MESERS GAURAV HIDE COMPANY, JALANDHAR V. INCOME TAX OFICER WARD-1(1), JALANDHAR

ITA 210/ASR/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2670 (ITAT-AMRITSAR)
• Duration Of Justice: 4 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 15-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 145(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 210/Asr/2018 Assessment Year: 2013-14 M/s Gaurav Hide Company Bootan Manid, Jalandhar [PAN: AAAFG 6267H] Vs. The Income Tax Officer Ward-1(1), Jalandhar (Appellant) (Respondent) Appellant by : None Respondent by: Sh. S. M. Surendranath, Sr. DR Date of Hearing: 18.04.2022 Date of Pronouncement: 10.05.2022 ORDER Per Anikesh Banerjee, JM: The instant appeal was filed against the order passed by the Ld. Commissioner of Income Tax (Appeals)-1, Jalandhar [in brevity the CIT(A)], bearing Appeal No. CIT(A)-1/JAL/153/2015-16 dated 25.01.2018 u/s 250(6) of the Income Tax Act, 1961 [in brevity the Act], in respect of Assessment Year 2013-14. 2. Prelude: The assessment was made u/s 143(3) for assessment year 2013-14. The assessee is a trader of Raw Hides and Skins. During the year the ld. Assessing Officer (in brevity the AO) rejected the books of accounts and enhance the gross profit 1% from 9.75% as declared by assessee to 10.75% on the gross turnover. In absence of the books of account bills/vouchers and expenses, the ld. AO made an ITA No. 210/Asr/2018 Gaurav Hide Company v. ITO 2 addition on enhanced GP amount of Rs.3,77,895/-. The issue was adjudicated by the ld. CIT(A) and ld. Appellate Authority sustained the addition an amount of Rs.3,77,895/-. 3. The ld. DR relied on the appellate order and the observation of the ld. CIT(A) is as follows: “7.1. The Auditor of the assessee firm showed his inability to provide soft copies of the books of account on the plea that the same were not retained after the Audit of the accounts. Despite repeated opportunities of hearing, the assessee could not produce books of account and vouchers. The Assessing Officer, therefore, rejected the books of account u/s 145(3). Once the provisions of section 145(3) are invoked, the Assessing Officer is entitled to estimate the total income of the assessee to the best of his judgment on the basis of the material of record In this case f d. Assessing Officer has observed that trading result as-declared by the assessee firm are not verifiable and the assessee officer enhanced 1% GP rate which resulted into an addition of Rs.3.77,895/-. 7.2 I have considered the facts of the case and written submissions of the assessee. As the assessee failed to produce books of account and other supporting /primary documents, bills etc., the assessment was completed in this ease by rejecting the books of account under section 145(3) of the Act and enhancing the Gross profit by 1% from 9.75% as declared by the assessee to 10.75% on of the gross turnover. The enhanced GP rate 1% cannot be termed as excessive or unfair in any manner in the absence of books of account / vouchers / bill of expenses etc, keeping in view the facts and circumstances of the case and the non-production of books of account/bills/vouchers/bills etc., the addition of Its, 3.77,895.-- is upheld. Ground of appeal 2 is dismissed.” 4. We are adjudicating the issue on the basis of the available on records. As the matter was pending from long time. Numbers of hearings are allowed by bench but none was present on behalf of the assessee. 5. Both the Revenue authorities are correct in their view. The onus of the assessee to produce the books of account before the authorities but the assessee was failed to produce soft or hard copy of the books of the account before any of the authorities. The enhance of gross profit was reasonable. The revenue authority ITA No. 210/Asr/2018 Gaurav Hide Company v. ITO 3 only enhanced 1% of GP. Here we are not interfered in the order of the Revenue authorities. Accordingly the addition for enhancement of GP at rate of 1% of the turnover amount of Rs.3,77,895/- is accepted. 6. In the result, the assessee’s appeal is dismissed. Order pronounced in the open court on 10.05.2022 Sd/- Sd/- (Dr. M. L. Meena) (Anikesh Banerjee) Accountant Member Judicial Member Date: 10.05.2022 *GP/Sr. PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(A), (4) The CIT concerned (5) The Sr. DR, I.T.A.T (6) The Guard File True Copy By Order