M/s. R.K. Agro Products, Dhule V. Assistant Commissioner of Income-tax, Circle- Dhule, , Dhule

ITA 1410/PUN/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9116 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-03-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 24-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRADDHA NICHALNISHTHA TIWARI
• Assessee Lawyers: N O N E
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, J UDICIAL MEMBER . / ITA NO . 1 410 /PUN/2019 / ASSESSMENT YEAR : 20 15 - 16 M/S. R.K. AGRO PRODUCTS, 27, VALLABH NAGAR, MALEGAON ROAD, DHULE 424001 PAN : AAKFR3283Q ....... / APPELLANT / V/S. ASST. COMMISSIONER OF INCOME TAX, CIRCLE DHULE / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : S MT. SHRADDHA NICHAL/NISHTHA TIWARI / DATE OF HEARING : 30 - 07 - 2020 / DATE OF PRONOUNCEMENT : 03 - 0 8 - 2020 / ORDER PER S.S. VISWANETHRA RAVI, JM : THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 2 2 - 07 - 2019 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 , NASHIK [CIT(A)] FOR ASSESSMENT YEAR 20 15 - 16. 2 ITA NO .1410/PUN/2019, A.Y. 2015 - 16 2. THE ONLY GROUND IS TO BE DECIDED IS AS TO WHETHER THE CIT(A) JUSTIFIED IN CONFIRMING THE AD HOC ADDITION TO AN EXTERN OF RS.3,50,000/ - IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. WE FIND NO REPRESENTATION ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION FILED SEEKING ADJOURNMENT. THE ASSESSEE CALLED ABSENT AND SET EX - PARTE. THEREFORE, WE PROCEED TO HEAR LD. DR AND PASS ORDER BASING ON MATERIAL AVAILABLE ON RECORD. 4. HEARD LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE IS A FIRM ENGAGED IN THE BUSINESS OF TRADING IN FOOD GRAINS. THE ASSESSEE DECLARED TOTAL INCOME OF RS.2,36,94,540/ - AND IN SCRUTINY THE AO ADDED RS.7,00,000/ - ON ACCOUNT OF AD HOC ADDITION FOR NOT SU BSTANTIATING FALL IN GROSS PROFIT. 5. WE NOTE THAT THE ASSESSEE FILED BOOKS OF ACCOUNT AND STOCK REGISTER. THE SAID BOOKS OF ACCOUNT ARE AUDITED. THE CONTENTION OF AO IS THAT THE GROSS PROFIT DECLARED BY THE ASSESSEE IS MUCH BELOW THAN THE GROSS PROFI T DECLARED FOR A.YS. 2014 - 15 AND 2013 - 14 AND FOR NOT SUBSTANTIATING FALL IN THE GROSS PROFIT COMPARED TO A.YS. 2014 - 15 AND 2013 - 14 , HE ADDED RS.7,00,000/ - ON THE BASIS OF ESTIMATION. THE CIT(A) RESTRICTED THE ADDITION TO 50%. WE FIND THAT THE ASSESSEE DE CLARED GROSS PROFIT @ 10.34% AND 8.61% FOR A.YS. 2014 - 15 AND 2013 - 14, RESPECTIVELY WHEREAS THE CURRENT YEAR HE DECLARED ONLY 6.12% , IN OUR OPINION THERE WAS NO FINDING BY THE AO AGAINST THE BOOKS OF ACCOUNT AND STOCK REGISTER AND EVEN THE BOOKS OF ACCOUNT FOR NOT REJECTED BY THE AUTHORITIES BELOW. THEREFORE, WHEN BOOKS OF ACCOUNT AND STOCK REGISTER FILED AND WHEN THE SAME WERE AUDITED 3 ITA NO .1410/PUN/2019, A.Y. 2015 - 16 IN THE ABSENCE OF ANY OBJECTION REGARDING THE SAME, WE FIND NO SUBSTANCE IN ESTIMATING THE GROSS PROFIT , HAVING COMPARISON TO A.YS. 2014 - 15 AND 2013 - 14. THUS, THE ORDER OF CIT(A) IS NOT JUSTIFIED AND IT IS SET ASIDE. THE ONLY GROUND RAISED BY THE ASSESSEE IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD AUGUST, 2020. SD/ - SD/ - ( R.S. SYAL ) ( S.S. VISWANETHRA RAVI ) VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 03 RD AUGUST, 2020. RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A) - 1 , NASHIK 4. THE PR. CIT - 1, NASHIK 5. , , , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE