Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 16865 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
07-03-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Assessment Year
2018-2019
Judgement Text
"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई \nIN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI \nŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी एस.आर. रगुनाथॎ, लेखा सद˟ क\nे समƗ \nBefore Shri S.S. Viswanethra Ravi, Judicial Member & \nShri S.R. Raghunatha, Accountant Member \n \nआयकर अपील सं./I.T.A. No.2985/Chny/2024 \nिनधाŊरण वषŊ/Assessment Year: 2018-19 \n \nMuthaiya Anandan, \nNo. 8, Manickam Pillai Street, \nMadakulam, Madurai 625 003. \n \n[PAN:AFJPA4111N] \n \nVs. The Income Tax Officer, \nNon Corporate Ward 1(1), \nMadurai. \n(अपीलाथŎ/Appellant) \n \n(ŮȑथŎ/Respondent) \n \nअपीलाथŎ की ओर से / Appellant by : \nShri R. Venkata Raman, C.A. \nŮȑथŎ की ओर से/Respondent by : \nDr. M.D. Vijay Kumar, JCIT \nसुनवाई की तारीख/ Date of hearing \n: \n04.03.2025 \nघोषणा की तारीख /Date of Pronouncement : \n07.03.2025 \n \nआदेश /O R D E R \n \nPER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: \n \n \nThis appeal filed by the assessee is directed against the order \ndated 19.02.2024 passed by the ld. Commissioner of Income Tax \n(Appeals), National Faceless Appeal Centre (NFAC), Delhi for the \nassessment year 2018-19. \n \n2. \nWe find that this appeal is filed with a delay of 208 days. The \nassessee filed an affidavit for condonation of delay stating the reasons. \nUpon hearing both the parties and on examination of the said affidavit, \n\nI.T.A. No.2985/Chny/24 \n2\nwe find the reasons stated by the assessee are bonafide, which really \nprevented in filing the appeal in time. Thus, the delay is condoned and \nadmitted the appeal for adjudication. \n \n3. \nThe assessee raised 3 grounds of appeal, amongst which, the \nonly issue emanates for our consideration as to whether the ld. CIT(A) \nis justified in adopting profit rate at 8% in the facts and circumstances \nof the case. \n \n4. \nAt the outset, we note that the assessee is an individual and \nengaged in the business of operating passenger buses. The Assessing \nOfficer, on an information, pertaining to the cash deposit in State Bank \nof India and HDFC of the assessee, completed reassessment, inter \nalia, making addition of ₹.3,59,11,562/-. The ld. CIT(A), taking into \nconsideration the audit report, cash deposits and withdrawals, adopted \nthe profit rate at 8% of receipts shown in the profit & loss account. \n \n5. \nBefore us, the ld. AR Shri R. Venkata Raman, C.A. submits that \nthe Assessing Officer passed giving effect order, in pursuance of the \ndirections of the ld. CIT(A) in the first appeal, held the income as \ncomputed by adopting the profit rate as income from other sources and \napplied the provisions of section 115BBE of the Act. The ld. AR \n\nI.T.A. No.2985/Chny/24 \n3\nvehemently argued that the Assessing Officer fell in error in not treating \nthe income of the assessee under the head business as there was no \nfinding stated to have been given by the ld. CIT(A) in the impugned \norder. He prayed that the total income as determined by the ld. CIT(A) \nadopting 8% profit rate of total receipts as reflecting in the profit & loss \naccount may be treated under the head income from business, but not \nunder the head income from other sources. \n \n6. \nThe ld. DR Dr. M.D. Vijay Kumar, JCIT submits that the finding of \nthe ld. CIT(A) is very much clear that the total income of the assessee \nis to be treated as business income only, but, not income from other \nsources and drew our attention to the first para of page 15 of the \nimpugned order. Taking into consideration of the same, we find force in \nthe argument of the ld. AR when there is no dispute with regard to the \nbusiness of the assessee which is clear from page 15 of the impugned \norder i.e., travels by operating buses, there should not be any \nconfusion in this regard. Thus, we make it clear that the order of the ld. \nCIT(A) in adopting 8% on total receipts of ₹.2,70,78,801/- is to be \ntreated as income from business. Therefore, the grounds raised by the \nassessee are allowed. \n \n\nI.T.A. No.2985/Chny/24 \n4\n7. \nIn the result, the appeal filed by the assessee is allowed. \nOrder pronounced on 07th March, 2025 at Chennai. \n \n \n \nSd/- \nSd/- \n(S.R. RAGHUNATHA) \nACCOUNTANT MEMBER \n(S.S. VISWANETHRA RAVI) \nJUDICIAL MEMBER \n \nChennai, Dated, 07.03.2025 \n \nVm/- \n \nआदेश की Ůितिलिप अŤेिषत/Copy to: \n1. अपीलाथŎ/Appellant, \n2.ŮȑथŎ/ Respondent, \n3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem \n4. िवभागीय Ůितिनिध/DR & \n5. गाडŊ फाईल/GF. \n"
Mehul