The Commissioner Of Income Tax vs Hotel Relax Park on 23 December, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 1641 of 2009()


1. THE COMMISSIONER OF INCOME TAX,
                      ...  Petitioner

                        Vs



1. HOTEL RELAX PARK, MANJERI.,
                       ...       Respondent

                For Petitioner  :SRI.JOSE JOSEPH, SC, FOR INCOME TAX

                For Respondent  :SRI.T.A.SHAJI

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice V.K.MOHANAN

 Dated :23/12/2009

 O R D E R
                     C.N.RAMACHANDRAN NAIR &
                             P.Q.BARKATH ALI, JJ.
                ....................................................................
                          I.T. Appeal No.1641 of 2009
                ....................................................................
               Dated this the 23rd day of December, 2009.

                                       JUDGMENT

Ramachandran Nair, J.

Heard Standing Counsel appearing for the appellant and Adv.

Sri.T.A.Shaji, appearing for the respondent-assessee. After hearing

both sides and after going through the order of the Commissioner

issued under Section 263 of the Income Tax Act and the order of the

Tribunal, we do not find any substantial question of law arising from

the order of the Tribunal because the Tribunal found that the Assessing

Officer estimated the turnover and therefrom worked out the net profit

on an estimation basis. It is seen from the assessment order that as

against a loss of Rs.5 lakhs and odd returned by the assessee, the

Assessing Officer has computed net income at Rs.3,95,310/- and has

raised a total demand of above Rs.2 lakhs. It is seen that the officer has

also proposed penalty under Section 271(1C) and 271B of the Act.

We are of the view that the Tribunal rightly held that there was no

justification for the Commissioner to interfere with the assessment in

2

proceedings initiated under Section 263 of the Act. Consequently we

dismiss the appeal.

C.N.RAMACHANDRAN NAIR
Judge

P.Q.BARKATH ALI
Judge
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