RAJIV MEHTA, Jaipur V. ACIT, Kota

ITA 1022/JPR/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2050 (ITAT-JAIPUR)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 21-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA SINGH JCIT DHK
• Keywords: Rejection of books of accounts
• Section: 143(3); 244A

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 1022/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14. SHRI RAJIV MEHTA, PROP. S.S. DAIRY, OPP. NATRAJ CINEMA, STATION ROAD, KOTA. CUKE VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-2, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAIPM 6393 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MAHENDRA GARGIEYA (ADVOCATE) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA SINGH (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15.09.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 18/09/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM . THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (A) KOTA, DATED 16.09.2016 PERTAINING TO A.Y. 2013-14. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL:- 1. THE IMPUGNED ORDER U/S 143(3) DATED 19.01.2016 IS BAD IN LAW AND ON FACTS OF THE CASE, FOR WANT OF JURISDICTION AND VAR IOUS OTHER REASONS AND HENCE, THE SAME KINDLY BE QUASHED. 2.1. RS. 4,00,000/-: THE LD. CIT(A) ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN CONFIRMING THE APPLICATION OF SEC. 145( 3) OF THE ACT. THE PROVISION SO INVOKED BY THE AO AND CONFIRMATION BY THE LD.CIT(A), BEING CONTRARY TO THE PROVISIONS OF LAW AND FACTS, THE SAME KINDLY BE QUASHED. CONSEQUENTLY, THE TRADING ADDITION OF RS. 4,00,000/- BE DELETED IN FULL. 2 ITA NO. 1022/JP/2016. SHRI RAJIV MEHTA, KOTA. ALTERNATIVELY AND WITHOUT PREJUDICE TO ABOVE 2.2 THE LD. CIT(A) FURTHER ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN CONFIRMING TRADING ADDITION UP TO RS. 4,00.000/- . THE ADDITION SOF MADE BY THE AO AND PARTLY SUSTAINED BY THE CIT(A) I S TOTALLY CONTRARY TO THE PROVISIONS OF LAW AND FACTS ON THE RECORD AN D HENCE, THE ADDITION MAY KINDLY BE DELETED IN FULL. 3. THE LD. AO FURTHER ERRED IN LAW AS WELL AS ON TH E FACTS OF THE CASE IN CHAGRINING INTEREST U/S 234A, 234B, 234C, & 234D OF THE ACT AND AS ALSO IN WITHDRAWING INTEREST U/S 244A OF THE ACT. THE APPELLANT TOTALLY DENIES ITS LIABILITY OF CHARGING AND WITHDRAWAL OF ANY SUCH INTEREST. THE INTEREST SO CHARGED/WITHDRAWN, BEING CONTRARY TO TH E PROVISIONS OF LAW AND FACTS, KINDLY BE DELETED IN FULL. 4. THE APPELLANT PRAYS YOUR HONOUR INDULGENCES TO A DD, AMEND OR ALTER OF OR ANY OF THE GROUNDS OF THE APPEAL ON OR BEFORE TH E DATE OF HEARING. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMEN T WAS FRAMED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT) VIDE ORDER DATED 19.01.2016. WHILE FRAMING THE ASSESSMENT, TH E ASSESSING OFFICER REJECTED THE BOOKS OF ACCOUNTS AND ESTIMATED THE PROFIT BY APPLY ING GROSS PROFIT AT 25.596% HENCE MADE ADDITION OF RS. 21,34,520/-. THE ASSESSI NG OFFICER ALSO MADE DISALLOWANCE OUT OF INTEREST EXPENSES AND ALSO ADHO C DISALLOWANCES. AGAINST THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS, RESTRICTED THE ADDITION OUT OF TRADING ADDITION OF RS. 4 LAKHS AND DELETED THE OTHER DISALLOWANCES. 3. THE ONLY EFFECTIVE GROUND IN THE ASSESSEES APPE AL IS AGAINST SUSTAINING THE ADDITION OF RS. 4 LAKHS. 3 ITA NO. 1022/JP/2016. SHRI RAJIV MEHTA, KOTA. 3.1 LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUB MISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSING OFFICER WAS NOT JUSTIFIED IN REJECTING THE BOOKS OF ACCOUNT S. HE SUBMITTED THAT ASSESSING OFFICER HAS OBSERVED THAT THE ASSESSEE HAS PRODUCED BOOKS OF ACCOUNTS WHICH WERE EXAMINED ON TAX CHEQUE BASIS. HE SUBMITTED THAT TH E AUTHORITIES BELOW FAILED TO APPRECIATE THE FACT, DAY TO DAY STOCK REGISTER WAS NOT POSSIBLE TO BE MAINTAINED IN THE LINE OF BUSINESS. 3.2 ON THE CONTRARY, LD. D/R SUPPORTED THE ORDER OF THE AUTHORITIES BELOW ON REJECTION OF BOOKS OF ACCOUNTS. 3.3 WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF THE AUTHORITIES BELOW . WE FIND THAT THE AO HAD REJECTED BOOKS OF ACCOUNTS ON SPECIFIC DEFECTS AND ESTIMATED THE PROFIT ON THE BASIS OF AVERAGE GP RATE OF THE LAST FIVE YEARS. HOWEVER , THE LD. CIT(A) HAS SUSTAINED THE ADDITION TO THE EXTENT OF RS. 4 LAKHS SO FAR REJECT ION OF BOOKS OF ACCOUNTS IS CONCERNED. THEREFORE, WE DO NOT FIND ANY FAULT INT O THE FINDING OF THE AO; THEREFORE, REJECTION OF BOOKS OF ACCOUNTS IS UPHELD. 3.4 ANOTHER CONTENTION OF THE LD. COUNSEL FOR THE A SSESSEE IS THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN RESTRICTING THE ADDITION, SINC E, WE HAVE UPHELD THE REJECTION OF BOOKS OF ACCOUNTS ON THE BASIS OF ESTIMATION OF GRO SS PROFIT BY THE AO WHICH IS AS PER THE LAW LAID DOWN BY THE JURISDICTIONAL HIGH CO URT. THE REVENUE HAS NOT COME IN APPEAL QUA THE ADDITION DELETED BY THE LD. CIT(A ). THEREFORE, THE FINDING OF THE LD. CIT(A) IS AFFIRMED. GROUNDS RAISED IN THIS APP EAL ARE REJECTED. 4 ITA NO. 1022/JP/2016. SHRI RAJIV MEHTA, KOTA. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO. 1022/JP/2016 IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 18 TH D AY OF SEPTEMBER 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 18/09/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHRI RAJIV MEHTA, KOTA. 2. THE RESPONDENT THE ACIT, CIRCLE-2, KOTA. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 1022/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR