A.C.I.T., C. C., Agra V. Smt. Kayani Chaturvedi, Agra

ITA 198/AGR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1959 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 25-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BELU SINHA
• Keywords: Document seized; Documents seized
• Section: 44AD; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, SMC AGRA BEFORE SH RI J.S. REDDY , ACCOUNTANT MEMBER ITA NO. 198 / AG RA /201 4 ASSESSMENT YEAR : 20 10 - 11 DY. COMMISSIONER OF INCOME TX - 1, VS. SMT. KALYANI CHATURVEDI, AGRA. 505, VIBHAV APARTMENT, SURYA NAGAR, AGRA. (PAN: A C UP C 6044 Q ) . (APPELLANT) (RESPONDENT) A PPELLANT BY : SMT. BELU SINHA, SR. D.R. RE SPONDENT BY : S HRI DEEPENDRA MOHAN, C.A. DATE OF HEARING : 04 .07. 201 6 DATE OF PRONOUNCEMENT : 08 . 07.201 6 ORDER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LEARNED CIT(A) - II, AGRA DATED 2 1 .0 1 . 201 4 FOR THE A SSESSMENT YEAR 20 10 - 11 , ON THE FOLLOWING GROUNDS : - 1. THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE AD DITION OF RS.26,00,000/ - MADE UNDER SECTION 68 OF THE IT ACT, ON ACCOUNT OF UNEXPLAINED ENTRIES IN THE SEIZED DOCUMENTS WITHOUT APPRECIATING THE FACTS OF THE CASE THAT ASSESSEE FAILED TO EXPLAIN SUCH UNEXPLAINED ENTRIES DURING THE COURSE OF ASSESSMENT PROC EEDINGS. 2 . THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.8,93,624/ - MADE BY AO BY APPLYING THE NET PROFIT RATE OF 8% WITHOUT APPRECIATING THE FACTS OF THE CASE THAT THE AO APPLIED THE RATE PRESCRIBED UNDER SECTION 44AD IN THE CASE OF CIVIL CONSTRUCTION BUSINESS IN A SITUATION WHERE THE AO FOUND THE RATE ARRIVED AT BY THE ASSESSEE AT TOO LOW A PERCENTAGE WHICH WAS NOT SUPPORTED BY ANY EVIDENCE. ITA NO. 198 /AGRA/201 4 A.Y. 20 10 - 11 2 2. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVA ILABLE ON RECORD. 3. ON THE DELETION OF AN ADDITION OF RS.26,00,000/ - BY THE LD. CIT(A), I HAVE GONE THROUGH IN DETAIL THE FACTUAL FINDINGS AT PARA 5.2 PAGE 9 TO PARA 5.4 PAGE 13 OF THE IMPUGNED ORDER. THESE FACTUAL FINDING OF THE LD. CIT(A) COULD NOT B E C ONTROVERTED BY THE LEARNED SENIOR DEPARTMENTAL REPRESENTATIVE . UNDER THESE CIRCUMSTANCES, I UPHOLD THE FACTUAL FINDING AND DISMISS GROUND NO.1 OF THE REVENUE . 4. IN THIS CASE THE FIRST APPELLATE AUTHORITY HELD THAT THE ASSESSING OFFICER AFTER DETAILED EXAMINATION OF THE AUDITED BOOKS OF ACCOUNT DID NOT POINT OUT ANY DEFECTS THEREIN. HE HELD THAT WITHOUT POINTING OUT DEFECTS IN THE BOOKS OF ACCOUNT NOR REJECTING THEM UNDER SECTION 145(3) OF THE ACT, THE QUESTION OF ESTIMATION OF PROFIT DOES NOT ARISE. I DO NOT FIND ANY INFIRMITY IN THIS ORDER OF THE LEARNED CIT(A). THUS, I DISMISS GROUND NO.2 OF THE REVENUE. 5 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JULY, 2016. SD/ - (J.S. RE DDY) ACCOUNTANT MEMBER DATE: 8 TH JU LY , 201 6 PBN/* ITA NO. 198 /AGRA/201 4 A.Y. 20 10 - 11 3 COPY OF THE ORDER FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER ASS ISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA