Asstt. Commissioner of Income Tax, Lucknow V. Shri Rajendra Prasad Agarwal, Lucknow

ITA 797/LKW/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87856 (ITAT-LUCKNOW)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 24-03-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 28-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PUNIT KUMAR
• Assessee Lawyers: A P SINHA

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. 797 /LKW/201 4 ASSESSMENT YEAR:200 9 - 20 1 0 A.C.I.T. - RANGE - V, LUCKNOW VS. SRI RAJENDRA PRASAD AGARWAL C/O R. PRASAD & SONS, VISHAL KHAND, GOMTI NAGAR, LUCKNOW PAN:AAWPA3956D (APPELLANT) (RESPONDENT) APPELLANT BY SHRI PUNIT KUMAR, SR. DR RESPONDENT BY SHRI A . P. SINHA, ADVOCATE DATE OF HEARING 24 /0 3 /201 5 DATE OF PRONOUNCEMENT 26 /0 3 /201 5 O R D E R PER A. K. GARODIA, A.M. T HIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDER OF LEARNED CIT (A) II LUCKNOW DATED 3.07.2014 FOR A.Y. 2009 2010 . 2. THE ONLY GRIEVANCE OF THE REVENUE IS REGARDING DIRECTION OF LEARNED CIT (A) TO ADOPT NET PROFIT RATE OF 4 % AS AGAINST 10% ADOPTED BY THE A.O. 3 . LEARNED D.R. OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER AND LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF CIT (A). 4 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT IN THE PRESENT YEAR, THE N.P. RATE DECLARED BY THE ASSESSEE IS 3.84% AND THE A.O. ADOPTED 10% WHICH WAS REDUCED TO 4% BY CIT (A). IT IS OBSERVED BY LEARNED CIT (A) THAT NO BASIS IS INDICATED BY THE A.O. TO ADOPT 10% NP RATE IN ASSESSMENT ORDER AND SUGGEST ING 8% NP RATE IN REMAND REPORT. HE HAS CONSIDERED THE PAST PERFORMANCE AS NOTED ON PAGE 10 OF HIS ORDER SHOWING NP RATE OF 4.18% IN A.Y. 2005 06 AND 3.12 % TO 3.27 % IN A.Y. 2006 07 TO 2008 09 WHILE DIRECTING THE A.O. TO ADOPT NP RATE OF 4% . BUT IT IS ACCEPTED BY THE LEARNED AR OF THE ASSESSEE THAT IN ALL EARLIER YEARS, ASSESSMENT WAS COMPLETED U/S 143 (1). HENCE, PAST HISTORY CANNOT BE DECISIVE BUT INDICATIVE ONLY. AFTER 2 CONSIDERING THE FACTS IN TOTALITY, WE FEEL THAT ADOPTING NET PROFIT RATE OF 4. 5 % WILL MEET THE ENDS OF JUSTICE. WE DIRECT THE A.O. ACCORDINGLY. 5 . IN THE RESULT, THE APPEAL OF THE REVENUE 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: 26 /0 3 /201 5 *C.L.SINGH 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