Smt. Maya Trivedi,,, Ujjain v. The I.T.O., Ujjain

ITA 119/IND/2010 | 2005-2006
Pronouncement Date: 24-01-2011 | Result: Dismissed

Appeal Details

RSA Number 11922714 RSA 2010
Bench Indore
Appeal Number ITA 119/IND/2010
Duration Of Justice 10 month(s) 23 day(s)
Appellant Smt. Maya Trivedi,,, Ujjain
Respondent The I.T.O., Ujjain
Appeal Type Income Tax Appeal
Pronouncement Date 24-01-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 24-01-2011
Date Of Final Hearing 13-12-2010
Next Hearing Date 13-12-2010
Assessment Year 2005-2006
Appeal Filed On 03-03-2010
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI R.C. SHARMA ACCOUNTANT MEMBER ITA NO.118/IND/2010 A.Y.2005-06 INCOME TAX OFFICER 2(2) UJJAIN APPELLANT VS SMT. MAYA TRIVEDI NAGDA PAN ABCPT-2191G RESPONDENT ITA NO.119/IND/2010 A.Y.2005-06 SMT. MAYA TRIVEDI NAGDA APPELLANT VS INCOME TAX OFFICER 2(2) UJJAIN RESPONDENT ASSESSEE BY : SHRI ASHOK BHANUPRIYA AND SHRI SHARAD JAIN DEPARTMENT BY : SHRI P.K. MITRA O R D E R PER JOGINDER SINGH JUDICIAL MEMBER THESE ARE THE CROSS APPEALS FOR THE ASSESSMENT YEAR 2005-06 FILED BY THE REVENUE AS WELL AS BY THE ASSESSEE AGAINST T HE ORDER OF THE LEARNED CIT(A) DATED 16.12.2010. FIRSTLY WE SHAL L TAKE UP THE APPEAL OF 2 THE REVENUE (ITA NO. 118/IND/20). THE FIRST GROUND RAISED IS WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN DIREC TING THE ASSESSING OFFICER TO ADOPT THE NET PROFIT RATE OF 2.5% INSTEA D OF NET PROFIT RATE OF 5% APPLIED BY THE ASSESSING OFFICER ESPECIALLY WHEN TH E LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ACCEPTED T HAT THE SELF MADE VOUCHERS ARE NOT SUBJECT TO CROSS VERIFICATION AND THE BASIS OF DETERMINING NET PROFIT RATE OF 2.5% IS NOT GIVEN IN THE APPELLATE ORDER. 2. DURING HEARING THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE SHRI P.K.MITRA ADVANCED HIS ARGUMENTS WHICH ARE IDE NTICAL TO THE GROUND RAISED. ON THE OTHER HAND THE LEARNED COUNSEL FO R THE ASSESSEE SHRI ASHOK BHANUPRIYA ALONG WITH SHRI SHARAD JAIN CONTEN DED THAT THE ASSESSING OFFICER FOR THE ASSESSMENT YEAR 2008-09 W HILE FRAMING THE ASSESSMENT U/S 143(3) OF THE ACT HAS APPLIED THE NE T PROFIT RATE AT 2% OF GROSS TRANSPORT COMMISSION RECEIPTS THEREFORE IT WAS PLEADED THAT THE SAME RATE MAY BE ADOPTED IN THE PRESENT ASSESSMENT YEAR ALSO. 3 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF LD. R EPRESENTATIVES OF BOTH SIDES AND PERUSED THE MATERIAL AVAILABLE ON RE CORD. BRIEF FACTS ARE THAT THE ASSESSEE IS ENGAGED IN TRANSPORT COMMISSIO N BUSINESS FILED ITS RETURN ON 14.3.2006 SHOWING INCOME OF RS.1 97 714/- ON THE TOTAL TURNOVER OF RS.2 75 43 505/-. THE ASSESSING OFFICE R REJECTED THE BOOKS OF ACCOUNTS U/S 145(3) OF THE ACT BY OBSERVING THAT THE ASSESSEE ONLY 3 PRODUCED BOOKS OF ACCOUNTS CERTAIN SELF PREPARED V OUCHERS IN SUPPORT OF ITS CLAIM AND DID NOT PRODUCE INDEPENDENT BILL/V OUCHER IN SUPPORT OF BOOKS OF ACCOUNTS. THE ASSESSING OFFICER APPLIED NE T PROFIT RATE OF 5% OF THE GROSS RECEIPTS WHICH RESULTED INTO INCOME OF RS .13 77 175/-. ON APPEAL THE LEARNED COMMISSIONER OF INCOME TAX (APP EALS) ON THE BASIS OF PAST HISTORY OF THE ASSESSEE ADOPTED NET PROFIT RATE OF 2.5% CONSEQUENTLY THE TOTAL INCOME WAS COMPUTED AT RS.6 88 588/- IN PLACE OF RS.13 77 175/- ASSESSED BY THE LEARNED ASSESSING OF FICER. HOWEVER IT IS SEEN THAT THE DEPARTMENT HAS ASSESS ED THE NET PROFIT RATE AT 0.75% FOR THE ASSESSMENT YEAR 2003-04 1.4 3% FOR THE ASSESSMENT YEAR 2004-05 AND 2% FOR THE ASSESSMENT Y EAR 2008-09 THAT TOO U/S 143(3) OF THE ACT. SINCE THE ASSESSEE DID N OT FURNISH NECESSARY DETAILS AS REQUIRED BY THE ASSESSING OFFICER THE L EARNED COMMISSIONER OF INCOME TAX (APPEALS) APPLIED THE RATE AT 2.5% WH ICH IN OUR VIEW IS QUITE REASONABLE. WE ARE MAKING IT CLEAR THAT OUR VIEW MAY NOT BE QUOTED AS A PRECEDENCE BECAUSE THE SAME IS DEPENDEN T UPON THE PECULIAR FACTS OF THE PRESENT APPEALS. CONSEQUENTL Y THIS GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 4. SO FAR AS THE ISSUE OF DEPRECIATION OUT OF NET P ROFIT RATE IS CONCERNED SINCE THE ASSESSEE IS EARNING ITS INCOME FROM TRANSPORT COMMISSION AND DOES NOT OWN ITS OWN VEHICLES AND AL SO THE NECESSARY DETAILS WERE NOT FURNISHED BY THE ASSESSEE BEFORE T HE ASSESSING OFFICER 4 THEREFORE THE ASSESSING OFFICER WAS RIGHT IN DISAL LOWING THE CLAIM OF DEPRECIATION ESPECIALLY WHEN NET PROFIT RATE HAS BE EN APPLIED. THEREFORE THIS GROUND OF THE REVENUE IS ALLOWED. 5. THE ASSESSEE IN ITS APPEAL (ITA NO. 119/IND/2010 ) VIDE GROUND NOS. 1 AND 2 HAS CHALLENGED THE APPLICATION OF NET PROFIT RATE OF 2.5% OF THE TOTAL TURNOVER. SINCE IN THE APPEAL OF THE REV ENUE WE HAVE UPHELD THE APPLICATION OF NET PROFIT RATE OF 2.5% AS THE A SSESSEE DID NOT FURNISH NECESSARY DETAILS BEFORE THE ASSESSING OFFICER AND THE BOOKS OF ACCOUNTS OF THE ASSESSEE AS SUCH WERE REJECTED BY T HE ASSESSING OFFICER U/S 145(3) OF THE ACT. THE ASSESSEE INSPI TE OF SUFFICIENT OPPORTUNITY PROVIDED DID NOT PROVE HER CASE BEFORE THE ASSESSING OFFICER. EVEN THE SELF MADE VOUCHERS WERE NOT SUPP ORTED BY ANY EVIDENCE. THEREFORE THERE IS NO INFIRMITY IN THE O RDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). THESE GROUNDS OF THE ASSESSEE ARE THEREFORE DISMISSED. 6. FINALLY THE APPEAL OF THE REVENUE IS PARTLY ALL OWED AND THAT OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 24 TH JANUARY 2011. (R.C.SHARMA) (JOGI NDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 TH JANUARY 2011 COPY TO: APPELLANT RESPONDENT CIT CIT(A) DR G UARD FILE 5 DN/-