GUMAN FURNITURE & SERVICES P LTD., Jaipur V. ACIT, Jaipur

ITA 156/JPR/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54147 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 24-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: K L MOOLCHANDAN I
• Keywords: Gross profit estimation; Unexplained cash credit; Rule of consistency; Additional evidence
• Section: 153A; 154; 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.156 JP/2011 ASSESSMENT YEAR 2003-04 PAN: AACG 7610 G M/S. . GUMAN FURNITURE & SERVICES (P) LTD. VS. TH E ACIT A-2, RANA PRATAP NAGAR CENTRAL CIRCLE- 1 JHOTWARA, JAIPUR JAIPUR (APPELLANT ) (RESPONDENT) ITA NO.317 JP/2011 ASSESSMENT YEAR 2003-04 PAN: AACG 7610 G THE ACIT VS. M/S. GUMAN FURNITURE & SERVICES (P ) LTD CENTRAL CIRCLE- 1 A-2, RANA PRATAP NAGAR JAIPUR JHOTWARA, JAIPUR (APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI K.L. MOOLCHANDANI DEPARTMENT BY : SHRI SUNIL MATHUR DATE OF HEARING: 09-08-2011 DATE OF PRONOUNCEMENT:02-09-2011 ORDER PER N.L. KALRA, AM:- THE ASSESSEE AS WELL AS REVENUE HAS FILED APPEAL S AGAINST THE ORDER OF THE LD. CIT(A), CENTRAL JAIPUR DATED 27-01-2011 FOR THE ASSESSMENT YEAR 2003-04. 2 2.1 THE FIRST GROUND OF THE ASSESSEE IS THAT THE LD . CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 2,12,798/- BY ESTIMA TING THE G.P.RATE AT 12% AS AGAINST G.P.RATE OF 9.59% DECLARED BY THE ASSESS EE. 2.2 THE FIRST GROUND OF THE REVENUE IS THAT THE LD . CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 3,07,456/- BY APPLYING THE G.P.RATE OF 8% AS AGAINST 15.04% APPLIED BY THE AO. 2.3 THE AO HAS NOTICED THAT THE ASSESSEE HAS CARRIE D ON BUSINESS OF PURCHASE AND SALES OF ELECTRONIC ITEMS AND HAS ALSO EARNED INCOME FROM FURNITURE JOB WORK. IN SUPPORT OF TRADING RESULTS, THE ASSESSEE HAS NOT PRODUCED SUPPORTING VOUCHERS AND STOCK RECORDS. TRA DING RESULTS WERE NOT VERIFIABLE. THE ASSESSEE HAS SHOWN THE G.P.RATE OF 3.23% ON TURNOVER OF RS. 1.01 CRORES AS AGAINST G.P.RATE OF 4.37% ON TURNOVE R OF AROUND RS. 24.00 LACS IN THE PRECEDING YEAR. THE AO DETERMINED THE G ROSS PROFIT ON ELECTRONICS TRADING BUSINESS FOR THE ASSESSMENT YEAR 2002-03 AN D 2003-04 AFTER EXCLUDING INCOME FROM FURNITURE JOB WORK. THE G.P.R ATE FROM THE ELECTRONIC TRADING BUSINESS WAS AT 15.04% IN THE ASSESSMENT YE AR 2002-03 AND FOR ASSESSMENT YEAR 2003-04, IT CAME TO 7.18%. THE AO A PPLIED THE G.P.RATE OF 15.04% ON TURNOVER OF RS. 1.01 CRORES AND ACCORDING LY MADE ADDITION OF RS. 5,20,254 /-. 3 2.4 BEFORE THE LD. CIT(A), IT WAS SUBMITTED THAT TH E BOOKS OF ACCOUNT WERE AUDITED BY THE CHARTERED ACCOUNTANT AND THEY HAVE N OT REPORTED ANY DISCREPANCY IN THE BOOKS OF ACCOUNT. THE AO HAS ALS O SNOT POINTED OUT ANY SPECIFIC DEFECT IN THE BOOKS OF ACCOUNT. THERE IS N O EVIDENCE THAT THE ASSESSEE IS SUPPRESSING THE CLOSING STOCK. IF THE G.P.RATE AS APPLIED BY THE AO IS CONSIDERED THEN THE CLOSING STOCK ON THE DATE OF SEARCH WILL BE MUCH MORE AS COMPARED TO THE STOCK ESTIMATED ON THE BASI S OF THE BOOKS OF ACCOUNT . THE ACTUAL STOCK WAS FOUND SHORT. IT SHOW S THAT THERE WAS NO SUPPRESSION OF STOCK AND THEREFORE, THERE WAS NO CA SE OF APPLYING ABNORMAL G.P.RATE. 2.5 IT WAS FURTHER SUBMITTED THAT THE AO HAS NOT CO NSIDERED THE DIRECT EXPENSES WHILE ENTIRE SALES AND PURCHASES HAVE BEEN TAKEN INTO ACCOUNT. THE PAYMENT OF JOB WORK OF RS. 5,09,486/- WERE NOT TAKE N INTO ACCOUNT. THE AO HAS ALSO NOT CONSIDERED THE INCREASE IN TURNOVER. 2.6 THE LD. CIT(A) AFTER CONSIDERING THE SUBMISSION S REDUCED THE TRADING ADDITION TO RS. 2,12,798/- AFTER OBSERVING AS UNDER :- 5.3 I HAVE CONSIDERED THE SUBMISSION O F LD. A.R. AND HAVE PERUSED THE MATERIAL AVAILABLE ON REC ORD. AT THE OUTSET I ALSO HAVE VERIFIED FROM THE AUDITED STATEMENT OF ACCOUNT PLACED AT PB PAGE 7, THAT THE CLOSING STOCK OF THE CURRENT YEAR DECLARED BY THE ASSESSEE IS RS. 30,23,400/- AND THE AO HAS WRONGLY TAKEN THE FIGURE OF THE CLOSING STOCK AT RS. 27,48,662/- AND IF THE COR RECTION 4 IS MADE, THE DECLARED GP COMES TO RS. 10,00,846/-. I AGREE WITH THE CONTENTION OF LD. A.R. THAT THE DECL ARED GROSS PROFIT WAS NOT DEDUCTED FROM ESTIMATED GROSS PROFIT IN ORDER TO ARRIVE AT THE ADDITION FOR LOW G.P. AS THE DECLARED GROSS PROFIT IS RS. 10,00,846/- WHICH NEED S TO BE STRAIGHT WAY DEDUCTED FROM ESTIMATED GP, WHICH W ILL RESULT INTO RELIEF OF RS. 10,00,846/- ON ACCOUNT OF APPARENT MISTAKE MADE BY THE A.O. NOW THE ADDITION OF RS. 520254/- REMAINS ON ACCOUNT OF ESTIMATION OF GR OSS PROFIT BY APPLYING GP RATE. I FIND THAT THE ASSESSEE IS ENGAGED IN THE SALES OF ELECTRONIC ITEMS AND OTHERS BESIDES THE JO B WORK. THE FIGURES FOR SALES, PURCHASES AND DIRECT EXPENSE S CANNOT BE BIFURCATED FOR ELECTRONIC AND OTHER ITEMS . SIMILARLY, THE EXPENSES ON JOB WORK RECEIPT CANNOT BE SEPARATELY ASCERTAINED FROM THE BOOKS OF ACCOUNTS MAINTAINED BY THE ASSESSEE. IN SUCH CIRCUMSTANCES CONSOLIDATED TRADING ACCOUNT CAN BE PREPARED AND COMPARED. THE A.O. PREPARED THE TRADING ACCOUNT FOR A.Y. 2002-03 WITHOUT CONSIDERING DIRECT EXPENSES AS WELL AS JOB RECEIPT. I FIND THAT THE SALES OF THE ASSESSEE IS INCREASED BY 323% ON THE TURNOVER OF THE LAST YEAR AND OVERALL GROSS PROFIT INCREASED TO RS. 10,00,846/- F ROM RS. 3,59,841/- IN LAST YEAR. THUS THERE WAS INCREASE IN OVERALL GROSS PROFIT BY 178% IN COMPARISON TO LAST YEAR. T HUS THE TRADING RESULT FOR A.Y. 2003-04 CANNOT BE COMPA RED WITH THE TRADING RESULT FOR A.Y. 2002-03. HOWEVER, THE CONTENTION OF THE LD. A.R THAT THE INCREASE IN OVER ALL GROSS PROFIT WAS ACHIEVED BY LOWERING THE G.P. MARGIN CAN NOT BE FULLY ACCEPTED. CONSIDERING THE OVERALL FACTS AN D CIRCUMSTANCES, PARTICULARLY A SUBSTANTIAL INCREASE IN TURNOVER, WHICH WOULD NORMALLY BE ACHIEVED PARTLY B Y LOWERING THE G.P. MARGIN, IT WILL BE FAIR AND REASO NABLE TO ESTIMATE THE G.P RATE AT 12% DURING THE YEAR UNDER CONSIDERATION, WHICH GIVES GROSS PROFIT OF RS. 12,1 3,644/- AS AGAINST DECLARED GROSS PROFIT OF RS. 10,00,846/- , RESULTING INTO ADDITION OF RS. 2,12,798/-. THEREFOR E, IN THE 5 FACTS AND CIRCUMSTANCES OF THE CASE THE ADDITION OF RS. 307456/- (RS. 520254-212798) IS HEREBY DELETED AND ADDITION OF RS. 2,12,798/- IS SUSTAINED ON ACCOUNT OF LOW GP. 2.7 BEFORE US, THE LD. AR HAS FILED THE WRITTEN SUB MISSIONS. WE ARE NOT REFERRING TO THOSE SUBMISSIONS GIVEN IN THE CASES O F THIS GROUP IN WHICH IT HAS BEEN MADE CLEAR THAT THE ASSESSEE RETRACTED THE SUR RENDER. SUCH SUBMISSIONS HAVE BEEN DEALT IN THE CASE OF SHANKAR LAL KHANDELW AL. ON THE ISSUE OF TRADING ADDITION, THE LD. AR HAS MADE THE FOLLOWING SUBMISSIONS. (1) GROUND NO.1 REGARDING TRADING ADDITION OF RS.2,12,798/- CONFIRMED BY THE LD. CIT(A) OUT OF TO TAL ADDITION MADE BY AO OF RS.5,20,254/ - THE AO HAD DISCUSSED THIS ADDITION AT PAGE NO. 4-6 (PARA 9) OF THE ASSESSMEN T ORDER. WHILE MAKING SUCH ADDITION THE LD AO HAD RELIED UPON HIS FINDINGS AS RECORDED IN THE A.Y. 2002-03 AND HAD INCORRECTLY POINTED OUT THAT NO BOOKS OF ACCOUNT & SUPPORTING VOUCHERS WAS PRODUCED AND THEREFORE THE TRADING RESULTS DECLARED BY THE A PPELLANT WERE NOT VERIFIABLE AND PRIMA FACIE COULD NOT BE ACCEPTE D AS TRUE AND CORRECT. ACCORDINGLY HE HAD PROCEEDED TO ESTIMATE G .P. @ 15.04 ON THE BASIS OF G.P. DECLARED IN THE A.Y. 200 2-03 AND MADE ADDITION OF RS. 5,20,254/- IN FACT, SUCH FIND INGS OF THE LD. AO WERE FACTUALLY INCORRECT AS IN THE STARTING LI NE OF THIS PARA ITSELF, HE HAD MENTIONED THAT THE ASSESSEE HAD FILE D COPY OF AUDITED ACCOUNTS AND A COMPARATIVE CHART SHOWING TR ADING RESULTS FOR ALL THE ASSESSMENT YEARS. HOWEVER IN THE CONCLUDING PART IT WAS OBSERVED BY HIM THAT SIMILAR COMPARATIV E STATEMENTS WERE FILED IN EVERY ASSESSMENT YEARS STARTING FROM A.Y.2002-03 ONWARDS WHICH WERE DISCUSSED BY HIM AND WERE REJECT ED BY HIM FINDING THE SAME TO BE FALSE AND CONCOCTED. OBV IOUSLY THE FINDINGS SO MADE BY THE AO WERE WITHOUT ANY BASIS A ND WITHOUT BRINING ANY MATERIAL ON RECORD TO DISPROVE THE TRAD ING RESULTS OF THE APPELLANT, PARTICULARLY WHEN THE CORRECTNESS OF THE SALES AND PURCHASES COULD NOT BE QUESTIONED AND NO SPECIFIC I NSTANCES OF 6 ANY UNVERIFIABLE SALE OR PURCHASE WHAT-SO-EVER COU LD BE POINTED OUT. IN APPEAL PROCEEDINGS, WHILE APPRECIATING THE ABOVE FACTS AND ALSO HAVING CONSIDERED THE VOLUME OF THE TURN-O VER AND THE PAST HISTORY OF THE CASE, HE HAD RESTRICTED SUCH AD DITION TO RS. 2,12,798/- BY APPLYING G.P. OF 12% ON THE DECLARED TURN-OVER OF RS.1,01,13,669/- AS PER HIS FINDINGS AS RECORDED AT PAGE NO. 22 OF THE APPEAL ORDER (PARA 5.3). THE WORKING OF THE CIT (A) IS ASSAILED ON THE FOLLOWING GROUNDS: (I) THE LD. CIT(A) HAD ERRED IN REJECTING THE BOOKS RES ULTS FOLLOWING THE FINDINGS OF THE LD. AO ON THE POINT W ITHOUT ATTRIBUTING ANY REASON OR POINTING OUT ANY SPECIFI C INSTANCES OF THE UN-VOUCHED AND UNVERIFIABLE SALES AND PURCHASES. IN ABSENCE OF ANY SPECIFIC DISCREPANCY O R INSTANCE, THE BOOK RESULTS COULD NOT BE REJECTED BY GENERAL AND CURSORY REMARKS. THUS SUCH CONCLUSION I S ILLOGICAL AND BAD IN LAW. (II) AGAIN, THE LD. CIT (A) DID NOT ANALYZE THE NATURE & VOLUME OF THE TRADED GOODS, NATURE OF THE RECEIPTS OF THE PROCEEDS ETC. IN ABSENCE OF EXAMINATION OF THESE F ACTS, NO LOGICAL CONCLUSION COULD BE ARRIVED AT. IN THE P RESENT CASE, THE LD. CIT (A) HAD APPLIED FLAT RATE OF 12% WITHOUT CARRYING OUT SUCH AN EXERCISE. THUS SUCH WORKING IS WITHOUT ANY BASIS AND IS CONTRARY TO THE JUDICIAL DISCIPLINE. IN FACT, THE APPELLANT CO. HAD BEEN TRA DING IN TWO TYPES OF GOODS, ELECTRONICS & FURNITURE, BESIDE S JOB RECEIPTS ETC. THERE IS VAST VARIATION IN THE G.P. I N FURNITURE GOODS, & ELECTRONIC GOODS. GENERALLY ELECTRONIC GOODS ARE FAST SELLING GOODS WHICH YIELD VERY NOMINAL MARGIN OF PROFIT WHEREAS IN FURNITURE ITEMS G.P. IS COMPARATIVELY MORE THAN ELECTRONIC GOODS. THE JO B RECEIPTS HAVE GREATER IMPACT ON THE G.P. RATE. IN T HE CIRCUMSTANCES, FOR APPLYING FAIR AND REASONABLE RAT E OF PROFIT ALL THESE FACTORS ARE NECESSARILY TO BE TAKE N CARE OF. THUS G.P. RATE SO APPLIED BY THE LD CIT (A) FOR SUS TAINING SUCH ADDITION IS OBVIOUSLY ARBITRARY AND WITHOUT AN Y BASIS. 7 (III) AGAIN, PAST HISTORY OF THE CASE IS VERY IMPORTANT G UIDING FACTOR TO DETERMINE THE G.P. RATE. IN THE PRESENT C ASE, THE G.P. SHOWN IN EARLIER YEARS VARIED FROM 4% TO 5% DEPENDING UPON THE VOLUME OF THE GOODS TRADED IN, A ND THE VOLUME & PROPORTION OF THE JOB RECEIPTS ETC. (A S PER CHART SUBMITTED IN THE PB AT PAGE NO. 19) (IV) THE LD. CIT (A) HAD NOT FOLLOWED THE RULE OF CONSISTENCY. IN THIS YEAR, HE HAD ARBITRARILY APPLI ED G.P. RATE AT 12% AS AGAINST 10% IN THE ASSTT. YR. 2004-0 5, 2007-08 & 2008-09 & 8% IN THE ASSESSMENT YEARS 2005 - 06 & 2006-07. THUS THE PERCENTAGE OF THE DISALLOW ANCE HAD BEEN VARIED AND GUIDED BY THE PERSONAL WHIMS O F THE AUTHORITY WITHOUT FOLLOWING THE RULE OF CONSISTENC Y WHICH IS BAD IN LAW AND THE DESERVES TO BE QUASHED IN LIMINE. IN VIEW OF ABOVE DISCUSSIONS, THE ADDITION OF RS. 2,12,798 /- CONFIRMED BY THE LD. CIT (A) BY APPLYING ADHOC G.P. RATE OF 12% IS ARBITRARY AND DESERVES TO BE D ELETED. 2.8 ON THE OTHER HAND, THE LD. DR DREW OUR ATTENTIO N TO THE ASSESSMENT ORDER. THE AO HAS RIGHTLY POINTED OUT THAT THE ASSE SSEE HAS NOT PREPARED THE SEPARATE TRADING ACCOUNT FOR THE ELECTRONIC ITEMS. IN CASE SEPARATE TRADING ACCOUNT FOR ELECTRONIC ITEMS IS MADE THEN THE G.P.R ATE IS MUCH LESS AS COMPARED TO THE PRECEDING YEAR. 2.9 WE HAVE HEARD BOTH THE PARTIES. IT WILL BE USEF UL TO REPRODUCE THE P & L A/C FOR THE ASSESSMENT YEAR 2002-03 AND 2003- 04. 8 PARTICULARS AMOUNT AS AT 31-03-03 AMOUNT AS AT 31-03-02 (A) INVOICE SALES 10113699.00 2392093.00 OTHER INCOME 1219586.87 523030.00 VARIATION OF INVENTORY 2346144.00 677256.00 TOTAL (A) 13679429.87 3592379.00 (B) EXPENDITURE PURCHASES 11380514.12 2697808.73 DIRECT EXPENSES 752671.00 257077.00 ADMN. & OTHER EXPENSES 1236140.27 517623.00 PRELIMINARY EXPLANATION. W/O 5760.00 5760.00 TOTAL (B) 13375085.39 3488268.73 2.10 THE COMPARATIVE DETAILS OF SALES ARE AVAILABLE IN SCHEDULE X OF THE ANNUAL ACCOUNTS. THESE ARE REPRODUCED AS UNDER:- PARTICULARS AMOUNT AS AT 31-03-03 AMOUNT AS AT 31-03-02 SCHEDULE 10 (SALES.) SALES ELECTRONICS (STP) 9846435.00 2342113.00 SALES (12%) - 49980.00 SALES OF CORFORM (STP) 42317.00 - SALE OF FURNITURE-READY GOODS (STP) 39395.00 - 10113699.00 2392093.00 2.11 FROM THE ABOVE, IT IS CLEAR THAT DURING THE YE AR THE ASSESSEE HAS MADE SALES OF FURNITURE, CORFOM AND OTHER ITEMS . THESE SALES HAVE ALSO BEEN INCLUDED IN THE ELECTRONIC ITEMS BY THE AO. THE AO HAS ADOPTED THE CLOSING STOCK AT RS. 27,48,662/- FOR ELECTRONIC ITEMS THE T OTAL CLOSING STOCK IS RS. 30,23,400/-. THE AO HAS ALREADY OBSERVED THAT THE A SSESSEE HAS NOT 9 PRODUCED THE BOOKS OF ACCOUNT AND SUPPORTING VOUCHE RS. THEREFORE, IT IS NOT POSSIBLE TO EXACTLY CORRELATE THE GROSS PROFIT ON E LECTRONIC ITEMS OF THIS YEAR AS COMPARED TO PRECEDING YEAR. THE TURNOVER DURING THE YEAR IS SUBSTANTIALLY MORE AS COMPARED TO LAST YEAR. THE TOTAL TURNOVER I S RS. 1.01 CRORES AS COMPARED TO RS. 23.00 LACS OF LAST YEAR. HENCE IT I S NOT THE CASE WHERE THE G.P.RATE IS TO BE APPLIED IN RESPECT OF ELECTRONIC ITEMS. THE TRADING RESULTS IS TO BE ESTIMATED AS BOOKS OF ACCOUNT ARE NOT RELIABL E IN ABSENCE OF SUPPORTING VOUCHERS. THE OVERALL G.P.RATE IN THE IMMEDIATELY PRECEDING YEAR WAS 4.37%. WE THEREFORE, FEEL THAT IT WILL BE FAIR AND REASONABLE TO APPLY THE G.P.RATE OF 4.5% ON TURNOVER OF RS. 1,01,13,697/-. WHILE DIRECTING TO APPLY THE GROSS PROFIT RATE OF 4.5%, WE HAVE CONSIDERED T HAT OTHER INCOME IN THE IMMEDIATELY PRECEDING YEAR WAS TO THE EXTENT OF 23% OF THE SALES WHILE IN THE ASSESSMENT YEAR UNDER CONSIDERATION IT IS AROUN D 11%.. THE AO WILL RECOMPUTE THE TRADING ADDITION. 3.1 THE SECOND GROUND OF THE ASSESSEE IS THAT THE L D. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 1,53,000/- IN RESPEC T OF ALLEGED UNEXPLAINED CREDIT ENTRIES IN THE BOOKS OF ACCOUNT IN THE NAME OF FOLLOWING PERSONS. 1. SHRI SUSHIL JHALANI RS. 37,000/- 2. SHRI MOHAN LAL KHANDELWAL RS. 1,00,000/- 3. SMT. DILIP KUMAWAT RS. 16,000/- TOTAL RS.1,53,000/- 10 3.2 THE REVENUE IN GROUND NO. 3 AND 4 ARE AGGRIEVED AGAINST DELETION OF ADDITION OF CASH CREDIT TO THE EXTENT OF RS. 11.51 LACS BY ADMITTING THE ADDITIONAL EVIDENCE. 3.3 THE AO NOTICED THAT THE ASSESSEE HAS SHOWN UNSE CURED LOANS TO THE EXTENT OF RS. 20,67,487 /-. THESE UNSECURED LOANS ARE FROM THE DIRECTORS AND DIRECTORS FRIENDS AND RELATIVES. THE AO AT PAGE 3 OF THE ASSESSMENT ORDER HAS PREPARED A CHART IN RESPECT OF THE UNSECURED LO ANS. IN RESPECT OF 14 CREDITORS, THE ASSESSEE DID NOT FILE ANY CONFIRMATI ONS BEFORE THE AO. IN RESPECT OF THE CREDITOR NAMELY SHRI MANOHAR LAL CHO UDHARY, THE CONFIRMATION WAS FILED BUT THE SOURCES WERE NOT CON SIDERED AS EXPLAINED BY THE AO. THE CREDIT IN THE NAME OF SHRI MANOHAR LAL CHOUDHARY IS RS. 18,000/-. IN RESPECT OF SHANKAR LAL KHANDELWAL, THE CASH CREDIT WAS ACCEPTED. THE CASH CREDIT IN THE NAME OF SHRI AJAY KUMAR GUPTA IS RS. 6.00 LACS AND RS. 1.00 LAC CASH CREDIT IS FROM SHRI MOHA N LAL KHANDELWAL. 13 CREDIT ENTRIES ARE LESS THAT RS. 20,000/-. THREE OT HER CREDIT ENTRIES ARE TO THE EXTENT OF RS. 25,000/-, RS. 37,000/- AND RS. 40,000 /-. THE AO HAS ADDED A SUM OF RS. 20,11, 987/- U/S 68 OF THE ACT. 3.4 THE LD. CIT(A) AT PARA 4.2 OF HIS ORDER HAS MEN TIONED THAT THE AO HAS REDUCED THE ADDITION U/S 68 OF THE ACT TO RS. 9.04 LACS AS AGAINST RS. 20,11,987/- BY PASSING THE ORDER U/S 154 OF THE ACT . 11 3.5 BEFORE THE LD. CIT(A), THE ASSESSEE FILED THE A DDITIONAL EVIDENCE IN THE FORM OF AFFIDAVITS AND CONFIRMATIONS. WE WILL BE RE PRODUCING THE ADDITIONAL EVIDENCES FILED BEFORE THE LD. CIT(A) IN RESPECT OF FEW CASH CREDITS SO AS TO APPRECIATE THE FINDINGS OF THE LD. CIT(A). (I) SHRI AJAY KUMAR GUPTA. RS. 6,00,000/-. THE C OPY OF LEDGER ACCOUNT OF THE ASSESSEE IS PLACED AT PB PAGE 21. THE COPY OF THE AFFIDAVIT OF THE PARTY HAS BEEN FILED I N YOUR OFFICE AS ADDITIONAL EVIDENCE U/R 46A OF I.T. RULE 1962. (P.B . PAGE NO. 20.) SOURCE OF DEPOSIT THE COPY OF BANK STATEMENT OF THE PARTY IS ENCLOSED HEREWITH AT PAGE 104 TO 105. DATE AMOUNT NATURE OF ENTRY EXPLANATION 16-12- 2002 4,00,000/- CHEQUE THE PAYMENT TO THE ASSESSEE IS REFLECTED IN THE BANK STATEMENT ON 16.12.2002. NO CASH DEPOSIT TO CREATE THE BALANCE IN THE BANK ACCOUNT, RATHER DEPOSIT BY CLEARING OF CHEQUES. 9.1.2003 2,00,000/- CHEQUE THE PAYMENT TO THE ASSESSEE IS REFLECTED IN THE BANK STATEMENT ON 9.1.2003. NO CASH DEPOSIT TO CREATE THE BALANCE IN THE BANK ACCOUNT, RATHER DEPOSIT BY CLEARING OF CHEQUES. (II) SHRI HARI SINGH RS. 18,000/- AFFIDAVIT OF SHR I HARI SINGH, CONFIRMATION LETTER, I.D. AS DRIVING LICENSE , COPY OF LEDGER FOR THE YEAR AND COPY OF LEDGER W.E.F. 1.4.2 003 TO 31.3.2004. HAVE FILED IN YOUR OFFICE P.B. PAGE NO. 24-28. DATE AMOUNT NATURE EXPLANATION 12 OF ENTRY 1-6-2006 18,000/- CASH THE ASSESSEE IS A REGULAR I.T. ASSESSEE HAVING PAN BGCPS1757B. ALL THE REQUIRED EVIDENCES REGARDING CASH DEPOSIT AND CASH RECEIVED BACK FILED WITH P.B. PAGE NO. 24-28. PAN:- BGCPS1757B WARD ITO 2(4). COPY ENCLOSED AT P AGE 106 (III) SHRI INAYATALI RS. 17,000/-. AFFIDAVIT THE S HRI INAYATALI, CONFIRMATION LETTER, COPY OF PAN, ID AS COPY OF ELECTRIC BILL, COPY OF LEDGER OF THE YEAR AND COPY OF LEDGER W.E.F. 1.4.2003 TO 31.3.2004 HAVE BEEN FILED IN YOU R OFFICE (P.B. PAGE NO. 29 TO 34) DETAILS OF SOURCE OF DEPOSIT. DATE AMOUNT NATURE OF ENTRY EXPLANATION 23-7-2002 17,000/- CASH THE ASSESSEE IS A REGULAR I.T. ASSESSEE HAVING PAN AJMPA5692F. ALL THE REQUIRED EVIDENCES REGARDING CASH DEPOSIT AND CASH RECEIVED BACK FILED WITH P.B. PAGE NO. 29. COPY OF ACKNOWLEDGEMENT OF ITR IS ENCLOSED AS PER A T PAGE 107. (IV)SHRI LAXMIKANT SHARMA RS. 15,000/-:- AFFIDAVIT OF SHRI LAXMIKANT SHARMA, CONFIRMATION LETTER, LEDGER ACCOUNT OF THIS YEAR AND COPY OF LEDGER FROM 1.4.2003 TO 31.3. 2004 HAVE BEEN FILED IN YOUR OFFICE AT P.B. PAGE NO. 35 TO 38 DETAILS OF SOURCE OF DEPOSIT. DATE AMOUNT NATURE OF ENTRY EXPLANATION 13 13-8-2002 15,000/- CASH THE ASSESSEE IS A REGULAR I.T. ASSESSEE HAVING PANO.AGBPS12363P. ALL THE REQUIRED EVIDENCES REGARDING CASH DEPOSIT AND CASH RECEIVED BACK FILED WITH P.B. PAGE NO.35. COPY OF ACKNOWLEDGEMENT OF ITR IS ENCLOSED AS PER A T PAGE 108. (V) SMT. MOHANIDEVI RS. 17,000/:- AFFIDAVIT OF SMT. MOHANIDEVI, CONFIRMATION LETTER, COPY OF LEDGE R OF THE YEAR AND COPY OF THE LEDGER FROM 1.4.2003 TO 3`1.3. 2004 HAVE BEEN FILED IN YOUR OFFICE (P.B. NO. 39 TO 42). 3.6 THE LD. CIT(A) AFTER CONSIDERING THE ADDITIONAL EVIDENCES REDUCED THE ADDITION U/S 68 OF THE ACT TO RS. 1.53 LACS AND ALL OWED THE RELIEF OF RS. 7.51 LACS AFTER OBSERVING AS UNDER:- 4.4 I HAVE CONSIDERED THE SUBMISSIONS OF THE LD. AR AND HAVE PERUSED THE MATERIAL ON RECORD. I FIND FROM THE TABLE MENTIONED AT PAGE 3 OF THE ASSESSMENT ORD ER THAT THE A. O. REJECTED THE CONFIRMATION IN ALL THE CASE S EXCEPT THE CASE OF SUSHIL JHALANI ON THE GROUND THAT PARTY WAS NOT PRODUCED. I HAVE SEEN THE COPY OF ORDER SHEET P LACED AT PB PAGE 96 TO 97 THAT THE A.O. NEVER ASKED TO TH E ASSESSEE TO PRODUCE THE PARTY. ON MERIT THE ASSESSE E HAS FILED AFFIDAVIT AS ADDITIONAL EVIDENCE IN THE CASE OF SHRI AJAY KUMAR GUPTA, SHRI HARI SINGH , SHRI INAYAT ALI , SHRI LAXMIKANT SHARMA , SMT. MOHINI DEVI , SHRI MANOHAR LAL CHODHARY, SHRI RAJU NATANI , SHRI RATAN LAL SAHAY, SHRI SANTOSH GUPTA, SHRI S C SHARMA , M/S SH RI RAM PRINTING , SHRI RAVINDRA KUMAR SHARMA, SHRI SHYAMSUNDER GOMLA, SHRI S S GUPTA AND SHRI S.S. KOOLWAL CONFIRMING THE LOANS/DEPOSITS MADE BY THEM TO THE ASSESSEE, ALONGWITH PROOF OF IDENTITY AND PAN I N MOST OF THE CASES. IT IS SEEN THAT THE LOAN GIVEN BY SHRI 14 AJAY KUMAR GUPTA RS. 600000/-, SHRI RATAN LAL SAHAY RS. 40000/- SHRI RAVINDRA KUMAR SHARMA RS. 25000/- IS FURTHER VERIFIABLE FROM THE COPY OF THE BANK STATEM ENT OF THE RESPECTIVE PARTY. THE CASH LOAN/DEPOSITS WERE F OR MINOR AMOUNT I.E. LESS THAN RS. 20000/- AND SUPPORT ED BY SWORN AFFIDAVITS, CONFIRMATION, IDENTITY PROOF AND PAN. THE APPEAL HEARING WAS CONDUCTED IN THE PRESENCE OF A.O AND A.R. EXPLAINED THE DOCUMENTS TO THE UNDERSIGNED AND ALSO TO THE A.O. AFTER GOING THROUGH THE DOCUMENTS, ON BEING ASKED BY THE APPELLANT FOR HIS COMMENTS, A.O. HAS NOT OBJECTED TO THE DELETION OF THE ADDITION IN RES PECT OF THESE CASH CREDITORS. THEREFORE, THE ADDITION MADE BY THE AO FOR THE CASH CREDIT IN THESE CASES IS DELETED. HOWEVER, AS REGARDS CASH DEPOSITS SHOWN IN THE NAME OF SH. MOHAN KHANDELWAL IS CONCERNED, IT I S EVIDENT THAT NO REGULAR BOOKS OF ACCOUNTS OF ANY FA MILY MEMBERS OF THE APPELLANT GROUP WAS FOUND DURING THE COURSE OF SEARCH. THE CASH BOOK OF SH. MOHAN LAL KHANDELWAL, THE FATHER OF THE APPELLANT HAVE NATURA LLY BEEN PREPARED AFTER THE SEARCH AND THEREFORE THE CONTENDED AVAILABILITY OF THE CASH BOOK IN THE CASE R OF MOHAN LAL KHANDELWAL IS NOT SUBJECTED TO VERIFICATI ON., PARTICULARLY CONSIDERING THE FACT THAT TOTAL RS. 1 LAKH HAS BEEN SHOWN AS LOAN BY DEPOSITING THE AMOUNT IN THE RANGE OF RS, 14,000/- TO RS. 18,000/- FROM 23.1.03 TO 30.3.2003. THUS CREDIT IN THE NAME OF MOHAN LAL KHANDEWAL IS HELD TO BE UNEXPLAINED. MOREOVER, DEPO SIT IN THE NAME OF SHRI SUSHIL JHALANI AND SHRI DILIP KUMAWAT, WHO IS BENAMI OF SHRI SHANKAR KHANDELWAL CAN NOT BE HELD AS GENUINE BECAUSE NO SATISFACTORY EVIDENCE WAS PRODUCED BEFORE ME TO EXPLAIN THE SOUR CE OF FUND IN THE HANDS OF THESE BENAMIES. THEREFORE I N VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE TH E DEPOSIT IN THE NAME OF SHRI SUSHIL JHALANI RS. 3700 0/- AND DEPOSIT OF RS. 16000/- IN THE NAME OF SHRI DILI P KUMAWAT ARE HELD AS UNEXPLAINED. THUS IN BRIEF ADDI TION TO THAT EXTENT I.E. RS.1,53,000/-IS SUSTAINED AND A DDITION FOR THE BALANCE AMOUNT RS. 7,51,000/- IS HEREBY DELETED. 15 3.7 BEFORE US, THE LD. AR HAS FILED THE WRITTEN SUB MISSIONS GROUND NO. 2 REGARDING ADDITION OF RS.1,53,000/- CONFIRMED BY LD. CIT (A) OUT OF TOTAL ADDITION OF RS.9,04,,000/- MADE BY THE AO U/S 68 OF THE ACT ON ACCOUNT OF UNE XPLAINED CASH CREDITS: THE AO HAD DISCUSSED THIS ADDITION AT PAGE NO. 2-4 OF THE ASSESSMENT ORDER MENTIONING THEREIN THAT DUR ING THE YEAR UNDER CONSIDERATION NEW DEPOSITS OF RS. 9,04,000/- WERE INTRODUCED FOR WHICH NO DETAILS AND SUPPORTING EVID ENCES COULD BE PRODUCED. ACCORDINGLY, ALL THE NEW DEPOSITS AS SHOW N DURING THE YEAR WERE ADDED IN THE INCOME OF THE APPELLANT CO. U/S 68 OF THE ACT IN HURRIED MANNER IN ABSENCE OF THE REQUIRED DE TAILS AND DOCUMENTS IN SUPPORT OF SUCH SHARE CAPITAL. IN APPE AL, HAVING CONSIDERED THE WRITTEN SUBMISSIONS AND OTHER DETAIL S, THE LD. CIT (A) HAD ALLOWED RELIEF TO THE TUNE OF RS.7,51,000 /- AND CONFIRMED ADDITION OF RS.1,53,000/- ON THE PLEA THAT PART FUNDS OF RS. 53,000/- WERE SHOWN DEPOSITED IN THE NAMES OF BENA MIDARS OF SHANKARLAL KHANDELWAL I.E. SVS SUSHIL JHALANI (RS.3 7,000-) SMT. DILIP KUMAWAT (RS.16,000/-) & RS. LAC WAS SHOWN IN THE NAME OF SHRI MOHANLAL KHANDELWAL, THE FATHER OF THE SHRI S HANKARLAL KHANDELWAL, WHOSE BOOKS WERE PREPARED AFTER SEARCH OPERATIONS. OBVIOUSLY SUCH FINDINGS IN ABSENCE OF ANY CONTRADIC TORY MATERIAL ON RECORD WERE ERRONEOUS AND ARE VERY GENERAL IN NA TURE AND DO NO SPELL OUT AS TO HOW THESE DEPOSITS WERE NOT BE EXP LAINED SATISFACTORILY WHEN THE BOOKS AS MAINTAINED BY SHRI MOHANLAL KHANDELWAL WAS DULY PRODUCED BEFORE THESE AUTHORIT IES. WITHOUT POINTING OUT SPECIFIC DEFICIENCY OR DISCREPANCY, SU CH BOOKS COULD NOT BE IGNORED MERELY ON THE PLEA THAT THESE WERE P REPARED AFTER SEARCH OPERATIONS. LIKE-WISE, DEPOSITS IN THE NAMES OF THE BENAMIDARS COULD NOT BE REJECTED MERELY ON THE PLEA THAT THEY WERE BENAMIDAR OF SHRI SHANKARLAL KHANDELWAL, SO THESE W ERE NOT GENUINE DEPOSITS. APPARENTLY SUCH FINDINGS ARE DEVO ID OF MERITS AND DESERVES TO BE QUASHED FOR THE FOLLOWING REASON S: (1) IN FACT, ALL THE ABOVE NAMED PERSONS WERE ADMITTED TO BE BENAMI OF SHRI SHANKARLAL KHANDELWAL. IN THE CIRCUMSTANCES, THE FUNDS SO INTRODUCED IN THESE NAM ES STOOD DULY ACCOUNTED FOR IN THE BOOKS AS PRODUCED B Y 16 THEM. IN ABSENCE OF ANY SPECIFIC DISCREPANCY, OR DE FECT, THE CORRECTNESS OF SUCH BOOKS COULD NOT BE QUESTION ED AND AVAILABILITY OF THE FUNDS AS PER THESE BOOKS CO ULD NOT BE IGNORED BY GENERAL REMARKS THAT THEY WERE BENAMI OF SHIR SHANKARLAL KHANDELWAL. THE FACT REGARDING THES E PERSONS BEING BENAMI OF SHRI SHANKARLAL KHANDELWAL AND HAVING DEPOSITED THESE FUNDS IN THE CO. COULD NOT BE DENIED MERELY ON THE PLEA THAT THEY WERE BENAMI OF SHRI SHANKARLAL KHANDELWAL. AS THE EXISTENCE OF THESE PE RSONS AND THEIR BENEFACTOR SHRI SHANKARLAL KHANDELWAL IS ESTABLISHED BEYOND DOUBT SO IT WOULD BE ILLOGICAL T O CONCLUDE THAT THE SOURCES OF THESE FUNDS COULD NOT BE PROVED BY THE APPELLANT. (2) SIMILARLY, THE BOOKS OF SHRI MOHANLAL KHANDELWAL CA N NOT BE IGNORED ON THE PLEA THAT THESE WERE WRITTEN AFTER SEARCH OPERATIONS. IN FACT, THESE BOOKS WERE PREPAR ED AT THE INSTANCE OF THE DEPARTMENT WITH THE HELP OF BAN K STATEMENTS AND OTHER DOCUMENTARY DETAILS LIKE DIREC TORS REMUNERATION FEES ETC.. THUS AUTHENTICITY OF THESE BOOKS COULD NOT BE QUESTIONED IN ABSENCE OF ANY MATERIAL ON RECORD. HERE IT WOULD BE WORTH NOTING THAT SHRI MOH ANLAL KHANDELWAL DID NOT CARRY OUT ANY SALE OR PURCHASE O F PROPERTY AND HAD NO INCOME FROM THIS SOURCE AT ALL. HE HAD SIMPLY RECEIVED DIRECTORS REMUNERATION AND REN TAL INCOME ETC. WHICH WAS SHOWN IN THE CASH FLOW STATEM ENT PREPARED AT THE INSTANCE OF THE DEPARTMENT. IN THE CIRCUMSTANCES, THE FINDINGS OF THE LD. CIT (A) ON T HE POINT ARE ILLOGICAL AND WITHOUT ANY BASIS. (3) AS PER NUMBER OF JUDICIAL CITATIONS AS QUOTED IN TH E WRITTEN SUBMISSIONS, NO VALID ADDITION COULD B E MADE IN THE CASE OF A COMPANY ON ACCOUNT OF THE SHARE CAPITAL INTRODUCED, PARTICULARLY WHEN THE EXISTENCE OF THE SHARE HOLDER IS NOT DENIED . FOR READY REFERENCE, THESE CITATIONS ARE RE-PRODUCED HEREUNDER ONCE AGAIN AT THE COST OF REPETITION. (A) CIT VS STELLER INVESTMENT LTD. (2001) 251 ITR 263 ( SC) WHEREIN IT HAS BEEN HELD THAT EVEN IF THE SUBSCRIBE RS TO THE INCREASED SHARE CAPITAL OF ASSESSEE-COMPANY WER E NOT 17 GENUINE, THE AMOUNT COULD NOT BE REGARDED AS UNDISC LOSED INCOME OF THE ASSESSEE-COMPANY. (B) CIT VS DOWN TOWN HOSPITAL (P) LTD. (2004) 267 ITR 439(GAU) HELD THAT NO ADDITION UNDER S. 68 IS PERMISSIBLE WHERE THE SHAREHOLDERS ARE IDENTIFIED AND IT IS EST ABLISHED THAT THEY HAD INVESTED THE MONIES IN THE PURCHASE O F THE SHARE. (C) (C) JAYA SECURITIES LTD. VS. CIT (2008) 166 TAX MAN 7 (ALL) HELD THAT NO ADDITION UNDER S. 68 CAN BE MADE IN THE HANDS OF THE COMPANY LIMITED BY SHARES IN RESPE CT OFINVESTMENT IN SHARE CAPITAL OF THE CO. (D) FURTHER, HONORABLE ITAT, JAIPUR BENCH JAIPUR HAVE B EEN REPEATEDLY HOLDING THE VIEW THAT THE ASSESSEE HAS DISCHARGED ITS BURDEN BY PROVIDING RELEVANT DOCUMENTS AND INFORMATION NECESSARY FOR PROVING THE GENUINENESS OF TRANSACATION IN QUESTION .. THE LATEST JUDGMENT ON THE POINT WAS PRONOUNCED IN THE CASE OF BHARTI SYSTEX LTD. VS DCIT (2011) 137 TTJ 82 (ITAT JAIP). IN VIEW OF ABOVE DISCUSSIONS, THE ADDITIONS AS CONF IRMED BY THE LD. CIT (A) ON THIS ACCOUNT ARE NOT LEGALLY MAINTAINABLE AND DESERVE TO BE DELETED. 3.8 ON THE OTHER HAND, THE LD. DR REFERRED TO THE F INDINGS RECORDED BY THE AO. IN RESPECT OF THE ADDITION CONFIRMED BY THE LD. CIT(A), THE LD. DR RELIED UPON THE FINDINGS OF THE LD. CIT(A). 3.9 WE HAVE HEARD BOTH THE PARTIES. THE AO VIDE ORD ER SHEET ENTRY DATED 5 TH DEC 2007 REQUIRED THE ASSESSEE TO FILE THE CONFIRM ATIONS OF UNSECURED LOANS. HOWEVER, NO PROCEEDINGS WERE UNDERTAKEN DURI NG THE CALENDAR YEAR 2008. WHEN THE ASSESSMENT WAS GOING TO BE BARRED BY LIMITATION THEN THE AO MADE ENQUIRY. THE ASSESSEE WAS NOT GIVEN ADEQUAT E OPPORTUNITY BY THE 18 AO FOR FILING THE CONFIRMATIONS IN RESPECT OF UNSEC URED LOANS. WE THEREFORE, FEEL THAT THE LD. CIT(A) WAS JUSTIFIED IN ADMITTING THE ADDITIONAL EVIDENCES. THE AO AFTER GOING THROUGH DOCUMENT HAS NOT OBJECTE D TO THE DELETION OF ADDITION IN RESPECT OF THE CASH CREDITS. HENCE, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN DELETING THE ADDITION TO THE EXTENT OF RS. 7.51 LACS. 3.10 SHRI SUSHIL JHALANI AND SMT. DILIP KUMAWAT ARE BENAMI HOLDERS OF SHANKAR LAL KHANDELWAL. THEIR CASH FLOW STATEMENT H AS BEEN PREPARED AND FILED. THE CASH FLOW STATEMENT HAS INDICATED THE PA YMENTS MADE. THEREFORE, THERE IS NO CASE OF MAKING ANY ADDITION U/S 68 OF T HE ACT IN THE NAME OF SHRI SUSHIL JHALANI AND SMT. DILIP KUMAWAT. SIMILARLY TH E CASH FLOW STATEMENT WAS PREPARED IN THE NAME OF MOHAN LAL KHANDELWAL. W HILE DECIDING THE APPEAL IN THE CASE OF THE INDIVIDUAL OF THIS GROUP, WE HAVE HELD THAT THE ASSESSEE CAN PREPARE THE CASH FLOW STATEMENT ON THE BASIS OF THE MATERIALS AVAILABLE ON RECORD AS THE ASSESSEE HAS NOT MAINTAI NED REGULAR BOOKS OF ACCOUNT. SINCE THE CASH FLOW STATEMENT INDICATES TH E PAYMENTS MADE TO THE ASSESSEE , THEREFORE, THE LD. CIT(A) WAS NOT JUSTIF IED IN CONFIRMING THE ADDITIONS IN THE NAME OF SHRI MOHAN LAL KHANDELWAL , SHRI SUSHIL JHALANI AND SHRI DILIP KUMAWAT U/S 68 OF THE ACT. HENCE, GR OUND NO. 2 OF THE ASSESSEE IS ALLOWED WHILE GROUND NO. 2 AND 3 OF THE REVENUE ARE DISMISSED. 19 4.1 THE GROUND NO. 5 OF THE REVENUE IN RESPECT OF A DMISSION OF ADDITIONAL EVIDENCES IS ALSO DISMISSED BECAUSE WE H AD ALREADY HELD THAT THE LD. CIT(A) WAS JUSTIFIED IN ADMITTING THE ADDITIONA L EVIDENCES. 5.1 THE THIRD GROUND OF THE ASSESSEE IS THAT THE LD . CIT(A) HAS ERRED IN NOT ANNULLING THE ASSESSMENT ORDER AS ASSESSMENT ORDER U/S 153A HAS BEEN PASSED WITHOUT PROVIDING PROPER OPPORTUNITY OF BEIN G HEARD TO THE ASSESSEE AND IT IS NOT BASED ON THE EVIDENCE FOUND DURING TH E COURSE OF SEARCH. 5.2 WE HAVE NOTICED THAT THE ASSESSEE HAS DISCLOSED THE RETURNED INCOME AT RS. 22,155/- IN RESPONSE TO NOTICE U/S 153A WHIL E THE ORIGINAL RETURN WAS FOR RS. 10,500/-. ONCE THE ASSESSEES RETURNED INCO ME U/S 153A IS DIFFERENT FROM THE ORIGINAL RETURN OF INCOME THEN THE AO WAS JUSTIFIED IN MAKING THE ASSESSMENT U/S 153A AND IT WAS NOT NECESSARY FOR HI M TO HAVE MADE ASSESSMENT BECAUSE THERE WAS SOME EVIDENCE FOUND DU RING THE COURSE OF SEARCH. WE THEREFORE, DISMISS THE GROUND NO. 3 OF T HE ASSESSEE. 6.1 THE FOURTH GROUND OF THE REVENUE IS THAT THE L D. CIT(A) HAS ERRED IN DIRECTING THE AO TO GIVE SET OFF OF THE TRADING ADD ITION AGAINST THE ADDITION SUSTAINED FOR UNEXPLAINED CASH CREDITS. 6.2 THIS GROUNDS OF APPEAL OF THE REVENUE BECOMES A CADEMIC BECAUSE WE HAD ALREADY DELETED THE ADDITION ON ACCOUNT OF CASH CREDITS. 20 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED AND THAT OF THE REVENUE IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 02-09 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 02 /09/2011 *MISHRA COPY FORWARDED TO :- 1. M/S. GUMAN FURNITURE & SERVICES (P) LD , JAIPUR 2. THE ACIT, CENTRAL CIRCLE- 1, JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5. THE LD.DR 6. THE GUARD FILE (ITA NO.156/JP /11) A.R., ITAT JAIPUR 21 22