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TMI Blog2014 (5) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... ur ,Mr. Nikhil Simlote For the Respondent : Mr. PK Kasliwal, Mr. Naresh Gupta JUDGMENT BY THE COURT (Per Hon'ble Ranka, J.) 1. These Income Tax Appeals u/Sec. 260A of the Income Tax Act, (for short, IT Act') are directed against the orders of the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (for short, 'ITAT'). Most of the appeals have been preferred by the revenue while in some of the cases, the assessees have also chosen to file appeals. 2. Since a common substantial question of law is involved in the bunch cases relating to liquor contractors, all these appeals are being disposed of by this common order with consent of the parties. 2-A In DB ITA No.37/2005 125/2005 following substantial questions of law were framed by the Court: Substantial question of law in DB ITA No.37/2005 (Assessment Year 1997-98): (1) Whether in the facts and circumstances of the case, the ITAT and CIT(A) were justified in law in restricting the addition without assigning any reasons when the invoking of the provisions of section 145 of the Act has been upheld? (2) Whether in the facts and circumstances of the case, the ITAT h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Profitability in liquor business depends on several factors like socio economic condition, literacy, drinking habits of population of area of operation. If the area is prosperous from agricultural, industrial and commercial point of view, there is likelihood to be more consumption of all kinds of liquor. If it is urban area, then there will be more consumption of IMFL and Beer. 6. This Court, in bunch of identical cases relating to liquor contractors , CIT Vs. Ram Singh others (DB Income Tax Appeal No.117/2004 other connected cases), after considering the issue at length, decided the similar controversy vide Judgment dt.21/01/2014 holding that the orders of the ITAT, being stereotyped, non-speaking, unreasoned, arbitrary and whimsical, there was no option except to remand the matter to the ITAT to revisit the issue afresh denovo in accordance with the guidelines, referred to therein. We shall refer to the order of the CIT(A) as well as ITAT a little later. 7. Counsel for the revenue submitted that in all these appeals, the orders have been passed by the ITAT in stereo-typed manner without referring to even contentions raised by the either side and in a routine and perfun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (All.); CIT Vs. Raman (A.) Co. (1968) 067 ITR 0011; Ramchandra Ramnivas Vs. State of Orissa: (1970) 25 STC 501 (Orissa); CIT Vs. Saddruddin Hussain: (2003) 263 ITR 677; Kansara Bearings P. Ltd. Vs. ACIT: (2004) 270 ITR 235; CIT Vs. Dr. A.P. Bahal: (2010) 322 ITR 0071; Ashoke Refractories P. Ltd. Vs. CIT: (2005) 279 ITR 0457; CIT Vs. Gotan Lime Khanij Udhyog: (2002) 256 ITR 0243; CST Vs. Pilot Shoe Factory: (1977) 39 STC 95 (All) and on the above proposition, submitted that on mere estimates, no question of law arises. 10. We have considered the arguments advanced by counsel for the parties and have also gone through the judgments referred to by the counsels including the impugned orders. 11. Before we proceed further, it would be appropriate to quote finding of the CIT(A) as well as ITAT in two of the appeals out of this bunch (DB ITA No.37/2005) , which is reproduced ad-infra:- CIT(A) :- I have gone through the various orders of the ITAT and the CIT(A) and the general trend adopted by all these Appellate Authorities was that a lump sum addition for any possible leakage of the revenue had been made. The A.R. has quoted cases where lesser G.P. Rate has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of the ITAT and CIT(Appeals) in respect of similar cases of the liquor contractors and it is noted that generally a lumpsum addition for any possible leakage of revenue had been made. Considering the facts and circumstances, in my view, a lump sum addition of Rs.2,00,000/- will be sufficient and reasonable. The appellant will get a relief of Rs.10,35,599/-. ITAT:- We heard both the parties and gone through the material available on record from which it appears that the assessee-AOP is the licence holder for retail sale of Country Liquor, IMFL Beer etc. For the reasons mentioned in the orders of the AO, we uphold the applicability of section 145. The AO made the additions on estimate basis. The CIT(A) has also restricted the addition on estimate basis. In the facts and circumstances of the case, the orders of the CIT(A) appears more reasonable for the reasons mentioned in his orders. Therefore, we decline to interfere with the orders of CIT(A) which are hereby upheld alongwith the reasons mentioned therein. 12. Thus what we notice from the above is that the ITAT, without any reasoning either further gave relief or sustained the order of the CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready been admitted by this Court earlier. 15. The other judgments, cited by ld. counsel for the assessees, are judgments where the questions have been answered at the stage of admission or on other points whereas in the bunch of cases, decided by this Court on 21/01/2014 and the present bunch as well, the questions were admitted as substantial question of law and, therefore, distinguishable. 16. This Court in the case of CIT Vs. Ram Singh (supra), after elaborate discussion and referring to the order of the ITAT, has ultimately observed in Para No.38 ad infra:- 38. On perusal of the above, orders it as apparent and patent that the ITAT has not even recorded the arguments advanced by the parties nor has it come out with the discernible basis as to why adhoc stated addition has been sustained. There is no recording of facts and there is no discussion about any comparable cases or the past history or working for the adhoc addition and deletion. There is no reason assigned as to why Tribunal does not agree with the finding recorded by AO or CIT(A). We fail to understand as to how Tribunal has arrived to a conclusion in confirming, enhancing, reducing or dele ..... X X X X Extracts X X X X X X X X Extracts X X X X
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