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Kerala Islam Hajj And Umrah Services, Salamath Hajj Group, Vazco Hajj Group, Ahlan Hajj & Umrah Services Versus Deputy Commissioner of Income Tax

2016 (4) TMI 672 - ITAT COCHIN

Determination of income - Held that:- Income of the Hajj firms floated by the M/s Alhind Tours and Travels Pvt. Ltd. is to be assessed in its hand only.The present order shall only be used for the purposes of determining the disallowance under the head food and accommodation expenses. - ITA Nos. 421, 422 and 423, 424/Cochin/2014, ITA Nos. 419 and 420/Cochin/2014, ITA Nos. 425 and 426/Cochin/2014 - Dated:- 1-3-2016 - B. P. Jain, AM And George George K, JM For the Appellant : Shri CBM Warrier, CA .....

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vices for the Asstt.Year 2009-10. 3. The brief facts of the case are that the assessee is engaged in the business of tours and travels and is conducting Hajj and Umrah Services. The assessee filed its return of income for A.Y. 2009-10 at ₹ 86,760/-. A search under section 132 of the Act was conducted at the business premise of the assessee on 10.11.2011 in connection with the search conducted at the premise of M/s Alhind Tours and Travels Pvt. Ltd. Consequently notices under section 153C o .....

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not maintained by proper bills and vouchers, the income had to be estimated by taking comparable cases of nonprofit organizations like Kerala Hajj Group, Calicut and Kerala Naduvathual Mujahideen. The sworn statements of the authorized representatives of these organizations were recorded by the assessing officer and the following details with respect to A.Y. 2010-11 were gathered. Description Kerala Hajj Group, Calicut (Rs.) Kerala Naduvathul Mujhajideen, Aniee Hall Road, Calicut. a. Ticket char .....

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s of the disallowance made in the case of the assessee in A.Y. 2010-11. 5. Aggrieved by the order dated 20.03.2013, the assessee preferred appeal before CIT(A) who limited the addition to ₹ 35,46,000/-, treating the same to be excessive expenditure. 6. The assessee is in appeal before us and has raised the following grounds of appeal:- "1. The appellant is Kerala Islam Hajj and Utnrah Services, Calicut in respect of A.Y.2009-10, the Deputy Commissioner of Income Tax, Central Circle, C .....

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ssioner of Income Tax (Appeals) has gone wrong in deciding that there is an excess of expenditure of ₹ 35,46,000/- to be added to total income. 4. For the above reasons the appellant may submit that addition of ₹ 35,46,000/-to the income by the order of Commissioner of Income Tax (Appeals) is not justified and may be cancelled." 7. The Ld. AR submits that the disallowance made in the case of the assessee is uncalled for and unjustified. He therefore prays that the addition of &# .....

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hown a profit of only ₹ 220 per person which is very low, considering the nature of business of the assessee. The assessing officer has considered the case of Kerala Hajj Group, a non profit organization to compare it with the case of the assessee. In that case the organization had collected ₹ 1,50,000/- per person and the total expenditure incurred was ₹ 1,43,500/-. The profit earned per person was ₹ 6,500/- in that case. The same is reasonable in the facts and circumsta .....

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ITA No. 449/C/14 that the income of the Hajj firms floated by the M/s Alhind Tours and Travels Pvt. Ltd. is to be assessed in its hand only, the present appeal by the assessee has become infructuous. The present order shall only be used for the purposes of determining the disallowance under the head food and accommodation expenses. 11. In the appeal, the ITA No.421/C/2014 is dismissed as infructuous. ITA No.422/Coch/2014 (Kerala Islam Hajj and Umrah Services) 12. The facts of the present case ar .....

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limited the addition to ₹ 35,46,000/-. 14. The assessee had filed the return declaring an income of ₹ 53,45,000/-. The average profit per person for 394 pilgrims is ₹ 13,566/-. 15. In the case of the following Hajj Groups cases relied upon the assessee, the profit per person was determined at ₹ 10,000 per person by the assessing officer for A.Y. 2012-13. a. Perumpadappil Abdul Samad (Kerala Islam Hajj and Umrah Services) (PAN: AKCPA0511G): Order dated 12-02-2015 u/s 143(3 .....

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13-14 was determined at ₹ 10,000 per person vide order dated 23.11.2015 passed by the assessing officer. 17. In the subsequent year i.e. A.Y. 2012-13 and 2013-14, the profit per person is determined in the case of Hajj Groups at ₹ 10,000/- per person. The assessee had declared a profit of ₹ 13,566/- per person. The same is reasonable and no further addition is called for in the present case on account of food and. accommodation expense. 18. The addition made by the CIT(A) is de .....

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uous. ITA No.423/Coch/2014 (Kerala Islam Hajj and Umrah Services) 21. The facts of the present case are similar to those in ITA No. 422/C/0/14. The assessee in the present case had a total collection of ₹ 6,62,59,0007- and the services were provided to 383 pilgrims. The relevant assessment year in the present case is 2011-12. 22. The assessing officer had made an addition of ₹ 99,02,848/- on account of excess Food and accommodation expenditure. The CIT(A) limited the addition to S .....

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3, Tirur. (Paper Book Page 3-7) b. M.V. Vazeerudheen (Vazco Hajj Group) (PAN: AKAPM6079P): Order dated 12-03-2015 u/s 143(3) by Deputy Commissioner of Income Tax, Central Circle -1, Kozhikode. (Paper Book Page 8-13) c. Abdul Salam Cheruvoth Thazhath (Salamath Hajj Group) (PAN: AQNPC8555H): Order dated 11-03-2015 u/s 143(3) by Income Tax Officer, Ward 1(1), Kozhikode. (Paper Book Page 14-18) 25. Also in the case of Salamath Hajj, the profit per person for A.Y. 2013-14 was determined at ₹ 10 .....

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sent case on account of food and accommodation expense. 27. The addition made by the ld.CIT(A) is deleted. 28. As we have held in the case of DCIT Vs. M/s Alhind Tours and Travels Pvt. Ltd., ITA No. 449/C/14 that the income of the Hajj firms floated by the M/s Alhind Tours and Travels Pvt. Ltd. is to be assessed in its hand only, the present appeal by the assessee has become infructuous. The present order shall only be used for the purposes of determining the disallowance under the head food and .....

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unt of excess Food and accommodation expenditure. The ld.CIT(A) limited the addition to ₹ 70,65,117/-. 32. The assessee had filed the return declaring an income of ₹ 52,92,900/- . The average profit per person for 367 pilgrims is ₹ 14,422/-. 33. In the case of the following Hajj Groups relied upon the assessee, the profit per person was determined at ₹ 10,000 per person by the assessing officer for A.Y. 2012-13. a. Perumpadappil Abdul Samad (Kerala Islam Hajj and Umrah Se .....

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he case of Salamath Hajj, the profit per person for A.Y. 2013-14 was determined at ₹ 10,000 per person vide order dated 23.11.2015 passed by the assessing officer. 35. In the subsequent year i.e. A.Y. 2012-13 and 2013-14, the profit per person is determined in the case of Hajj Groups at ₹ 10,000/- per person. In ITA no. 423/C/0/14, the profit declared was ₹ 13,870/-, by one of the four group firms and no addition had been made. The assessee had declared a profit of ₹ 14,4 .....

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ll only be used for the purposes of determining the disallowance under the head food and accommodation expenses. 38. The present appeal is dismissed as infructuous. ITA No.419/Coch/2014 (Vazco Hajj Group) 39. The facts of the present case are similar to those in ITA No. 422/C/0/14. The assessee in the present case had a total collection of ₹ 5,65,50,000/- and the services were provided to 377 pilgrims. The relevant A.Y. in the present case is 2010-11. 40. The assessing officer had made an .....

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amad (Kerala Islam Hajj and Umrah Services) (PAN: AKCPA0511G): Order dated 12-02-2015 u/s 143(3) by the Income Tax. Officer ward 3, Tirur. (Paper Book Page 3-7) b. M.V. Vazeerudheen (Vazco Hajj Group) (PAN: AKAPM6079P): Order dated 12-03-2015 u/s 143(3) by Deputy Commissioner of Income Tax, Central Circle -1, Kozhikode. (Paper Book Page 8-13) c. Abdul Salam Cheruvoth Thazhath (Salamath Hajj Group) (PAN: AQNPC8555H): Order dated 11-03-2015 u/s 143(3) by Income Tax Officer, Ward 1(1), Kozhikode. ( .....

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n made. The assessee had declared a profit of ₹ 13,360/- per person. The same is reasonable and no further addition is called for in the present case on account of food and accommodation expense. 45. The addition made by the ld.CIT(A) is deleted. 46. As we have held in the case of DCIT Vs. M/s Alhind Tours and Travels Pvt. Ltd., ITA No. 449/C/14 that the income of the Hajj firms floated by the M/s Alhind Tours and Travels Pvt. Ltd. is to be assessed in its hand only, the present appeal by .....

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-12. 48. The assessing officer had made an addition of ₹ 1,19,31,170/- on account of excess Food and accommodation expenditure. The ld.CIT(A) limited the addition to ₹ 73,65,690/-. 49. The assessee had filed the return declaring an income of ₹ 50,06,010/- . The average profit per person for 367 pilgrims is ₹ 13,640/-. 50. In the case of the following Hajj Groups relied upon the assessee, the profit per person was determined at ₹ 10,000 per person by the assessing of .....

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) by Income Tax Officer, Ward 1(1), Kozhikode. (Paper Book Page 14-18) 51. Also in the case 'of Salamath Hajj, the profit per person for A.Y. 2013-14 was determined at ₹ 10,000 per person vide order dated 23.11.2015 passed by the assessing officer. 52. In the subsequent year i.e. A.Y. 2012-13 and 2013-14, the profit per person is determined in the case of Hajj Groups at ₹ 10,000/- per person. In ITA no. 423/C/0/14, the profit declared was ₹ 13,870/-, by one of the four grou .....

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nd only, the present appeal by the assessee has become infructuous. The present order shall only be used for the purposes of determining the disallowance under the head food and accommodation expenses. 55. The present appeal is dismissed as infructuous. ITA No.425/Coch/2014 (Ahlan Hajj and Umrah Services) 56. The facts of the present case are similar to those in ITA No. 422/C/0/14. The assessee in the present case had a total collection of ₹ 58,76,324/-and the services were provided to 50 .....

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11G): Order dated 12-02-2015 u/s 143(3) by the Income Tax. Officer ward 3, Tirur. (Paper Book Page 3-7) b. M.V. Vazeerudheen (Vazco Hajj Group) (PAN: AKAPM6079P): Order dated 12-03-2015 u/s 143(3) by Deputy Commissioner of Income Tax, Central Circle -1, Kozhikode. (Paper Book Page 8-13) c. Abdul Salam Cheruvoth Thazhath (Salamath Hajj Group) (PAN: AQNPC8555H): Order dated 11-03-2015 u/s 143(3) by Income Tax Officer, Ward 1(1), Kozhikode. (Paper Book Page 14-18) 59. Also in the case of Salamath H .....

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449/C/14 that the income of the Hajj firms floated by the M/s Alhind Tours and Travels Pvt. Ltd. is to be assessed in its hand only, the present appeal by the assessee has become infructuous. The present order shall only be used for the purposes of determining the disallowance under the head food and accommodation expenses. 62. The present appeal is dismissed as infructuous. ITA No.426/Coch/2014 (Ahlan Hajj and Umrah Services) 63. The facts of the present case are similar to those in ITA No. 42 .....

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