KAJAL BISWAS, Jaipur V. ITO, Jaipur

ITA 1000/JPR/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5499 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 23-12-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJENDER SINGH JCIT DR DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 1000/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 SHRI KAJAL BISWAS 2619, TELIPADA, CHOURA RASTA JAIPUR CUKE VS. THE ITO WARD- 2 (1) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AHVPB 1175 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJENDER SINGH, JCIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 11 /02/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE LD. CIT(A)-1, JAIPUR DATED 28-10-2013 FOR THE ASSESSM ENT YEAR 2008-09 RAISING THEREIN SOLITARY GROUND AS UNDER:- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING AN ADDITION OF RS. 10,27,155/- IN RESPECT OF CASH DEPOSITS IN BANK ACC OUNT MADE BY ITO, WARD- 2 (1), JAIPUR WITHOUT CONSIDERING THE FACT THAT THE ASSESSEE IS MAINTAINING A PETTY BOOKS AND ADDIT ION IS BASED ON ONLY BANK STATEMENT. ITA NO. 1000/JP/2013 SHRI KAJAL BISWAS VS. ITO , WARD- 2(1), JAIPUR . 2 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A GOLD SMITH, DOING TRADING OF JEWELRY AND JOB WORK ON SMALL SCALE BASI S. FOR TRADING PURPOSES, THE ASSESSEE PURCHASED SMALL ITEMS OF JEW ELRY FROM UNORGANIZED SECTOR FROM FRIENDS AND RELATIVES ETC. FOR MAKING PAYMENTS AGAINST SUCH PURCHASES, THE ASSESSEE USED TO DEPOSI T CASH IN HIS BANK ACCOUNT JOINTLY OPERATED WITH HIS BROTHER WHO DEFRA YED THESE PAYMENTS AT KOLKATA. THEREFORE, THESE DEPOSITS AND WITHDRAWALS IN THE BANK ACCOUNT WERE PART OF THE TURNOVER OF ASSESSEE'S SMALL JEWE LLERY BUSINESS, THE NET PROFIT THEREON WAS DECLARED BY THE ASSESSEE IN THE RETURN OF INCOME. THE LOWER AUTHORITIES HELD THE AMOUNT OF RS. 10,27,155/ - AS UNEXPLAINED DEPOSITS INSTEAD OF BUSINESS TURNOVER AND ADDED TO THE SAME. 2.2 THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT SUCH PRACTICE IS REGULARLY FOLLOWED IN JAIPUR BY MANY SMALL JEWELLER Y TRADERS LIKE ASSESSEE. ON SIMILAR ADDITIONS, MANY CASES REACHED UP TO ITAT AND HON'BLE HIGH COURT WHERE IT WAS HELD THAT THESE BAN K DEPOSITS AS NOT CASH CREDITS BUT AS THE BUSINESS TURNOVER OF THE ASSESSE E AND APPLIED 10% PROFIT RATE THEREON AS INCOME. ONE OF SUCH ORDER IN THE CA SE OF ANITA CHOUDHARY IN ITA NO. 73/JP/2009 DATED 7-05-2010 STOOD CONFIRM ED BY HON'BLE HIGH COURT IN DBIT NO.289/2010 VIDE ORDER DATED 14-10-20 11 AND COPY OF WHICH IS PLACED ON RECORD. IT IS ALSO SUBMITTED THA T THE FACTS AND ITA NO. 1000/JP/2013 SHRI KAJAL BISWAS VS. ITO , WARD- 2(1), JAIPUR . 3 CIRCUMSTANCES OF THE CASE OF THE ASSESSEE ARE IDENT ICAL AND THE ASSESSEE HAS MADE CASH DEPOSITS IN HIS BANK ACCOUNT FROM THE SALE PROCEEDS AND PART OF WHICH STOOD DECLARED IN THE BOOKS OF ACCOUN T, THEREFORE, A REASONABLE PROFIT RATE SHOULD HAVE BEEN APPLIED ON SUCH DEPOSITS. FURTHER RELIANCE IS PLACED AS UNDER: - 1. SHRI RAM RATAN SHARMA, ITA NO. 112/JP/2009 DATED 29-05-2009 2. SHRI GANPAT RAJ SISODIA, ITA NO. 54/JP/2011 DATE D 5- 08-2011 3. SHRI RAM SWAROOP, ITA NO. 113/JP/2009 DATED 29- 05-2009 4. SHRI PUKHRAJ KOTECHA, ITA NO. 1245/JP/2010 DATED 13-05-2011 5. SHRI SURENDRA AGARWAL, ITA NO. 1093/JP/2010 DATE D 24-06-2011 6. SHRI GAJANAND AGARWAL, ITA NO. 1440/JP/2010 DATE D 17-06-2011 7. SHRI PABURAM CHOUDHARY, ITA NO. 873/JP/2010 DATE D 31-05-2011 8. SHRI ANUJ KOTECHA, ITA NO. 872/JP/2010 DATED 31- 05- 2011 9. SHRI ATUL BAID, ITA NO. 871/JP/2010 DATED 31-05- 2011 2.3 THE LD. DR RELIED ON THE ORDERS OF THE AUTHORIT IES BELOW. ITA NO. 1000/JP/2013 SHRI KAJAL BISWAS VS. ITO , WARD- 2(1), JAIPUR . 4 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. RESPECTFULLY FOLLOWING THE DE CISION OF HON'BLE RAJASTHAN HIGH COURT IN THE CASE OF CIT VS. ANITA C HOUDHARY (SUPRA), IT IS HELD THAT THE AMOUNT OF RS. 10,27,155/- IS BUSIN ESS TURNOVER OF THE ASSESSEE AND TO BE TAXED AT 10%. CONSEQUENTLY, THE ADDITION IS REDUCED TO RS. 1,02,715/-. THUS THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 3.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 / 02/ 2016. SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 11 /02/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI KAJAL BISWAS, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 2 (1), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 1000/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR