Shri Kailashchandra Suryakant, HUF, Ahmedabad V. The Income Tax Officer, Ward-2(1), Ahmedabad

ITA 1842/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6136 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 18-04-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 18-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Gross profit estimation
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA NO.1842/AHD/2014 (ASSESSMENT YEAR: 2009-10) KAILASHCHANDRA SURYAKANT HUF VINIT MOONDRA, C.A. 201, SARAP, OPP. NAVJIVAN PRESS, ASHRAM ROAD, AHMEDABAD-380014 APPELLANT VS. ITO, WARD 2(1), AHMEDABAD RESPONDENT PAN: AAEHK7118P /BY ASSESSEE : NONE /BY REVENUE : SHRI PRASOON KABRA, SR. D.R. /DATE OF HEARING : 18.04.2017 /DATE OF PRONOUNCEMENT : 19.04.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 EMANATES AGAINST THE CIT(A)-6, AHMEDABADS EX PARTE ORDER DATED 14.0 3.2014, PASSED IN APPEAL NO. CIT(A)-VI/ITO WD 2(1)/209/11-12, UPHOLDI NG ASSESSING OFFICERS ACTION ESTIMATING 5% OF THE TOTAL WEAVING CHARGES EXPENSES AS ITA NO. 1842/AHD/2014 (KAILASHCHANDRA SURYAKANT HUF VS. ITO) A.Y. 2009-10 - 2 - NONGENUINE RESULTING THE DISALLOWANCE/ADDITION IN Q UESTION OF RS.15,71,512/- AS MADE IN ASSESSMENT ORDER DATED 23.12.2011, IN P ROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES BEHE ST. THE REGISTRY APPEARS TO HAVE ISSUED RPAD NOTICES TO ASSESSEE WHI CH STANDS RECEIVED BACK UNSERVED. WE THEREFORE PROCEED EX PARTE AGAINST THE ASSESSEE. ITS INSTANT APPEAL IS TAKEN UP FOR ADJUDICATION ON MERITS. 2. WE COME TO THE RELEVANT FACTS PERTAINING TO THE ABOVE SOLE ISSUE OF DISALLOWANCE OF 5% OF WAIVING EXPENSES TOTALING TO RS.3,14,30,240/- AS CLAIMED AT ASSESSEES BEHEST. THE ASSESSEE / AN HU F MANUFACTURES AND SELLS GREY CLOTH. IT CLAIMED THE ABOVE WEAVING EXPENSES. IT SOUGHT TO SUPPORT THE SAME BY FILING NAMES, ADDRESSES, TRANSACTION DETAIL S PERTAINING TO THE RELEVANT PREVIOUS YEAR. THE ASSESSING OFFICER QUOTED ITS FA ILURE IN NOT PRODUCING RELEVANT BOOKS AND VOUCHERS FOR VERIFICATION. HE T HEN APPEARS TO HAVE ISSUED SECTION 133(6) NOTICES WHICH STOOD RETURNED WITH RE MARKS NOT KNOWN/NOT AVAILABLE. THE ASSESSEE AGAIN REITERATED THE EVID ENCE ALREADY SUBMITTED. THE ASSESSING OFFICER FURTHER NOTICED ITS FAILURE I N FILING PAYEES CONFIRMATIONS. HE ALSO CAME ACROSS ASSESSEES VERY LOW GROSS PROFIT @.21% MAKING HIM TO OBSERVE THAT INFLATION OF THE ABOVEST ATED WEAVING CHARGES COULD NOT BE RULED OUT. THE ASSESSING OFFICER THEN DISALLOWED 5% THEREOF AS NON GENUINE RESULTING IN THE IMPUGNED ADDITION OF R S.15.71LACS. 3. WE NOW COME TO THE LOWER APPELLATE PROCEEDINGS. LEARNED CIT(A) ISSUED THREE NOTICES OF HEARING. THE ASSESSEE DID NOT APPEAR. HE THEN WENT ON TO CONFIRM THE IMPUGNED DISALLOWANCE IN ABSENCE OF ANY SUPPORTIVE EVIDENCE BEING FILED AT ASSESSEES BEHEST. THIS LEAVES THE ASSESSEE AGGRIEVED. ITA NO. 1842/AHD/2014 (KAILASHCHANDRA SURYAKANT HUF VS. ITO) A.Y. 2009-10 - 3 - 4. WE HAVE HEARD LEARNED DEPARTMENTAL REPRESENTATI VE. CASE FILE PERUSED. THERE IS NO DISPUTE THAT THE SOLE ISSUE H EREIN IS ABOUT DISALLOWANCE OF 5% OF WEAVING CHARGES AS NON GENUINE WHEREIN THE ASSESSEE HAS DISCLOSED GROSS PROFIT AT .21%. THE INSTANT CASE FILE ALSO D OES NOT CONTAIN ANY EVIDENCE IN ORDER TO BUTTRESS ASSESSEES PLEADINGS. IT HAS FURTHER COME ON RECORD THAT THERE IS NOT EVEN A SINGLE CONFIRMATION BEING FILED AT ASSESSEES INSTANCE PROVING THE IMPUGNED WEAVING CHARGES OF RS.3,14,30, 240/-. WE THEREFORE FIND NO REASON TO INTERFERE WITH THE CIT(A)S CONCL USION UPHOLDING THE DISALLOWANCE IN QUESTION. 5. THIS ASSESSEES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 19 TH DAY OF APRIL, 2017.] SD/- SD/- ( PRAMOD KUMAR ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 19/04/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0