SHRI SHARAD MANGAL, Jaipur V. ITO, Jaipur

ITA 217/JPR/2012

• Counselvise Citation: 21723114 RSA 2012
• Duration Of Justice: 2 year(s) 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 06-03-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D C SHARMA
• Keywords: Rejection of books of accounts
• Section: 154

Judgement Text

ITA NO. 217/JP/2012 SHARAD MANGAL VS. ITO , WARD- 4(1), JAIPUR 1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. ME ENA) ITA NO. 217/JP/2012 ASSESSMENT YEARS : 2007-08 PAN : ADEPM 6862 D SHRI SHARAD MANGAL VS. THE ITO C-7, RAM NAGAR, SHASTRI NAGAR WARD- 4 (1) JAIPUR JAIPUR (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.C. PARWAL DEPARTMENT BY: SHRI D.C. SHARMA DATE OF HEARING: 14-08-2014 DATE OF PRONOUNCEMENT: 12-09-2014 ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 29-06-2011 FOR THE ASS ESSMENT YEAR 2007-08 WHEREIN THE ASSESSEE RAISED THE FOLLOWING GROUNDS O F APPEAL. 1. THE LD. CIT(A) HAS ERRED IN FACTS AND IN LAW I N CONFIRMING THE REJECTION OF BOOKS OF ACCOUNTS AND A PPLYING PROVISION OF SECTION 145(3) AND THEREBY CONFIRMING TRADING ADDITION OF RS. 6,05,269/- BY APPLYING GROSS PROFIT RATE OF 52.64% AS AGAINST GROSS PROFIT RATE OF 15% DECLARED BY THE ASSESSEE ON THE JOB WORK RECEIPTS OF RS. 16,08,048/ -. 1.1 THE LD. CIT(A) ENHANCED THE TRADING ADDITION BY RS. 26,419/- WITHOUT ISSUING SHOW CAUSE NOTICE AS REQUI RED U/S 251(2). ITA NO. 217/JP/2012 SHARAD MANGAL VS. ITO , WARD- 4(1), JAIPUR 2 2. THE ASSESSEE CRAVES TO AMEND, ADD, ALTER OR MODI FY ANY OF THE GROUND OF APPEALS. 3. NECESSARY COST BE ALLOWED TO THE ASSESSEE. 2.1 DURING THE COURSE OF HEARING, THE BENCH OBSERVE D THAT THE APPEAL FILED BY THE ASSESSEE IS DELAYED BY 182 DAYS FOR WHICH AN APPLICATION FOR CONDONATION ALONGWITH AFFIDAVIT OF THE ASSESSEE IS FILED. 2.2 IT IS PLEADED BY THE LD. COUNSEL FOR THE ASSESS EE THAT THE LD. CIT(A)S ORDER GAVE IMPRESSION THAT THE ASSESSEE HAS BEEN GR ANTED RELIEF WHEREAS IT IS RESULTED AN ENHANCEMENT. THE ASSESSEE FILED AN APPL ICATION DATED 10-01-2012 U/S 154 BEFORE THE AO TO GRANT RELIEF OF RS. 2,73, 581/- INSTEAD OF ENHANCEMENT WHICH HAS NOT BEEN DISPOSED OFF YET. SI NCE THE ASSESSEE WAS, INCORRECTLY BY THE EARLIER COUNSEL, GIVEN AN IMPRES SION THAT THE RELIEF HAS BEEN GRANTED, THEREFORE, HE DID NOT FILE THE FIRST APPEAL. CONSEQUENT TO APPEAL EFFECT ORDER DATED 19-08-2011, THE ASSESSEE CAME TO KNOW ABOUT THE ENHANCEMENT. THEREAFTER THE APPEAL HAS BEEN FILED L ATE. SINCE THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE IN FILING THE APP EAL LATE, THE SAME IS PRAYED TO BE CONDONED IN VIEW OF HON'BLE APEX COURT IN THE CASE OF COLLECTOR, LAND ACQUISITION VS. MST. KATIJI, 167 IT R 471. 2.3 THE LD. DR IS HEARD ON THE ISSUE OF CONDONATION . 2.4 AFTER HEARING THE PARTIES AND CONSIDERING THE C ONDONATION APPLICATION ALONGWITH THE AFFIDAVIT ENCLOSED THERETO, WE ARE O F THE VIEW THAT THE ASSESSEE ITA NO. 217/JP/2012 SHARAD MANGAL VS. ITO , WARD- 4(1), JAIPUR 3 WAS PREVENTED BY A REASONABLE AND SUFFICIENT CAUSE IN DELAYING THE FILING OF APPEAL. THEREFORE, IN THE INTEREST JUSTICE AND RELY ING ON THE HON'BLE APEX COURT JUDGEMENT IN THE CASE OF COLLECTOR, LAND ACQ UISITION VS. MST. KATIJI (SUPRA), THE DELAY IS CONDONED. 3.1 COMING TO THE MERITS OF THE CASE, THE ASSESSEE IS AN INDIVIDUAL. THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT THE IN AOS ORDER A TYPOGRAPHICAL ERROR HAD OCCURRED INASMUCH AS THE FIGURE OF TRADIN G ADDITION WAS TAKEN AT RS. 8,78,50/- INSTEAD OF RS. 5,78,850/-. THE SAID T YPOGRAPHICAL MISTAKE HAS BEEN RECTIFIED BY THE AO VIDE HIS ORDER DATED 02-03 -2010. THE OBSERVATION OF LD. CIT(A) AT PAGE 7 OF HIS IS AS UNDER:- :- I THEREFORE, DIRECT THE AO TO RESTRICT THE ADDITIO N TO RS. 6,05,269/- INSTEAD OF RS. 8,78,850/- MADE BY HIM. 3.2 THE LD. DR IS HEARD ON THIS ISSUE. 3.3 AFTER HEARING BOTH THE PARTIES, WE ARE OF THE V IEW THAT THE ASSESSEE IS ELIGIBLE FOR GRANT OF RELIEF OF RS. 2,73,581/- FOR WHICH AN APPLICATION U/S 154 OF THE ACT IS FILED BY THE ASSESSEE. THUS IN VIEW T HEREOF, WE HOLD THAT THE ASSESSEE IS ELIGIBLE FOR FURTHER RELIEF OF RS. 2,73 ,581/- AGAINST GROSS PROFIT ADDITION TOWARDS GROUND NO. 1 OF THE ASSESSEE. 4.1 APROPOS GROUND NO. 1.1 OF THE ASSESSEE, THE LD. CIT(A) HAS ENHANCED THE TRADING ADDITION BY RS. 26,419/- WITHOUT GIVING NOTICE TO THE ASSESSEE. SINCE WE HAVE ALREADY ALLOWED THE RELIEF OF RS. 2,7 3,581/-, THEREFORE, THE ITA NO. 217/JP/2012 SHARAD MANGAL VS. ITO , WARD- 4(1), JAIPUR 4 AMOUNT OF RS. 26,419/- GETS MERGED INTO THE RELIEF IN GROUND NO. 1. THUS THE GROUND NO. 1.1 IS SET OFF TOWARDS GROUND NO. 1 OF T HE ASSESSEE. 5.1 THE GROUND NO. 2 OF THE ASSESSEE IS GENERAL IN NATURE WHICH NEEDS NO ADJUDICATION. 6.1 DURING THE COURSE OF HEARING, THE ASSESSEE HAS NOT PRESSED THE GROUND NO. 3. THEREFORE, THE SAME IS DISMISSED BEING NOT P RESSED. 7.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED ON ABOVE TERMS. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 12 -09-2014 SD/- SD/- (T.R. MEENA) (R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR DATED: 12 TH SEPT. 2014 *MISHRA COPY FORWARDED TO:- 1. SHRI SHARAD MANGAL, JAIPUR 2. THE ITO, WARD- 4 (1), JAIPUR 3. THE LD. CIT 4. THE LD. CIT(A), JAIPUR BY ORDER 5..THE LD. DR 6.THE GUARD FILE (IT NO. 217/JP/2012) AR ITAT, JAIPUR ITA NO. 217/JP/2012 SHARAD MANGAL VS. ITO , WARD- 4(1), JAIPUR 5 ITA NO. 217/JP/2012 SHARAD MANGAL VS. ITO , WARD- 4(1), JAIPUR 6 ITA NO. 217/JP/2012 SHARAD MANGAL VS. ITO , WARD- 4(1), JAIPUR 7 THIS IS ASSESSEES APPEAL GROUND NO.3 IS NOT PRESSE D HENCE DISMISSED THE REMAINING TWO GROUNDS ARE AS UNDER :-