Shri Deepakbhai Jivandas Dattani, Prop. M/s. D. Jivandas, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-3(1), JAMNAGAR

ITA 1253/RJT/2010

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0053 (ITAT-RAJKOT)
• Duration Of Justice: 6 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-11-2016
• Assessment Year: 2002-2003
• Appeal Filed On: 04-11-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO. 1253/RJT/2010 ASSESSMENT YEAR : 2002-03 DIPAKBHAI JIVANDAS DATTANI, PROP. OF M/S. D. JIVANDAS, JODHPUR GATE, JAM-KHAMBHALIA, JAMNAGAR PAN : ABMPD 2820 N VS INCOME TAX OFFICER, WARD- 3 (1), JAMNAGAR / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI VIMAL DESAI, CA REVENUE BY : SHRI C.S. ANJARIA, DR / DATE OF HEARING : 21/11/2016 / DATE OF PRONOUNCEMENT: 22/12/2016 / O R D E R PER S.S. GODARA, JUDICIAL MEMBER :- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2002-03 , ARISES FROM ORDER OF CIT(A), JAMNAGAR DATED 08.09.2010, PASSED IN CASE APPEAL NO. CIT(A)/JAM/362/08-09/748, IN PROCEEDINGS U/S 143(3) R.W.S. 147 OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND CHALLENGE S ACTION OF BOTH THE LOWER AUTHORITIES IN MAKING ADDITION OF UNACCOU NTED PURCHASES AMOUNTING TO RS.7,15,606/-. 3. WE COME TO RELEVANT FACTS. THIS ASSESSEE IS AN INDIVIDUAL. HE IS A GENERAL MERCHANT TRADING IN AGRI PRODUCTS. ASSESS EE FILED RETURN ON 31.03.2002 STATING INCOME OF RS.2,31,150/-. THE SA ME STOOD PROCESSED. ITA NO. 1253/RJT/2010 DIPAKBHAI JIVANDAS DATTANI VS. ITO AYS 2002-03 2 THE ASSESSING OFFICER THEREAFTER ISSUED SECTION 148 NOTICE. HE TOOK UP CONSEQUENTIAL PROCEEDINGS. HE TOOK NOTICE OF THE F ACT THEREIN THAT THE ADIT (INV) HAD CONDUCTED ENQUIRY AND INVESTIGATION RELATING TO ASSESSEES SALES/PURCHASES. THE ASSESSEE GOT RECOR DED HIS SECTION 131(1A) STATEMENT. THE SAID AUTHORITY CAME ACROSS ASSESSEES PURCHASES DECLARED BEFORE SALES TAX AUTHORITIES REA DING A FIGURE OF RS.2,25,17,186/- AS AGAINST THOSE SHOWN IN BOOKS/RE TURN OF RS.2,18,01,583/- RESULTING IN DIFFERENTIAL FIGURE O F RS.7,15,606/- IN QUESTION. THE ASSESSING OFFICER ADDED THIS DIFFERE NTIAL AMOUNT ALONG WITH GP THEREUPON @ 2.33% IN HIS ORDER DATED 30.12. 2008. THE CIT(A) CONFIRMS THE SAME. 4. WE HAVE HEARD BOTH THE PARTIES. CASE FILE PERUSE D. LEARNED COUNSEL REITERATES THE FACT THAT THE ASSESSEE-APPEL LANT IS A TRADER IN AGRI ITEMS. HIS MAIN PLEA IS THAT BOTH THE LOWER AUTHOR ITIES HAVE ERRED IN MAKING THE IMPUGNED ADDITION OF UNACCOUNTED PURCHAS ES ALONG WITH GP THEREUPON @ 2.33%. HE REFERS TO ASSESSING OFFI CERS FINDING THAT THE IMPUGNED PURCHASES OF AGRI PRODUCTS HAVE ALREAD Y BEEN HELD AS UNACCOUNTED AND SOLD OUT OF BOOKS. LEARNED COUNSEL THUS PLEADS THAT IT IS THEREFORE A CASE OF BOTH UNACCOUNTED PURCHASE S AS WELL AS SALES. HE ACCORDINGLY SUBMITS THAT THE LOWER AUTHORITIES O UGHT TO HAVE ADDED ONLY THE GP COMPONENT INSTEAD OF THE ENTIRE SUM. T HE REVENUE STRONGLY SUPPORTS CIT(A)S ORDER. WE FIND IN THE V ERY FACTUAL BACKDROP THAT THE HONBLE JURISDICTIONAL HIGH COURT IN (2008) 302 ITR 63 (GUJ) CIT VS. GURBACHAN SINGH JUNEJA UPHOLDS THIS T RIBUNALS ORDER IN IDENTICAL FACTS ADDING ONLY THE GROSS PROFIT ELEMEN T. WE DRAW SUPPORT THEREFROM TO UPHOLD ASSESSEES ABOVE ARGUMENTS. TH E ASSESSING ITA NO. 1253/RJT/2010 DIPAKBHAI JIVANDAS DATTANI VS. ITO AYS 2002-03 3 OFFICER IS ACCORDINGLY DIRECTED TO ADD ONLY THE GP COMPONENT INVOLVED IN THE IMPUGNED UNACCOUNTED PURCHASES AMOUNT IN QUE STION. THIS ASSESSEES APPEAL IS PARTLY ACCEPTED. 5. THE ASSESSEE PARTLY SUCCEEDS IN THE INSTANT APP EAL. ORDER PRONOUNCED IN THE COURT ON 22 ND DECEMBER, 2016 AT AHMEDABAD. SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER AHMEDABAD; DATED 22/12/2016 *BT / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! ( ) / THE CIT(A) 5. , / DR, ITAT, RAJKOT 6. & / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) ' #, / ITAT, RAJKOT