M/s T.C. Agro Pvt. Ltd., Kurukshetra V. ITO, Kurukshetra

ITA 753/CHANDI/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4885 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 01-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: RAKESH JAIN ADVOCTE
• Section: 145; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 753/CHD/2017 ASSESSMENT YEAR : 2013-14 M/S T.C. AGRO PVT LTD., VS. THE ITO, WARD-2 VILL. AJRAWER, KURUKSHETRA DISTT. KURUKSHETRA (HARYANA) PAN NO. AACCT2399C (APPELLANT) (RESPONDENT) APPELLANT BY : SH. RAKESH JAIN, ADVOCTE RESPONDENT BY : SH. MANJIT SINGH, SR.DR DATE OF HEARING : 09.04.2018 DATE OF PRONOUNCEMENT: 09.04.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 27.02.2017 OF THE COMMISSIONER OF I NCOME TAX [HEREINAFTER REFERRED TO AS CIT(A)], KARNAL. 2. THE SOLE ISSUE RAISED IN THIS APPEAL IS RELATING TO THE ADDITION MADE BY THE ASSESSING OFFICER OF AN AMOUN T OF RS. 25 LACS BY WAY OF INVOKING THE PROVISIONS OF SECTION 1 45 OF THE ACT DURING THE ASSESSMENT COMPLETED U/S 144 OF THE INCO ME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 3. THE BRIEF FACTS RELATING TO THE ISSUE ARE THAT A SSESSEE FILED THE RETURN OF ITS INCOME DECLARING TOTAL INCOME OF RS. 1,24,800/-. HOWEVER, DURING THE ASSESSMENT PROCEEDINGS, THE ASS ESSEE DID NOT ITA NO.753/CHD/2017- T.C. AGRO PVT LTD., KURUKSHETRA 2 FURNISH THE BOOKS OF ACCOUNT STATING THAT THE SAME HAD BEEN LOST IN THE FIRE AND THAT A FIR WAS ALSO LODGED IN THIS RES PECT. THE ASSESSING OFFICER, THEREFORE, PROCEEDED TO MAKE THE ASSESSMENT U/S 144 OF THE ACT AS PER THE BEST JUDGEMENT RULE. THE ASSESSING OFFICER TAKING INTO CONSIDERATION THE TURNOVER OF T HE ASSESSEE VIZ A VIZ THE EXPENDITURE CLAIMED OBSERVED THAT THE ASSES SEE CLAIMED EXAGGERATED EXPENDITURE AND ACCORDINGLY ESTIMATED T HE INCOME OF THE ASSESSEE BY MAKING AN ADDITION OF RS. 25 LACS. 4. IN APPEAL, THE CIT(A) CONFIRMED THE ADDITION SO MADE BY THE ASSESSING OFFICER WHILE RELYING UPON THE DECISI ON OF HIS PREDECESSOR IN THE EARLIER ASSESSMENT YEAR 2011-12. 5. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, HAS SUBMITTED THAT THE FACTS INVOLVED IN THIS CASE ARE IDENTICAL TO EARLIER ASSESSMENT YEAR 2011-12. RECORDS RELATING TO THE ASSESSMENT YEAR UNDER CONSIDERATION I.E. 2013-14 WA S DESTROYED ALONGWITH THAT OF ASSESSMENT YEAR 2011-12 IN THE SA ME FIRE INCIDENT OCCURRED ON 23.1.2014. HE HAS FURTHER REL IED UPON THE DECISION OF THE TRIBUNAL IN THE CASE OF ASSESSEE FO R ASSESSMENT YEAR 2011-12 IN ITA NO. 1215/CHD/2016 VIDE ORDER D ATED 29.5.2017 WHEREIN THE SMC BENCH OF THE TRIBUNAL TAK ING INTO CONSIDERATION THE OVERALL FACTS AND CIRCUMSTANCES O F THE CASE TAKING INTO CONSIDERATION THE PAST HISTORY, GP RAT E AND NET PROFIT DECLARED BY THE ASSESSEE IN THE EARLIER ASSESSMENT YEARS HAS DELETED THE ADDITION OF RS. 20 LACS MADE BY THE ASS ESSING OFFICER IN THAT YEAR TAKING INTO CONSIDERATION THE PAST HI STORY, GP RATE ITA NO.753/CHD/2017- T.C. AGRO PVT LTD., KURUKSHETRA 3 AND NET PROFIT DECLARED BY THE ASSESSEE IN THE EARL IER ASSESSMENT YEAR. THE LD. CIT(A) IN THIS CASE HAS FOLLOWED THE ORDER OF HIS PREDECESSOR IN THE EARLIER ASSESSMENT YEAR 2011-12 WHICH BY NOW STOOD REVERSED BY THE DECISION OF THE TRIBUNAL DATE D 29.5.2017 (SUPRA). HENCE, FOLLOWING THE SAME RATIO, THE ADDIT ION MADE DURING THE YEAR FOR THE ASSESSMENT YEAR UNDER CONSI DERATION BY THE LOWER AUTHORITIES ON THE SAME FOOTING IS REQUIRED T O THE DELETED. HENCE, RESPECTFULLY FOLLOWING THE DECISION OF THE T RIBUNAL IN THE OWN CASE OF ASSESSEE FOR ASSESSMENT YEAR 2011-12, THE ADDITION MADE FOR THE YEAR UNDER CONSIDERATION IS ORDERED T O BE DELETED. 6. THE APPEAL OF ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (B.R.R.KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 09.04.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR