M/S RAJESH KUMAR OM PRAKASH, Dausa V. ITO, Dausa

ITA 156/JPR/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62033 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 17-02-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA

Judgement Text

ITA 156-12 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH : SMC JAIPUR (BEFORE SHRI R.K.GUPTA) ITA NO.156/JP/2012 ASSTT. YEAR : 2007-08 M/S.RAJESH KUMAR OM PRAKASH, VS. THE INCOME TAX O FFICER, DAUSA. WARD-DAUSA. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI D.K.MEENA DATE OF HEARING : 26.06.2012 DATE OF PRONOUNCEMENT : 28.06.2012 ORDER DATE OF ORDER : 28.06.2012 PER R.K.GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD.CIT(A) RELATING TO ASSESSMENT YEAR2007-08. 2. THE ASSESSEE IS OBJECTING CONFIRMING THE ADDITIO N OF RS.81,970/- AS DIFFERENCE IN CLOSING STOCK VALUATION BY GROUND NO.1. 3. DURING THE ASSESSMENT PROCEEDING THE AO NOTED TH AT G.P.RATE SHOWN LOWER G.P.RATE AS COMPARED TO EARLIER. THE AO VERIFIED THE CLOSING STOCK ON THE BASIS OF PURCHASES BILLS AND IT IS SEEN THAT CLOSING STOCK OF SARSOO, BAJRA AND GAWAR HAS NOT BEEN VALUED CORRECTLY. THE A.O. ,THEREFORE, REJECTED THE BOOKS OF ACCOUNT AND MADE A ADDITION OF RS.81,979/- ON ACCOUNT OF DIFFERENCE IN VALUATION O F CLOSING STOCK. IT WAS SUBMITTED BEFORE CIT(A) THAT ASSESSEE PRODUCED ALL BOOKS OF A CCOUNT SUPPORTED BY ALL TYPE OF - 2 - VOUCHERS. NATURE OF BUSINESS IS WHOLESALE IN GRAINS , OIL SEEDS AND COMMISSION AGENT. QUANTITY TALLY IS MAINTAINED IN ALL THE ACCOUNTS. T HE ASSESSEE FOLLOWS METHOD OF ACCOUNT REGULARLY AND CONSISTENTLY AND VALUATION OF CLOSING STOCK IS MADE AT MARKET RATE. AO HAS NOT POINTED OUT ANY DEFECT IN BOOKS OF ACCOUNT. SAL E AND PURCHASES ARE FULLY VOUCHED & ACCOUNTS OF THE ASSESSEE ARE AUDITED. HOWEVER CIT(A ) WAS NOT SATISFIED WITH THE EXPLANATION OF THE ASSESSEE THEREFORE HE CONFIRMED THE ACTION OF THE AO. 4. AFTER CONSIDERING THE ORDER OF THE AO AND CIT(A) . ON WHICH RELIANCE HAS BEEN PLACED LD.D/R, I FOUND THAT ASSESSEE DESERVED SUCCE ED ON THIS ISSUE. IT IS SEEN THAT COMPLETE VOUCHER OF SALES AND PURCHASES HAVE BEEN M AINTAINED. VALUATION OF CLOSING STOCK HAS BEEN MADE ON THE BASIS OF METHOD FOLLOWED YEAR TO YEAR. BOOKS OF ACCOUNTS ARE AUDITED THEREFORE, MAKING ANY ADDITION ON ACCOUNT O F VALUATION OF STOCK AT THE END OF AO WITHOUT PINPOINTING ANY DEFECT, WAS NOT JUSTIFIED. THE CIT(A) WAS ALSO NOT JUSTIFIED IN NOT ACCEPTING THE EXPLANATION OF THE ASSESSEE. 5. IN VIEW OF THESE FACTS I DELETE THE ADDITION OF RS.81,970/-. 6. SECOND GROUND IS AGAINST CONFIRMING THE ADDITION OF RS.5,000/- ON ACCOUNT OF EXCESS WASTAGE. AO NOTICED THAT OUT OF TOTAL PURCHA SE OF GRAINS AT 376 QUINTAL 46KG. THE ASSESSEE HAS SHOWN SALE 339 QUINTAL 95 KG. REMAININ G 36 QUINTAL 51KG. HAS BEEN SHOWN IN STOCK AS CHIZAT. AO ASKED TO EXPLAIN THAT WHY TH E REMAINING STOCK HAS BEEN SHOWN AS CHIZAT. IT WAS EXPLAIN THAT DUE TO DAMAGE AND WASTA GE IT HAS BEEN SHOWN AS CHIZAT. HOWEVER AO WAS NOT SATISFIED THEREFORE, HE MADE AN ADDITION OF RS.5,000/-. THE LD.CIT(A) ALSO CONFIRMED THE SAME. - 3 - 7. AFTER CONSIDERING THE ORDER OF AO AND CIT(A). I FEEL THAT IF AN ADDITION OF RS.2,000/- IS SUSTAINED ON THIS ACCOUNT THAT WILL M EET THE END OF JUSTICE. I ORDER ACCORDINGLY. 8. NEXT ISSUE RELATES TO CONFIRMING THE ADDITION OF RS.8,373/- ON ACCOUNT OF ACCRUAL OF INTEREST OF FD. 9. THE AO MADE AN ADDITION OF RS.8,860/- ON ACCOUNT OF ACCRUAL OF INTEREST ON FDR OF RS.1,09,585/- MAINTAINED WITH THE STATE BANK OF BIKANER & JAIPUR. THE AO MADE THIS ADDITION BY OBSERVING THAT ASSESSEE HAS MAINTAINED ITS ACCOUNT ON MERCANTILE BASIS. THEREFORE, INTEREST SHOULD HAVE BEEN SHOWN ON ACCRU AL BASIS. THE CIT(A) ALSO CONFIRMED THE ACTION OF THE A.O. 10. AFTER CONSIDERING THE ORDER OF AO AND CIT(A), I FOUND NO INFIRMITY IN THE ORDER OF LD.CIT(A) ON THE ISSUE, THEREFORE I CONFIRM THE ADD ITION. 10. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D IN PART. 5. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 28. 06.2012. SD/- (R.K.GUPTA) JUDICIAL MEMBER JAIPUR, *BASANT* COPY FORWARDED TO :- M/SRAJESH KUMAR OM PRAKASH, DAUSA. THE ITO, WARD-DAUSA. THE CIT(A) THE CIT THE D/R GUARD FILE (ITA NO.156/JP/12) BY ORDER AR, ITAT, JAIPUR.