M/s Sri Balaji Alankar, Paschim Medinipur V. J.C.I.T, Midnapore

ITA 1624/KOL/2013

• Counselvise Citation: 162423514 RSA 2013
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 29-05-2013
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA [BEFORE HON BLE SHRI B.P.JAIN, AM] I.T.A NO.1624 /KOL/2013 ASSESSMENT YEAR: 2005 - 06 M/S.SRI BALAJI ALANKAR (SINCE VS. J.C.I.T., RANGE - 2, DISSOLVED REPRESENTED BY EX - PARTNER MED INIPUR SHRI TARUN KUMAR GUPTA,MEDINIPUR (APPELLANT) ( RESPONDENT) (PAN: AAUFS 6084 J) FOR THE APPELLANT : SHRI SANJAY, SR.DR, ADDL. C.I.T. FOR THE RESPONDENT : NONE DATE OF HEARING : 01.06 .2015. DATE OF PRONOUNCEMENT: 01.06 .2015. ORDER PER SHRI B.P.JAIN, AM : THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF LD.CIT(A) - XXX VI, KOLKATA DATED 08.04.2013 FOR ASSESSMENT YEAR 2005 - 06. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. FOR THAT ON THE FACTS AND I N THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION TO THE EXTENT OF RS.2,50,000/ - OUT OF THE TOTAL ADDITION OF RS.3,16,386/ - MADE BY THE A.O. ON ACCOUNT OF ALLEGED EXCESS STOCK IN GOLD ORNAMENTS FOUND DURING THE SU RVEY. 2. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN STATING IN HIS ORDER THAT THE RELIEF TO THE ASSESSEE WAS RESTRICTED TO RS.56,386/ - WHEREAS AFTER RETAINING THE ADDITION OF RS.2,50,000/ - THE RELIEF WILL BE RS.66,3 86/ - AND NOT RS.56,386/ - . 3. FOR THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.5,98,673/ - MADE BY THE LD. A.O. IN RESPECT OF THE ALLEGED INCOME NOT DISCLOSED IN RESPECT OF MORTGAGE BUSINESS. 4. FOR THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER , OR DELETE ALL OR ANY OF THE GROUNDS OF APPEAL. 3. THE BRIEF FACTS OF THE CASE AS ARISING FROM THE ORDER OF AO ARE REPRODUCED HEREIN BELOW : - THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF GOLD AND SILVER JEWELLERY AND ALSO EARNING INCOME FROM MORTGAGE ACCOUNT. IN THE COURSE OF SURVEY, SOME DISCREPANCIES IN STOCK OF GOLD ORNAMENTS VALUED AT RS.3,16,386/ - WAS FOUND. THE ASSESSEE TRIED TO EXPLAIN WITH THE HELP OF A STOCK REGISTER FOUND AT THE TIME OF SURVEY AND MARKED AS SBA1 AND SBA3. SBA1 BASICALLY WAS T HE ATTENDANCE REGISTER OF THE SALESMAN AND AT THE LATTER PART OF THE REGISTER THERE WAS SOME STOCK WHICH WAS MEANT FOR DISPLAY IN THE SHOWCASE ON DAY TO DAY BASIS. THE RECORD WAS FROM 25 - 08 - 2004 TO 13 - 09 - 2004 WHEREAS THE SBA3 WAS A ITA NO. 1624/KOL/2013 M/S. SRI BALAJI ALANKAR . A.YR. 2005 - 06 2 STOCK REGISTER OF THE EN TIRE BUSINESS AND RECORDED THE TRANSACTIONS FROM 19 - 03 - 2004 TO 13 - 09 - 2004. AS PER THE STOCK STATEMENT SUBMITTED BY THE ASSESSEE AT THE TIME OF HEARING TAKING THE TOTAL STOCK AS MENTIONED IN THE STOCK REGISTER SBA1 AND SBA3 THAT THERE WERE CERTAIN ITEMS IN EXCESS FOUND BY THE SURVEY TEAM AND IN RESPECT OF CERTAIN ITEMS THERE WAS SHORTAGE. THE ASSESSEE WAS REQUESTED TO EXPLAIN THE SAME. THE ASSESSEE FURNISHED/SUBMITTED HIS REPLY ON 11 - 12 - 2007 AND 10 - 12 - 2007 IN HINDI WHEREIN THE ASSESSEE HAS BASICALLY CONTENDE D ABOUT THE LEGALITY OF THE SURVEY OPERATION. WHETHER THE SURVEY WAS LEGAL OR NOT, THE FACT OF DISCREPANCY IN STOCK REMAINS TO BE SORTED BUT IN THE S CRUTINY ASSESSMENT. SINCE, THE ASSESSEE FAILED TO RECONCILE THE SAME, AN AMOUNT OF RS.3,16,386/ - IS ADDED T O THE TOTAL INCOME BEING UNDISCLOSED CLOSING STOCK IN RESPECT OF GOLD ORNAMENTS. IT MAY BE MENTIONED THAT THE SURVEY TEAM HAD SEEN SHORTAGE OF CLOSING STOCK IN SILVER FOR RS.25,480/ - . THE ASSESSEE EXPLAINED THE SAME THAT THERE WAS OPENING STOCK OF SILVER I TEMS IN THE LEDGER WHICH WAS SOLD SUBSEQUENTLY BY THE PERIOD 14 - 09 - 2004. THE ASSESSEE EXPLAINED FURTHER THAT THERE WAS NO SEPARATE STOCK REGISTER IN RESPECT OF SILVER ORNAMENTS. HOWEVER, LOOKING INTO THE TRANSACTIONS REFLECTED IN THE LEDGER, THE EXPLANATIO N OF THE ASSESSEE IS ACCEPTED AND NO ADDITION IS MADE ON ACCOUNT OF THIS AMOUNT OF RS.25,480/ - IN RESPECT OF SILVER ORNAMENTS. 3.1. THE LD. CIT(A) RESTRICTED THE DISALLOWANCE AT RS.2,50,000/ - BY ALLOWING A RELIEF OF RS.56,386/ - AND THE RELEVANT PORTION O F THE LD. CIT(A) S ORDER IS REPRODUCED HEREIN BELOW FOR THE SAKE OF CONVENIENCE : - DURING SURVEY, DISCREPANCY IN REGARD TO EXCESS STOCK TO THE TUNE OF RS.3,16,386/ - WERE NOTED BY SURVEY TEAM. HOWEVER, AS PER APPELLANT ADDITION TO BE RESTRICTED TO RS.80,38 9/ - ON ACCOUNT OF EXCESS STOCK AND RS.86,346/ - ON ACCOUNT OF SHORTAGE OF STOCK (FOR G.P.). TOTAL CONCEALMENT AS PER APPELLANT SHOULD BE RESTRICTED TO RS.1,66,735/ - . BOTH FOR A.O. AND APPELLANT, METHODS OF VALUATION OF STOCK WERE DULY CONSIDERED. IN FACT SU RVEY TEAM CALCULATED DIFF. IN STOCK ON AVERAGE/ESTIMATE ONLY. NO REGISTERED VALUER WAS USED AT THE TIME OF TAKING THE STOCK. HENCE, KEEPING IN VIEW OF ARGUMENTS OF AR AND A.O. THE ADDITION IS RESTRICTED TO RS.2,50,000/ - . APPELLANT GETS RELIEF OF RS.56,386/ - . 4. NONE APPEARED ON BEHALF OF THE ASSESEE AND THE LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. I HAVE HEARD THE LD. DR AND PERUSED THE MATERIALS AVAILABLE ON RECORD. BEFORE THE LD. CIT(A) THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THE DETAILS AND AS PER THE VERSION OF THE LD. AR BEFORE THE LD. CIT(A) THE ADDITION TO BE RESTRICTED WAS RS.80,389/ - ON ACCOUNT OF EXCESS STOCK AND RS.86,346/ - ON ACCOUNT OF SHORTAGE OF STOCK I.E. TOTALING TO RS.1,66,735/ - . THE LD. CIT(A) ACCORDINGLY HAS RIGHT LY RESTRICTED THE ADDITION OF RS.2,50,000/ - BY ALLOWING RELIEF OF RS.56,386/ - AND I DO NOT FIND ANY INFIRMITY IN HIS ORDER. THUS GROUND NO.1 AND 2 OF THE ASSESSEE ARE DISMISSED. ITA NO. 1624/KOL/2013 M/S. SRI BALAJI ALANKAR . A.YR. 2005 - 06 3 6. AS REGARDS GROUND NO.3 THE LD. COUNSEL FOR THE ASSESSEE PREFERRED TO WITHD RAW THE GROUND AND THE SAME WAS DISMISSED AS WITHDRAWN. THE SAID GROUND NO.3 FOR THE SAKE OF CONVENIENCE IS REPRODUCED HEREIN BELOW AND THE FINDINGS IN PARA 4 : - GROUND NO.3 THIS GROUND IS REPRODUCED HEREUNDER FOR THE SAKE OF CONVENIENCE FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ADDITION MADE FOR 5,98,673/ - ON MORTGAGE BUSINESS ON THE BASIS OF A ROUGH NOTE BOOK AND WITHOUT PROPER CONSIDERATION OF THE SAME IS UNJUSTIFIED. THE ADDITION MADE ON THIS ACCOUNT IS OUGHT TO BE DELETED. 6. 1. THE FINDINGS OF LD.CIT(A) IN RESPECT OF GROUND NO.3 ARE ALSO REPRODUCED HEREIN BELOW : 4. SUBMISSION OF AR, ASSESSMENT ORDER AND GROUND OF APPEAL WERE DULY CONSIDERED. DURING APPELLATE PROCEEDING DT. 31.10.2012, AR FILED A LETTER FOR PREFERRING WITHDRA WAL OF GROUND OF APPEAL NO.3 AND WANTED TO CONTEST GROUND NO.1. SAME IS ENTERED IN NOTE SHEET AND SIGNED BY AR. HENCE GROUND NO.1 & 2 ARE ADJUDICATED HAVING SAME ISSUE. 6.2. IN SUCH CIRCUMSTANCES AND FACTS OF THE CASE THE SAID GROUND NO.3 RAISED BEFORE M E IS INFRUCTUOUS AND DOES NOT ARISE FROM THE ORDER OF THE LD. CIT(A). THEREFORE THE SAME IS DISMISSED. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDE R PRONOUNCED IN THE OPEN COURT ON 01.06 .2015. SD/ - [ B.P.JAIN ] ACCOUNTANT MEMBER DATE: 01.06 .2015. R.G.(.P.S.) C OPY OF THE ORDER FORWARDED TO: 1 . M/S. SRI BALAJI ALANKAR (SINCE DISSOLVED, REPRESENTED BY EX - PARTNERS SHRI TARUN KUMAR GUPTA), S - 44, GOLE BAZAR, P.O.KHARGPUR, DIST.PASCHIM MIDNAPUR, PIN - 721301. 2 J.C.I.T., RANGE - 2, M IDNAPUR . 3 . CIT(A) - XXX V I , KOLKATA 4. CIT - KOLKATA. 5. CIT - DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KO LKATA BENCHES ITA NO. 1624/KOL/2013 M/S. SRI BALAJI ALANKAR . A.YR. 2005 - 06 4