Rajlaxmi Prints Pvt.Ltd., Surat V. The Income tax Officer,Ward-4(1), Surat

ITA 1535/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5932 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 26-05-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 02-05-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: H P MEENA
• Assessee Lawyers: S KABRA
• Section: 115JB; 133(6); 250

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AT SURAT CAMP BEFORE S/SHRI T.K.SHARMA, JM AND D.C.AGRAWAL, AM RAJLAXMI PRINTS (P) LTD., 246/1. GIDC ESTATE PANDESARA, PO: PANDESARA, SURAT (GUJARAT) VS . INCOME-TAX OFFICER, WARD 4(1), SURAT. (APPELLANT) .. (RESPONDENT) APPELLANTS BY :- SHRI S. KABRA, AR RESPONDENT BY:- SHRI H. P. MEENA, SR. DR O R D E R PER D. C. AGRAWAL, ACCOUNTANT MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE RAISING FO LLOWING GROUND:- 1. AS REGARDS ADDITION OF RS.45,290/- BEING 25% OF THE PURCHASES OF RS.1,81,150/- CONSIDERED BY THE LD. AS BOGUS PUR CHASES. 1.1 THE LD. CIT(A) HAD ERRED ON THE FACTS OF THE CASE I N ALLOWING 75% OF THE TOTAL PURCHASES OF RS.1,81,150/- AND ALL OWING DISALLOWANCE OF THE REMAINING 25% DESPITE AGREEING AND ACCEPTING THE PURCHASES AS REGULAR AND IN DUE COURS E OF BUSINESS. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF DYEIN G & PRINTING ON JOB WORK BASIS AND ALSO RUNNING A WIND FARM FOR CAPTIVE CONSUMPTION. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO FOUND T HAT ASSESSEE HAS ITA NO.1535/AHD/2008 ASST. YEAR:2005-06 2 MADE CERTAIN PURCHASES FROM M/S POOJA DYE-CHEM, WHI CH COULD NOT BE VERIFIED. THE AO ISSUED LETTERS U/S 133(6) WHICH WE RE RETURNED BACK BY POSTAL AUTHORITIES ON THE GROUND THAT ADDRESS IS IN COMPLETE. HOLDING THAT PARTY IS NOT EXISTING HE TREATED THE PURCHASES AS N ON-GENUINE/NON- VERIFIABLE AND FOLLOWING THE DECISION OF HON. DELHI HIGH COURT IN CIT VS. LA MEDICA 250 ITR 575 HE PROPOSED AN ADDITION OF RS .1,81,150/-. HOWEVER, THE INCOME WAS COMPUTED UNDER SECTION 115J B AT RS.16,16,500/- AND INCOME AS PER BOOKS WAS WORKED O UT AT RS.NIL. 3. THE LD. CIT(A) CONSIDERED THAT ONLY 25% OF SUCH PURCHASES WOULD BE DISALLOWED FOLLOWING THE DECISION OF THE TRIBUNA L IN THE CASE OF VIJAY PROTEINS 55 TTJ 76.THUS HE REDUCED THE ADDITION TO RS.45,290/- WHILE COMPUTING THE INCOME AS PER I.T. ACT. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI ALS ON RECORD. SINCE THE INCOME IS FINALLY COMPUTED UNDER SECTION 115JB AND THE ADDITION TO THE INCOME COMPUTED AS PER IT ACT IS NO T GOING TO AFFECT THE TAX LIABILITY, WE DECLINE TO INTERFERE. IN ANY CASE THE ADDITION SUSTAINED BY THE LD. CIT(A) IS REASONABLE LOOKING TO THE FACTS O F THE CASE. THE APPEAL OF THE ASSESSEE IS DISMISSED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 18/06/2010 SD/- SD/- (T.K. SHARMA) (D.C.AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD, DATED : 18/06/2010 3 MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD