9911796707
TMI Blog2013 (12) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... ining to the assessee. The same needs deletion. 1.3 The Ld. CIT(A) has erred in law and facts in not accepting the following the settled law and position that in transport business, the mediatory being working as agent earns only commission and has no concern whatsoever is gross receipts which pertains to the truck owner / driver. 1.4 Without prejudice, the CIT(A) has erred in law and facts in not granting expenses out of addition sustained by him. 1.5 Without prejudice, the CIT (A) has erred in law and facts in confirming gross receipt at 7%. The same needs suitable reduction being very excessive. 2. The Ld. CIT (A) has erred in law and facts in confirming addition of Rs.2,500/- at 40% of expenses of Rs.6,250. The same needs deletion. 3. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee in his books of account. He, therefore, treated the said sum of Rs.79,22,550/- as unaccounted income of the assessee and accordingly brought the same to the charge of Income-tax with the following observations:- "3.1 In response to which the assessee vide letter dated 30.11.2010 stated that 'I am working as a commission agent for transport business. I do not have any vehicle of my own. I simply use to contact the parties who want to send their goods out of city and also use to contact the truck owners for renting their truck. After running the trucks, the luggage used to send to the place of destination where the rival party used to make the payment of total amount to the driver after deducting TDS there from. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee, the Ld CIT(A) has directed the Assessing Officer to apply net profit rate of 7% of gross receipts. He has also confirmed the disallowances made by the Assessing Officer out of office expenses and fuel expenses. 5. Aggrieved by the order passed by the Ld CIT(A), the assessee is now in appeal before this Tribunal. 6. The assessee has filed written submissions on 11.02.2013 which read as under:- "1. The assessee is engaged in the business of transporter service and commission work. Whenever any company or consider require truck or vehicle, the approach the assessee, who arranged truck only on commission basis from market. Semiyarly out side trucks coming, for unloading of cargo approached assessee for out word cargo for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine of transport contract usually 5% are being accepted, the profit determined at 7% by the Ld. CIT(A) being excessive may kindly be reduced to 3% or at a suitable % as deemed feet to the most Hon. Bench. 6. The Ld. A.O. also made addition of Rs.2,500 at 40% of office expenses of Rs.6,250/- and Rs.3148/- at 40% of fuel expenses of Rs.7,870/- on the ground that vouchers for the gross expenditure were not produced. When the Ld. A.O. accepts claim at 60%, in the same situation the disallowance at 40% itself being bad in law and ought not have been made. The same may kindly be deleted. In either case suitable reduction as deemed fit may kindly be granted." 7. Second written submissions filed by the assessee on 19.03.2013 read as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % to 3.5% or at a suitable % as deemed fit to the Hon. Bench." 8. In reply, the Ld Departmental Representative supported the order passed by the Ld CIT (A). At the time of hearing on 11.02.2013, the Ld Departmental Representative was specifically asked to verify the records of the Department to ascertain as to whether the Department has also filed any appeal against the aforesaid order of the CIT(A). On 19.03.2013, the Ld Departmental Representative confirmed that no appeal has been filed by the Department against the aforesaid order passed by the Ld CIT (A). 9. We have heard both the parties and carefully considered their submissions. It is a case where the assessee has deliberately suppressed his receipts. The assessee claimed credit for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the appellant's case and respectfully following the decision of the Hon'ble ITAT, Rajkot Bench in the case of Shri Khodiyar Transport (Supra), I estimate the net income at 7% of gross receipts of Rs.79,22,550/-. Accordingly the addition is restricted to Rs.5,54,579/- as against the addition of Rs.79,22,550/- made by the A.O. Thus, the appellant gets a relief of Rs.73,67,971/-. This ground of appeal is partly allowed." 10. The Ld CIT (A) has followed the order of this Tribunal while directing the Assessing Officer to apply net profit rate of 7%. On the facts of the case, we do not find any infirmity in the direction given by the Ld CIT (A) to the Assessing Officer to apply net profit rate of 7%. His order in this behalf is, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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