Shri Mishrilal Gopalbhai Mehta, Surat V. The Income Tax Officer, Ward-9(3), Surat

ITA 204/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9280 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-02-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 21-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO.204/AHD/2014 (ASSESSMENT YEAR:2008-09) SHRI MISHRILAL GOPALBHAI MEHTA 1003, B BLOCK, NILKANTH RESIDENCY, CROSS ROAD, AMROLI, SURAT APPELLANT VS. INCOME TAX OFFICER, WARD-9(3), SURAT RESPONDENT PAN: AIVPM7761R /BY ASSESSEE : NONE /BY REVENUE : SHRI RAJDEEP SINGH, SR. D.R. /DATE OF HEARING : 01.02.2017 /DATE OF PRONOUNCEMENT : 08.02.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2008-09 ARISES AGAINST THE CIT(A)-V, SURATS EX PARTE ORDER DATED 03.10.2013, PASSED IN APPEAL NO. CAS/V/133/2010-11, IN PROCEEDINGS U/S.144 OF THE IN COME TAX ACT, 1961, IN SHORT THE ACT. ITA NO. 204/AHD/2014 (SHRI MISHRILAL G. MEHTA VS. I TO) A.Y. 2008-09 - 2 - 2. THE ASSESSEE RAISES TWO SUBSTANTIVE GROUNDS IN T HE INSTANT APPEAL INTER ALIA PLEADING THEREIN THAT THE CIT(A) HAS ERRED IN PASSING HIS EX PARTE ORDER THEREBY AFFIRMING ASSESSING OFFICERS ACTION MAKING ADDITION OF RS.4,57,147/- BEING 25% OF THE TOTAL EXPENSES INCLU DING PURCHASES AMOUNTING TO RS.18,28,586/- IN QUESTION. WE HAVE HEARD THE REVENUE. CASE FILE PERUSED. 3. WE NOW ADVERT TO RELEVANT FACTS. THE ASSESSEE H AD CLAIMED TOTAL EXPENSES OF RS.18,28,586/- INCLUDING PURCHASES OF R S.17,66,610/- FOLLOWED BY VARIOUS OTHER HEADS AS GIVEN IN PARA 4 OF THE AS SESSMENT ORDER DATED 24.12.2010. THE ASSESSING OFFICER APPEARS TO HAVE ISSUED VARIOUS SCRUTINY NOTICES. ALL OF THEM FAILED TO YIELD ANY RESPONSE. THIS MADE HIM TO INVOKE SECTION 144 OF THE ACT AND FRAMED THE IMPUGNED BEST JUDGMENT ASSESSMENT THEREBY DISALLOWING 25% OF THE ABOVE EXPENSES COMIN G TO RS.4,57,147/- IN QUESTION. THE ASSESSE DID NOT APPEAL IN THE LOWER APPELLATE PROCEEDINGS AS WELL. THE CIT(A) ALSO UPHELD ASSESSING OFFICERS A CTION MAKING THE IMPUGNED ADDITION IN THESE FACTS AND CIRCUMSTANCES. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATIONS TO T HE INSTANT CASE FILE. THE FACT THAT THE ASSESSEE HAS ALWAYS BEEN NON-COOP ERATIVE BEFORE THE ASSESSING AUTHORITY AS WELL AS THE CIT(A) WEIGHS HE AVILY IN OUR MIND. WE THUS DO NOT DEEM IT AS AN APPROPRIATE CASE TO REMIT THE ISSUE BACK TO THE LOWER AUTHORITIES. LEARNED COUNSEL HAD SOUGHT ADJOURNMEN T ON THE LAST DATE OF HEARING I.E. 25.11.2016 AND THE MATTER WAS POSTPONE D FOR TODAY. THE ASSESSEE HAS ADOPTED THE VERY COURSE OF ACTION IN FILING AN ADJOURNMENT PETITION PLEADING THEREIN THAT THE NECESSARY PAPERS ARE NOT AVAILABLE. WE REPEAT THAT THE ASSESSEE HAS NEVER FILED ANY DOCUMENT OR SUPPOR TIVE EVIDENCE BEFORE THE LOWER AUTHORITIES. WE ACCORDINGLY REJECT THE INSTA NT ADJOURNMENT PETITION. THE CASE IS TAKEN UP FOR ADJUDICATION ON MERITS. ITA NO. 204/AHD/2014 (SHRI MISHRILAL G. MEHTA VS. I TO) A.Y. 2008-09 - 3 - 5. WE NOW ADVERT TO ASSESSEES LATTER SUBSTANTIVE G ROUND CHALLENGING PURCHASES DISALLOWANCE OF RS.4,57,147/- @ 25% OF RS .18,28,586/- (SUPRA). BOTH THE LOWER AUTHORITIES HAVE RESORTED TO THE IMP UGNED DISALLOWANCE DUE TO THE FACT THAT THE ASSESSEE DID NOT FILE ANY EVIDENC E SO AS TO GET THE SAME VERIFIED. WE ARE OF THE OPINION IN THESE PECULIAR F ACTS THAT THE IMPUGNED DISALLOWANCE @ 25% IS LITTLE BIT ON HIGHER SIDE. W E THUS DEEM IT APPROPRIATE IN THE LARGER INTEREST OF JUSTICE THAT THE IMPUGNED DISALLOWANCE IS TO BE RESTRICTED TO 20% INSTEAD OF 25% IN THE GIVEN FACTS OF THE CASE WHEREIN THE ASSESSEE HAS NOT FILED ANY DETAILS. WE ORDER ACCOR DINGLY. THE ASSESSING AUTHORITY SHALL FRAME NECESSARY CONSEQUENTIAL COMPU TATION. 6. THIS ASSESSEES APPEAL IS PARTLY ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 08 TH DAY OF FEBRUARY, 2017.] SD/- SD/- ( AMARJIT SINGH ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 08/02/2017 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