PRINCIPAL COMMISSIONER OF INCOME TAX 4 V. SHREE MATANGI WOVEN SACK PVT LTD

TAXAP/797/2018

AI Insights

The case involves the Principal Commissioner of Income Tax 4 as the appellant and Shree Matangi Woven Sack Pvt Ltd as the respondent. The dispute centered on the estimation of net profit by the Assessing Officer, who initially estimated the net profit at 20% of total turnover, resulting in a taxable income of Rs.59,31,200. The CIT(A) later reduced this estimation to 0.5% of total turnover, revising the taxable income to Rs.1,48,280. The revenue challenged this reduction before the Tribunal, which upheld the CIT(A)'s decision. The High Court, upon reviewing the Tribunal's decision, found no substantial question of law arising from the case and dismissed the appeals.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 728360 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 09-07-2018
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: MAUNA BHATT
• Keywords: Assessment Year 2010-11; Estimation of Net Profit; Income Tax; Penalty; Tax appeal
• Section: 271(1)(c)

Judgement Text

"C/TAXAP/796/2018 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 796 of 2018 With R/TAX APPEAL NO. 797 of 2018 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE A.Y. KOGJE ====================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? ====================================== PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus SHREE MATANGI WOVEN SACK PVT LTD ====================================== Appearance: MRS MAUNA M BHATT(174) for the APPELLANT(s) No. 1 for the RESPONDENT(s) No. 1 ====================================== CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE A.Y. KOGJE Date : 09/07/2018 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) [1.0] As common question of law and facts arise in both these Tax Appeals, they are decided and disposed of by this Page 1 of 3 C/TAXAP/796/2018 JUDGMENT common judgment and order. [2.0] Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribunal, Ahmedabad “B” Bench, Ahmedabad (hereinafter referred to as “the learned Tribunal”) in ITA Nos.931 & 997/Ahd for the Assessment Year 2010-11 by which the learned Tribunal has dismissed the said Appeal preferred by the revenue and has confirmed the order passed by the learned CIT(A) restricting the addition made on account of estimation of Net Profit from Rs.59,31,200/- to Rs.1,48,280/-, revenue has preferred the present Tax Appeals with the following proposed question of law; “Whether the Appellate Tribunal has erred in law and on facts in upholding the CIT(A)’s order restricting the addition made on account of estimation of Net Profit from Rs.59,31,200/- to Rs.1,48,280/-? [3.0] Heard Mrs. Mauna Bhatt, learned advocate appearing on behalf of the revenue. At the outset, it is required to be noted that the learned Assessing Officer determined the total income of the assessee at Rs.59,31,200/- and after making the addition on account of estimated Net Profit of the assessee at 20% of the total turnover subsequently the penalty of Rs.7,39,630/- was levied vide penalty order under Section 271(1)(c) of the Income Tax Act. On the quantum appeal preferred by the assessee, by giving cogent reasons and on appreciating the material on record, restricted the addition from 20% to 0.5% of the total turnover i.e. Rs.59,31,200/- to Rs.1,48,280/- and directed the learned Assessing Officer to recalculate the penalty on the correct Page 2 of 3 C/TAXAP/796/2018 JUDGMENT amount of concealed income. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A) in quantum appeal restricting the addition made on account of estimation from 20% to 0.5% and the order passed by the learned CIT(A) restricting the penalty, revenue preferred Appeals before the learned Tribunal, being ITA Nos.931 & 997/Ahd. By the impugned common judgment and order, learned Tribunal has dismissed the aforesaid Appeal. Hence, revenue is before this Court by way of present Tax Appeals. [4.0] We have heard Mrs Mauna Bhatt, learned advocate appearing on behalf of the revenue. On considering the order passed by the learned CIT(A), which came to be confirmed by the learned Tribunal restricting the addition made on account of estimation of 20% to 0.5%, learned CIT(A) has given cogent reasons and on appreciation of material on record has restricted the addition on account of estimated Net Profit of the assessee at 0.5% of the total turnover. The findings recorded by the learned CIT(A) confirmed by the learned Tribunal are on appreciation of evidence, and therefore, it cannot be said that any question of law arises in the present Tax Appeals as proposed by the revenue. Under the circumstances and in view of the above no substantial question of law arises in the present Tax Appeals and both the Tax Appeals deserve to be dismissed and are accordingly dismissed. (M.R. SHAH, J.) (A.Y. KOGJE, J.) siji Page 3 of 3 "