SWARNA PALACE,DHULE vs. ACIT, CIRCLE, DHULE , DHULE

PDF · subscribers
ITA 239/PUN/2024Status: DisposedITAT Pune14 May 2024AY 2015-16Bench: SHRI SATBEER SINGH GODARA (Judicial Member)3 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that neither the assessee's nor the revenue's stand was fully acceptable due to a lack of comparable instances. Consequently, the gross profit was re-estimated at 17.5%.

What were the facts?

The assessee, engaged in a jewellery business, claimed a gross profit of 16.9%. The lower authorities enhanced this to 18% on a sales turnover of Rs. 5,57,44,930/-. The appeal concerns this enhancement.

What were the issues?

The primary issue was the estimation of the assessee's gross profit rate in the absence of comparable data. The Tribunal had to determine an appropriate gross profit margin for the jewellery business.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE “SMC” BENCH : PUNE

Before: SHRI SATBEER SINGH GODARA

Hearing: 19.03.2024Pronounced: 14.05.2024

the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/ 2022-23/1051667776(1), dated 30.03.2023, in proceedings u/s.143(3) of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties. Case file perused.

2.

The assessee pleads the following substantive grounds in the instant appeal :

2 ITA.No.239/PUN./2024

3.

Suffice to say, the sole substantive issue between the parties is only to the extent of the estimation of assessee’s gross profit claimed @ 16.9% which stands enhanced to 18% by the learned lower authorities qua it’s sales turnover of Rs.5,57,44,930/-. Coming to this limited issue between the parties involving assessee’s jewellery business; I find that neither of their respective stands deserve to be accepted in entirety in absence of corresponding comparable instance having filed in the case records. It is in these peculiar facts that I deem it appropriate to re-estimate the assessee’s impugned gross profits @ 17.5% with a rider that the same shall not be treated as a precedent in other case(s). Necessary computation shall follow as per law. Ordered accordingly.

3 ITA.No.239/PUN./2024

4.

This assessee’s appeal is partly allowed in above terms.

Order pronounced in the open Court on 14.05.2024.

Recent GST High Court judgments

Search GST case law →