Income Tax Appellate Tribunal - Mumbai
Vipul Gada (Huf), Mumbai vs Ito 17(3)(5), Mumbai on 25 April, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES "SMC", MUMBAI Before Shri Shamim Yahya, Accountant Member and Shri Ravish Sood, Judicial Member and ITA No.3864/Mum/2018 Assessment Year-2012-13 Vipul Gada (HUF), ITO-17(3)(5), Vipul Gada, 9 Patel Chambers, Aayakar Bhavan, Room No.2, 1st Floor, Gunbow बनाम/ Churchgate, Street, Opp. Fire Brigade, Fort, Vs. Mumbai Mumbai-400001 PAN No.AACHV6276P ( नधा रती /Assessee) (राज व /Revenue) नधा रती क ओर से / Assessee by Shri Divyesh Fotaria राज व क ओर से / Revenue by Shri Chaitnya Anjaria ु वाई क तार ख / Date of Hearing :
सन 23/04/2019
आ दे श क तार ख /Date of Order: 25/04/2019
आ दे श / O R D E R
Per Shamim Yahya (Accountant Member) This is an appeal by the assessee directed against order's of learned CIT(A)-28, dated 04/04/2018 for assessment year 2012-13. The grounds of appeal read as under:-
"The ld. CIT(A) has erred in upholding the following addition of Rs.16,09,000/- being 30% of labour charges of Rs.44,08,330/- and wages of Rs.9,55,500/- made by the Learned AO."2 ITA No.3864/Mum/2018,
Vipul Gada (HUF)
2. The brief facts of the case are as under:-
The Assessing Officer in this case observed that assessee is an HUF and properties of M/s Vibali Clothing, engaged in the business of wholesale dealer of Readymade Garments. During the year, the assessee HUF has shown total turnover of Rs.2,01,49,934/- and declared gross profit at Rs.41,31,173/- i.e. 20.5% and net profit at Rs.5,55,918/- i.e. 2.76% as against during immediately preceding year, the total turnover at Rs.1,44,36,976/- and gross profit at Rs.27,67,409/- i.e. 19.27% and net profit declared at Rs.4,41,570/- i.e.
3.06% which seems that there has been slight decrease in the net profit for Assessment Year 2012-13.
3. Thereafter assessing officer referred that to verify the genuineness and creditworthiness of Labour charges & wages issued the notice under section 133(6) of the Act to be complied with in 6 days. Pursuant to non-receipt of reply, he proceeded to make ad-hoc disallowance of 30% of these expenditure.
4. Against above order assessee appealed before the learned CIT(A). Learned CIT(A) reproduced the order of Assessing Officer. Thereafter he observed that case was fixed and there was no compliance by the assessee. Thereafter, he 3 ITA No.3864/Mum/2018, Vipul Gada (HUF) observed that issue is decided on merit. He referred to several case laws and upheld the order of Assessing Officer.
5. Against above order assessee is in appeal before us.
6. Learned counsel of the assessee pleaded that all the necessary details, confirmations and submissions were made before the learned CIT(A). He submitted that learned CIT(A) has summarily dismissed the appeal without considering the submissions of the assessee.
7. Up on careful consideration we find that Assessing Officer in this case has himself observed that assessee's gross profit was comparable with earlier year. Thereafter Assessing Officer proceeded to verify the expenses by issuing a notice under section 133(6) of the Act and gave 6 days for compliance. Thereafter Assessing Officer made ad-hoc disallowance of 30%.
8. Up on assessee's appeal, learned CIT(A) has not considered the submissions made before him and has summarily dismissed the assessee's appeal.
9. Up on careful consideration, in our considered opinion the interest of justice demands that this matter be remitted to the file of learned CIT(A). Accordingly, we remit the issue the 4 ITA No.3864/Mum/2018, Vipul Gada (HUF) file of learned CIT(A). Learned CIT(A) is directed to consider the submissions of the assessee and pass a speaking order. Needless to add the assessee should be granted adequate opportunity of being heard
10. In the result, this appeal filed by the assessee stands allowed for statistical purposes. Order pronounced in the Open Court on 25/04/2019.
Sd/- Sd/-
(Ravish Sood) (Shamim Yahya)
या यक सद य / JUDICIAL MEMBER लेखा सद य / ACCOUNTANT MEMBER
मब
ुं ई Mumbai; दनांक Dated : 25/04/2019 f{x~{tÜ? P.S/. न.स.
आ दे श क त ल प अ े षत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant (Respective assessee)
2. !"यथ / The Respondent.
3. आयकर आय% ु त(अपील) / The CIT, Mumbai.
4. आयकर आय% ु त / CIT(A)- , Mumbai,
5. (वभागीय ! त न+ध, आयकर अपील य अ+धकरण, मब ंु ई / DR, ITAT, Mumbai
6. गाड फाईल / Guard file.
आ दे शानस ु ार/ BY ORDER, स"या(पत ! त //True Copy// उप/सहायक पंजीकार (Dy./Asstt. Registrar) आ यकर अपील$य अ%धकरण, मब ुं ई / ITAT, Mumbai