Girinath Singh, Daltonganj V. ITO, Daltonganj

ITA 56/RAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0011 (ITAT-RANCHI)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 25-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Assessee Lawyers: S K PODAR DEVESH PODAR
• Keywords: Depreciation
• Section: 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 56 /RAN/2016 ASSESSMENT YEAR : 2007 - 08 GIRINATH SINGH, NAWATOLI, DALTONGANJ VS. ITO, WARD 3(3), DALTONGANJ PAN/GIR NO. AAEFG 1558 L (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI S.K.PODAR /DEVESH PODAR , AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 8 /12/ 2016 DATE OF PRONOUNCEMENT : 8 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 6 TH OCTOBER 2015 , FOR THE ASSESSMENT YEAR 2007 - 08 . 2. THE SOLE ISSUED INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN ESTIMATING THE INCOME FROM TRANSPORTATION RECEIPTS AT 8% OF THE GROSS RECEIPTS OF THE ASSESSEE. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE FAILED TO PRODUCE THE BOOKS AND ACCOUNT, BILLS AND VOUCHERS AS REQUIRED FOR VERIFICATION OF COMPUTATION 2 ITA NO. 56/RAN/2016 ASSESSMENT YEAR :2007 - 08 OF HIS BOOK PROFIT AS WELL AS NET PROFIT OF THE FIRM AND, THEREFORE, HE REJECTED T HE BOOK RESULTS BY INVOKING THE PROVISION S OF SECTION 145 OF THE I.T.ACT, ESTIMATED THE INCOME AT 8% OF THE TOTAL GROSS RECEIPTS OF RS.60,30,421/ - AND ASSESSED THE INCOME AT RS.4,82,430/ - INCLUSIVE OF INTEREST AND REMUNERATION PAID TO THE PARTNERS OF RS.1, 65,808/ - AND RS.76,790/ - . 4. ON APPEAL, LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. BEFORE ME , LD AR OF THE ASSESSEE FILED STATEMENT OF ACCOUNTS IN THE PAPER BOOK AND ARGUED THAT IN THE ASSESSMENT YEAR 2007 - 08, THE ASSESSEE HAS SHOWN NET PROFIT BEFORE DEPRECIATION @ 4.25%. IN ASSESSMENT YEAR 2008 - 09, THE ASSESSEE HAD SHOWN NET PROFIT @ 2.96% BEFORE DEPRECIATION AND AT 3% IN ASSESSMENT YEAR 2009 - 2010 . HENCE, IT WAS HIS SUBMISSION THAT ESTIMATION OF NET PROFIT OF THE ASSESSEE @ 8% WAS MUCH HIGHER AND A REASONABLE ESTIMATE SHOULD BE MADE CONSIDERING THE PAST HISTORY OF THE ASSESSEE. 6. LD D.R SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 7. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS ON RECORD, I AM OF THE CONSIDERED VIEW T HAT AFTER REJECTION OF BOOKS OF ACCOUNT OF THE ASSESSEE, THE ASSESSING OFFICER HAS TO ESTIMATE THE INCOME OF THE ASSESSEE ON SOME REASONABLE BASIS. THE REASONABLE BASIS IS THE PAST HISTORY OF THE ASSESSEE. IT IS OBSERVED THAT THE ASSESSEE HAS EAR NED PROF IT AFTER @ 2.96% IN A.Y. 2008 - 09 AND 3% IN A.Y. 2009 - 2010. I AM OF 3 ITA NO. 56/RAN/2016 ASSESSMENT YEAR :2007 - 08 THE CONSIDERED VIEW THAT IT WOULD BE FAIR AND REASONABLE TO ESTIMATE THE NET PROFIT OF THE ASSESSEE DURING THE YEA R UNDER CONSIDERATION @ 5% INCLUSIVE OF DEPRECIATION AND REMUNERATION AND INTEREST TO PARTNERS. I MODIFY THE ORDER ACCORDINGLY AND PARTLY ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON 8 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 8 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : GIRINATH SINGH, NAWATOLI, DALTONGANJ 2. THE RESPONDENT: ITO, WARD 3(3), DALTONGANJ 3. THE CIT(A)RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//