Naveen Jain , Gwalior V. ACIT., Gwalior

ITA 136/AGR/2019

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3816 (ITAT-AGRA)
• Duration Of Justice: 4 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-02-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 01-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Retraction
• Section: 133A

Judgement Text

1 ITA 136/Agra/2019 IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “DB” BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA No. 136/Agra/2019 Assessment Year: 2017-18 Naveen Jain (Individual), C/o Naveen Jewellers, Sona Tower, Sarafa Bazar, Lashkar, Gwalior-474001 PAN- AGZPJ2776K Vs ACIT Central, Gwalir. APPELLANT RESPONDENT Assessee represented by Shri Ashok Vijayvargiya, CA Department represented by Shri Shailendra Srivastava, Sr. DR Date of hearing 15.02.2024 Date of pronouncement 20.02.2024 O R D E R PER KUL BHARAT, JM: This appeal, by the assessee, is directed against the order of the learned CIT (A)-3, Bhopal, dated 15.03.2019, pertaining to the assessment year 2017-18. The assessee has raised following grounds of appeal: “1. On the facts and in the circumstances of the case the learned CIT (A) erred in law and facts in confirming the addition of Rs. 60,84,262/- as declared during statement recorded u/s 133A from undisclosed sources. The addition of Rs. 60,84,262/- may kindly be deleted. 2. The appellant craves leave to add amend alter modify substitute or delete any ground at the time or before hearing of appeal.” 2 ITA 136/Agra/2019 2. Facts giving rise to the present appeal are that the assessee is an individual and engaged in the business of dealing in gold, silver jewellery and bullion and also derives income from rent and other sources. A survey action was carried out u/s 133A of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) on 2- 12-2016 at the business premises of the assessee. Thereafter, assessee filed his return of income for the assessment year under appeal and it was taken up for scrutiny assessment. The AO noticed that during the course of survey excess stock was found, which was offered by the assessee as additional income. The AO while framing the assessment made addition of this income and assessed income at Rs. 73,44,822/- against the returned income of Rs. 12,60,560/-. Aggrieved against this assessee preferred appeal before the learned CITA(A), who after considering the submissions dismissed the appeal. Now the assessee is in appeal before this Tribunal. 3. Learned counsel for the assessee apropos to the grounds of appeal submitted that at the time of survey the assessee under stress could not reconcile the records, therefore, he offered the impugned additional income, but after reconciling the accounts it was found that the stock was duly reconciled. The purchases were made through banking channel and it duly recorded in the accounts of the assessee. Therefore, the impugned surrender of income was retracted by the assessee and a prayer was made before the learned CIT(A) that the addition may be deleted. 4. Learned DR opposed the submissions and supported the assessment order. He contended that assessee himself had surrendered and what he is stating is retraction of statement, for which the AO should be given an opportunity. 5. We have heard rival submissions and perused the material available on record. Learned counsel for the assessee has drawn our attention to the bank 3 ITA 136/Agra/2019 statement and also the ledger accounts to demonstrate that there was no excessive stock and the transactions were routed through banking channel. Thus, the impugned addition cannot be sustained under the facts of the present case. 5.1. Considering the facts on record and the submissions of the parties, we are of the view that the issue be restored to the file of AO for making verification regarding correctness of the claim of the assessee. If the claim of the assessee is found to be correct, considering the bank statement and accounts of the assessee and also by making independent inquiry by the AO from the concerned parties, he would delete the impugned addition. Grounds are allowed for statistical purposes. 6. Appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 20.02.2024. Sd/- Sd/- ( NARENDRA KUMAR BILLAIYA) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI