Ravindra Kanoongo, INDORE V. I T O -1 (3), INDORE

ITA 136/Ind/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7743 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 14-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUNEET KUMAR
• Keywords: Corroborative evidences
• Section: 143(3); 148

Judgement Text

[ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.136/IND/2019 ASSESSMENT YEAR: 2008-09 SHRI RAVINDRA KANUNGO 144, SILVER OX COLONY INDORE / VS. ITO - 1(3) INDORE ( APPELLANT ) ( REVENUE ) P.A. NO. ADQPK4315H APPELLANT BY SHRI VENUS RAWKA, A.R. RESPONDENT BY SHRI PUNEET KUMAR, D.R. DATE OF HEARING: 23.01.2020 DATE OF PRONOUNCEMENT: 29.01.2020 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER O F THE CIT(A)-1 DATED 11.12.2018 PERTAINING TO THE ASSESSMENT YEAR 2008-09. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 2 1. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE C ASE AND CONFIRMED THE REOPENING OF CASE BY LD. A.O. U/S 147/148 WHICH IS TOTALLY WRONG AND ILLEGAL ON THE FACTS OF THE CASE. 2. THAT THE LD. CIT(A) ERRED IN LAW AND FACTS OF THE C ASE AND CONFIRMED THE DISALLOWANCE MADE BY A.O. OF RS.8,77,198/- WITHOUT CONSIDERING THE FULL FACTS AND REASONS OF THE CASE. 3. THAT THE APPELLANT CRAVES TO LEAVE, ADD, ALTER OR A MEND ANY OF THE GROUNDS AT OR BEFORE HEARING. 2. THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT THE ASSESSMENT U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT) WAS FRAMED VIDE ORDER DATED 23.11.2010 AND INCOME WAS ASSESSED AT RS.1,74,450/-. THEREAFTER, THE ASSESSMENT WAS REOPENED ON THE GROUND THAT THERE WAS DIFFERENCE IN THE GROSS RECEIPT DECLARE D BY THE ASSESSEE AND TAX DEDUCTED AT SOURCE. A NOTICE U/ S 148 OF THE ACT WAS ISSUED ON 26.3.2015. THE REASONS FOR REOPENING WERE SUPPLIED TO THE ASSESSEE. AGAINST THE REASONS, THE ASSESSEE FILED OBJECTIONS, WHICH WERE RE JECTED BY THE A.O. THEREAFTER, THE A.O. PROCEEDED TO MAKE ASSESSMENT. THE ASSESSEE SUBMITTED BEFORE THE A.O. T HAT THERE WAS A CLERICAL MISTAKE IN DECLARING THE GROSS RECE IPTS. [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 3 HOWEVER, THIS EXPLANATION OF THE ASSESSEE WAS NOT FOUND ACCEPTABLE BY THE A.O. HE THEREFORE, MADE ADDITION OF RS.8,77,198/-. AGGRIEVED AGAINST THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO AFTER CONSID ERING THE SUBMISSIONS DELETED THE ADDITIONS. 3. GROUND NO.1 IS AGAINST REOPENING OF THE ASSESSMENT. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AUTHOR ITIES BELOW WERE NOT JUSTIFIED IN REOPENING THE ASSESSMENT . HE SUBMITTED THAT IN RESPONSE TO THE NOTICE ISSUED U/S 148 OF THE ACT AND THE REASONS SO SUPPLIED, THE ASSESSEE HAS G IVEN DETAILED EXPLANATION REGARDING OCCURRENCE OF THE MISTAKE . THEREFORE, HE SUBMITTED THAT THE ASSESSING OFFICER SH OULD HAVE ACCEPTED THE EXPLANATION OF THE ASSESSEE. 4. ON THE CONTRARY, LD. D.R. OPPOSED THESE SUBMISSIO NS AND SUBMITTED THAT EVEN BEFORE THE ASSESSING AUTHORITY, IN THE ORIGINAL ASSESSMENT, THE ASSESSEE DID NOT STATE THE [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 4 CORRECT FACTS. THEREFORE, THE A.O. WAS JUSTIFIED IN REOPENING THE ASSESSMENT. 5. IN REJOINDER, LD. COUNSEL FOR THE ASSESSEE ON THI S ISSUE, FURTHER REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SYNOPSIS. FOR THE SAKE OF CLARITY, THE SUBMI SSIONS OF THE ASSESSEE ARE REPRODUCED AS UNDER: [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 5 [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 6 [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 7 6. LD. D.R. OPPOSED THESE SUBMISSIONS AND SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 7. I HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORDS AND GONE THROUGH THE ORDER S OF THE AUTHORITIES BELOW. ADMITTEDLY, DURING THE OR IGINAL PROCEEDINGS, THE ASSESSEE DID NOT BRING TO THE NOTIC E OF THE ASSESSING AUTHORITY THAT THERE WAS A MISTAKE BY THE ASSESSEE. THIS WAS SUBSEQUENTLY NOTICED BY THE ASSESSI NG OFFICER. THEREFORE, THE SUBMISSIONS OF THE ASSESSE E ARE NOT [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 8 ACCEPTABLE. IN MY CONSIDERED VIEW, THE REOPENING HAS BEEN CORRECTLY DONE. 8. GROUND NO.2 IS AGAINST SUSTAINING THE ADDITION. LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. THE SUBMISSIONS OF THE ASSESSEE ARE AS UNDER: [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 9 9. LD. D.R. OPPOSED THESE SUBMISSIONS AND SUBMITTED THAT THE EXPLANATION IS EX-FACIE AFTER THOUGHT AS THE ASSESSEE WAS HAVING SUFFICIENT TIME TO DETECT THE MIST AKE AND TO DISCLOSE SUCH INCOME SUO MOTO, WHICH THE ASSES SEE HAS FAILED TO DO. THE ASSESSEE HAS NOT APPROACHED WITH CLEAN HANDS. IT IS ONLY BECAUSE THE A.O. DETECTED THE MISTAKE, THE ASSESSEE OFFERED IT AS A BUSINESS MISTAKE. [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 10 10. I HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORDS AND GONE THROUGH THE ORDER S OF THE AUTHORITIES BELOW. IT IS THE CONTENTION OF T HE ASSESSEE THAT BY MISTAKE, INCORRECT FIGURE OF RECEIPT AND EXPENDITURE WAS ENTERED INTO BOOKS OF ACCOUNTS. IT I S STATED THAT EVEN BY ENTERING WRONG FIGURE, PROFIT IS NOT IMPACTED THAT REMAINED SAME. IN THIS REGARD, THE LD. COUNSEL HAS DRAWN MY ATTENTION TO THE NET PROFIT DECL ARED IN THE ASSESSMENT YEAR 2007-08 & 2008-09 AT THE FIGURE OF 13.42% AND 15.55% RESPECTIVELY. HAVING CONSIDERED TH E MATERIAL AVAILABLE ON RECORD, I DEEM IT PROPER TO RESTO RE THIS ISSUE TO THE FILE OF THE A.O. TO VERIFY THE CORRECT NESS OF THE CLAIM OF THE ASSESSEE THAT IN THE EARLIER YEARS, THE NET PROFIT SO DISCLOSED WAS @ 13.42%. THERE IS AN INCREASE IN TH E FIGURE OF NET PROFIT DISCLOSED IN THE YEAR UNDER CONSIDERATION. THE ASSESSEE WOULD RECONCILE THE FIGU RE OF RECEIPT AND THE EXPENDITURE WITH SUPPORTING EVIDENCE S [ITA NO.136/IND/2019] [SHRI RAVINDRA KANUNGO, INDORE] 11 BEFORE THE A.O. THEREAFTER, THE A.O. AFTER VERIFYIN G THE SAME, DECIDE THE ISSUE IN ACCORDANCE WITH LAW. THIS GROUND OF ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO.136/IND/2019 FOR THE A.Y. 2008-09 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 . 01.2020. SD/ - (KUL BHARAT) JUDICIAL MEMBER INDORE; DATED : 29/01/2020 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE