Income Tax Appellate Tribunal - Mumbai
Viren Diamond Exports Ltd, Mumbai vs Assessee
आयकर अपील य अ धकरण,
धकरण मंुबई यायपीठ 'एफ ' मंुबई ।
IN THE INCOME TAX APPELLATE TRIBUNAL
" F " BENCH, MUMBAI
सव ी वजयपाल राव,
राव या यक सद य । एवं ी डी.
डी क णाकर राव,ु लेखा सद य
BEFORE SHRI VIJAY PAL RAO, JM & SH RI D KARUNA KARA RA O, AM
आयकर अपील सं./I.T.A. No.1085/Mum/2012
( नधारण वष / Assessment Year : 2008-09)
Viren Diamond Exports L td बनाम/ The Inc ome Tax Of ficer
बनाम
19 Dr D D Sathe Marg Vs. Ward 5(3 )(3 ), Mumbai
3 r d Fl oor
Of fice no. 1A , Opera House
Mumbai 4
थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AAA CV3408Q
(अपीलाथ /Appellant) .. ( यथ / Respondent)
अपीलाथ ओर से / Appellant by : Shri K Shivaram
यथ क ओर से/Respondent by : Shri Rajarshi Dwivedy
सनवाई
ु क तार ख / D t. o f H e a ri n g : 1st May 2013
घोषणा क तार ख/D
ख t . O f P ro n o u n c em e n t: 3rd May 2013
आदे श / O R D E R
PER : वजयपाल राव, या.स. / VIJAY PAL RAO, JM
This appeal by the assessee is directed against the order dated 21.12.2011 of the CIT(A) for the Assessment Year 2008-09. 2 The assessee has raised the following grounds in this appeal:
a. The Commissioner of Income Tax(Appeals) has erred in allowing the action of the Assessing Officer of rejecting the books of appellant by invoking the provision of sec. 145(3) of the I T Act, 1961 b. Without prejudice to above the Commissioner of Income Tax(Appeals) has again erred in approving the wrong action of the Assessing Officer in estimating the rate of profit @ 4% of the turnover for the trading business without making any allowance for legitimate expenses incurred wholly and exclusively for the purpose of trading business of appellant."3 ITA No. 1085/Mum/2012
.
in the comparable case of MIs V. Kapoor Jewellers P. Ltd. cited by the Assessing Officer, the GP rate disclosed by the assessee was 10.86%. However, keeping in view that the turnover of the assessee in the said case was only 1.71 crores as against Rs.4.85 crores of the assessee, the Assessing Officer applied a GP rate of 4% on the ground that when the turnover increases, GP rate decreases. Having regard to all these facts, we are of the view that the GP rate of 4% applied by the Assessing Officer was fair and reasonable and the learned CIT(Appeals) was fully justified in confirming the trading addition made by the AO by applying the said GP. In that view of the matter, we uphold the impugned order of the learned CIT(Appeals) on this issue. The Assessing Officer, however, is directed to consider the alternative claim of the assessee as made by the learned counsel for the assessee before us of allowing the benefit of telescoping of trading addition with the addition to be made on account of peak credit after verifying the relevant facts".
4.1 Since no alternative claim has been raised before us by the assessee; therefore, in view of the decision of this Tribunal in assessee's own case, for the earlier years, we decide this issue against the assessee and in favour of the revenue. The impugned order of the Commissioner of Income Tax(Appeals) qua, this issue is upheld.
5 In the result, the appeal of the assessee dismissed.
प रणामतः नधा रती क अपील खा रज क जाती है । Order pronounced in the open Court on this day of 3rd May 2013 .
आदे श क धोषणा खले ु यायालय म दनांकः 3rd मैई को क गई ।
Sd/- Sd/-
(डी.
डी क णाकर रावु ) ( वजयपाल राव )
लेखा सद य या यक सद य
( D KARUNAKARA RAO) (VIJAY PAL RAO )
Accountant Member Judicial Member
Place: Mumbai : Dated: 3rd May 2013