Forum
Read and express views
× Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India

These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.

05-07-2019, Tarapur Transformers, Section 35D, Tribunal Mumbai

  • amit
  • amit's Avatar Topic Author
  • Offline
  • Administrator
  • Administrator
More
4 days 11 hours ago #10022 by amit
Section - 35D
Order Date - 05-07-2019
Favouring - Assessee
Court - Tribunal Mumbai
Appellant - ACIT
Respondent - Tarapur Transformers Ltd.
Justice - M.BALAGANESH, AM & AMARJIT SINGH, JM
Citation - 719Taxpundit116
Appeal No. - ITA No.3320/Mum/2017 & 3323/Mum/2017
Asstt. Year - 2011-12 & 2010-11

Order

PER : M. BALAGANESH (A.M)

These appeals in ITA No.3320/Mum/2017 & 3321/Mum/2017 for A.Y.2011-12 & 2010-11 respectively arise out of the order by the ld. Commissioner of Income Tax (Appeals)-21, Mumbai in appeal No.CIT(A)- 21/ITO-13(3)(4)/IT-421/2015-16 dated 06/02/2017 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3)of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 28/03/2014 by the ld. Asst. Commissioner of Income Tax, Palghar (hereinafter referred to as ld. AO). Since identical issues are involved in these appeals, they were heard together and are being disposed off by this consolidate order, for the sake of convenience.

2. The first identical issue involved in these appeals is with regard to estimation of gross profit of the assessee. The facts of Asst Year 2010-11 are taken up for adjudication and the decision rendered thereon would apply with equal force for Asst Year 2011-12 also except with variance in figures.

3. The brief facts of this issue are that the assessee is engaged in the business of manufacture and repair of electrical transformers and had filed its return of income for the Asst Year 2010-11 on 11.10.2010 declaring total income of Rs 1,42,93,346/-. The ld AO observed that during the course of assessment proceed ngs, the assese submitted copy of return along with computation of total income together with tax audit report and its annexures, the details called for were furnished partly. The ld AO observed that the books of accounts in PDF form and some box files containing purchase bills for regular transactions and for purchase of fixed assets were produced for verification which were verified on test check basis. The ld AO observed that assessee has show gross receipts of Rs 32,98,49,592/- with gross profit of Rs 6,26,97,384/- (GP ratio of 19.01%) and net profit of Rs 2,64,55,414/- (NP ratio of 8.02%), in comparison with immediately preceding assessment year wherein the GP ratio and NP ratio was declared at 22.02% and 12.61% respectively. The assessee had explained for the reduction in GP and NP ratios to be reduced margins, delayed payments from customers, reduction in sale prices , under utilization of capacity etc. The ld AO observed that the books of accounts in PDF form were produced at the fag end by the assessee and hence the same could not be verified by him. The assessee also explained before the ld AO that books of accounts and some files were seized by the sales tax department and hence was unable to produce the same. The assessee also produced a copy of the receipt of sales tax department evidencing the seizure of books. However, the PDF version of the books of accounts were available with the assessee and the same were accordingly produced for verification. The ld AO observed that he had deputed his Inspector to verify the said fact of seizure by the sales tax department and it was learnt that the seizure of books were pertaining to earlier years and not the year under consideration. The ld AO observed that on 28.3.2013, the assessee submitted various ledger accounts in PDF format. Accordingly, the ld AO concluded that the assessee had intentionally submitted the books at the fag end to ensure that the same does not get verified by him.

3.1. The ld AO however proceeded to verify the reasons for fall in GP and NP ratio during the year when compared to earlier year. He observed that since the income from commodity transaction was a separate business altogether, the GP and NP ratios excluding income from commodity transactions were called for The ld AO reproduced the comparative chart of GP and NP ratios for the three years both including and excluding commodity transactions as under:-

Click to view and download Full Free Judgement of ACIT vs. Tarapur Transformers Ltd.

Unable to display Google Map.




Please Log in or Create an account to join the conversation.

Time to create page: 0.093 seconds

If You Appreciate What We Do Here On TaxPundit, You Should Consider:

We are thankful for your never ending support.

Latest Analysis - High Courts

AA 226 Modakurichi Primary Agricultural Cooperative Credit Society vs ITO

AA 226 Modakurichi Primary Agricultural Cooperative Credit Society vs ITO

AA 226 Modakurichi Primary Agricultural Cooperative Credit Society vs ITO Read More
Tata Teleservices Ltd. vs. ITO

Tata Teleservices Ltd. vs. ITO

Tata Teleservices Ltd. vs. ITO Read More
CIT vs. S L Lumax Ltd

CIT vs. S L Lumax Ltd

CIT vs. S L Lumax Ltd Read More
Ramupillai Kuppuraj vs ITO

Ramupillai Kuppuraj vs ITO

Ramupillai Kuppuraj vs ITO Read More
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37

Forum Features

Latest Case Laws
Latest Case Laws are instantly updated in the Forum into their respective section
Latest from CBDT
Latest Circulars, Notifications, Orders etc. from CBDT is updated in the Forum
Ask Experts
You can ask questions to the community
Support
Support queries are either replied via mail or in the Forum so that others can be benefited
Press Releases
Latest Press Notes and Press Releases are updated in the Forum
Connect with Members
You can connect with our community members by replying to their queries

Recommended Articles

 

SITE INFORMATION

All content herein is the copyright of Taxpundit. No images, text, or any other content may be, reproduced or redistributed without the express written consent of Taxpundit.

All Rights Reserved. All Content Copyright.

Newsletter

Subscribe to our newsletter and stay updated on the latest developments and special offers!

Company Master Data Since 1900. More than 1.75 Million Records. Register/Login to get FREE access. Read more
Toggle Bar