Sh. Paramjeet Singh, Agra v. I.T.O., Agra

ITA 237/AGR/2010 | 2005-2006
Pronouncement Date: 17-09-2010 | Result: Allowed

Appeal Details

RSA Number 23720314 RSA 2010
Assessee PAN AKYPS5099P
Bench Agra
Appeal Number ITA 237/AGR/2010
Duration Of Justice 3 month(s) 7 day(s)
Appellant Sh. Paramjeet Singh, Agra
Respondent I.T.O., Agra
Appeal Type Income Tax Appeal
Pronouncement Date 17-09-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 17-09-2010
Date Of Final Hearing 15-09-2010
Next Hearing Date 15-09-2010
Assessment Year 2005-2006
Appeal Filed On 09-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH : AGRA BEFORE SHRI R.K. GUPTA J. M. AND SHRI P.K. BANSAL A.M. PAN NO. AKYPS5099P I.T.A.NO . 237/AGR/2010 A. Y. 2005-06 SHRI PARAMJEET SINGH INCOME-TAX OFFICER 3/9A M.G.ROAD VS. 1(3) AGRA AGRA APPELLANT RESPONDENT APPELLANT BY : SHRI RAJENDRA SHARMA ADV. RESPONDENT BY : SHRI VINOD KUMAR JR.DR O R D E R PER R.K.GUPTA J.M. THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORD ER OF LD. CIT (A)-I AGRA RELATING TO ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE IS OBJECTING SUSTAINING THE ADDITION O F RS. 1 27 808/- BY ESTIMATING THE NET PROFIT RATE AT 9 % AGAINST THE NET PROFIT RATE SHOWN BY THE ASSESSEE AT 7.79 % 3. THE BUSINESS OF THE ASSESSEE IS HOTEL BAR AND RESTA URANT IN THE NAME OF HOTEL EAST LIGHT. THE NET PROFIT RATE SHOWN BY THE ASSESSEE WAS AT 7.79 % AGAINST 11.8 % SHOWN IN LAST YEAR. COMPLE TE BOOKS OF ACCOUNT ARE MAINTAINED BY THE ASSESSEE FOR HIS BUSINESS PUR POSE. IN VIEW OF THE - 2 - 2 ASSESSING OFFICER THE ASSESSEE COULD NOT EXPLAIN T HE DECLINE IN NET PROFIT RATE. ACCORDINGLY HE APPLIED A NET PROFIT RATE OF 10 % AGAINST 7.79 % SHOWN BY THE ASSESSEE. THE ASSESSEE PREFERRED APPEA L BEFORE THE LD. CIT(A). THE REASON FOR DECLINE IN PROFIT RATE WAS E XPLAINED THAT ELECTRICITY EXPENSES WERE INCREASED FROM RS. 4.41 LAKHS TO RS. 6.67 LAKHS AND ALSO THERE WAS INCREASE IN ICE EXPENSES I.E. RS. 13 000/ - TO RS. 1 16 000/-. IT WAS ALSO EXPLAINED THAT THERE IS EXTRA EXPENSES ON ACCOUNT OF REPAIR AND MAINTENANCE OF THE HOTEL BUILDING. THEREFORE FOR T HESE REASONS THERE WAS A SLIGHT DECLINE IN NET PROFIT RATE. IT WAS FURTHER SUBMITTED THAT COMPLETE BOOKS OF ACCOUNT ARE MAINTAINED AND NO DEFECT HAS B EEN POINTED OUT BY THE ASSESSING OFFICER NEITHER THE BOOKS OF ACCOUNT ARE REJECTED BY THE ASSESSING OFFICER. AFTER CONSIDERING THE SUBMISSION S THE LD. CIT(A) WAS OF THE VIEW THAT NET PROFIT RATE APPLIED BY THE ASS ESSING OFFICER IS ON HIGHER SIDE. THEREFORE HE REDUCED THE NET PROFIT R ATE TO 9 %. NOW THE ASSESSEE IS IN APPEAL HERE BEFORE THE TRIBUNAL. 4. LD. AUTHORIZED REPRESENTATIVE REITERATED THE CONTEN TION RAISED BEFORE THE LD. CIT(A). ON THE OTHER HAND THE LD. D R PLACED RELIANCE ON THE ORDER OF THE LD. CIT(A). 5. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING THE OTHER MATERIAL ON RECORD WE FIND THAT THE ASSESSEE DESER VES TO SUCCEED IN HIS APPEAL. IT IS NOTED THAT THE ASSESSEE IS MAINTAININ G REGULAR BOOKS OF ACCOUNT AND NO DEFECT WHATSOEVER WAS POINTED OUT BY THE ASSESSING - 3 - 3 OFFICER IN MAINTAINING THE BOOKS OF ACCOUNT. MERELY DECLINE IN NET PROFIT RATE THE TRADING RESULT CANNOT BE DISTURBED. THERE FORE IN OUR CONSIDERED VIEW WITHOUT BRINGING ANY MATERIAL AND WITHOUT CON SIDERING THE SUBMISSIONS OF THE ASSESSEE THAT SLIGHTLY DECLINE I N NET PROFIT RATE IS BECAUSE OF INCREASE IN VARIOUS EXPENSES AS MENTIONE D ABOVE WE FEEL THAT THE DISTURBING THE NET PROFIT RATE BY THE ASSESSING OFFICER WAS NOT JUSTIFIED. THE LD. CIT(A) WAS ALSO NOT JUSTIFIED IN SUSTAINING THE NET PROFIT RATE OF 9 % AGAINST 7.79 % DECLINED BY THE ASSESSEE WITHOUT ASSIGNING ANY COGENT REASONING. IN VIEW OF THESE FACTS AND CIRCUM STANCES WE DIRECT THE ASSESSING OFFICER TO ACCEPT THE TRADING RESULT SHOW N BY THE ASSESSEE. THE ADDITION SUSTAINED BY THE LD. CIT(A) IS THEREFORE DELETED. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWE D. . THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER 2010. SD/- SD/- ( P.K. BANSAL ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AGRA DATED : 17 TH SEPTEMBER 2010. CPU* 1516 - 4 - 4 COPY FORWARDED TO :- THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) CONCERNED. THE D.R ITAT AGRA. GUARD FILE BY ORDER AR I.T.A.T. AGRA.