LATE AJAY PRASAD THR.L/H SMT POONAM DEVI, LATEHAR V. ITO WARD-3(5), DALTONGANJ

ITA 71/RAN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8703 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 19-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: PANKAJ KEJRIWAL
• Section: 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : RANCHI [BEFORE HONBLE SHRI S.S. GODARA, JM] I.T.A NO. 71/RAN/2018 ASSESSMENT YEAR : 2010-1 1 LT. AJAY PRASAD VS- ITO, WARD-3(5), DALTONG ANJ THROUGH L/H SMT. POONAM DEVI [PAN: AMXPP 8958 M] (APPELLANT) ( RESPONDENT) FOR THE APPELLANT : SHRI PANKAJ KEJRIWAL, ADVOCATE FOR THE RESPONDENT : SHRI P.K. MONDAL, J CIT DATE OF HEARING : 09.01.2019 DATE OF PRONOUNCEMENT : 08.04.2019 ORDER 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010- 11 IS DIRECTED AGAINST THE CIT(A)-RANCHIS ORDER DATED 21/04/2017 PASSED IN CASE NO. 168/RAN/OTH/15-16 INVOLVING PROCEEDINGS U/S 147 / 143(3) OF THE INCOM E TAX ACT, 1961 ( IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE LEARNED COUNSELS FIRST ARGUMENT SEEKS TO CH ALLENGE VALIDITY OF REOPENING / REASSESSMENT. AFTER ARGUING SOMETIME, THE LEARNED C OUNSEL DOES NOT PRESS FOR THIS INSTANT FORMAL LEGAL GROUND. THE SAME IS DECLINED A S NOT PRESSED. 3. COMING TO THE LATTER ISSUE OF CORRECTNESS OF BOT H LOWER AUTHORITIES ACTION ADDING AN AMOUNT OF RS. 4,68,722/- @ 10% OF THE AMOUNT DEP OSITED INTO BANK ACCOUNT COMING TO RS. 47,87,220/-, THERE IS NO DISPUTE ABOU T THE BASIC FACT THAT THE ASSESSEE HAD TAKEN RECOURSE TO THE SAID CASH DEPOSIT WHICH W ERE CLAIMED AND STOOD ACCEPTED A BUSINESS TURNOVER RECEIPT. THE SOLE QUESTION IS ONLY OF CORRECTNESS OF ESTIMATED PROFIT MARGIN @ 10%. THE TAXPAYERS CLAIM IS THAT T HE SAME OUGHT TO HAVE BEEN ASSESSED @ 5% U/S 44AF OF THE ACT. IT IS NOT IN DIS PUTE THAT THE ASSESSEES TOTAL TURNOVER IN THE IMPUGNED ASSESSMENT YEAR AS PER AU DITED REPORT AND ITR, IS RS. LATE AJAY PRASAD THROUGH L/H SMT. POONAM DEVI ITA NO.71/RAN/2018 ASSESSMENT YEAR: 2010-11 P PP PA AA AG GG GE EE E | || | 2 22 2 97,74,248/- FORMING THE BASIS OF TRIGGERING THE RE OPENING MACHINERY INTO MOTION. SECTION 44AF SPECIFIED LIMIT OF TURNOVER IN THE IMP UGNED ASSESSMENT YEAR 2010-11 WAS RS. 40 LACS ONLY. I THEREFORE DEEM IT APPROPRI ATE THAT THE ENDS OF JUSTICE WOULD BE MET IF THE ASSESSEES GROSS PROFIT MARGIN IS ASS ESSED @ 8% THAN 10% MADE BY BOTH LOWER APPELLATE AUTHORITIES. I ORDER ACCORDING LY. NECESSARY COMPUTATION TO FOLLOW. I CONCLUDE IN THIS FACT THE ASSESSING OFFIC ER HAD RIGHTLY INITIATED THE IMPUGNED REOPENING / REASSESSMENT ON ACCOUNT OF ASS ESSEES FAILURE TO DECLARE THE CORRECT TURNOVER AND DIRECT THE ASSESSING OFFICER T O RECOMPUTE THE ABOVE PROFIT MARGIN @ 8%. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN THE COURT ON 08.04.2019 SD/- [ S.S.GODARA ] JUDICIAL MEMBER DATED : 08.04.2019 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. LATE AJAY PRASAD THROUGH L/H SMT. POONAM DEVI, S /O SRI ANANDI PRASAD STATION ROAD, LATEHAR, JHARKHAND-822203 2. DCIT, CIRCLE-1, RANCHI. 3..C.I.T(A).- 4. C.I.T.- RANCHI 5. CIT(DR), RANCHI BENCH. TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, RAN CHI BENCH