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आदेश/Order
Per Sanjay Garg, Judicial Member:
The captioned appeals have been preferred by the assessee against the separated orders of the Commissioner of Income Tax (Appeals), Bhatinda [hereinafter referred to as CIT(A)] dated 28.10.2016.
The sole issue raised in all the appeal is regarding the estimation of the net profit percentage for the assessment year under consideration of the assessee.
The assessee declared net profit for assessment year 2003-04 @ -1.0%, for assessment year 2004-05 @ -4.81%, for assessment year 2005-06 @ 0.30% and for assessment year 2006-07 @ 2.31%. However,
ITA Nos. 190 to 193/Chd/2017- M/s Tag Motors Ltd., Ludhiana 2
the Assessing officer was of the view that the assessee had wrongly
declared the net profit at a very lower rate. He, therefore, estimated the
net profit for assessment years 2003-04 & 2004-05 @ 2.50% and for
assessment years 2005-06 & 2006-07 @ 3.0%. The assessee challenged the
aforesaid estimation of net profit by the Assessing officer before the Ld.
CIT(A), however, remained unsuccessful.
Before us, Ld. Counsel for the assessee has furnished the details of
the previous years as well as of the subsequent years to the assessment
years under consideration, wherefrom it is gathered that in the earlier
assessment years, the net profit rate returned by the assessee was in
negative, whereas, in the subsequent assessment years, the assessee has
shown positive income declaring net profit rate ranging from 4.35% in the
assessment year 2007-08 to 0.53% for assessment year 2017-18.
Considering the overall facts and circumstances and the past and
future net profit returned by the assessee, in our view, interest of justice
will be well served if the net profit for assessment years 2003-04 &
2004-05 is taken @ 2.00% as against 2.50% estimated by the Assessing
officer and for assessment years 2005-06 & 2006-07 @ 2.5% as against 3%
estimated by the Assessing officer. The Assessing officer is, therefore,
directed to assess the income of the assessee accordingly for the aforesaid
assessment years 2003-04 to 2006-07.
ITA Nos. 190 to 193/Chd/2017- M/s Tag Motors Ltd., Ludhiana 3
In the result, the appeals of the assessee are treated as partly allowed. Order was pronounced in the Open Court on 29.08.2018
Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member Dated : 28.11.2018 “आर.के.”
आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar