Income Tax Appellate Tribunal - Ahmedabad
Acit.,B.K.Circle,, Palanpur vs Jugalkishor Ramkishan Agrawal & Co.,, ... on 12 May, 2017
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ 'बी' अहमदाबाद।
IN THE INCOME TAX APPELLATE TRIBUNAL
"B" BENCH, AHMEDABAD
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND
SHRI MAHAVIR PRASAD, JUDICIAL MEMBER
आयकर अपील सं./ ITA No. 1904/Ahd/2012
नधारण वष/Assessment Year: 2007-08
ACIT, Vs. M/s. Jugalkishor Ramkishan
B.K. Circle, Agrawal & Co.,
Palanpur Ashok Vila, Opp. Old Adarsh
High School, Deesa-385535
PAN : AABFJ 7877 R
अपीलाथ / (Appellant) यथ / (Respondent)
Revenue by : Shri James Kurian, Sr DR
Assessee by : Shri M. K. Patel, AR
सुनवाई क तार ख/ Dateof Hearing : 11/05/2017
घोषणा क तार ख / Date of Pronouncement: 12/05/2017
आदे श/O R D E R
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:
With this appeal the Revenue has challenged the correctness of the order of the CIT(A)-XX, Ahmedabad dated 06.06.2012 pertaining to Assessment Year 2007-08.
2. The only grievance of the Revenue is that the CIT(A) erred in deleting the addition of Rs.1,42,04,910/- made on account of estimation of net profit by the Assessing Officer.
3. The assessee is a Civil Contractor who filed its return of income on 30.10.2007, showing total income of Rs.1,48,03,560/-. The return was selected for scrutiny assessment and an assessment was framed under Section 143(3) of the Act vide order dated 17.12.2009, where the returned income was assessed at Rs.1,48,47,310/-
ITA No. 1904/Ahd/2012ACIT vs. Jugalkishor Ramkishan Agrawal & Co AY 2007-08 2
4. The Commissioner, assuming power under Section 263 of the Act, issued show-cause notice to the assessee asking it to show-cause why the completed assessment should not be set aside as the same is not only erroneous but prejudicial to the interest of the Revenue.
5. The Commissioner was of the firm belief that certain expenditures were not verified nor were supported by necessary evidences like bills, vouchers, etc. nor they were produced for verification. Similar was the case with sales tax expenses.
6. Taking a leaf out of the directions of the Commissioner, the Assessing Officer assessed the profit at 8% of the total receipts of Rs.36.31 crores and assessed the total income at Rs.2,90,52,220/-. The assessee carried the matter before the First Appellate Authority and strongly contended that all the necessary details were furnished before the Assessing Officer which are evident from the assessment records. After considering the facts and the submissions, the CIT(A) called for the assessment records and made the following observations:-
"2.5. In order to verify the contention of the appellant that the necessary details were furnished during the course of assessment proceedings, vide this office letter dated 30.4.2012 the assessment records were called for and perused. On perusal of the records, the contention of the ld. AR is found to be correct. To be specific, it was stated in the order sheet noting dtd. 12.09.2011 that the AR attended and furnished part reply. As seen from the letter dated 10.09.2011 details of various expenses including the sales tax were furnished. Similarly on 19.12.2011 in the order sheet it was noted that the AR attended and submitted reply. As seen from the letter dtd. 19.12.2011 sample copies of bills and vouchers for carting expenses and truck and car repairing expenses etc. were furnished. The assessment order came to be passed on the same date i.e. 19.12.2011 by observing that certain details were not produced. In the light of the above discussion, AO's observation that certain details were not produced turnsout to be factually incorrect. As seen from the assessment order, AO did not point out any defects in the details furnished. The books of accounts were not rejected. Therefore, estimating the profit is not in accordance with law. Further, there ITA No. 1904/Ahd/2012 ACIT vs. Jugalkishor Ramkishan Agrawal & Co AY 2007-08 3 is no basis whatsoever to estimate the net profit at 8%. Hence, impugned estimation made by the AO is against law and contrary to the facts. It is deleted. AO is directed to assess the income at the income assessed in the order dt. 17.12.2009 u/s 143(3)."
7. Before us, the Departmental Representative could not point out any factual error in the findings of the First Appellate Authority. In our considered opinion, the First Appellate Authority has given the findings based upon the assessment records; therefore, it cannot be said that the observations made by the Assessing Officer are correct. Since all the details were available during the course of assessment proceedings, which are evident from the order-sheet entries, and the submissions made by the assessee as mentioned elsewhere, we do not find any error or infirmity in the findings of the CIT(A). The appeal filed by the Revenue is accordingly dismissed.
8. In the result, the appeal of the Revenue is dismissed.
Order pronounced in the Court on 12th May, 2017 at Ahmedabad.
Sd/- Sd/-
(MAHAVIR PRASAD) (N.K. BILLAIYA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 12/05/2017
Biju T., Sr.PS
आदे श क !त#ल$प अ%े$षत/Copyof the Order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent.
3. संबं!धत आयकर आयु#त / Concerned CIT
4. आयकर आय#
ु त(अपील) / The CIT(A)
5. &वभागीय त न!ध, आयकर अपील य अ!धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड फाईल / Guard file.
/ BY ORDER,
आदे शानुसार
TRUE COPY
उप/सहायक पंजीकार (Dy./Asstt.Registrar)
/ ITAT, Ahmedabad
आयकर अपील य अ धकरण, अहमदाबाद