Narayan Lal Soni, Pali V. ACIT, Circle, Pali

ITA 13/JODH/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2200 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 15-01-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABHIMAN Y U SINGH YADAV J
• Assessee Lawyers: ASHOK KUMAR JAIN
• Section: 143(3); 133A; 143(2); 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA NO. 13/JODH/2019 (ASSESSMENT YEAR-2014-15 NARAYAN LAL SONI, (PROP. BHAWANI JEWELLERS), INSIDE GANESH GATE, RAIPUR, DISTT. PALI. VS A.C.I.T., CIRCLE-PALI. (APPELLANT) (RESPONDENT) PAN: BOHPS 5416 J ASSESSEE BY SHRI ASHOK KUMAR JAIN (CA) REVENUE BY SHRI ABHIMANYU SINGH YADAV JCIT-DR DATE OF HEARING 18/03/2020 DATE OF PRONOUNCEMENT 19/03/2020 O R D E R PER: R.C. SHARMA, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-1, JODHPUR DATED 18/10/2018 FOR THE A .Y. 2014- 15 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT, FO R SHORT]. 2. THE GRIEVANCE OF THE ASSESSEE RELATES TO ADDITIO N OF RS. 11,75,000/- ON ACCOUNT OF BOOK DEBTS. 2 ITA 13/JODH/2019 NARAYAN LAL SONI VS ACIT 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS TRADING AND HAS JOB WORK RECEIPTS FROM GOLD SMITHERY. THE RETURN OF INCOME FOR THE A.Y. 2014-15 WAS FILED BY THE ASSESSEE ON 24/09/2014 DECLARING TOTAL INCOME AT RS . 32,56,810/-. IN THE CASE OF ASSESSEE, SURVEY U/S 133A OF THE ACT WAS CAR RIED OUT ON 06/02/2014, THUS THE CASE WAS PICKED UP FOR SCRUTINY AND NOTICE U/S 143(2) WAS ISSUED ON 15/09/2015. WHILE COMPLETING TH E ASSESSMENT, THE A.O. MADE ADDITION OF RS. 25,92,840/- ON ACCOUNT OF DIFFERENCE IN BOOKS VIS A VIS STOCK; ADDITION OF RS. 11,75,000/- WAS MAD E ON ACCOUNT OF BOOK DEBTORS. THE A.O. ALSO TREATED THE ADDITION U/S 69 AS CHARGED TAX U/S 115BBE OF THE ACT. 4. BY THE IMPUGNED ORDER THE LD. CIT(A) HAS CONFIRM ED THE ADDITION ON ACCOUNT OF BOOK DEBTS AND DELETED THE ADDITION O N ACCOUNT OF EXCESS STOCK. THE ASSESSEE IS IN FURTHER APPEAL BEFORE THE ITAT FOR THE ADDITION MADE ON ACCOUNT OF BOOK DEBTORS. 5. IT WAS CONTENTION OF THE LD AR OF THE ASSESSEE TH AT THE ADDITION WAS MADE ONLY ON THE BASIS OF STATEMENT OF THE ASSES SEE RECORDED DURING THE COURSE OF SURVEY WITHOUT CONSIDERING AND APPRECIATING THE EXPLANATION OFFERED BY THE ASSESSEE DURING THE COUR SE OF ASSESSMENT PROCEEDINGS. IT WAS ALSO CONTENTION OF THE ASSESSEE THAT THE ADDITION WAS 3 ITA 13/JODH/2019 NARAYAN LAL SONI VS ACIT MADE ON THE BASIS OF LOOSE SLIP OF PAPER SO FOUND D URING THE COURSE OF SURVEY WHICH CONTAINED NAME OF PERSONS AND TOTAL AMO UNT OF RS. 11,75,000/-. AS PER THE LD AR, THIS IS SIMPLY A SLI 0 AND ITS CORRECTNESS AND AUTHENTICITY EVEN FOR THE PURPOSE OF AMOUNT MENTION ED THEREIN HAVE BEEN FOUND TO BE UNRELIABLE HAVING NO EVIDENTIARY V ALUE. AS PER THE LD AR, IT WAS A DUMPED DOCUMENT AND NO ADDITION WAS WARRA NTED. 6. ON THE OTHER HAND, THE LD DR HAS RELIED ON THE O RDER OF THE LD. CIT(A). 7. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAR EFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUN D THAT THE LOOSE PAPER WAS FOUND WITH REGARD TO PENDING CASH COLLECTI ON FROM THOSE CUSTOMERS FROM WHOM CASH BILLS WERE ISSUED ON THEIR A SSURANCE OF MAKING PAYMENT BY EVENING OF 03 RD FEBRUARY AS MENTIONED IN THE EXPLANATION GIVEN TO THE A.O. HOWEVER, THE A.O. HAS ADDED ENTIRE AMOUNT OF SALES IN ASSESSEES INCOME WHICH IS NOT JU STIFIED. AS PER OUR CONSIDERED VIEW, ONLY PROFIT ELEMENT SHOULD BE BROUG HT TO TAX. ACCORDINGLY, WE DIRECT THE A.O. TO TAX ONLY PROFIT @ 5% ON THE ALLEGED AMOUNT WHICH WORKS OUT TO BE RS. 58,550/-. THIS IS A BUSINESS PROFIT LIABLE TO TAX AT NORMAL RATE. WE DIRECT ACCORDINGLY . 4 ITA 13/JODH/2019 NARAYAN LAL SONI VS ACIT 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART IN TERMS INDICATED HEREINABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH MARCH, 2020. SD/- SD/- (SANDEEP GOSAIN) (R.C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 19/03/2020 *RANJAN COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR 6. GUARD FILE (ITA NO. 13/JODH/2019) ASSISTANT REGISTRAR JODHPUR BENCH