M/s. Clinilab, Dhanbad V. ACIT, Dhanbad

ITSSA 8/RAN/2013

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 0465 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 27-11-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 14-06-2013
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROSHAN SENIOR S CLD
• Assessee Lawyers: S K PODDAR; M K CHOUDHARY S LD
• Section: 153A; 132

Judgement Text

1 IT(SS) A NO.08/RAN/2013 M/S. CLINILAB INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER IT (SS) A NO. 08 /RAN/201 3 A.Y 20 03 - 04 M/S. CLINILAB VS. A.C.I.T , CENTRAL CIRCLE, DHANBAD PAN: AA BFC4071A ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT : S/ SHRI S.K PODDAR & M.K.CHOUDHARY, ADVOCATES, LD.AR FOR THE RESPONDENT : SHRI DEEPAK ROSHAN, SENIOR S.C, LD.DR DATE OF HEARING : 27 - 11 - 2014 DATE OF PRONOUNCEMENT: 27 - 11 - 2014 ORDER SHRI B.R. BASKARAN, ACCOUNTANT MEMBER : THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 15.3.2013 PASSED BY LD CIT(A), DHANBAD AND IT RELATES TO THE ASSESSMENT YEAR 2003 - 04. THE ASSES SEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE ADDITION TO THE EXTENT OF RS.1.00 LAC. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE THAT THE ASSESSEE WAS SUBJECTED TO SEARCH OPERATION U/S 132 OF THE ACT ON 17.10.2008. CONSEQ UENTLY, THE PRESENT ASSESSMENT WAS MADE U/S 153A OF THE ACT. THE ASSESSEE WAS HAVING TWO UNITS LOCATED AT DHANBAD AND ASANSOL. THE AO NOTICED THAT THE RATE OF PROFIT DECLARED AT DHANBAD UNIT WAS LESSER BY 3% OF THE PROFIT RATE DECLARED AT ASANSOL UNIT. ACCORDINGLY, THE AO ENHANCED THE PROFIT OF DHANBAD UNIT BY 3% AND ACCORDINGLY ADDED A SUM OF RS.2,70,500/ - TO THE TOTAL 2 IT(SS) A NO.08/RAN/2013 M/S. CLINILAB INCOME OF THE ASSESSEE. IN THE APPELLATE PROCEEDINGS, THE LD CIT(A) REDUCED THE SAME TO RS.1.00 LAC. STILL AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 3. ACCORDING TO LD A.R, THE ASSESSING OFFICER HAS NOT APPRECIATED THE DIFFERENCE IN THE FACILITIES AVAILABLE BETWEEN THE DHANBAD AND ASANSOL UNIT, WHICH HAS RESULTED IN THE VARIATION OF THE PROFIT RATE. HE FURTHER SUBMIT TED THAT THE DEPARTMENT DID NOT UNEARTH ANY INCRIMINATING MATERIAL WARRANTING THE IMPUGNED ADDITION. ON THE CONTRARY, THE LD D.R SIMPLY SUPPORTED THE ORDER OF LD CIT(A). 4. AS CONTENDED BY LD A.R, WE NOTICE THAT THE ASSESSING OFFICER HAS NOT BROUGHT ANY MATERIAL ON RECORD TO SHOW THAT THERE WAS UNDER DECLARATION OF PROFIT AT DHANBAD UNIT. NO OTHER MATERIAL WAS BROUGHT ON RECORD THAT MAY WARRANT ENHANCEMENT OF PROFIT IN DHANBAD UNIT. ACCORDING TO LD A.R, THERE ARE DIFFERENCES IN THE FACILITIES PROVID ED IN BOTH THE PLACES AND THE SAID DIFFERENCE WAS NOT APPRECIATED BY THE ASSESSING OFFICER OR LD CIT(A). UNDER THESE SET OF FACTS, WE ARE CONSTRAINED TO PRESUME THAT THE IMPUGNED ADDITION HAS BEEN MADE BY BOTH THE TAX AUTHORITIES ON SURMISES AND CONJECTUR ES. HENCE, WE ARE UNABLE TO SUSTAIN THE ADDITION OF RS.1.00 LAKH CONFIRMED BY LD CIT(A) ALSO. ACCORDINGLY, WE SET ASIDE HIS ORDER ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED ACCORDINGLY ON 27 - 11 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 27 - 11 - 2014 PLACE : RANCHI 3 IT(SS) A NO.08/RAN/2013 M/S. CLINILAB PP, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : M/S. CLINILAB, C/O R.K. PATNIA (AR) C/O R.K. PATNIA & CO. 1 ST FL, RATHORE MANSION , BANK MORE, D BAD 2 THE RESPONDENT: THE A CIT, CC, D BAD 3..THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 4 IT(SS) A NO.08/RAN/2013 M/S. CLINILAB 1. DATE OF DICTATION .............27 - 11 - 2014.. ON MEMBER S LAPTOP ........... .......... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBER .... 28 ... - 11 - 2014........................ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT..................................27 - 11 - 2014................................................... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ..............................................................