Appeal details
Counselvise Citation
[2011] 140 COUNSELVISE.COM (IT) 47966 (ITAT-JAIPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 14 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
08-07-2011
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
B
Assessment Year
2006-2007
Appeal Filed On
24-06-2010
Judgement Text
1 ITA 831-10 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 831/JP/2010 ASSTT. YEAR : 2006-07. THE ACIT, CIRCLE-3, VS. M/S.JAI VINAYAK MAHADEV EXPORT JAIPUR. PVT. LTD., A-16, GANDHI PATH, NEMI SAGAR, VAISHALI NAGAR, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : SHRI MANISH AGARWAL ORDER DATE OF ORDER : 08/07/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE ADDI TION OF RS. 7,70,825/- MADE BY AO ON ACCOUNT OF COMMISSION OF SALE. 3. THE ASSESSEE DEALS IN CARPETS AND TEXTILES. DURI NG THE YEAR THE ASSESSEE HAS SHOWN G.P. RATE OF 20.02% AS AGAINST 18.61% OF LAST YEAR. THE AO FOUND THAT ASSESSEE HAS PAID COMMISSION OF RS. 46,24,962/- ON SALES. THE COMMIS SION WAS CLAIMED TO BE PAID TO COMPANIES, GUIDES AND DRIVERS. CONFIRMATION FROM TH E COMPANIES FOR A COMMISSION OF RS.7,70,833/- WAS FILED. REMAINING AMOUNT OF COMMI SSION OF RS. 38,54,129/- WAS CLAIMED TO HAVE PAID TO GUIDES AND D RIVERS. THE A O NOTICED THAT ASSESSEE HAS PAID 2 COMMISSION IN CASH AND NO TDS HAS BEEN DEDUCTED. T HEREFORE, THE AO DISALLOWED 20% OF THE COMMISSION PAID TO GUIDES AND DRIVERS OF RS. 38,54,129/- WHICH RESULTED IN AN ADDITION OF RS. 7,70,825/-. IT WAS CONTENDED BEFOR E LD. CIT (A) THAT SIMILAR DETAILS WERE MADE IN EARLIER ASSESSMENT YEARS 2004-05 AND 05-06 AND TRIBUNAL HAS UPHOLD THE DISALLOWANCE OF RS. 25,000/- FOR ASSESSMENT YEAR 20 04-05 AND RS. 50,000/- FOR ASSESSMENT YEAR 2005-06. COPY OF THE ORDERS OF THE TRIBUNAL WAS FILED. PLACING RELIANCE ON THE ORDER OF TRIBUNAL FOR EARLIER TWO YEARS, THE LD. CIT (A) SUSTAINED DISALLOWANCE OF RS. 50,000/- AND REMAINING DISALLOWANCE MADE BY AO WAS DELETED. 4. NOW THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. 5. THE LD. D/R PLACED RELIANCE ON THE ORDER OF AO A ND ON THE OTHER HAND, LD. COUNSEL OF THE ASSESSEE RELIED ON THE ORDER OF LD. CIT (A). 6. AFTER CONSIDERING THE ORDERS OF AO AND LD. CIT ( A), WE FIND NO INFIRMITY IN THE FINDING OF LD. CIT (A). THE LD. CIT (A) HAS ALLOWE D THE APPEAL OF THE ASSESSEE IN PART FOLLOWING THE ORDER OF TRIBUNAL FOR IMMEDIATELY PRE CEDING TWO YEARS. SINCE THE FINDINGS OF LD. CIT (A) ARE IN CONSONANCE WITH THE ORDER OF TRIBUNAL, THEREFORE, WE CONFIRM THE ORDER OF LD. CIT (A) FOR THE YEAR UNDER CONSIDERATI ON. 7. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 8. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 08. 07.2011 SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- 3 COPY FORWARDED TO :- THE ACIT, CIRCLE-3, JAIPUR. M/S. JAI VINAYAK MAHADEV EXPORT P.LTD., JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 831/JP/10) BY ORDER, AR ITAT JAIPUR.
