Sh. Naresh Chawla, SRIGANGANAGAR V. ITO, SRIGANGANAGAR

ITA 118/JODH/2011

• Counselvise Citation: 11823314 RSA 2011
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-12-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 28-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Section: 145

Judgement Text

1 ITA 118--11 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH SMC JODHPUR. ( BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER ) ITA NO. 118/JODH/2011 ASSTT. YEAR : 2007-08. SHRI NARESH CHAWLA, VS. THE INCOME-TAX OFFICER , PROP. M/S. SHREE CORPORTION, WARD-2, 14G BLOCK, SRI GANGANAGAR. SRI GANGANAGAR. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI G.R. KOKANI DATE OF HEARING : 07.12.2011 DATE OF PRONOUNCEMENT : 09.12.2011. ORDER DATED : 09.12.2011. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE IS OBJECTING IN SUSTAINING APPLICAT ION OF PROVISIONS OF SECTION 145 AND ESTIMATING THE NET PROFIT RATE OF 8% ON GROSS R ECEIPTS. ASSESSEE IS ALSO OBJECTING IN SUSTAINING THE ADDITION OF RS. 1,25,000/- ON ACCOUN T OF UNEXPLAINED DEPOSIT. 3. THE ASSESSEE HAS DECLARED GP RATE AT 5.68% ON AC COUNT OF CONTRACT RECEIPTS FOR LABOUR. THE ASSESSING OFFICER REJECTED THE BOOKS OF ACCOUNT AND BY APPLYING A NP RATE OF 8%, DETERMINED THE INCOME AT RS. 1,91,270/- AS AGAI NST RS. 1,35,803/- SHOWN BY ASSESSEE. THE LD. CIT (A) HAS CONFIRMED THE ACTION OF THE ASS ESSING OFFICER. 4. AFTER CONSIDERING THE ORDERS OF THE ASSESSING OF FICER AND LD. CIT (A), I FIND THAT ASSESSEE DESERVES TO SUCCEED IN THIS GROUND IN PART . BOOKS OF ACCOUNTS ARE MAINTAINED 2 AND THERE IS NO MAJOR DEFECT IN MAINTAINING THE BOO KS OF ACCOUNT. I FEEL THAT IF NP RATE IS APPLIED AT 6.5% AS AGAINST 8%, THAT WILL MEET THE E NDS OF JUSTICE. I ORDER ACCORDINGLY. 5. NEXT ISSUE IS AGAINST SUSTAINING THE ADDITION OF RS. 1,25,000/- ON ACCOUNT OF UNEXPLAINED DEPOSIT. 6. IT WAS SUBMITTED THAT THE CASH DEPOSIT ARE MADE OUT OF PAST SAVINGS. THE ASSESSING OFFICER DID NOT ACCEPT THE EXPLANATION, THEREFORE, HE ADDED THE SAME UNDER SECTION 68. THE LD. CIT (A) HAS ALSO CONFIRMED THE ACTION OF TH E ASSESSING OFFICER. 7. AFTER CONSIDERING THE ORDERS OF THE ASSESSING OF FICER AND LD. CIT (A), I FEEL THAT THIS MATTER SHOULD GO BACK TO THE FILE OF ASSESSING OFFICER TO EXAMINE THE ISSUE AFRESH. IT HAS BEEN STATED THAT ASSESSEE IS ASSESSED TO TAX RE GULARLY AND OUT OF PAST SAVINGS THE SAME HAS BEEN DEPOSITED. HOWEVER, NO DETAILS ARE AVAILA BLE RELATING TO PAST SAVINGS AND, THEREFORE, TO MEET THE ENDS OF JUSTICE, I RESTORE T HE ISSUE TO THE FILE OF ASSESSING OFFICER TO DECIDE THE SAME AFRESH AFTER AFFORDING OPPORTUNITY TO THE ASSESSEE TO FILE THE DETAILS IN RESPECT OF PAST SAVINGS. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART FOR STATISTICAL PURPOSES. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09. 12.2011. SD/- ( R.K. GUPTA ) JUDICIAL MEMBER JODHPUR, COPY FORWARDED TO :- SHRI NARESH CHAWLA, SRI GANGANAGAR. THE ITO WARD-2, SRI GANGANAGAR. THE CIT (A) THE CIT THE D/R BY ORDER, GUARD FILE (ITA NO. 118/JODH/2011) AR ITAT JODHPUR. 3