DY. C.I.T.1(1), RAIPUR (CG) V. SMT RAJKUMARI BAHAL, RAIPUR (CG)

ITA 161/BIL/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8989 (ITAT-RAIPUR)
• Duration Of Justice: 3 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 13-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJHIT KUMAR LASKAR
• Assessee Lawyers: P C MALOO JAIN A M JAIN
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.161/RPR/2014 ASSESSMENT YEAR : 2011-2012 DY. COMMISSIONER OF INCOME TAX -1(1), RAIPUR VS. SMT. RAJKUMARI BAHAL, PROP. S.P.TRADERS, BOMBAY MARKET, RAIPUR PAN/GIR NO. (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.C.MALOO JAIN/ A.M. JAIN, AR REVENUE BY : SHRI AJHIT KUMAR LASKAR, DR DATE OF HEARING : 12/01/ 2018 DATE OF PRONOUNCEMENT : 15/01/ 2018 O R D E R PER PAVAN KUMAR GADALE, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE O RDER OF THE CIT(A)- RAIPUR, DATED 20.6.2014 FOR THE ASSESSMENT YEAR 2011-2 012. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL: 1. WHETHER IN LAW AND ON FACTS AND CIRCUMSTANCES OF TH E CASE, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.31,25 ,100/- MADE BY THE AO OUT OF EXCESS STOCK FOUND DURING SURVEY U/S.133A O F THE I.T.ACT, 1961. 2. WHETHER IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.5,37, 309/- MADE BY THE AO OUT OF EXCESS CASH FOUND DURING SURVEY U/S.133A OF TH E I.T.ACT, 1961. 2 ITA NO.161/RPR/2014 ASSESSMENT YEAR : 2011-2012 3. THE RELEVANT FACTS ARE THAT THE ASSESSEE IS AN INDIVID UAL AND PROPRIETOR OF M/S S.P. TRADERS DERIVING INCOME FROM BUSINESS OF WH OLESALE TRADING IN CYCLE AND CYCLE PARTS. A SURVEY UNDER SECTION 133A WAS CON DUCTED IN THE BUSINESS PREMISES OF THE ASSESSEE ON 15.4.2010. DURING THE SURVEY, THE ASSESSEE HAD SURRENDERED INCOME TO THE TUNE OF RS.40,31,42 5/-. OUT OF SURRENDERED INCOME OF RS.40,31,425/-, THE ASSESSEE SURRENDE RED RS.9,06,325/- ON ACCOUNT OF CASH AND RS.31,25,100 ON ACCOUN T OF STOCK. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO PRESENT THE B OOKS OF ACCOUNT. IN REPLY, THE ASSESSEE SUBMITTED THAT THE BOOKS OF ACCOUN T WERE DESTROYED IN FIRE. THIS EXPLANATION OF THE ASSESSEE WAS NOT ACCEPTA BLE TO THE ASSESSING OFFICER, THEREFORE, HE ADDED RS.31,25,100/- AS EXCESS STOCK SURRENDERED BY THE ASSESSEE. FURTHER, THE ASSESSEE HAD SURRENDERED CASH OF RS.5,37,309 /- DURING THE SURVEY OPERATION. THE ASSESSING OFFICER OBSERVED THA T THE SURRENDERED AMOUNT WAS THE EXCESS CASH FOUND DURING THE SURVEY; THEREF ORE, SAME WAS ADDED TO THE INCOME OF THE ASSESSEE. 4. ON APPEAL, THE CIT(A) DELETED BOTH THE ADDITIONS MADE BY THE ASSESSING OFFICER. 5. AT THE TIME OF HEARING, LD D.R. SUBMITTED THAT TH E CIT(A) ERRED IN DELETING THE ADDITIONS IRRESPECTIVE OF THE FACT THAT EX CESS STOCK WAS AVAILABLE 3 ITA NO.161/RPR/2014 ASSESSMENT YEAR : 2011-2012 IN THE SURVEY OPERATION CONDUCTED ON 15.4.2010 WHERE AS THE ASSESSEE IN THE ASSESSMENT PROCEEDINGS SUBMITTED THAT DUE TO FIRE THE BOO KS OF ACCOUNT WERE NOT AVAILABLE. THE ASSESSING OFFICER HAS MADE ABSOLU TE FINDINGS WITH RESPECT TO STOCK POSITION IN HIS ORDER AT PAGES 2 TO 4 OF THE ORDER AND HAS OBSERVED THAT THE ASSESSEE HAS NOT PRODUCED THE PROOF AND GENUINENESS IRRESPECTIVE OF CHANGE OF CLOSING STOCK FIGURES FOUND IN TH E COURSE OF SURVEY. SIMILARLY, THE DISCREPANCIES IN THE STOCK VALUATION OF PH YSICAL STOCK AND BROUGHT FORWARD STOCK, THERE IS DIFFERENCE OF RS.31,25,1 00/-, WHICH WAS ADDED. ON APPEAL, THE CIT(A) HAVING CONSIDERED THE C LOSING STOCK AND OPENING STOCK DEALT AT PAGES 3 TO 7 OF THE ORDER WAS O F THE OPINION THAT THE ASSESSING OFFICER ERRED IN MAKING ADDITION OF EXCESS STOCK AS PER BOOKS OF ACCOUNT AND ALSO THE DIFFERENCE IN OPENING BALANCE AS P ER BOOKS AND STOCK VALUATION OF RS.31,25,100/- CANNOT BE RELIED. SIMIL AR IS THE SITUATION IN CASE OF EXCESS FOUND DURING THE SURVEY OF RS.5,37,309/- 6. BEFORE US, LD D.R. COULD NOT POINT OUT ANY SPECIFIC ERROR IN THE ORDER OF THE CIT(A) OR FILE ANY SUPPORTING DOCUMENTARY EVIDENCE TO STATE THAT THE ASSESSEE HAS SUPPRESSED CLOSING STOCK. FURTHER, LD A.R. SUP PORTED WITH PAPER BOOK CONTAINING DETAILS OF FINANCIAL STATEMENT A ND ALSO THE FACT THAT THE FIRE OCCURRED IN THE ASSESSEES BUSINESS PREMISES REFERRE D AT PAPER BOOK PAGE 14 & 15. ACCORDINGLY, WE ARE OF THE SUBSTANTIVE VIEW THAT THE CIT(A) 4 ITA NO.161/RPR/2014 ASSESSMENT YEAR : 2011-2012 HAS CONSIDERED THE FINDINGS OF THE ASSESSING OFFICER AND ST ATEMENT OF THE ASSESSEE AND MATERIALS ON RECORD AND TOOK A CONSCIOUS DECI SION. THEREFORE, WE ARE INCLINED TO CONFIRM HIS ORDER AND DISMISS THE GR OUNDS OF APPEAL OF THE REVENUE. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 15 /01/2018. SD/- SD/- (N.S SAINI) ( PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIALMEMBER RAIPUR; DATED 15 /01/2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, RAIPUR 1. THE APPELLANT : DY. COMMISSIONER OF INCOME TAX -1(1), RAIPUR 2. THE RESPONDENT. SMT. RAJKUMARI BAHAL, PROP. S.P.TRADERS, BOMBAY MARKET, RAIPUR 3. THE CIT(A)- RAIPUR 4. PR.CIT- RAIPUR 5. DR, ITAT, RAIPUR 6. GUARD FILE. //TRUE COPY//