Income Tax Appellate Tribunal - Jaipur
Income Tax Officer, Ward-2-2, Jaipur vs Kinubaba Jewellery (India) Pvt. Ltd., ... on 5 October, 2018
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SINGH YADAV, AM
M.A. No. 80/JP/2018
( Arising out of vk;dj vihy la-@ITA No. 561/JP/2013)
fu/kZkj.k o"kZ@Assessment Year : 2008-09.
The Income Tax Officer, cuke M/s. Kinubaba Jewellery (India)(P) Ltd.,
Ward 2(2), Vs. 41, K. Tower, Mahaveer Marg,
Jaipur. C-Scheme, Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AAACI 4305 H
vihykFkhZ@Appellant izR;FkhZ@Respondent
jktLo dh vksj ls@ Revenue by: Shri A.K. Mahala (JCIT)
fu/kZkfjrh dh vksj ls@ Assessee by : Shri Rajeev Sogani (CA)
lquokbZ dh rkjh[k@ Date of Hearing : 05.10.2018.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 05/10/2018.
vkns'k@ ORDER
PER VIJAY PAL RAO, JM :
By way of this Miscellaneous Application, the Revenue is seeking rectification of the mistake in the order of the Tribunal dated 26.12.2017. The main grievance of the revenue has been stated in the Miscellaneous application as under :-
" In the order of Hon'ble ITAT dated 26.12.2017 some discrepancy has crept in . As per the directions of the Hon'ble ITAT, if the average GP of last three years i.e. 38.93% (A.Y. 2007-08 45.47%, A.Y. 2006-07 42.16%, A.Y. 2005-06 29.16%) is applied, the taxable income of the assessee will fall below the returned income of the assessee as the assessee has already declared GP rate 49.30% during the year under consideration. Thus the impact of giving effect to the Hon'ble ITAT directions means taking this year's gross profit @ 38.93% as against the declared gross profit rate of 49.30%. This means as against the 2 MA No. 80/JP/2018 M/s. Kinubaba Jewellery (India)(P) Ltd., Jaipur.
returned income of Rs. 2,58,59,870/- on appeal effect u/s 254 the income will be Rs. 2,58,02,157/- i.e. Rs. 57,713/- less than returned income (not assessed income)."
Thus the ld. D/R has submitted that if the directions of the Tribunal are given effect, the total income of the assessee would be less than the returned income and, therefore, there is a mistake in the impugned order.
2. On the other hand, the ld. A/R of the assessee has submitted that the directions given by the Tribunal would not reduce the total income below the returned income and, therefore, it is not a mistake in the impugned order.
3. Having considered the rival submissions, we find that the only grievance of the revenue that the Tribunal has directed the AO to adopt the average GP declared by the assessee in the past three years as a basis for estimation of income for the year under consideration. However, the GP declared by the assessee for the year under consideration is more than the average GP declared in the past and consequently the revenue apprehends that the out-come of giving effect order will reduce the total income below the returned income. However, we find that our finding is only on principle basis and if the average GP of the earlier year is less than GP declared by the assessee then despite rejection of books of account by the AO and estimation of income based on the average GP of past history, there would be no addition in the declared income. Accordingly the returned income would not be affected even by giving the effect to the Tribunal's order and we clarify the same accordingly. In any case, the returned income will not be reduced due to the giving effect order passed.
3MA No. 80/JP/2018
M/s. Kinubaba Jewellery (India)(P) Ltd., Jaipur.
4. In the result, Miscellaneous Application filed by the revenue is disposed off in above terms.
Order is pronounced in the open court on 05/10/2018.
Sd/- Sd/-
(foØe flag ;kno) (fot; iky jkWo ½
(VIKRAM SINGH YADAV ) (VIJAY PAL RAO)
ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member
Jaipur
Dated:- 05/10/2018.
Das/
vkns'k dh izfrfyfi vxzfs "kr@Copy of the order forwarded to:
1. The Appellant- The ITO Ward 2(2), Jaipur.
2. The Respondent - M/s. Kinubaba Jewellery (India) Pvt. Ltd., Jaipur.
3. The CIT(A).
4. The CIT,
5. The DR, ITAT, Jaipur
6. Guard File (MA No. 80/JP/2018) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar 4 MA No. 80/JP/2018 M/s. Kinubaba Jewellery (India)(P) Ltd., Jaipur.