Income Tax Appellate Tribunal - Chandigarh
Tag Motors Ltd., Ludhiana vs Acit, Ludhiana on 28 November, 2018
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, "बी", च डीगढ़
I N T H E I NC O ME T A X A P PE L L A T E T RI B U N AL
D I VI S I O N B E NC H , ' B ' , C H AND I G AR H
ी संजय गग , या यक सद य एवं ीमती अ नपण
ू ा ग'ु ता, लेखा सद य
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND
Ms. ANNAPURNA GUPTA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA Nos. 1 9 0 t o 1 9 3 / C H D / 2 0 1 7
नधा रण वष / Assessment Years : 2003-04 to 2006-07
M/s Tag Motors Ltd., बनाम The ACIT, Central Circle-II,
254-R. Ludhiana
Model Town, Ludhiana
थायी लेखा सं./PAN NO: AABCT6450F
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by : Sh. Deepak Aggarwal, Advocate
राज व क ओर से/ Revenue by : Sh. Jagadish Goyal, CIT DR
सन
ु वाई क तार%ख/Date of Hearing : 29.08.2018
उदघोषणा क तार%ख/Date of Pronouncement : 29.08. 2018
आदे श/Order
Per Sanjay Garg, Judicial Member:
The captioned appeals have been preferred by the assessee against the separated orders of the Commissioner of Income Tax (Appeals), Bhatinda [hereinafter referred to as CIT(A)] dated 28.10.2016.
2. The sole issue raised in all the appeal is regarding the estimation of the net profit percentage for the assessment year under consideration of the assessee.
3. The assessee declared net profit for assessment year 2003-04 @ -1.0%, for assessment year 2004-05 @ -4.81%, for assessment year 2005-06 @ 0.30% and for assessment year 2006-07 @ 2.31%. However, ITA Nos. 190 to 193/Chd/2017- M/s Tag Motors Ltd., Ludhiana 2 the Assessing officer was of the view that the assessee had wrongly declared the net profit at a very lower rate. He, therefore, estimated the net profit for assessment years 2003-04 & 2004-05 @ 2.50% and for assessment years 2005-06 & 2006-07 @ 3.0%. The assessee challenged the aforesaid estimation of net profit by the Assessing officer before the Ld. CIT(A), however, remained unsuccessful.
3. Before us, Ld. Counsel for the assessee has furnished the details of the previous years as well as of the subsequent years to the assessment years under consideration, wherefrom it is gathered that in the earlier assessment years, the net profit rate returned by the assessee was in negative, whereas, in the subsequent assessment years, the assessee has shown positive income declaring net profit rate ranging from 4.35% in the assessment year 2007-08 to 0.53% for assessment year 2017-18.
4. Considering the overall facts and circumstances and the past and future net profit returned by the assessee, in our view, interest of justice will be well served if the net profit for assessment years 2003-04 & 2004-05 is taken @ 2.00% as against 2.50% estimated by the Assessing officer and for assessment years 2005-06 & 2006-07 @ 2.5% as against 3% estimated by the Assessing officer. The Assessing officer is, therefore, directed to assess the income of the assessee accordingly for the aforesaid assessment years 2003-04 to 2006-07.
ITA Nos. 190 to 193/Chd/2017- M/s Tag Motors Ltd., Ludhiana 3 In the result, the appeals of the assessee are treated as partly allowed.
Order was pronounced in the Open Court on 29.08.2018 Sd/- Sd/-
(अ नपण ू ा ग'ु ता / ANNAPURNA GUPTA) (संजय गग / SANJAY GARG) लेखा सद य/ Accountant Member या यक सद य/ Judicial Member Dated : 28.11.2018 "आर.के."
आदे श क त,ल-प अ.े-षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. आयकर आय/ ु त/ CIT
4. आयकर आय/ ु त (अपील)/ The CIT(A)
5. -वभागीय त न2ध, आयकर अपील%य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar