ACIT, CC-II, Chandigarh V. M/s Can & Able Events Pvt. Ltd., Chandigarh

MA 39/CHANDI/2020

AI Insights

The case involves three Miscellaneous Applications (MAs) filed by the Revenue against M/s Can & Able Events Pvt. Ltd., concerning the net profit rates applied for the Assessment Years 2009-10, 2011-12, and 2012-13. Initially, the Tribunal had set a uniform net profit rate of 8% for these years based on a previous assessment for A.Y. 2008-09. However, it was later brought to attention that the assessee had declared higher net profit rates in their returns for the respective years, which were not considered in the Tribunal's earlier decision. The Tribunal acknowledged this oversight and rectified the order to accept the net profit rates as declared by the assessee for the specified years.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127690 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 7 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-01-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 05-01-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 18-06-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “ए” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH ी स ु धांश ु ीवा तव, या यक सद य, एवं ी "व#म %संह यादव, लेखा सद य BEFORE: SHRI. SUDHANSHU SRIVASTAVA, JM & SHRI. VIKRAM SINGH YADAV, AM Misc. Application No. 37/Chd/2020 ( ITA NO. 165/Chd/2019) Assessment Year : 2009-10 The ACIT CC- II, Chandigarh M/s Can & Able Events Pvt. Ltd. 2175, 2 nd Floor, Sector 15-C, Chandigarh PAN NO: AABCC8309C Appellant Respondent Misc. Application No. 38/Chd/2020 ( ITA NO. 166/Chd/2019) Assessment Year : 2011-12 The ACIT CC- II, Chandigarh M/s Can & Able Events Pvt. Ltd. 2175, 2 nd Floor, Sector 15-C, Chandigarh PAN NO: AABCC8309C Appellant Respondent Misc. Application No. 39/Chd/2020 ( ITA NO. 167/Chd/2019) Assessment Year : 2012-13 The ACIT CC- II, Chandigarh M/s Can & Able Events Pvt. Ltd. 2175, 2 nd Floor, Sector 15-C, Chandigarh PAN NO: AABCC8309C Appellant Respondent ! " Assessee by : Shri Tej Mohan Singh, Advocate # ! " Revenue by : Smt. Amanpreet Kaur, JCIT, Sr. DR $ % ! & Date of Hearing : 06/01/2023 '()* ! & Date of Pronouncement : 30/01/2023 आदेश/Order PER SUDHANSHU SRIVASTAVA, J.M. : These are three Misc. Applications arising out of order passed by the Coordinate Bench in ITA No. 161, 165 to 167/Chd/2019 vide order dt. 20/12/2019. 2 2. In the Misc. Application for A.Y. 2009-10, the Revenue has submitted as under: “The Hon'ble ITAT vide its composite order dated 20.12.2019 restricted the net profit rate to 8%. The Hon'ble ITAT discussed the matter in A.Y. 2008-09 at length and since the same issue was involved in other years as well, they were decided on the same lines. The relevant portion of the order is reproduced as under: "We have considered the rival contentions. Though the assessee could not produce the information in the shape of books and vouchers, etc. during the assessment proceedings. However, the assessee has submitted that its books of account were duly audited and that further the net profit returned by the assessee is at 5.83%. Considering the overall facts and circumstances, in our view, the interest of justice will be met if the net profit rate is applied at 8%. We order accordingly. Since this issue is involved in all the appeals and even the same net profit rate has been applied by the AO in all the appeals, hence, in view of our observation made above, the net profit rate is restricted to 8% in all the captioned appeals. In the result, all the appeals filed by the assessee are treated as partly allowed." However, it has been observed that the assessee company had itself declared net profit percentage greater than 8% in the return of income filed for A.Y. 2009-10. The details of profit declared by the company are as follows: Sr. Gross Receipts Net Profit declared Net Profit rate A.Y. (in Rs.) in the Rol filed declared by the No (in Rs.) assessee company. 1. 2009-10 1,20,10,747/- 10,45,589/- 8.71% As per the data depicted above, it is clear that the assessee company itself has declared net profit rate more than 8% of gross receipts in the A.Y. 2009-10. This fact has been inadvertently overlooked by the Hon'ble ITAT bench while restricting the net profit rate to 8% in all the four Assessment Years. Therefore, in view of the above, order passed in the appeal under consideration may kindly be rectified. 3. Similarly, in Misc. Application for A.Y. 2011-12, it has been submitted that the assessee company itself has declared Net Profit rate of 10.39% as against 8% directed by the Tribunal. 4. Similarly, in Misc. Application for A.Y. 2012-13, it has been submitted that the assessee company has shown Net Profit rate of 10.66% as against 8% of gross receipt as directed by the Tribunal. 3 5. During the course of hearing, the Ld. AR fairly admitted the factual position as so submitted by the Revenue and agreed that these factual inaccuracies have crept in the order passed by the Coordinate Bench and the Bench may appropriately rectify the order so passed earlier where the net profit rate may be restricted to net profit rate as declared by the assessee. 6. In view of the material available on the record and considering the submissions made by both the parties, we find that aforesaid factual mistakes have crept in the consolidated order so passed by the Coordinate Bench for A.Y 2008-09, 2009-10, 2011- 12 and 2012-13 where the net profit @ 5.83% as declared by the assessee for A.Y 2008- 09 has been considered and net profit as declared by the assessee for A.Y 2009-10, 2011-12 and 2012-13 has apparently escaped its attention while directing the application of net profit rate of 8% of gross receipts for all these years. In view of the same, as accepted by both the parties, we hereby modify the findings and directions and para 8 of the impugned order should now be read and substituted in place of existing para 8 as under: “8. We have considered the rival contentions. Though the assessee could not produce the information in the shape of books and vouchers, etc. during assessment proceedings. However, the assessee has submitted that its books of account were duly audited and that further the net profit returned by the assessee is at 5.83%. Considering the overall facts and circumstances, in our view, the interest of justice will be met if the net profit rate is applied at 8% for A.Y 2009-10 as against 5.83% declared by the assessee; and for A.Y 2011-12, where the assessee has declared net profit rate of 10.39% and for A.Y 2012-13, where the assessee has declared net profit rate of 10.66%, the net profit rate as so declared by the assessee for A.Y 2011-12 and A.Y 2012-13 be accepted. We order accordingly. Since this issue is involved in all the appeals and even the same net profit rate has been applied by the AO in all the appeals, hence, in view of our observation made above, the net profit rate is restricted to 8% for A.Y 2009-10 and for A.Y 2011-12 and A.Y 2012-13, net profit rate as declared by the assessee be accepted.” 4 7. Subject to above, there are no other changes in the impugned consolidated order so passed by the Coordinate Bench vide its order dt. 20/12/2019. 8. In the result, Misc. Applications filed by the Revenue are allowed and disposed off in light of aforesaid directions. (Order pronounced in the open Court on 30/01/2023 ) Sd/- Sd/- "व#म %संह यादव स ु धांश ु ीवा तव (VIKRAM SINGH YADAV) (SUDHANSHU SRIVASTAVA) लेखा सद य/ ACCOUNTANT MEMBER या यक सद य / JUDICIAL MEMBER AG Date: 30/01/2023 ( + ! , - . - Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. $ / CIT 4. $ / 0 1 The CIT(A) 5. - 2 ग 4 5 & 4 5 678 ग9 DR, ITAT, CHANDIGARH 6. ग 8 : % Guard File ( + $ By order, ; # Assistant Registrar