TMI Blog2016 (4) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... m Hajj and Umrah Services 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 of the Act were issued to the assessee for A.Y. 2005-06 to 2010- 11. During the course of the year, the assessee had provided Hajj Services for 394 persons. The total collection thereof was ₹ 5,04,04,930/-. The assessing officer vide order dated 28.03.2013 made an addition of ₹ 82,74,000/- on account of disallowance of excess Food and accommodation expenditure in the profit and loss account of the assessee. It was observed by the assessing officer that since the books of account were 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 Nadu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s] has sustained the addition of ₹ 35,46,000/- which is not justified. 2. The appellant is conducting Hajj Groups along with several other agencies. The assessing officer and the Commissioner of Income Tax (Appeals) has estimated profit and enhanced amounts even in spite of the evidences of expenditure as per the statement taken from the two other Hajj Groups after the search U/s.132. 3. The Commissioner 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 ₹ 35,46,000/- made by the CIT(A) should be deleted. The Ld. DR on the other hand has relied upon the order of the CIT(A) to support his submissions. 8. We have heard the rival submissions of the parties. The assessee had provided Hajj Services for 394 persons during the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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) 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) 16. 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. 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hajj Groups at ₹ 10,000/- per person. For AY 2010-11, in the case of the assessee itself, the profit person was declared at ₹ 13,566 and no addition had been made. The assessee had declared a profit of ₹ 13,870/- per person. The same is reasonable and no further addition is called for in the present 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 accommodation expenses. 29. Thus, the present appeal being ITA No.423/Coch/2014 is dismissed as infructuous. ITA No.424/Coch/2014 (Salamath Hajj Group) 30. The facts of the present case are similar to those in ITA No. 423/C/0/14. The assessee in the present case had a total collection of ₹ 6,34,91,000/- and the services were provided to 367 pilgrims. The relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 addition of ₹ 92,47,433/- on account of excess Food and accommodation expenditure. The CIT(A) limited the addition to ₹ 46,82,118/-. 41. The assessee had filed the return declaring an income of ₹ 50,36,860/- . The average profit per person for 377 pilgrims is ₹ 13,360/-. 42. 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 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) (P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 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) 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 group firms and no addition had been made. The assessee had declared a profit of ₹ 13,640/- per person, The same is reasonable and no further addition is called for in the present case on account of food and accommodation expense. 53. The addition made by the ld.CIT(A) is deleted. 54. 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 Tou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odation 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. 425/C/2014. The assessee in the present case had a total collection of ₹ 69,50,000/-and the services were provided to 50 pilgrims. The profit per person was determined at ₹ 10,000/- by us in the case of the assessee in ITA No. 425/C/0/14 for A.Y. 2010-11. The relevant assessment year in the present case is 2011-12. 64. The assessing officer had made an addition of ₹ 14,70,223/- on account of excess Food and accommodation expenditure. The ld.CIT(A) dismissed the appeal of the assessee. 65. 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 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 Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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