ITO, New Delhi V. Shri Sandeep Kumar Aggarwal, New Delhi

ITA 1195/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6760 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 01-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SH. N. K. CHOUDHARY, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1195/DEL/2017 : ASSTT. YEAR : 200 9-10 INCOME TAX OFFICER, WARD-49(3), NEW DELHI VS SH. SANDEEP KUMAR AGGARWAL, M/S SHIVA INTERNATIONAL APPARELS, A-38/3, MAYAPURI INDUSTRIAL AREA, PHASE-1, MAYAPURI, NEW DELHI - 110064 (APPELLANT) (RESPONDENT) PAN NO. AAEPA1449F ASSESSEE BY : SH. ASHOK KHANDELWAL, FCA REVENUE BY : SH. ABHISHEK KUMAR, SR. DR DATE OF HEARING: 06 . 0 2 .2020 DATE OF PRONOUNCEMENT: 07 .02 .2020 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE ORDER OF LD. CIT(A)-17, NEW DELHI DATED 21.12.2 016. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENU E: 1. THAT THE CIT(A) HAS ERRED IN LAW AND ON FACTS O F THE CASE IN DELETING THE ADDITION OF RS.2,90,96,962 /-. MADE ON ACCOUNT OF LOW G.P. RATE BY REJECTING THE BOOKS OF ACCOUNTS. 2. THE LD. CIT(A) HAS ERRED IN IGNORING THE FACT TH AT THE ASSESSEE BEING AN EXPORTER WAS ALSO DOING HIS BUSINESS ON WHOLESALE BASIS, WHERE THE ASSESSEE IS A WHOLESALE DEALER, FAILURE TO MAINTAIN STOCK ACCOUNTS/REGISTER WOULD BE A SUBSTANTIAL DEFECTS IN THE ACCOUNTS JUSTIFYING AN INFERENCE THAT THE ACCOU NT WERE MAINTAINED IN A MANNER FROM WHICH A TRUE AND CORRECT PROFIT WERE NOT DEDUCTIBLE, AS HELD IN THE ITA NO. 1195/DEL/2017 SANDEEP KUMAR AGGARWAL 2 CASE OF AMIYA KUMAR ROY & BROS. VS CIT 1994 TAX LR 616 (CAL.) 3. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE DISALLOWANCE OF RS.4,40,990/- MADE ON ACCOUNT OF CLAIM OF INTEREST EXP. ATTRIBUTABLE TO INTEREST FREE LOANS AND ADVANC ES. 4. THAT THE CIT(A) HAS ERRED IN LAW AND ON THE FACT S OF THE CASE IN DELETING THE L/5LH DISALLOWANCE OF RS.83,101/- MADE OUT OF CLAIM OF CAR AND SCOOTER MAINTENANCE AND CONVEYANCE EXPENSES. 3. BRIEF FACTS OF THE CASE ARE THAT THE INCOME TAX OFFICER IN PARA 1 OF THE ASSESSMENT ORDER DATED 30.03.2015 MAD E U/S 143(3)/263 OF THE I.T. ACT 1961, HAS MENTIONED AS U NDER: RETURN DECLARING AN INCOME OF RS.10,23,140/- WAS F ILED. ORIGINAL ASSESSMENT U/S 143(3) WAS COMPLETED U/S 14 3(3) ON 06.07.2011 AT AN INCOME OF RS.11,06,240/-. THEREAFT ER, ORDER U/S 263 OF THE I.T. ACT, 1961 HAS BEEN PASSED BY TH E CIT-IX ON 18.02.2014 WHEREBY HE HAS QUASHED THE ASSESSMENT OR DER DATED 06.07.2011 AND DIRECTED TO PASS A FRESH ORDER KEEPING IN VIEW OF THE DIRECTIONS CONTAINED THEREIN. 4. THE ASSESSEE FILED AN APPEAL BEFORE THE ITAT AGA INST THE CITS ORDER U/S 263 OF I.T. ACT 1961 DATED 18.02.20 14. THE ITAT AS PER ORDER DATED 20.09.2017 IN ITA NO. 2321/ DEL/2014 QUASHED THE ORDER OF THE CIT U/S 263 OF I.T. ACT 19 61. COPY OF THE ORDER IS ENCLOSED WHICH IS PERUSED. ON FURTHER APPEAL THE HONBLE DELHI HIGH COURT AS PER ORDER IN ITA NO. 75 0/2018 DATED 22.05.2019 CONFIRMED THE ORDER OF THE ITAT. C OPY OF THE ORDER IS ENCLOSED WHICH IS PERUSED. IN VIEW OF THES E FACTS, THE PRESENT APPEAL ARISING OUT OF THE ASSESSMENT ORDER UNDER ITA NO. 1195/DEL/2017 SANDEEP KUMAR AGGARWAL 3 APPEAL HAS BECOME INFRUCTUOUS AND ACCORDINGLY BEING DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07/02/2020. SD/- SD/- (N. K. CHOUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT M EMBER DATED: 07/02/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR