ACIT, Jaipur V. OM PRAKASH AGARWAL, Jaipur

ITA 991/JPR/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54096 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 29-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C MEENA

Judgement Text

1 ITA 991-10 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 991/JP/2010 ASSTT. YEAR : 2006-07. THE ACIT, CIRCLE-3, VS. SHRI OM PRAKASH AGARWAL, JAIPUR. 369, OFFICERS CAMPUS, VAISHALI NAGAR, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.C. MEENA RESPONDENT BY : SHRI MANISH AGARWAL ORDER DATE OF ORDER : 05/08/2011. 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 MACH INE EXPENSES OF RS. 1,52,300/-, DELETING THE ADDITION OF RS. 7,12,160/- ON ACCOUNT OF UNVERIFIED CASH PURCHASES AND DELETING THE DISALLOWANCE OF RS. 7,29,590/- ON ACCO UNT OF LABOUR PAYMENTS DISALLOWED BY THE AO. 3. THE AO MADE DISALLOWANCE OF RS. 1,52,300/- AS TH E REGISTRATION CHARGES ETC. ERE PAID IN CASH BY THE ASSESSEE ON ACCOUNT OF DUMPER V EHICLE WHICH WAS PURCHASED FOR RS. 18,07,300/-. THE LOAN WAS TAKEN FROM HDFC BANK AGA INST THE DUMPER VEHICLE. THE LD. CIT (A) DELETED THE ADDITION BY ASCERTAINING THE FA CT THAT ASSESSEE HAS INCURRED EXPENDITURE ON ACCOUNT OF REGISTRATION FEE FOR REGI STERING THE DUMPER WITH THE RTO. THE 2 LD. CIT (A) HELD THAT THE DISALLOWANCE MADE BY AO W AS NOT JUSTIFIED AS THE EXPENDITURE INCURRED FOR THE PURPOSE OF BUSINESS. THEREFORE, H E DELETED THE ADDITION. 4. THE FINDING OF LD. CIT (A) ARE FINDING OF FACT W HICH REMAINED UNCONTROVERTED, THEREFORE, WE CONFIRM THE DELETION. 5. REGARDING OTHER TWO DISALLOWANCES, THE AO DISALL OWED 1/10 TH OF THE RESPECTIVE EXPENSES FOR WANT OF PURCHASE VOUCHERS AND LABOUR E XPENSES VOUCHERS. 6. THE LD. CIT (A) APPLIED NET PROFIT RTE OF 5% AGA INST NET PROFIT RATE DECLARED AT 4.73% ON THE TOTAL TURNOVER AND ACCORDINGLY THE AO WAS DIRECTED TO RECOMPUTED THE PROFIT OF THE ASSESSEE. 7. SINCE THE LD. CIT (A) HAS APPLIED NET PROFIT RAT E ON THE TOTAL TURNOVER AND APPLICATION OF NET PROFIT RATE HAS NOT BEEN CHALLEN GED BY THE DEPARTMENT, THEREFORE, IN OUR VIEW, ADDITIONS ON ACCOUNT OF CASH PURCHASES AND ON ACCOUNT OF LABOUR EXPENSES WERE RIGHTLY DELETED BY LD. CIT (A). IT IS SETTLED POSI TION THAT WHERE NET PROFIT IS APPLIED THEN NO OTHER EXPENSES CAN BE DISALLOWED AS HELD BY HON BLE JURISDICTIONAL HIGH COURT AS WELL AS OF HONBLE ALLAHABAD HIGH COURT. THE DEPARTMENT HAS NOT CHALLENGED THE APPLICATION OF NET PROFIT RATE. THEREFORE, THERE IS NO REASON TO INTERFERE WITH THE FINDING OF LD. CIT (A). 8. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 05. 08.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- 3 COPY FORWARDED TO :- THE ACIT, CIRCLE-3, JAIPUR. SHRI OM PRAKASH AGARWAL, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 991/JP/2010) BY ORDER, AR ITAT JAIPUR.