Shri Balvinder Singh Neel, Ujjain V. The Income Tax Officer ward 2(1), Ujjain

ITA 573/IND/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7879 (ITAT-INDORE)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 07-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S C GOEL
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER PAN NO. : AATPN855E I.T.A.NO. 573 /IND/201 2 . A.Y. : 2004 - 05 SHRI BALVINDERSINGH ITO, WARD 2(1), NEEL, UJJAIN VS INDORE APPELLANT RESPOND ENT APPELLANT BY : SHRI S.C.GOEL, ADV. RESPONDENT BY : SHRI R.A.VERMA, SR. DR DATE OF HEARING : 24 . 1 2 .2012 DATE OF PRONOUNCEMENT : 24 . 1 2 .201 2 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 10.09.2012 FOR THE ASSESSMENT YEAR 2004-05. 2. THE ASSESSEE IS AGGRIEVED FOR ADDITION OF RS. 1,02,750/-. -: 2: - 2 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. THE BRIEF FACTS OF THE CASE ARE THAT THE A SSESSEE IS A CABLE OPERATOR. RETURN DECLARING AN INCOME OF RS. 1 ,12,481/- WAS FILED ON 28.07.2004. ON GROSS RECEIPTS OF RS. 5 ,90,700/-, NET INCOME OF RS. 1,27,480/- WAS SHOWN BY THE ASSES SEE. THE ASSESSING OFFICER ISSUED NOTICE U/S 148 ON 17.3.200 8. IN RESPONSE TO NOTICE U/S 148, THE ASSESSEE HAS FILED THE RETURN OF INCOME ON 09.05.2008, DECLARING TOTAL INCOME OF RS. 1,08,456/-. THE ASSESSEE MAINTAINED REGISTER OF CAB LE CONNECTION WHICH WAS PRODUCED BY HIM BEFORE ASSESSI NG OFFICER FOR VERIFICATION. THE ASSESSEE HAS NOT PROD UCED CASH BOOK AS THE SAME WAS SNOT MAINTAINED BY HIM. 4. THE ASSESSING OFFICER ESTIMATED RECEIPT FROM CABLE OPERATIONS APPLYING MONTHLY RENT OF RS. 230/- PER C ONNECTION. THE RECEIPTS WERE CALCULATED TO 255 CONNECTIONS FOR 9 MONTHS AND 230 CONNECTIONS FOR 3 MONTHS AND ADDED DIFFEREN CE IN RECEIPTS OF RS. 1,02,750/- IN THE TOTAL INCOME OF T HE ASSESSEE. 5. BY THE IMPUGNED ORDER, THE LD. CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. -: 3: - 3 6. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND FOUND FROM RECORD THAT THE ASSESSEE WAS ENGAGED IN THE BU SINESS OF CABLE OPERATIONS. BEFORE THE ASSESSING OFFICER, THE ASSESSEE HAS FILED RETURN SHOWING GROSS RECEIPT OF RS. 5.90 LAKHS AND NET INCOME OF RS. 1.27 LAKHS. IN SUPPORT OF THE CAB LE CONNECTIONS GIVEN, THE ASSESSEE HAS ALSO PRODUCED R EGISTER OF CABLE CONNECTION FOR VERIFICATION OF THE ASSESSING OFFICER. BY OBSERVING THAT THE ASSESSEE HAS NOT MAINTAINED CASH BOOK, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS SH OWN RECEIPTS AT DIFFERENT RATES I.E. RS. 180/-, RS. 200 /- AND RS. 230/- PER MONTH FROM DIFFERENT CUSTOMERS. HOWEVER, HE HAS NOT ACCEPTED THE SAME AND BY APPLYING THE HIGHEST R ATE OF RS. 230/- PER MONTH, HE MADE THE ADDITION AND WHICH WAS CONFIRMED BY THE LD.CIT(A). 7. FROM THE RECORD, I FOUND THAT THE ASSESSEE WAS CHARGING DIFFERENT RATES RANGING BETWEEN RS. 180/- TO RS. 230/- FROM DIFFERENT CUSTOMERS. IT IS MOST LIKELY I N THE NATURE OF BUSINESS THE ASSESSEE WAS THAT TO SOME OF THE CU STOMERS HE HAD TO GIVE DISCOUNT AND LESS RATES ARE CHARGED FRO M THE SERVANTS HAVING CABLE CONNECTIONS. NORMALLY FULL RA TES ARE -: 4: - 4 CHARGED FORM LAND LORD/OFFICERS, BUT FROM THE SERVA NTS, THE REASONABLE DISCOUNT WAS GIVEN. WITHOUT BRINGING ANY POSITIVE MATERIAL ON RECORD, THE ASSESSING OFFICER ASSUMED T HAT THE ASSESSEE HAS CHARGED RS. 230/- PER MONTH FROM EACH AND EVERY CUSTOMER. I ALSO FOUND THAT OUT OF HIS GROSS RECEIPTS, THE ASSESSEE HAD SHOWN NET INCOME OF 21.52 %, WHICH APP EARS TO BE VERY REASONABLE. ACCORDINGLY, I DO NOT FIND ANY JUSTIFICATION FOR THE ADDITION OF RS. 1,02,750/- AS MADE BY THE A SSESSING OFFICER. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 24 TH DECEMBER, 2012. SD/ - (R. C. SHARMA) ACCOUNTANT MEMBER DATED : 24 TH DECEMBER, 2012. CPU* 26