Kunj Bihari Lal Saraf, Shivpuri V. I.T.O., Shivpuri

ITA 191/AGR/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0482 (ITAT-AGRA)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-08-2010
• Assessment Year: 2003-2004
• Appeal Filed On: 21-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NAVIAN GARGH
• Keywords: Rejection of books of accounts; Set aside
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, SMC, AGRA BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER ITA NO.191/AGR/2010 ASST. YEARS: 2003-04 SHRI KUNJ BIHARI LAL SARAF, VS. THE INCOME-TAX O FFICER, PROP. CHATURBHUJ SHEOBAKSH, SHIVPURI (M.P.). SHEOPURKALAN (M.P.). (PAN : AJVPS 1302 B) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NAVIAN GARGH, ADVOCATE RESPONDENT BY : SHRI VINOD KUMAR, JR. D.R. ORDER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 26.03.2010. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO THE TRADING ADDITION OF RS.24,532/-. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E WAS MAINTAINING REGULAR BOOKS OF ACCOUNTS. AUDIT UNDER SECTION 44AB HAS BEEN CARRIE D OUT. THE ORIGINAL ASSESSMENT HAS BEEN COMPLETED BY THE A.O. SUBSEQUENTLY THE CIT(A) SET ASIDE THE ASSESSMENT INVOKING SECTION 263 OF THE INCOME-TAX ACT, 1961 (THE ACT HEREINAFTER) . THE A.O. NOTED THAT THE ASSESSEE HAS SHOWN THE G.P. IN RESPECT OF GOLD ORNAMENTS @ 19.18%, FOR SILVER ORNAMENTS @ 20.21% AND SILVER ORNAMENTS (OUT OF M.P.) @ 24%. THE A.O. WAS OF TH E VIEW THAT THE ASSESSEE HAS NOT VALUED THE CLOSING STOCK AS PER THE MARKET COST AS PUBLISHED. HE ACCORDINGLY CONSIDERED THE TOTAL G.P. @ 21% AGAINST THE OVERALL G.P. @ 19.69% AND MADE THE ADDITION AMOUNTING TO RS.24,532/-. THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) BUT THE C IT(A) ALSO CONFIRMED THE ADDITION. 2 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y CONSIDERED THE SAME. WE NOTED THAT THE ASSESSEE WAS MAINTAINING REGULAR BOOKS OF ACCOU NTS. THE ACCOUNT OF THE ASSESSEE WAS DULY AUDITED UNDER SECTION 44AB OF THE ACT. THE A.O. HA S NOT REJECTED THE BOOKS OF ACCOUNTS BUT GAVE THE FINDING THAT THE G.P. SHOWN BY THE ASSESSE E WAS LESS EVEN THOUGH THE ASSESSEE HAS GIVEN THE REASONS FOR THE FALL IN THE G.P. AND APPLIED A G.P. @ 21% INSTEAD OF 19.69% SHOWN BY THE ASSESSEE. IN OUR OPINION, NO ADDITION IN THE G.P. CAN BE MADE UNTIL AND UNLESS THE A.O. REJECTS THE BOOKS OF ACCOUNTS MAINTAINED BY THE ASSESSEE IN VOKING PROVISIONS OF SECTION 145(3). IT IS ONLY WHEN THE BOOKS OF ACCOUNTS REGULARLY MAINTAINE D BY THE ASSESSEE ARE REJECTED, THE A.O. IS AUTHORISED TO COMPUTE THE INCOME MENTIONED UNDER SE CTION 144. WE ACCORDINGLY DELETE THE ADDITION. 4. IN THE RESULT, APPEAL FIELD BY THE ASSESSEE IS A LLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 01.09.2010 ). SD/- (P.K. BANSAL) ACCOUNTANT MEMBER PLACE: AGRA DATE: 1 ST SEPTEMBER, 2010. PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR, ITAT, AGRA BENCH, AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY