9911796707
TMI Blog2019 (12) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... irming action of Assessing Officer passing the order u/s. 144of the Act, clearly overlooking the fact of documents submitted before the Ld. CIT(A) and various details and documents having been furnished before the Assessing Officer and when called for including: 3. Sustaining the addition of Rs. 28,98,540/- by estimating Gross Profit at 9%, calculated on adopted turnover of Rs. 9 crores. 4. Without prejudice and assuming though not admitting about the income of the appellant requiring to be determined on estimation, not appreciating the fact that it should have been quantified on the basis of actual turnover instead of gross receipts which include reimbursement of credits as well. 3. The facts of the case are that the assessee is a cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 8 crs to 7 Crs. The assessee was asked to identify the area in which discrepancy occurred but they were not able to explain or identify entries in which duplication occurred or to a file a statement showing he same but only produced ledger copy of some account heads stating that the entries are cross verifiable. 3.1 The assessee had not filed a revised P&L a/c audited balance sheet and also not able to explain a large part of expenses of Rs. 12,54,07,397/- i.e. around Rs. 5 Crs, claimed in the return of Income with evidences, it is mandatory to keep the necessary vouchers and bills for any expenses claimed by the assessee and to produce them for verification. The assessee was simply stating that there were contra entries in his books wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover at Rs. 9 crores and then GP rate of 9% was applied on the same in order to work out the income of the assessee. On this basis, the CIT(A) estimated the GP at Rs. 81,00,000/- as against declared GP of Rs. 52,01,460/- leaving a difference of Rs. 28,98,540/-. Thus, out of the total addition of Rs. 65,53,337/-, addition of Rs. 28,98,540/- was sustained and balance was deleted. 5. Against this, the assessee is in appeal before us. The Ld. AR submitted that the assessee had earned resultant gross Handling Charges income aggregating to Rs. 47,69,800/-, which had been credited to the Profit and Loss account.. It was submitted that as part of the normal business activities, the assessee had inter alia incurred various expenses like Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Gross Receipts only stood at what is mentioned at paragraphs 1 and 2 above, the Ld. AR referred to the Service tax returns (PB page Nos. 14 to 20) as well as Form No. 26AS (PB page Nos. 12 & 13), where subject to certain minor reconcilable differences attributable to certain services not liable to service tax / TDS etc., the figures match with these. The Ld. AR submitted that despite the fact that the reimbursement of expenses cannot form part of the Gross Receipts / Turnover for all practical purposes, thus not liable for considering as the basis for estimation of corresponding profit, the AO erred in estimating the profit @ 9% on the sum total of Handling Charges. and Reimbursement Receipts in total, so as to result in the corresp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Jaquar Enterprises vs. DCIT 48 taxmann.com 19 where in the Assessing Officer had charged 8% profit on reimbursement of Godown rent, which was deleted by CIT(A) and upheld by the Tribunal. The Ld. AR also relied on the ITAT, Mumbai in the case of M/s. Helios Logistics vs. ITO in ITA No.1032/Mum/2015 wherein it was held that in case of custom house/clearing and forwarding agent, reimbursement was not part of turnover. The Ld. AR also relied on the ITAT, Cochin in the case of ACIT vs. St. Mary's Rubbers Pvt. Ltd. in ITA No. 224/Coch/2016 wherein it was observed that reimbursement of expenses incurred by clearing agencies on behalf of the client did not constitute income of the clearing agent and no TDS was required to be made thereon. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
