DCIT, Jaipur V. SHRI SANJAY JAIN, Jaipur

MA 6/JPR/2013

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2098 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-07-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 14-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D C SHARMA
• Keywords: Depreciation

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. ME ENA) M.A. NO. 06/JP/2013 (ARISING OUT OF ITA NO. 45/JP/2010) ASSESSMENT YEAR : 2006-07 THE DCIT SHRI SANJAY JAIN CIRCLE- PROP.: M/S. MAHAVEER TRANSPORT CO JAIPUR 14, TRANSPORT NAGAR, JAIPUR (APPELLANT) (RESPONDENT) DEPARTMENT BY: SHRI D.C. SHARMA ASSESSEE BY : SHRI MUKESH KHANDELWAL DATE OF HEARING: 11-07-2014 DATE OF PRONOUNCEMENT: 18-07-2014 ORDER PER R.P. TOLANI, JM THE REVENUE HAS FILED A MISCELLANEOUS APPLICATIO N U/S 254 (2) OF THE ACT AGAINST THE ORDER OF THE TRIBUNAL DATED 29- 10-2010 FOR THE ASSESSMENT YEAR 2006-07 CONTENDING THAT ITAT IN ITS IMPUGNED ORDER AT THE END OF PARA 5.1 AT PAGE 3 HAS DECIDED THE ISSUE AS UNDER. THE ASSESSEE HAD APPLIED 1.8% NET PROFIT, WHICH I N OUR CONSIDERED VIEW, IS ON LOWER SIDE. WE ARE OF THE VI EW THAT IF 2% NET PROFIT IS APPLIED AGAINST 3.4% APPLIED BY THE L OWER AUTHORITIES THAT WILL MEET THE ENDS OF JUSTICE. ACC ORDINGLY, WE DIRECT TO RECALCULATE THE PROFIT OF THE ASSESSEE BY APPLYING NET PROFIT RATE OF 2% AGAINST 3.40% SUBJECT TO DEPRECIA TION ETC. WE ORDER ACCORDINGLY. 2 2.1 IT IS PLEADED THAT THE WORD SUBJECT TO DEPREC IATION IF APPLIED, WILL REDUCE THE ASSESSEE NET PROFIT THAN THE RETURNED IN COME ITSELF WHICH IS NOT PERMISSIBLE UNDER LAW. THEREFORE, IT IS A MISTAKE A PPARENT FROM RECORD WHICH DESERVES TO BE RECTIFIED BY OMITTING THE WORD SUB JECT TO DEPRECIATION AT THE END OF THE ORDER. 2.2 THE LD. COUNSEL FOR THE ASSESSEE CONCEDES THAT THE ABOVE WORD IF GIVEN EFFECT WILL BRING DOWN THE ASSESSED INCOME TO LESS THAN THE RETURNED INCOME. THEREFORE, THE MISTAKE AS POINTED OUT BY THE DEPART MENT IS APPARENT FROM RECORD AND IT DESERVES TO BE RECTIFIED FOR WHICH TH E ASSESSEE HAS NO OBJECTION. 2.3 WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND MERIT IN THE ARGUMENTS OF THE WORD. TO THIS EFFECT, THE MODIFICATION AT THE END OF PARA 5.1 AT PAGE 3 IS MADE AS UNDER:- THE ASSESSEE HAD APPLIED 1.8% NET PROFIT, WHICH IN OUR CONSIDERED VIEW, IS ON LOWER SIDE. WE ARE OF THE VIEW THAT IF 2% NET PROFIT IS APPLIED AGAINST 3.4% APPLIED BY THE LOWER AUTHORITIES THAT WILL MEET THE ENDS OF JUSTICE. ACC ORDINGLY, WE DIRECT TO RECALCULATE THE PROFIT OF THE ASSESSEE BY APPLYING NET PROFIT RATE OF 2% AGAINST 3.40%. WE ORDER ACCORDING LY. 2.4 EXCEPT ABOVE, THERE IS NO CHANGE IN THE ABOVE T RIBUNAL ORDER. THUS THE MISCELLANEOUS APPLICATION OF THE REVENUE IS ALLOWED . 3 3.0 IN THE RESULT, THE M.A. OF THE REVENUE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 18-07-2014 SD/- SD/- (T.R. MEENA) (R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR DATED: 18 TH JULY, 2014 *MISHRA COPY FORWARDED TO:- 1. THE DCIT, CIRCLE- 5, JAIPUR 2. SHRI SANJAY JAIN, JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A), JAIPUR 5..THE LD. DR 6.THE GUARD FILE (MA NO. 06/JP/2013) AR ITAT, JAIPUR