M/s. Speed Automobiles Pvt. Ltd., Indore V. The ACIT Circle 3(1), Indore

ITSSA 97/IND/2014

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 1757 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 10 month(s) 30 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 09-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 10-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Assessee Lawyers: G K RATHI
• Keywords: Search and seizure; Loose papers
• Section: 132

Judgement Text

M/S SPEED AUTOMOBILES ITA NOS. 95 TO 97/IND/2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER IT(SS)A NOS. 95 TO 97/IND/2014 A.YS.2003-04, 2005-06 & 2006-07 M/S SPEED AUTOMOBILES PVT. LTD. INDORE ::: APPELLANT VS ASSTT.COMMR. OF INCOME TAX 3(1) INDORE ::: RESPONDENT APPELLANT BY SHRI G.K. RATHI RESPONDENT BY SMT. ASHIMA GUPTA DATE OF HEARING 23.12.2015 DATE OF PRONOUNCEMENT 9.2. 201 6 O R D E R PER SHRI B.C. MEENA, AM THESE APPEALS FILED BY THE ASSESSEE EMANATE FROM THE COMMON ORDER OF THE LEARNED CIT(A-I), INDORE, D ATED 24.12.2013. M/S SPEED AUTOMOBILES ITA NOS. 95 TO 97/IND/2014 2 2. IN THIS CASE SEARCH AND SEIZURE OPERATIONS WERE CARR IED OUT U/S 132 OF THE ACT AT THE RESIDENTIAL AND BUSINESS PREMISES OF SHRI GURJEET SINGH CHABRA LOCATED AT IDA SCHEME NO. 74C, INDORE, ON 10.7.2007. DURING THE S EARCH OPERATION CERTAIN LOOSE PAPERS WERE FOUND AND SEIZED. T HE SEIZED PAPER SERIAL NO. 26 OF LPS-7 WAS A DOCUMENT OF S HRI RAJIV SANGHI, M.D. OF THE ASSESSEE COMPANY WHEREIN HE HAS REQUESTED SHRI GURJEET SINGH CHHABRA, ONE OF THE DIRECTORS OF M/S RIYA HOTELS PVT. LTD. TO PAY THE BAL ANCE AMOUNT OF THE SALE CONSIDERATION IN RESPECT OF SALE OF PLOT NO. 12C/CA RING ROAD, INDORE, OWNED BY M/S SPEED AUTOMOBILES PVT. LTD. AND SOLD TO M/S RIYA HOTELS PVT. LTD. PROCEEDINGS U/S 153C OF THE ACT WERE INITIATED AND CE RTAIN ADDITIONS WERE MADE. THE LEARNED CIT(A) DISMISSED THE APPEALS OF THE ASSESSEE BY HOLDING AS UNDER :- 6. THE ONLY DISPUTE IN THE THREE YEARS IS ADDITION OF GROSS PROFIT IN HANDS OF APPELLANT AT THE RATE OF 0 .5% ON M/S SPEED AUTOMOBILES ITA NOS. 95 TO 97/IND/2014 3 THE GROSS SALES ESTIMATED BY COMMERCIAL TAX DEPARTMENT. THE ONLY ARGUMENT OF APPELLANT IS THAT SUCH ORDERS PASSED BY COMMERCIAL TAX DEPARTMENT. THE ONL Y ARGUMENT OF APPELLANT IS THAT SUCH ORDERS PASSED BY COMMERCIAL TAX DEPARTMENT WERE EX-PARTE ORDERS AN D AGAINST WHICH REVISION APPLICATIONS ARE PENDING. HOWEVER, SINCE SUCH ORDER OF REVISION WAS NOT PRODUCED EVEN AFTER LAPSE OF MANY YEARS, HENCE PRESENTLY THE ESTIMATED SALES ARRIVED AT BY COMMER CIAL TAX DEPARTMENT ARE THE ONLY FIGURES AVAILABLE AND THERE IS NO ALTERNATE BUT TO ADOPT THE SAME. ALSO I F THERE IS SO MUCH SUPPRESSION IN SALES, THEN A CASE OF INCURRING LOSES IN SALE OF VEHICLES COULD NOT BE AC CEPTED AS APPELLANT RECEIVES CERTAIN COMMISSION/PROFIT ON SALE OF EACH VEHICLE AND THE A.O. HAS ADOPTED A VERY REASONABLE PROFIT RATE OF ONLY 0.5% WHICH IS HEREBY CONFIRMED. M/S SPEED AUTOMOBILES ITA NOS. 95 TO 97/IND/2014 4 3. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE REVISION ORDER OF COMMERCIAL TAX DEPARTMENT HAS COME, THEREFORE, THE MATTER MAY BE SET ASIDE TO THE ASSESSING OFFICER. AFTER HEARING BOTH THE SIDES, WE FIND IT APPROPRIATE TO SET ASIDE THE ISSUE TO THE F ILE OF THE ASSESSING OFFICER TO DECIDE DE NOVO AS PER LAW. 4. IN THE RESULT, THE APPEALS OF THE ASSESSEE STAND ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 2 FEB., 2016 SD/- SD/- (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER 2 ND FEB., 2016 DN/- M/S SPEED AUTOMOBILES ITA NOS. 95 TO 97/IND/2014 5