The ITO, Ward 1 (3), JAMNAGAR V. Shri Pushkarraj J Kabra, JAMNAGAR

MA 2/RJT/2011

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6477 (ITAT-RAJKOT)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 06-05-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 21-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: J C RANPURA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) M.A. NO.02/RJT/2011 (ARISING OUT OF I.T.A. NO.867/RJT/2009) (ASSESSMENT YEAR 2006-07) ITO, WD.1(3) VS SHRI PUSHKARRAJ J KABRA JAMNAGAR PROP OF M/.S MADHAV METALS B-18, GIDC, STU, JAMNAGAR PAN : ALPPK2887B (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI AVINASH KUMAR RESPONDENT BY: SHRI JC RANPURA O R D E R PER N.R.S. GANESAN, JM THE REVENUE HAS FILED THE PRESENT MISCELLANEOUS AP PLICATION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL DATED 23-08-2010. 2. SHRI AVINASH KUMAR, THE LD.DR SUBMITTED THAT THI S TRIBUNAL IN ITA NO.201/RJT/2008 & 231/RJT/2008 IN ASSESSEES OWN CA SE FOR THE ASSESSMENT YEAR 2005-06, VIDE ORDER DATED 14-12-2009 AT 2.5%; HOWEVER, FOR THE YEAR UNDER CONSIDERATION, VIDE ORDER DATED 23-08-2010 IN ITA N O.867/RJT/2009 THE TRIBUNAL FIXED THE PROFIT ON URD SALES AT RS.5 LAKHS ON ADHO C BASIS WHICH COMES TO ONLY 1.125%. THEREFORE, ACCORDING TO THE LD.DR THE PROF IT ON SALE OF URD PURCHASES HAS TO BE FIXED AT 2.5%. 3. ON THE CONTRARY, SHRI JC RANPURA, THE LD.DR SUBM ITTED THAT THIS TRIBUNAL AT ITS DISCRETION FIXED THE PROFIT AT RS.5 LAKHS ON AD HOC BASIS. THIS WOULD NOT AMOUNT TO A MISTAKE APPARENT ON RECORD. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAV E ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. NO DOUBT, THIS TRIBU NAL FIXED THE PROFIT ON SALE OF MA NO.02/RJT/2011 2 URD PURCHASES AT RS.5 LAKHS ON ADHOC BASIS. IN ITA S NO.201/RJT/2008 & 231/RJT/2008 THIS TRIBUNAL FIXED THE PROFIT AT 2.5% FOR THE ASSESSMENT YEAR 2005- 06. EACH ASSESSMENT YEAR IS SEPARATE AND INDEPENDE NT. THE FIGURE OF PROFIT IS NOT A CONSTANT FIGURE. THE PROFIT WOULD FLUCTUATE D EPENDING UPON VARIOUS FACTORS SUCH AS THE AVAILABILITY OF RAW MATERIAL, AVAILABIL ITY OF LABOURERS, DEMAND IN THE MARKET, AVAILABILITY OF INFRASTRUCTURE FACILITIES L IKE ELECTRICITY, MACHINERY, ETC. THEREFORE, THE PROFIT RATIO CANNOT BE CONTINUE TO B E SAME FOR YEARS TOGETHER. IN OTHER WORDS THE RATIO OF PROFIT WOULD FLUCTUATE EAC H AND EVERY YEAR DEPENDING UPON THE FACTORS AVAILABLE FOR THAT YEAR. THOUGH T HIS TRIBUNAL FIXED THE PROFIT AT 2.5% FOR THE ASSESSMENT YEAR 2005-06, FOR THE YEAR UNDER CONSIDERATION, THE TRIBUNAL FIXED THE PROFIT ON ADHOC BASIS. THE TRIB UNAL HAS TAKEN INTO CONSIDERATION ALL THE FACTORS AND IN ITS DISCRETION HAS FIXED THE PROFIT. THEREFORE, IT CANNOT BE SAID THAT THERE IS AN ERROR IN THE ORDER OF THIS TRIBUNAL. IN OUR OPINION, THERE IS NO MERIT IN THE APPLICATION FILED BY THE R EVENUE. ACCORDINGLY, THE SAME IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 -05-2011 . SD/- SD/- (A.L. GEHLOT) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 27 TH MAY, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A), JAMNAGAR 4. THE CIT, JAMNAGAR 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT