Sudhir Kumar Shukla, Kanpur V. Income Tax Officer-3(4), Kanpur

ITA 770/LKW/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0998 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-06-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 05-12-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SWATI RATNA
• Assessee Lawyers: PRADEEP MEHROTRA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 7 70 /LKW/201 3 ASSESSMENT YEAR:200 5 20 0 6 SRI SUDHIR KUMAR SHUKLA, C/O MEHROTRA PRADEEP & CO., ROOM NO. 1, 2 ND FLOOR, 37/54, ROLAND COMPLEX, THE MALL, KANPUR. PAN:AHDPS2275B VS. INCOME TAX OFFICER, 3 (4), KANPUR (APPELLANT) (RESPONDENT) APPELLANT BY SHRI PRADEEP MEHROTRA, ADVOCATE RESPONDENT BY SMT. SWATI RATNA, SR. DR DATE OF HEARING 26/06/2015 DATE OF PRONOUNCEMENT 2 3 /07/2015 O R D E R PER A. K. GARODIA, A.M. T HIS IS ASSESSEE S APPEAL DIRECTED AGAINST THE ORDER OF LEARNED CIT(A) - I I KANPUR DATED 28 .0 2 .201 3 FOR A.Y. 200 5 20 0 6 . 2. THE ONLY ONE EFFECTIVE GROUND RAISED IS AS UNDER: - ( I) THE LD. COMMISSIONER (APPEALS) HAS ERRED ON FACTS AND IN LAW IN HOLDING THAT THE ASSESSING OFFICER RIGHTLY ASSESSED THE INCOME @ 5 % IN SPITE OF THE FACT THAT THE REGULAR BOOKS OF ACCOUNTS ARE MAINTAINED AND ARE A UDITED BY A CHARTERED ACCOUNTANT . 3 . LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE RATE OF 5 % IS EXCESSIVE. HE ALSO SUBMITTED THAT THE COMPARATIVE RATE OF G.P. AND N.P. IS AVAILABLE ON PAGE 6 OF THE PAPER BOOK. LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER. 2 4 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT AS PER CHART AVAILABLE ON PAGE 6 OF THE PAPER BOOK, THE TURNOVER IN A.Y. 2003 04 WAS RS. 41.33 LACS AND N.P. WAS 1.16%. IN NEXT YEAR I.E. A.Y. 2004 05, THE TURNOVER ROSE TO RS . 58.02 LACS AND N.P. WAS DOWN TO 0.36%. IN THE PRESENT YEAR, THE TURNOVER WAS RS. 40.48 LACS AND REPORTED N.P. RATE IS ONLY 0.39%. THIS IS ALSO IMPORTANT THAT IT IS NOT THE CASE OF THE ASSESSEE THAT ASSESSMENT OF THESE EARLIER YEARS WAS U/S 143 (3). THIS FACT IS TO BE KEPT IN MIND THAT THE ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNTS, BILLS & VOUCHERS ETC. BEFORE THE AUTHORITIES BELOW. UNDER SECTION 44 AF I.E. IN CASE OF RETAIL TRADE HAVING TURNOVER OF UP TO RS. 40 LACS , INCOME IS TO BE ASSESSED AT 5 % O F TURNOVER. THE TURNOVER IN THE PRESENT CASE IS ABOVE RS. 40 LACS AND HENCE, SECTION 44AF IS NOT APPLICABLE BUT SINCE THE TURNOVER IS ONLY MARGINALLY HIGHER THAN RS. 40 LACS AT RS. 40.48 LACS, WE FEEL THAT ADOPTING N.P. RATE OF 4 % WILL MEET THE ENDS OF JU STICE. WE DIRECT THE A.O. ACCORDINGLY. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 3 / 0 7 /201 5 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR