TaxTMI 
TaxTMI 
2016 (4) TMI 672
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....s. 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 Rs. 5,04,04,930/-. The assessing officer vide order dated 28.03.2013 made an addition of Rs. 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 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 Nadu....
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....levant assessment year. The total collections not disputed by the revenue from the services carried .out by the assessee is Rs. 5,04,04,930/-. The average collection per person was Rs. 1,27,931/-. The assessee had shown a profit of only Rs. 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 Rs. 1,50,000/- per person and the total expenditure incurred was Rs. 1,43,500/-. The profit earned per person was Rs. 6,500/- in that case. The same is reasonable in the facts and circumstances of the present case also and should be applied in the case of the assessee. 9. If the assessed income is taken at Rs. 36,32,760/- after making an addition of Rs. 35,46,000/- made by the CIT(A), the profit per person comes out to the Rs. 9,220/-. The excess thereof i.e. the difference of Rs. 9,220/- and Rs. 6,500/- determined by us should be deleted from the income assessed by the CIT(A). 10. As we have held in the case of DCIT Vs. M/s Alhind Tours and Travels Pvt. Ltd., ITA No. 449/C/14 th....
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....n expense. 18. The addition made by the CIT(A) is deleted. 19. 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. 20. Accordingly, the appeal being ITA No.422/C/2014 is dismissed as infructuous. 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 Rs. 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 Rs. 99,02,848/- on account of excess Food and accommodation expenditure. The CIT(A) limited the addition to Rs. 76,60,000/-. 23. The assessee had filed the return declaring an income of Rs. 53,12,320/-. The average profit per person for 383 pilgrims is Rs. 13,8....
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....ddition to Rs. 70,65,117/-. 32. The assessee had filed the return declaring an income of Rs. 52,92,900/- . The average profit per person for 367 pilgrims is Rs. 14,422/-. 33. In the case of the following Hajj Groups relied upon the assessee, the profit per person was determined at Rs. 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) 34. Also in the case of Salamath Hajj, the profit per person for A.Y. 2013-14 was determined at Rs. 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....
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....subsequent year i.e. A.Y. 2012-13 and 2013-14, the profit per person is determined in the case of Hajj Groups at Rs. 10,000/- per person. Also, in ITA no. 422/C/0/14, the profit per person had been declared by one of the 4 group firms, at Rs. 13,566/- and no addition had been made. The assessee had declared a profit of Rs. 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 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. Thus, this appeal is as infructuous. ITA No.420/Coch/2014 (Vazco Hajj Group) 47. 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 Rs. 6,34,91,000/- and the services were ....
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.... to those in ITA No. 422/C/0/14. The assessee in the present case had a total collection of Rs. 58,76,324/-and the services were provided to 50 pilgrims. The relevant A.Y. in the present case is 2010-11. 57. The assessing officer had made an addition of Rs. 16,16,550/- on account of excess Food and accommodation expenditure. The ld.CIT(A) dismissed the appeal of the assessee. 58. In the case of the following Hajj Groups relied upon the assessee, the profit per person was determined at Rs. 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) 59. Also in the case of Salamath Hajj, the profit per person for A.Y. 2013-14 was determined....