Jagannath Rao Rajesh , Shimoga V. Income TAx Officer Ward-1 , Shimoga

ITA 1283/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2320 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 20-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Presumptive income; Principle of natural justice; Agreed addition
• Section: 44AD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC - A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER ITA NO. 1 283 /BANG/201 8 ASSESSMENT YEAR : 20 1 3 - 1 4 SHRI. JAGANNATH RAO RAJESH, PRO: RAJESH WINES, C. N. ROAD, BHADRAVATHI 577 301, SHIMOGA DIST. PAN : A FHPR 8433 E VS. THE INCOME-TAX OFFICER, WARD 1, NO. 75, 100 FT. ROAD, GOPALA GOWDA EXTENTION, SHIMOGA 577 204. APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI PRIYADARSHI MISHRA, JCIT, SPECIAL RANGE - III DATE OF HEARING : 14 . 0 8 .201 8 DATE OF PRONOUNCEMENT : 07 . 0 9 .201 8 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), INTER ALIA , ON THE FOLLOWING GROUNDS: (1) IT IS THE REGULAR PRACTICE TO AFFIX SIGNATURE BY THE PERSON MAKING REPRESENTATION ON BEHALF OF THE ASSESSEE IN THE ORDER SHEET OF INCOME-TAX ASSESSMENT. UNLESS, A SEPARATE LETTER IS FILED BY AR OR ASSESSEE FOR AGREED ADDITIONS, IT IS WRONG ON THE PART OF APPELLATE AUTHORITY TO CONCLUDE THAT ADDITION MADE ARE ADMITTED BY THE APPELLANT. THIS IS THE MAIN CONTENTION OF THE APPELLANT IN THIS APPEAL REQUIRED TO BE DECIDED BY THE HON'BLE INCOME-TAX APPELLATE TRIBUNAL TO BE FOLLOWED BY THE FIRST APPELLATE AUTHORITY IN FUTURE. THEREFORE, IT IS PRAYED BEFORE ITA NO. 1283/BANG/2018 PAGE 2 OF 3 THE HON'BLE INCOME-TAX APPELLATE TRIBUNAL TO RECONSIDER THE FOLLOWING GROUNDS ADDUCED BEFORE FIRST APPELLATE AUTHORITY, IN THE INTEREST OF NATURAL JUSTICE. (A) GROSS PROFIT DERIVED FROM FOUR FACTORS. LE, OP. STOCK, PURCHASES, SALES & CL.STOCK DECLARED IN THE TRADING ACCOUNT FILED. WITHOUT DISPUTING, THESE FOUR FACTORS, ONE CAN NOT QUESTION GROSS PROFIT DECLARED IN THE TRADING ACCOUNT. IN THE INSTANT CASE OF APPELLANT, ALL PURCHASES & SALES ARE SUPPORTED BY BILLS, RECORDED IN BOOKS MAINTAINED & DECLARED AS SUCH IN KVAT RETURNS FILED FOR 2012-13 (YOUR HONOUR WILL FIND PROOF FOR THE SAME IN ASSESSMENT/APPEAL RECORDS). FURTHER, OP. & CL. STOCKS ARE SUPPORTED BY STOCK STATEMENT FILED TO STATE EXCISE DEPARTMENT. STOCK STATEMENT AS AT 31.3.2012 & 31.3.2013 IS AVAILABLE IN THE ASSESSMENT/APPEAL RECORDS OF THE APPELLANT. AS THE ADDITIONS MADE ON THIS GROUND IS NOT SUPPORTED BY ANY VALID SATISFACTION OF ASSESSING AUTHORITY, IT IS PRAYED TO DELETE ADDITION OF RS.1,28,011/- MADE UNDER THIS HEAD. (B) ENCLOSED LIST FOR TOTAL BANK CREDITS RS.2,17,713/- THROUGHOUT THE YEAR OFFERED FOR TAX U/S 44AD (SEE EXHIBIT-2). HEREIN, YOUR HONOUR WILL FIND THAT THESE CREDITS ARE IN ODD FIGURES INDICATING RECEIPTS THROUGH CHEQUE. AS THE APPELLANT COULD NOT RELATE THIS TO ANY REVENUE RECEIPTS OR IDENTIFY THESE TRANSACTIONS, HE OPTED THE SCHEME OF TAXATION U/S 44AD & ACCOUNTED SUCH RECEIPTS IN BOOKS, CLAIMING 92% OF SUCH RECEIPTS AS EXPENSES. LEDGER A/C COPY OF 44AD INCOME RS. 17,417/- OFFERED FOR TAX IN PROFIT & LOSS A/C ENCLOSED (SEE EXHIBIT-3). NOW A DAYS MORE PROMINENCE HAS BEEN GIVEN TO PRESUMPTIVE TAXATION IN DIRECT TAXES BY THE INDIAN LEGISLATURE. INCOME-TAX ACT HAS PROVIDED SEPARATE COLUMN TO REPORT SUCH RECEIPTS/INCOME IN TAX AUDIT REPORT-FORM NO.3CD. APPELLANT'S CA HAS ALSO REPORTED THE SAME IN COLUMN NO.10 OF TAX AUDIT REPORT-FORM NO.3CD (SEE EXHIBIT-4). THEREFORE, IT IS PRAYED BEFORE YOUR HONOUR TO DELETE WHOLE CREDIT OF RS. 2,17,713/- ADDED TO TOTAL INCOME OF THE APPELLANT TO UPHOLD THE VERY PURPOSE OF INSERTING SECTION 44AD IN INCOME-TAX ACT BY THE INDIAN LEGISLATURE. (2) ON ABOVE GROUNDS & ANY ADDITIONAL GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, APPELLANT MOST RESPECTFULLY PRAY BEFORE HON'BLE INCOME-TAX APPELLATE TRIBUNAL TO GRANT FULL RELIEF TO THE APPELLANT. 2. THIS APPEAL CAME UP FOR HEARING ON 14.08.2018 BUT NONE APPEARED ON ITA NO. 1283/BANG/2018 PAGE 3 OF 3 BEHALF OF THE ASSESSEE, DESPITE VALID SERVICE OF NOTICE OF HEARING. WE, THEREFORE, HAD NO OPTION BUT TO HEAR THE APPEAL EX-PARTE AND ACCORDINGLY REVENUE WAS HEARD. 3. WE HAVE CAREFULLY EXAMINED THE ORDER OF THE CIT(A) IN THE LIGHT OF THE RIVAL SUBMISSIONS AND WE FIND THAT CIT(A) HAD ADJUDICATED THE ISSUE RAISED BEFORE IT IN DETAIL AND SINCE WE DO NOT FIND ANY INFIRMITY THEREIN, WE CONFIRM HIS ORDER. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 7 TH SEPTEMBER, 2018. SD/- SD/- BANGALORE. DATED: 7 TH SEPTEMBER, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE. (A. K. GARODIA) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER