING OFFICER. BEFORE THE ASSESSING OFFICER THE ASSESSEE FILED COPIES OF BALANCE - SHEET, PROFIT AND LOSS ACCOUNT AND TAX AUDIT REPORT. THEREAFTER, THE A SSESS EE DID NOT RESPOND TO VARIOUS NOTICES ISSUED BY THE ASSESSING OFFICER. H ENCE, ASSESSING OFFICER REJECTED THE BOOKS OF ACCOUNT OF THE ASSESSEE AND ESTIMATED INCOME AT 3% OF THE AGGREGATE TURNOVER DECLARED IN ALL FIV E PROPRIETARY CONCERNS. ACCORDINGLY THE ASSESSING OFFICER DETERMIN ED THE TOTAL INCOME OF THE ASSESSEE AT ` 296.77 LAKHS . 5. IN THE APPELLATE PROCEEDINGS, THE LEARNED CIT(A) SUSTAINED THE INCOME ESTIMATED IN THE CASE OF TRANSPORT BUSINESS. IN RESPECT OF OTHER BUSINESS, ASSESSEE SHOWED CERTAIN DOCUMENTS TO SUBSTANTIATE ITS CONTENTION THAT DISTRIBUTOR MARGIN WAS RANGING FROM 1.25% TO 1.50% OF THE TURNOVER. ACCORDINGLY, HE SUBMITTED THAT MARGIN OF 0.8% TO 0.77% DECLARED BY HIM WAS REASONABLE. HOWEVER, THE ASSESSEE DID NOT FILE ANY OTHER MATERIAL AND HENCE THE LEARNED CIT(A) ESTIMATED THE PROFIT FROM OTHER FOUR PROPRIETARY CONCERNS AT 0.25% OF GROSS RECEIPTS. THE REVENUE IS AGGRIEVED BY THE SAID DECISION OF THE LEARNED CIT(A). 6. LEARNED DEPARTMENTAL REPRESENTATIVE CONTENDED THAT MARGIN OF 0.25% ESTIMATED BY THE LEARNED CIT(A) IS VERY MUCH ON THE LOWER SIDE. HE SUBMITTED T HAT THE ASSESSEE WAS HAVING MARGIN OF AROUND 1.5% ON THE TURNOVER AND TURNOVER DECLARED BY THE ASSESSEE IN VARIOUS CONCERNS IS SUBSTANTIAL. 3 7. HAVING HEARD THE CONTENTION OF LEARNED DEPARTMENTAL REPRESENTATIVE AND AFTER GOING THROUGH THE RECORD, WE ARE OF THE VIEW THAT ESTIMATED NET PROFIT AT 0.25% MADE BY THE LEARNED CIT(A) APPEARS TO BE ON THE LOWER SIDE. ACCORDINGLY, WE MODIFY THE ORDER PASSED BY THE LEARNED CIT(A) AND DIRECT THE ASSESSING OFFICER TO ESTIMATE THE NET INCOME FROM TRANSPORT BUSINES S AT THE RATE OF 3% OF THE TURNOVER AND PROFIT FROM OTHER FOUR BUSINESS AT THE RATE OF 0.75% OF THE TURNOVER . WE ORDER ACCORDINGLY. 8. IN THE RESULT, APPEAL FILED BY THE REVENUE IS PARTLY ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 3 . 8 .201 7. SD/ - SD/ - ( RAVISH SOOD) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 3 / 8 / 20 1 7 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI