M/s. Bairathi Advertising Private Limited, Jaipur v. Income Tax officer-5(2), Jaipur

ITA 768/JPR/2018 | 2008-2009
Pronouncement Date: 19-11-2019 | Result: Dismissed

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Appeal Details

RSA Number 76823114 RSA 2018
Assessee PAN AACCB6032A
Bench Jaipur
Appeal Number ITA 768/JPR/2018
Duration Of Justice 1 year(s) 5 month(s) 19 day(s)
Appellant M/s. Bairathi Advertising Private Limited, Jaipur
Respondent Income Tax officer-5(2), Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 19-11-2019
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 19-11-2019
Last Hearing Date 05-09-2018
First Hearing Date 05-09-2018
Assessment Year 2008-2009
Appeal Filed On 31-05-2018
Judgment Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES (SMC) JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 768/JP/2018 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2008-09 M/S BAIRATHI ADVERTISING PRIVATE LIMITED J-141 ADARSH NAGAR JAIPUR- 302004. C UKE VS. I.T.O. WARD 5(2) JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA -@ PAN/GIR NO.: AACCB 6032 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO. 805/JP/2018 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2009-10 M/S BAIRATHI ADVERTISING PRIVATE LIMITED J-141 ADARSH NAGAR JAIPUR- 302004. C UKE VS. I.T.O. WARD 6(3) JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA -@ PAN/GIR NO.: AACCB 6032 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKS J LS @ ASSESSEE BY : SHRI RAJIV SOGANI (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI MANMOHAN (ACIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/11/2019 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 19/11/2019 VKNS'K@ ORDER PER: R.C. SHARMA A.M. THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDERS OF LD.CIT(A)-2 JAIPUR DATED 14/03/2018 FOR THE A.Y. ITA 768 & 805/JP/2018 M/S BAIRATHI ADVERTISING P. LTD. VS ITO 2 2008-09 AND 2009-10 RESPECTIVELY IN THE MATTER OF ORDER PASSED U/S 144 R.W.S. 147 OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT). 2. FIRSTLY I TAKE APPEAL FOR THE A.Y. 2008-09. IN THIS APPEAL THE ASSESSEE IS BASICALLY AGGRIEVED FOR CONFIRMING THE ACTION OF THE A.O. IN ESTIMATING THE INCOME OF THE ASSESSEE BY APPLYING 10% ON THE TOTAL RECEIPTS. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE A.O. HAD AIR INFORMATION THAT THE ASSESSEE IS EXECUTED VARIOUS CONTRACTS DURING THE RELEVANT YEAR UNDER CONSIDERATION ON WHICH TDS HAS BEEN DEDUCTED BUT NO RETURN OF INCOME HAD BEEN FILED. ACCORDINGLY AFTER RECORDING THE REASONS NOTICE U/S 148 OF THE ACT WAS ISSUED. SEVERAL OPPORTUNITIES WERE PROVIDED DURING THE ASSESSMENT PROCEEDINGS BUT THERE WAS NO COMPLIANCE AND AFTER ISSUING A SHOW CAUSE NOTICE THE A.O. ESTIMATED INCOME @ 10% OF THE GROSS RECEIPTS WHICH WAS ALLEGED TO BE THE CONTRACT RECEIPTS. THE A.O. ALSO ADDED INCOME OF RS. 30 137/- UNDER INCOME FROM OTHER SOURCES. 4. BY THE IMPUGNED ORDER THE LD. CIT(A) CONFIRMED THE ACTION OF THE A.O. ESTIMATING THE INCOME AT 10% OF THE CONTRACT RECEIPTS FOR THE ITA 768 & 805/JP/2018 M/S BAIRATHI ADVERTISING P. LTD. VS ITO 3 A.Y. 2008-09. THE ASSESSEE IS IN FURTHER APPEAL BEFORE THE ITAT. IT WAS ARGUED BY THE LD AR OF THE ASSESSEE THAT SINCE THE ASSESSEE HAS RECEIVED CONTRACT RECEIPTS THEREFORE MAXIMUM NET PROFIT RATE SHOULD BE APPLIED @ 8% IN PLACE OF 10% SO APPLIED BY THE A.O. 5. ON THE OTHER HAND THE LD DR HAS RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 6. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. I FOUND FROM THE RECORD THAT THE A.O. HAS ESTIMATED 10% PROFIT ON THE RECEIPTS WHICH WAS ALLEGED TO BE CONTRACT RECEIPTS. HOWEVER NEITHER BEFORE THE LOWER AUTHORITIES NOR BEFORE ME THE ASSESSEE OR ITS AR HAS STATED REGARDING CORRECT NATURE OF ASSESSEES CONTRACT RECEIPTS. IN CASE OF CIVIL CONTRACT THE RATE OF NET PROFIT AT 8% IS OK HOWEVER IT IS NOT CLEAR FROM THE RECORD AS TO WHAT WAS THE NATURE OF CONTRACT RECEIPTS WHETHER IT WAS A CIVIL CONTRACT OR ANY OTHER CONTRACT. THE LD AR WAS ALSO UNABLE TO SUBSTANTIATE ITS CLAIM REGARDING RECEIPT BEING IN THE NATURE OF CONTRACT RECEIPT ON WHICH NET PROFIT RATE AT 8% IS TO BE APPLIED. FROM THE NAME AND TITLE OF THE ASSESSEES BUSINESS WHICH IS M/S BAIRATHI ADVERTISING PVT. LTD. IT APPEARS THAT THE ASSESSEE WAS IN THE RECEIPT FOR ADVERTISING ITA 768 & 805/JP/2018 M/S BAIRATHI ADVERTISING P. LTD. VS ITO 4 WORK CARRIED ON BY IT THEREFORE THERE IS NO REASON TO APPLY N.P. RATE OF 8% ON THE CONTRACT RECEIPTS. KEEPING IN VIEW THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE I DO NOT FIND ANY INFIRMITY IN THE ACTION OF THE LOWER AUTHORITIES FOR ESTIMATING THE INCOME OF THE ASSESSEE @ 10% OF THE GROSS RECEIPTS. 7. THE FACTS AND CIRCUMSTANCES DURING THE A.Y. 2009-10 ARE PARI MATERIA. IN THIS YEAR THE A.O. HAS ESTIMATED INCOME AT 20% OF GROSS RECEIPTS. HOWEVER THERE IS NO ALLEGATION BY ANY OF THE LOWER AUTHORITIES REGARDING CHANGE IN THE NATURE OF THE ACTIVITY OR ANY CHANGE IN THE FACTS AND CIRCUMSTANCES DURING THE YEAR AS COMPARED TO THE EARLIER YEAR WHEREIN PROFIT WAS ESTIMATED AT 10%. ACCORDINGLY FOLLOWING THE REASONING GIVEN IN THE EARLIER A.Y. 2008-09 I DIRECT THE A.O. TO ESTIMATE THE INCOME AT 10% IN PLACE OF 20%. I DIRECT ACCORDINGLY. 8. IN THE RESULT APPEAL FOR THE A.Y. 2008-09 IS DISMISSED WHEREAS APPEAL FOR THE A.Y. 2009-10 IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH NOVEMBER 2019 SD/- JES'K LH 'KEKZ ( RAMESH C SHARMA ) YS[KK LNL; @ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 19 TH NOVEMBER 2019 ITA 768 & 805/JP/2018 M/S BAIRATHI ADVERTISING P. LTD. VS ITO 5 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- M/S BAIRATHI ADVERTISING PRIVATE LIMITED JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE I.T.O. WARD 5(2) JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR ITAT JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 768 & 805/JP/2018) VKNS'KKUQLKJ @ BY ORDER LGK;D IATHDKJ @ ASST. REGISTRAR