N.Ragothaman, CHENNAI V. ITO, CHENNAI

ITA 219/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4892 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 06-07-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 24-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: S SRIDHAR
• Keywords: Retraction; Revised return; Reason to believe
• Section: 44AD; 143(3); 54F; 133A; 147; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , , $ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NOS. 216 TO 220/CHNY/2017 / ASSESSMENT YEARS : 2008-09 TO 2012-13 SHRI N. RAGOTHAMAN, PROP: RAVI JEWELLERY, NO 1, PRAKASAM ROAD, T. NAGAR, CHENNAI 600 017. [PAN: AAFPR 6790K] VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD 2(3), CHENNAI 600 034. ( / APPELLANT) ( / RESPONDENT) /. I.T.A. NO. 112/CHNY/2017 / ASSESSMENT YEARS : 2009-10 THE INCOME TAX OFFICER, NON-CORPORATE WARD 2(3), CHENNAI 600 034. VS. SHRI N. RAGOTHAMAN, PROP: RAVI JEWELLERY, NO 1, PRAKASAM ROAD, T. NAGAR, CHENNAI 600 017. [PAN: AAFPR 6790K] ( / APPELLANT) ( / RESPONDENT) ASSESSEE BY : SHRI. S. SRIDHAR, ADVOCATE REVENUE BY : SHRI. S. VIJAYAPRABHA, JCIT - /DATE OF HEARING : 04.01.2018 - /DATE OF PRONOUNCEMENT : 03.04.2018 :-2-: ITA NOS. 216 TO 220 & 112/CHNY/2017 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THE APPEALS IN ITA NOS. 216 TO 220/CHNY/2017 AGAINST THE CONSOLIDATED ORDER PASSED BY THE CIT(A) , CHENNAI IN ITA NOS.155 TO 158/CIT(A)-2/14-15 DATED 31.10.2016 FOR ASSESSME NT YEARS 2008-09 TO 2011-12 & ITA NO.242/CIT(A)-2/14-15 DATED 31.10.201 6 FOR ASSESSMENT YEAR 2012-13. THE REVENUE FILED THE APPEAL IN ITA NO.112 /CHNY/2017 FOR THE ASSESSMENT YEAR 2009-10 ALONE. 2. SHRI RAGOTHAMAN, THE ASSESSEE, IS PROPRIETOR OF M/S. RAVI JEWELLERY. A SURVEY WAS CONDUCTED AT HIS BUSINESS PREMISES ON 23 RD & 24 TH APRIL 2012. AT THAT TIME, INTER ALIA, PHYSICAL STOCK OF GOLD, SILV ER AND DIAMOND ITEMS WERE TAKEN AND IT WAS FOUND THAT SHORTAGE OF STOCK WORTH RS.1,28,75,320/- WAS FOUND. IN THE SWORN STATEMENT, THE ASSESSEE ADMITT ED ,INTER ALIA, THAT MOST OF HIS SALES WERE OUTSIDE THE BOOKS AND HE COULD NO T FURNISH EVIDENCE FOR PURCHASE IN RESPECT OF GOLD AND SILVER. HE ADMITTED THE ENTIRE STOCK DEFICIT VALUED AT RS.1,28,75,320/- IS ON ACCOUNT OF SALES O UTSIDE THE BOOKS AND OFFERED TO TAX. ON 30.09.2012, THE ASSESSEE FILED RETURN FOR ASSESSMENT YEAR 2012-13 ADMITTING A TOTAL INCOME OF RS.1,31,69,420/ - WHICH INCLUDED RS.1,28,75,320/- ADMITTED AT THE TIME OF SURVEY TOW ARDS SHORTAGE OF STOCK. WHEN THE AO ISSUED A SHOW CAUSE NOTICE DATED 26.03. 2014 ON CREDIT CARD :-3-: ITA NOS. 216 TO 220 & 112/CHNY/2017 SALES ISSUE FOR ASSESSMENT YEAR 2012-13, THE ASSESS EE FILED A REVISED RETURN REVISING HIS TOTAL INCOME AT RS.9,37,860/-, AS AGA INST THE TOTAL INCOME ADMITTED IN THE ORIGINAL RETURN AT RS.1,31,69,420/- . IN THE REVISED RETURN, THE ASSESSEE ESTIMATED @ 5% ON THE VALUE OF SHORTAGE OF STOCK FOUND AT THE TIME OF SURVEY AT RS.1,28,76,500/-. AFTER AFFORDING ADE QUATE OPPORTUNITY TO THE ASSESSEE, THE ASSESSING OFFICER HELD , INTER ALIA, THAT THE REVISED RETURN FILED BY THE ASSESSEE IS AN AFTERTHOUGHT AND ASSESSED THE INCOME ADMITTED IN THE ORIGINAL RETURN. FURTHER, HE MADE AN ADDITION OF R S.29,82,625/- ON ACCOUNT OF CREDIT CARD SALES. ON APPEAL, THE CIT(A) UPHELD TH E ASSESSMENT MADE BASED ON THE ORIGINAL RETURN BUT DELETED THE ADDITION MAD E ON ACCOUNT OF CREDIT CARD SALES. 3. BASED ON THE SURVEY FINDINGS, THE AO ISSUED NOTI CES U/S.148 ON 27.04.2012 FOR ASSESSMENT YEARS 2008-09 TO 2011-12. THE ASSESSEE REQUESTED TO TREAT THE ORIGINAL RETURNS FILED FOR E ACH OF THESE ASSESSMENT YEARS AS THE RETURN IN RESPONSE TO NOTICES U/S.148. THE AO FOUND THAT THE NET PROFIT ADMITTED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2012-13 IN ITS ORIGINAL RETURN , AFTER THE SURVEY , WAS AT 11.32%. HOWEVER , IN THE RETURNS FOR ASSESSMENT YEARS 2008-09 TO 2011-12, THE ASSESSEE H AS ADMITTED VERY LOW NET PROFIT AND HENCE ADOPTED THE ADMITTED NET PROFI T RATE @ 11.32% IN AY 2012-13 AS THE BASE FOR THESE ASSESSMENT YEARS AND BROUGHT THE DIFFERENCE SUM TO TAX IN THE RESPECTIVE ASSESSMENTS. FURTHER, IN THE ASSESSMENT MADE IN :-4-: ITA NOS. 216 TO 220 & 112/CHNY/2017 ASSESSMENT YEAR 2009-10, THE AO FOUND THAT THE ASSE SSEE SOLD HIS LAND AND CLAIMED DEDUCTION U/S.54F ON THE CAPITAL GAINS. ON EXAMINATION, HE FOUND THAT THE SALE PROCEEDS WERE NOT DEPOSITED IN THE CA PITAL GAINS ACCOUNT SCHEME AND HENCE HE DENIED THE EXEMPTION CLAIMED U/S.54F. AGGRIEVED AGAINST THESE ASSESSMENT ORDERS, THE ASSESSE FILED APPEA LS BEFORE THE CIT(A). THE CIT(A) HELD, INTER ALIA, THATTHE AO HAS VALIDLY RE OPENED THE IMPUGNED ASSESSMENTS. KEEPING IN VIEW THE MINIMUM PERCENTAGE OF 8 % OF TURNOVER PRESCRIBED U/S. 44AD AND AT THE SAME TIME, TAKING I NTO ACCOUNT THE VARIOUS DISCREPANCIES SUCH AS NON- UPDATION OF STOCK REGIST ER, NON-ACCOUNTING OF MAJOR PORTION OF SALES, NON-AVAILABILITY OF PURCHAS E BILLS AND SALES BILLS, THE DEFICIT STOCK UNEARTHED ON PHYSICAL STOCK TAKING AN D THE ADMISSION OF THE ASSESSEE DURING THE SURVEY PROCEEDINGS THAT THE UNA CCOUNTED STOCK HAS ACCUMULATED OVER THE YEARS, IT WOULD BE FAIR TO EST IMATE THE NET PROFIT AT 10 %OF THE SALES, FOR EACH OF THE YEARS. AGAINST THESE DECISIONS, THE ASSESSEE FILED THE ABOVE APPEALS FOR AYS 2008-09 TO 2011-12. 3.2 IN RESPECT OF DENIAL OF DEDUCTION U/S 54F IN A Y 2009-10, THE CIT(A) DIRECTED THE ASSESSING OFFICER TO CALL FOR THE DETA ILS SUCH AS PAYMENTS MADE TOWARDS PURCHASE/CONSTRUCTION OF THE FLAT AT VANNIA R STREET, COMPLETION CERTIFICATE ETC., TO CROSS-VERIFY THE CLAIM OF THE APPELLANT THAT THE NEW PROPERTY HAS BEEN ACQUIRED WITHIN THE PRESCRIBED TI ME LIMIT. SUBJECT TO FULFILMENT OF THE CONDITIONS LAID DOWN U/S. 54F, TH E ASSESSING OFFICER SHALL PASS :-5-: ITA NOS. 216 TO 220 & 112/CHNY/2017 A SPEAKING ORDER, ALLOWING EXEMPTION U/S. 54F TO TH E APPELLANT. AGGRIEVED AGAINST THIS DECISION, THE REVENUE FILED THE ABOVE APPEAL. 4. LET US TAKE THE ASSESSEES APPEAL IN RESPECT OF AY 2012-13 FIRST : 4.1 THE AR SUBMITTED THAT THE CIT(A) ERRED IN SUSTA INING THE ADDITION BASED ON THE ORIGINAL RETURN OVERLOOKING THE VALID REVISE D RETURN FILED BY THE ASSESSEE WITHOUT ASSIGNING PROPER REASON AND JUSTIF ICATION. HE SUBMITTED THAT THE ENTIRE SALES REPRESENTING DEFICIT STOCK CANN OT BE ASSESSED AS SUCH AS INCOME AND AT BEST THE PROFIT EMBEDDED IN SUCH SALE S ALONE SHOULD BE ASSESSED. HE HAS SUBMITTED THAT THE SURVEY STATEMEN TS HAD NO SANCTITY IN THE EYES OF THE LAW ESPECIALLY IN THE ABSENCE OF IMPOUN DED MATERIALS AND HENCE HE PLEADED THAT THE ADDITION SUSTAINED BY THE CIT(A ) BE DELETED AND SUGGESTED TO DIRECT A REASONABLE % OF THE IMPUGNED SALES AS INCOME OF THIS AY. PER CONTRA, THE DR INVITED OUR ATTENTION TO THE FOLLOWING PORTION OF THE STATEMENT RECORDED ON OATH AT THE TIME OF SURVEY WH ICH WAS EXTRACTED BY THE CIT(A). 'QN.29: ARE YOU MAINTAINING SEPARATE SALES AND PURC HASES REGISTER? ANS: NO, I AM NOT MAINTAINING SEPARATE SALES AND PU RCHASE REGISTERS. I AM MAINTAINING THE DETAILS OF SALES & PURCHASES IN THE DAY BOOK IT SELF. QN.30: ARE YOU IN THE HABIT OF ISSUING BILLS FOR SA LES MADE? ANS: IN MAJORITY OF CASES THE SALES ARE MADE WITHOU T ISSUING BILLS. HOWEVER, IF THE CUSTOMERS INSIST ON BILLS, THE BILLS ARE ISSUED. QN 31: NOW I AM SHOWING YOU A SLIP WHICH WAS ISSUED BY YOU ON 21.4.2012, AT THE TIME OF PURCHASE MADE BY ME. HAVE YOU RAISED ANY BI LL FOR THIS. ANS: NO. QN 32: YOU HAVE STATED IN THE ANSWER TO THE QUESTIO N NO 30 THAT MAJORITY OF SALES ARE WITHOUT BILLS. PLEASE STATE HOW THE SALES ARE ACCOU NTED. :-6-: ITA NOS. 216 TO 220 & 112/CHNY/2017 ANS: WE ISSUE SMALL SLIPS TO THE CUSTOMERS WHICH WI LL CONTAIN THE QUANTITY OF JEWELLARY AND AMOUNT PAYABLE BY THE CUSTOMER. THE CUSTOMER WI LL PAY THE CASH AT THE CASH COUNTER BY SHOWING THE SLIP. WE DO NOT MAINTAIN ANY ACCOUNT FOR SUCH SALES. QN 33: ON 31.3.2009 THE VALUE OF CLOSING STOCK WAS SHOWN AT RS.1.89 CRORES. WHERE AS THE VALUE OF SALES HAS BEEN SHOWN AT RS.34 LAKHS ON LY. NORMALLY A PRUDENT PERSON WON'T KEEP SO MUCH DOSING STOCK IN CORRESPONDENCE W ITH LESS SALES MADE. IN THAT CASE WHY SO MUCH CLOSING STOCK HAS BEEN MAINTAINED? ANS: THE STOCKS ARE ACCUMULATED OVER THE YEARS. QN 34: SINCE BILLS ARE NOT ISSUED FOR MAJORITY OF T HE SALES AND EXCESS STOCK WITH CORRESPONDING SALES BAS BEEN MAINTAINED, IT AMOUNTS TO TREAT THAT UN-ACCOUNTED SALES HAS BEEN MADE. PLEASE EXPLAIN. ANS: RELEVANCE IN INVITED TO THE ANSWERS OF THE QUE STIONS 30 AND 32 AND UNACCOUNTED SALES WAS MADE. QN 35: DURING THE COURSE OF SURVEY CONDUCTED AT YOU R PREMISES TODAY INVENTORY OF GOLD JEWELLARY, SILVER ARTICLES AND DIAMOND JEWELLARY WE RE TAKEN BY OUR STAFF WITH THE HELP OF YOUR EMPLOYEES. DO YOU AGREE THAT THE INVENTORY OF STOCK WAS TAKEN CORRECTLY? ANS: YES, I AGREE THAT THE INVENTORY OF PHYSICAL ST OCK WAS TAKEN CORRECTLY. QN 36: HAVE YOU KEPT THE STOCK PERTAINING TO M/S RA VI JEWELLERSANY WHERE ELSE OTHER THAN IN THE SHOP? ANS: NO, ALL THE STOCK RELATES TO SHOP ARE KEPT IN THE SHOP ONLY. QN 37: HAVE YOU KEPT THE STOCK OF OTHER PERSONS IN THE SHOP? ANS: NO, ALL THE STOCK FOUND IN THE SHOP BELONGS TO M/S RAVI JEWELLERS ONLY. QN 38: THE PHYSICAL STOCK FOUND IN YOUR SHOP DURING THE COURSE OF SURVEY IS AS UNDER. ITEM PHYSICAL STOCK STOCK AS PER BOOK DEFICIENCY VALUES AS ON THE DATE OF SURVEY GOLD 16402.688 GM 19680.412 GMS 3277.724 GMS RS.85,69,657/- SILVER 284.701 KG 355.711 KG 71.07 KG RS.42,11,447/ - DIAMONDS 37.68 CT 40.914 CT 3.23 CT RS.94,216/- TOTAL RS.1,28,75,320/- PLEASE STATE THE REASON FOR THE DISCREPANCY? ANS: AS STATED EARLIER VIDE ANSWERS TO QUESTION NO 30 & 32 THE DEFICIENCIES ARE DUE TO UNACCOUNTED SALES. QN 39: AS PER THE BOOKS MAINTAINED BY YOU THE BOOK STOCK OF GOLD IN 19680.412 GMS AND SILVER IS 355.77 KGS. PLEASE PRODUCE PURCHASE B ILLS FOR THE SAME. ANS: BILLS IN RESPECT OF PURCHASE OF DIAMOND ARE HE RE BY PRODUCED. AS REGARDS THE BILLS FOR PURCHASE OF GOLD AND SILVER I AM HAVING PARTIAL LY. QN 40. THE LAST RETURN OF INCOME FILED BY YOU PERTA INS TO AY. 2010-11. WHERE IN YOU HAVE DECLARED INCOME FROM BUSINESS TO THE EXTENT OF RS.99,623/- AND PAID TAX TO THE EXTENT OF RS.16,165 (T.D.S.). ON PERUSAL OF BALANCE SHEET AND P&L THAT THE SALES AS REPORTED AS PER P&L IN ONLY TO THE EXTENT OF 35.90 LAKHS AND THE CLOSING STOCK AS ON 31.03.2013 IN TO THE EXTENT OF 1.92 CRORES. PLEASE EXPLAIN THE HUGE, VARIATION BETWEEN THE SALES REPORTED AND THE CLOSING STOCK. IT IS ALS O SEEN THAT THE PURCHASES INRESPECT OF GOLD, SILVER & DIAMONDS ONLY TO THE EXTENT OF 25. 0 0 LAKH. PLEASE EXPLAIN. ANS: I WISH TO STATE THAT THE SALES MADE THROUGH CR EDIT CARD CUSTOMERS HAS NOT BEEN ENTERED IN THE BOOKS. I AM NOT ABLE TO FURNISH BILL S FOR MY PURCHASERS. THERE HAS ALSO BEEN UNACCOUNTED PURCHASERS FOR WHICH FUNDS WERE GE NERATED FROM THE EARLIER YEARS UNACCOUNTED SALES, I AGREE THAT THERE IS A HUGE VAR IATION IN THE SALES REPORTED BY ME AS PER BOOKS WHICH IN ONLY RS.3S.90 LAKHS AS AGAINST T HE CLOSING STOCK REPORTED TO THE :-7-: ITA NOS. 216 TO 220 & 112/CHNY/2017 EXTENT OF RS.1.92 CRORES. SINCE THE PROFIT SHOWN BY ME TO THE EXTENT OF RS. 99, 623/- IN DISTORTED AND DOES NOT SHOW THE CORRECT AND FACTUAL POSITION OF PROFITS. I OFFERED TO PAY THE TAX ON THE SUPPRESSED INCOME FOR THE ASSESSMENT YEAR 2010-11. QN 41. HAVE YOU FILED RETURN OF INCOME FOR A. Y 201 1-12 AND FURNISH YOUR FINANCIAL STATEMENTS ANS: THEVE NOT FILED RETURN OF INCOME FOR THE AY 20 11-12 AS ON DATE. HOWEVER, ON THE ADVICE OF MY AUDITOR I HAVE PAID ON AMOUNT OF RS.13 ,46,000 AS ADVANCE TAX. Q 42: WHAT IS THE BASIS FOR THE PAYMENT OF ADVANCE TAX OF RS. 13.46 LAKHS FOR THE A. Y 2011-12. ANS: 1 HAVE PAID THE 'ABOVE TAX ONLV ON THE ADVICE OF MY AUDITOR M/S. VENKATGIRI& CO, CA. I HAVE NO INFORMATION FOR THE BASIS ON WHICH TH E ABOVE PAYMENT WAS MADE. Q 43: HAVE YOU PAID ANY TAX DURING THE FINANCIAL YE AR 2011-12 I.E. A. Y 2012-13. ANS: NO, I HAVE NOT PAID ANY TAX DURING THE ENTIRE FINANCIAL YEAR RELATING TO THE A. Y. 2012-13. QN 44: DURING THE COURSE OF SURVEY U/S 133A OF IT A CT 1961 ON 23 & 24 APR 2012, IT IS SEEN THERE IS A DEFICITSCOCK VALUED AT RS.1,28,75,3 20/-. PLEASE EXPLAIN. ANS: I WISH TO STATE THAT MOST OF MY SALES WERE MAD E OUTSIDE THE BOOKS AND I HAVE ALSO NOT BEEN ABLE TO FURNISH THE EVIDENCE IN RESPECT OF THE PURCHASERS MADE BY ME WITH REGARD TO GOLD & SILVER. I ALSO WISH TO STATE THAT I HAVE ACCUMULATED STOCK WHICH IS NOT DISCLOSED TO AN EXTENT. I WILL RECTIFY THE DEFECTS WHICH ARE THERE IN MY BOOKS OF ACCOUNTS AND CO-OPERATE WITH THE DEPARTMENT FOR COMPLETION O F MY INCOME TAX ASSESSMENTS AS SALE PROPRIETOR OF M/S. RAVI JEWELLERS. 1 AM GIVING POST DATEDCHEQUES OF FEDERAL BANK FOR RS. 38,62,500/- (FOUR CHEQUES). Q 45: DO YOU WISH TO STATE ANYTHING FURTHER? ANS; I WISH TO STATE THAT I WILL EXTEND MY FULL CO- OPERATION WITH THE DEPARTMENT AND ENSURE TAX COMPLIANCE IN FUTURE. ' IT IS CRYSTAL CLEAR FROM THE FORE-GOING, THAT ON AC COUNT OF GLARING LACUNAE IN THE MAINTENANCE OF BOOKS ESPECIALLY THE FACT OF UNRECOR DED PURCHASES AS WELL AS SALES, ACCUMULATION OF STOCK OVER THE YEARS, WHICH IS ON A CCOUNT OF UNRECORDED SALES, ETC., THE ASSESSEE CANNOT JUSTIFY HIS CLAIM OF SET OFF OF ANY EXPENDITURE WHATSOEVER FROM THE AMOUNT OF ADMISSION MADE BY HIM IN THE COURSE OF SU RVEY PROCEEDINGS. THUS, THE QUESTION OF 'ESTIMATING' PROFIT BASED ON DEFICIT ST OCK DOES NOT ARISE AT ALL. AND SUBMITTED THAT AFTER THE SURVEY THE ASSESSEE FI LED RETURN OF INCOME FOR AY 2012-13 ON 30.09.2012 ADMITTING TOTAL INCOME OF RS. 1,31,69,420/- WHICH INCLUDED THE INCOME ADMITTED AT THE TIME OF SURVEY. THIS RETURN WAS SUPPORTED BY A TAX AUDIT CERTIFICATE. THE ASSESSEE FILED A REVISED RETURN ON 29.03.2014 IN WHICH THE INCOME IS ESTIMATED AT A ME RE 5% OF STOCK SHORTAGE. THE REVISED RETURN IS NOT SUPPORTED BY ANY TAX AUDI T REPORT. A VALID REVISED RETURN CAN BE FILED WHEN THE ASSESSEE SUBSEQUENTLY DISCOVERS ANY INADVERTENT :-8-: ITA NOS. 216 TO 220 & 112/CHNY/2017 OMISSION OR ERROR OR MISTAKE IN-COMPUTATION. HOWEV ER, THE REVISED RETURN IS NOT SUPPORTED BY ANY TAX AUDIT REPORT AND HENCE, TH E AO HAS CORRECTLY HELD THAT IT IS FILED BY AN AFTERTHOUGHT AND REJECTED TH E ASSESSEES CLAIM. THE CIT(A) HAS ALSO HELD THAT THE RETRACTION IS MADE WI THOUT ANY BASIS. THE ASSESSEES PLEA THAT THE SWORN STATEMENTS RECORDED AT THE TIME OF SURVEY HAD NO SANCTITY IN THE EYES OF LAW IS NOT APPLICABLE TO THE FACTS OF THIS CASE WHERE THE SURVEY HAS RESULTED IN A FINDING OF SHORTAGE OF STOCK AND ALL OTHER DEFECTS AND OTHER INFORMATIONS ARE BROUGHT ON RECORD. THE DR FURTHER SAID THAT EVEN ON MERIT THE ASSESSEES PLEA IS NOT CORRECT WHEN TH E ASSESSEE HAS ADMITTED THAT ITS PURCHASES WERE ALSO NOT ACCOUNTED AND THE ASSESSEE HAS NOT PLACED ANY EVIDENCE TO PROVE THAT ALL HIS PURCHASES ARE AC COUNTED. IN SUCH FACTS AND CIRCUMSTANCES, THE NET PROFIT ADDITION IS WARRANTED AND HENCE THE ADDITION SUSTAINED BY THE CIT(A) MAY BE UPHELD. 5. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIALS. IT IS CLEAR FROM THE SURVEY FINDINGS TH AT THE ASSESSEE HAS NOT MAINTAINED BOOKS OF ACCOUNTS FOR HIS PURCHASES AS W ELL AS SALES. THE SURVEY TEAM FOUND SHORTAGE OF STOCK WHICH WAS NOT DISPUTED . THE ASSESSEE BY A SWORN STATEMENT ACCEPTED THE VALUE REPRESENTING DEF ICIT STOCK AS HIS INCOME. FURTHER, HE FILED A RETURN OF INCOME WHICH WAS SUPP ORTED BY A TAX AUDIT REPORT. WHEN THE ASSESSING OFFICER PROPOSED TO MAK E CERTAIN ADDITION TO THE RETURNED INCOME ONLY, THE ASSESSEE FILED A REVISED RETURN WHICH IS NOT :-9-: ITA NOS. 216 TO 220 & 112/CHNY/2017 SUPPORTED BY ANY TAX AUDIT REPORT. NEITHER THE A SSESSEE POINTED OUT SPECIFIC DEFECTS NOR OMISSIONS IN THE ORIGINAL RETURN. IN T HE FACTS AND CIRCUMSTANCES, THE ADMISSION MADE BY THE ASSESSEE IN THE ORIGINAL RETURN AND THE ADDITION MADE BY THE AO ON SUCH ADMISSION HAS TO BE SUSTAINE D. FURTHER, AS PER THE RATIO OF THE GUJARAT HIGH COURT IN THE CASE OF CIT VS PRESIDENT INDUSTRIES 258 ITR 654 (GUJ) WHEN THE SOURCES FOR THE ASSESSEES PURCHASES ARE NOT EXPLAINED, THE ENTIRE UNDISCLOSED SALES MADE OUT OF SUCH PURCHASES CAN BE ADDED AS AN INCOME AND HENCE, THE ADDITION MADE BY THE AO CAN BE SUSTAINED ON THIS PRINCIPLE ALSO. HENCE, THE ASSES SEES APPEAL GROUNDS ARE DISMISSED. 6. NOW, LET US TAKE THE ASSESSEES APPEALS FROM AYS 2008-09 TO 2011-12. THE AR SUBMITTED THAT THE CIT(A) ERRED IN THE SUSTA INING THE ASSUMPTION OF JURISDICTION U/S. 147 AND CONSEQUENTLY ERRED IN SUS TAINING THE RE-ASSESSMENT ORDERS WITHOUT ASSIGNING PROPER REASONS AND JUSTIFI CATIONS. PER CONTRA, THE DR INVITED OUR ATTENTION TO THE RELEVANT PORTION OF TH E ORDER OF THE CIT(A) WHICH IS EXTRACTED AS UNDER: THE FOLLOWING TABLE HIGHLIGHTS THE FACT THAT FOR ALL THE FOUR AYS IN QUESTION, THE NOTICES OF RE-OPENING ISSUED U/S. 148 WERE ALL ISSUED WELL WITHIN THE TIME LIMIT OF FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR, PRESC RIBED U/S. 149(A) OF THE ACT. BESIDES, THE ASSESSING OFFICER HAD WITH HIM FRESH I NPUTS IN THE FORM OF THE FINDINGS OF THE SURVEY CONDUCTED IN THE ASSESSEE'S CASE, ON 23R D AND 24THAPRIL 2012, SPECIFICALLY THE DISCREPANCIES SUCH AS, THAT PURCHASES AND SALES WERE NOT RECORDED PROPERLY IN THE BOOKS OF ACCOUNTS OF M/S RAVI JEWELLERY, OF WHICH T HE ASSESSEE IS THE PROPRIETOR. THE ASSESSING OFFICER ALSO OBSERVED THAT, FOR EACH OF T HESE 4 AYS., THE VOLUME OF AND VALUE :-10-: ITA NOS. 216 TO 220 & 112/CHNY/2017 OF THE JEWELS SOLD WERE VERY HIGH WHILE COMPARING W ITH THE AMOUNT OF SALES OFFERED FOR ASSESSMENT: SL.NO AY DATE OF NOTICE U/S. 148 DATE OF ORDER U/S. 143(3) R.W.S. 147 REMARKS 1 2008-09 27.04.2012 28.03.2014 (I) RE-OPENING IS W ITHIN 4 YEARS FROM END OF AY . (II) NEW INPUTS SURVEY FINDINGS (III) VOLUME, VALUE OF JEWELS SOLD ARE VERY HIGH VIS-A-VIS AMOUNT OF SALES OFFERED FOR ASSESSMENT 2 2009-10 27.04.2012 28.03.2014 -DO- 3 2010-11 27.04.2012 28.03.2014 -DO- 4 2011-12 27.04.2012 28.03.2014 -DO- THE ASSESSMENT ORDERS U/S. 143(3) R.W.S. 147 OF THE ACT, FOR ALL THE FOUR AYS IN QUESTION, HAVE BEEN PASSED WITHIN THE TIME LIMIT PR ESCRIBED U/S. 153(2) OF THE ACT, I.E. THE ORDERS HAVE BEEN PASSED WITHIN THE PRESCRIBED P ERIOD OF ONE YEAR FROM THE END OF THE FY IN WHICH THE NOTICE U/S, 148 HAS BEEN SERVED . HENCE, IT IS APPARENT THAT THE GROUNDS RAISED BY T HE APPELLANT ARE BASELESS AND UNTENABLE. THE VALIDITY OF THE RE-OPENING OF THE AS SESSMENTS AND THE PASSING OF THE ASSESSMENT ORDERS U/S. 143(3) R.W.S. 147, FOR ALL T HE FOUR YEARS IN QUESTION, ARE HENCE, UPHELD. THIS GROUND, FOR ALL THE FOUR AYS., IS DISMISSED. 7. THE AR SUBMITTED THAT THE SURVEY WAS CONDUCTED O N 23 RD AND 24 TH OF APRIL, 2012. THE RE-OPENING OF THE ASSESSMENT MAD E FOR ASSESSMENTS YEARS 2008-09 TO 2011-12 IS NOT BASED ON THE SURVEY MATER IALS OF THOSE YEARS. IN THIS REGARD, HE RELIED ON THE DECISIONS OF THE JURI SDICTIONAL HIGH COURT IN THE CASE OF TANMAC INDIA VS DCIT REPORTED IN [2016] 97 CCH 0189 CHENHC, TAX CASE (APPEAL) NO. 1426 OF 2007 DATED 19.12.2016 AN D CIT VS GUPTA ABHUSHAN (P) LTD., 312 ITR 0166. PER CONTRA, THE D R INVITED OUR ATTENTION TO :-11-: ITA NOS. 216 TO 220 & 112/CHNY/2017 THE REASONS RECORDED BY THE AO BY INVITING OUR ATTE NTION TO THE ASSESSMENT ORDER WHICH IS EXTRACTED AS UNDER: 2. DURING THE COURSE OF SURVEY THE FOLLOWING DISCR EPANCIES WERE FOUND OUT. STOCK REGISTERS WERE NOT UPDATED PURCHASE BILLS WERE PARTLY AVAILABLE MAJORITY OF THE SALES WERE NOT ACCOUNTED FOR. BILLS WERE NOT ISSUED FOR THE SALES MADE ENTIRE CREDIT CARD SALES WERE NOT ACCOUNTED FOR ON PHYSICAL STOCK VALUATION DEFICIT STOCK WAS UNEAR THED BOOKS OF ACCOUNTS WERE NOT UPDATED DURING THE COURSE OF SURVEY OPERATION SWORN STATEME NT WAS RECORDED FROM SRI RAGOTHAMAN THE PROPRIETOR OF M/S RAVI JEWELLERY, WH ILE DEPOSING ME STATEMENT THAT HE HAS CONFIRMED AS FOLLOWS: 2.1 'Q. 30 ARE YOU IN THE HABIT OF ISSUING BILL FOR SALES MADE? ANS: IN MAJORITY OF CASES THE SALES AXE MADE WITHOU T ISSUING BILL. HOWEVER, IF THE CUSTOMERS INSIS T ON BILLS, ME BILLS ARE ISSUED Q.31 NOW I AM SHOWING YOU A SLIP WHICH WAS ISSUED B Y YOU ON 21-04-2012, AT THE TIME OF PURCHASE MADE BY ME. HAVE YOU RAISED ANY BILL FO R THIS . ANS: NO QN 32: YOU HAVE STATED IN THE ANSWER TO THE QUESTIO N NO 30 THAT MAJORITY OF SALES ARE WITHOUT BILLS. PLEASE STATE HOW THE SALES ARE ACCOU NTED. ANS: WE ISSUE SMALL SLIPS TO THE CUSTOMERS WHICH WI LL CONTAIN THE QUANTITY OF JEWELLARY AND AMOUNT PAYABLE BY THE CUSTOMER. THE CUSTOMER WI LL PAY THE CASH AT THE CASH COUNTER BY SHOWING THE SLIP. WE DO NOT MAINTAIN ANY ACCOUNT FOR SUCH SALES. QN 33: ON 31.3.2009 THE VALUE OF CLOSING STOCK WAS SHOWN AT RS.1.89 CRORES. WHERE AS THE VALUE OF SALES HAS BEEN SHOWN AT RS.34 LAKHS ON LY. NORMALLY A PRUDENT PERSON WON'T KEEP SO MUCH DOSING STOCK IN CORRESPONDENCE W ITH LESS SALES MADE. IN THAT CASE WHY SO MUCH CLOSING STOCK HAS BEEN MAINTAINED? ANS: THE STOCKS ARE ACCUMULATED OVER THE YEARS. QN 34: SINCE BILLS ARE NOT ISSUED FOR MAJORITY OF T HE SALES AND EXCESS STOCK WITH CORRESPONDING SALES BAS BEEN MAINTAINED, IT AMOUNTS TO TREAT THAT UN-ACCOUNTED SALES HAS BEEN MADE. PLEASE EXPLAIN. ANS: RELEVANCE IN INVITED TO THE ANSWERS OF THE QUE STIONS 30 AND 32 AND UNACCOUNTED SALES WAS MADE. QN 38: THE PHYSICAL STOCK FOUND IN YOUR SHOP DURING THE COURSE OF SURVEY IS AS UNDER. :-12-: ITA NOS. 216 TO 220 & 112/CHNY/2017 ITEM PHYSICAL STOCK STOCK AS PER BOOK DEFICIENCY VALUES AS ON THE DATE OF SURVEY GOLD 16402.688 GM 19680.412 GMS 3277.724 GMS RS.85, 69,657/- SILVER 284.701 KG 355.711 KG 71.07 KG RS.42,11,447/ - DIAMONDS 37.68 CT 40.914 CT 3.23 CT RS.94,216/- TOTAL RS.1,28,75,320/- PLEASE STATE THE REASON FOR THE DISCREPANCY? ANS: AS STATED EARLIER VIDE ANSWERS TO QUESTION NO 30 & 32 THE DEFICIENCIES ARE DUE TO UNACCOUNTED SALES. QN 39: AS PER THE BOOKS MAINTAINED BY YOU THE BOOK STOCK OF GOLD IN 19680.412 GMS AND SILVER IS 355.77 KGS. PLEASE PRODUCE PURCHASE B ILLS FOR THE SAME. ANS: BILLS IN RESPECT OF PURCHASE OF DIAMOND ARE HE RE BY PRODUCED. AS REGARDS THE BILLS FOR PURCHASE OF GOLD AND SILVER I AM HAVING PARTIAL LY. QN 44: DURING THE COURSE OF SURVEY U/S 133A OF IT A CT 1961 ON 23 & 24 APR 2012, IT IS SEEN THERE IS A DEFICITSCOCK VALUED AT RS.1,28,75,3 20/-. PLEASE EXPLAIN. ANS: I WISH TO STATE THAT MOST OF MY SALES WERE MAD E OUTSIDE THE BOOKS AND I HAVE ALSO NOT BEEN ABLE TO FURNISH THE EVIDENCE IN RESPECT OF THE PURCHASERS MADE BY ME WITH REGARD TO GOLD & SILVER. I ALSO WISH TO STATE THAT I HAVE ACCUMULATED STOCK WHICH IS NOT DISCLOSED TO AN EXTENT. I WILL RECTIFY THE DEFECTS WHICH ARE THERE IN MY BOOKS OF ACCOUNTS AND CO-OPERATE WITH THE DEPARTMENT FOR COMPLETION O F MY INCOME TAX ASSESSMENTS AS SALE PROPRIETOR OF M/S. RAVI JEWELLERS. 1 AM GIVING POST DATEDCHEQUES OF FEDERAL BANK FOR RS. 38,62,500/- (FOUR CHEQUES). Q 45: DO YOU WISH TO STATE ANYTHING FURTHER? ANS; I WISH TO STATE THAT I WILL EXTEND MY FULL CO- OPERATION WITH THE DEPARTMENT AND ENSURE TAX COMPLIANCE IN FUTURE. ' 3. DURING THE COURSE OF SURVEY THE BOOKS OF CONSIST ING OF DAY BOOK, LEDGERS, PARTY LEDGERS, FOR THE FINANCIAL YEARS 2007-2008, 2008-20 09, 2009-2010, 2010-2011 AND 2011- 2012 WERE IMPOUNDED. DUE TO THIS, THERE WAS EVERY REASON TO BELIEVE THAT INCOME CHARGEABLE TO TAX HAD ESCAPED FROM ASSESSMENT, AND THE ASSESSMENT WAS REOPENED UNDER SECTION 147 OF THE IT ACT 1961. 8. THE DR SUBMITTED THAT THE SURVEY FINDINGS INDICA TED THAT THE FOLLOWING DISCREPANCIES: :-13-: ITA NOS. 216 TO 220 & 112/CHNY/2017 STOCK REGISTERS WERE NOT UPDATED PURCHASE BILLS WERE PARTLY AVAILABLE MAJORITY OF THE SALES WERE NOT ACCOUNTED FOR. BILLS WERE NOT ISSUED FOR THE SALES MADE ENTIRE CREDIT CARD SALES WERE NOT ACCOUNTED FOR ON PHYSICAL STOCK VALUATION DEFICIT STOCK WAS UNEAR THED BOOKS OF ACCOUNTS WERE NOT UPDATED FURTHER, THE STATEMENT RECORDED FROM THE ASSESSEE INDICATED THAT THE ASSESSEE IS HABITUALLY MAKING SALES WITHOUT BILLS A ND IF THE CUSTOMERS INSIST ON BILLS ONLY THE BILLS ARE ISSUED. THE OTHER PROCESS ES ARE EXTRACTED ABOVE. THE MAIN ISSUE IS SHORTAGE OF STOCK, WHICH HAS BEEN ACC UMULATED OVER THE PERIOD AS PER THE SWORN STATEMENT GIVEN BY THE ASSESSEE. THUS, THE OPENING STOCK AS WELL AS THE CLOSING STOCK OF THE IMPUGNED ASSES SMENT YEARS ARE INEXTRICABLY CONNECTED. FURTHER, THE OFFICER HAS IMPOUNDED THE BOOKS RELATING TO FYS 2007-08 ONWARDS ETC. BASED ON SUCH REASONS, THE ASSESSING OFFICER HAS RE-OPENED THE ASSESSMENT. THUS, THE BASIS FOR RE-O PENING THE IMPUGNED ASSESSMENTS EMANATED FROM THE SURVEY RESULTS AND HAS CLEAR NEXUS. THESE FACTS DISTINGUISH THE CASES RELIED ON BY THE AR. 9. WE HAVE HEARD THE RIVAL SUBMISSIONS, GONE THROUG H THE ABOVE SUBMISSIONS AND RELEVANT MATERIALS. THE REASONS RE CORDED BY THE AO INDICATE CLEAR APPLICATION OF MIND AND HENCE, THE FACTS AND CIRCUMSTANCES OF THE CASES :-14-: ITA NOS. 216 TO 220 & 112/CHNY/2017 RELIED ON BY THE ASSESSEE ARE CLEARLY DISTINGUISHA BLE AND NOT APPLICABLE TO THIS CASE. THE ASSESSEES APPEAL GROUNDS FAIL. 10. THE NEXT GROUND IS THAT THE CIT(A) ERRED IN PAR TLY SUSTAINING THE ADDITION TO NET PROFIT BASED ON THE SURVEY RESULTS/ STATEMENTS IN THE RESPECTIVE ASSESSMENT YEARS. THE AR SUBMITTED THAT THE CIT(A) ERRED IN SUSTAINING THE ADDITION WITHOUT ASSIGNING PROPER AN D JUSTIFICATION. THE METHOD OF ARRIVING ON SUCH PROFITS FOR TAXATION WER E WRONG, ERRONEOUS, UNJUSTIFIED AND NON-SUSTAINABLE IN LAW. THE CIT(A) FAILED TO APPRECIATE THAT THE IN ANY EVENT THE EXTRAPOLATION OF SURVEY RESULT S IN COMPLETING THE RE- ASSESSMENTS WAS BAD IN LAW. PER CONTRA, THE AR SU BMITTED THAT THE AO HAS ADOPTED THE ADMITTED NET PROFIT RATE OF ASSESSMENT YEAR 2012-13 AS THE BASE FOR ARRIVING THE TOTAL INCOME OF THE IMPUGNED ASS ESSMENT YEARS. HOWEVER, THE CIT(A) AFTER EXAMINING THE ENTIRE CASE INCLUDIN G THE PROVISIONS OF SECTION 44AD HELD AS UNDER: THE FACT REMAINS THAT THE APPELLANT HAS DECLARED E XTREMELY LOW NET PROFIT FOR ALL THE FOUR YEARS IN QUESTION. AT THE SAME TIME, THE METHO D ADOPTED BY THE ASSESSING OFFICER I.E, WORKING OUT THE PERCENTAGE OF THE TOTAL NET PR OFIT VIS-A-VIS THE TOTAL CLOSING STOCK OF ALL 5 YEARS (INCLUDING THE SURVEY YEAR I.E. 2012-13 ), AND APPLYING THIS PERCENTAGE OF 11.32% TO THE TURNOVER OF EACH YEAR TO ARRIVE AT TH E 'ADDITION DOES NOT SEEM TO BE VERY SOUND. KEEPING IN VIEW THE MINIMUM PERCENTAGE OF 8 % OF TURNOVER PRESCRIBED U/S. 44AD AND AT THE SAME TIME, TAKING INTO ACCOUNT THE VARIOUS DISCREPANCIES SUCH AS NON- UPDATION OF STOCK REGISTER, NON-ACCOUNTING OF MAJOR PORTION OF SALES, NON-AVAILABILITY OF PURCHASE BILLS AND SALES BILLS, THE DEFICIT STOCK U NEARTHED ON PHYSICAL STOCK TAKING AND THE ADMISSION OF THE ASSESSEE DURING THE SURVEY PRO CEEDINGS THAT THE UNACCOUNTED STOCK HAS ACCUMULATED OVER THE YEARS, IT WOULD BE F AIR TO ESTIMATE THE NET PROFIT AT 10% :-15-: ITA NOS. 216 TO 220 & 112/CHNY/2017 OF THE SALES, FOR EACH OF THE YEARS IN QUESTION. AS THE ASSESSING OFFICER HAS APPLIED 11.32%, THE APPELLANT GETS RELIEF FOR ALL THE FOUR YEARS IN QUESTION, AS TABULATED BELOW: SL.NO AY SALES (RS.) 11.32% OF SALES 10% OF SALES DIFFERENCE COL 4 COL 5) I.E., RELIEF (1) (2) (3) (4) (5) (6) 1 2008-09 2670232 302270 267023 35247 2 2009-10 3406476 385613 340648 44965 3 2010-11 3590721 406469 359072 47397 4 2011-12 2036761 230561 203676 26885 THIS GROUND, FOR ALL THE FOUR AYS IS PARTLY ALLOWED . AND SUPPORTED THE ORDERS OF THE CIT(A). 11. WE HEARD THE RIVAL SUBMISSIONS. THE SURVEY RES ULTS INDICATED THAT THE ASSESSEE IS NOT ACCOUNTING SALES AS WELL AS PURCHAS ES. THE ENTIRE BOOK RESULTS COULD NOT BE RELIED FOR WANT OF PROPER EVID ENCES. IN THE FACTS AND CIRCUMSTANCES, AN ESTIMATE IS WARRANTED. IT SHOULD BE BASED ON A REASONABLE BASIS. IN THE ASSESSEES CASE, THERE IS NO INTERNA L VERIFIABLE BASE IN THE EARLIER YEARS. THE ONLY BASE IS THE ASSESSEES ADMISSION B ASED ON SURVEY RESULTS, WHICH INDICATED THAT THE NET PROFIT RATIO IS 11.32% . BUT THIS TOO COULD BE A REFLECTION OF ACCUMULATED PROFITS. IN THE FACTS AN D CIRCUMSTANCES, THE AO COULD HAVE COMPARED THE ACTUAL RESULTS IN THE TRADE . IT IS NOT DONE SO. THE CIT(A) EXAMINED THE PROVISIONS OF SECTION 44AD AND TAKEN COGNIZANCE OF THE OTHER RELEVANT FACTORS IN THE ASSESSEES CASE AND D ECIDED THE NET PROFIT AT 10%. THIS IS JUST 2% OVER THE RATE FIXED BY THE DE EMING PROVISION U/S. 44AD. HOWEVER, THE ASSESSEE IS AGGRIEVED. TAKING THE ENTI RE FACTS AND :-16-: ITA NOS. 216 TO 220 & 112/CHNY/2017 CIRCUMSTANCES INTO ACCOUNT AND IN THE INTEREST OF F AIRNESS, WE DIRECT THE AO TO ASSESS THE ASSESSEES INCOME @ 8% ON THE DECLARED S ALES TURNOVER OF THE IMPUGNED ASSESSMENT YEARS. THE ASSESSEES APPEAL G ROUNDS ARE PARTLY ALLOWED FOR ALL THESE ASSESSMENT YEARS. 12. LET US EXAMINE THE REVENUES APPEAL AS UNDER: 12.1 THE DR SUBMITTED THAT THE CIT(A) WITHOUT APPRE CIATING THE FACT THAT THE ASSESSEE HAS NOT INVESTED THE SALES PROCEEDS IN THE CAPITAL GAINS ACCOUNTS SCHEME, AS MANDATED U/S. 54F DIRECTED THE AO TO VER IFY THE CONSTRUCTION DETAILS OF THE ASSESSEE AND ALLOW 54F DEDUCTION. I N THIS REGARD, THE DR SUBMITTED THAT THE CIT(A) ERRED IN NOT APPLYING THE MUMBAI HIGH COURT DECISION IN THE CASE OF SHRI. HUMAYUN SULEMAN MERCH ANT REPORTED IN 73 TAXMANN.COM 2 (BOMBAY) AND THE HONBLE BANGALORE TR IBUNAL DECISION IN THE CASE OF SHRI SABIR SALIM AHMED, IN ITA NO. 941/BANG /2010, WHEREIN, DEPOSIT OF CAPITAL GAINS IN NOTIFIED BANK ACCOUNTS WERE HEL D AS MANDATORY, TO AVAIL THE BENEFIT OF SECTION 54/54F OF THE ACT. PER CONTRA, THE AR SUBMITTED THAT THE CIT(A) AFTER APPLYING THE DECISIONS OF AC SHYAM SUN DARVS ACIT, RANGE-XIV, CHENNAI OF THE ITAT, C BENCH IN ITA NO. 2279/MDS/20 15 DATED 06.05.2016, P. SANKARANVS ITO, WARD- IX(4), IN ITA NO. 1167/MDS /2016 DATED 15.09.2016 AND CIT, BANGALORE VS K. RAMACHANDRA RAO [2015][ 23 0 TAXMAN 334 (KARNATAKA) HAS DIRECTED THE AO TO CALL FOR THE DET AILS SUCH AS PAYMENTS MADE TOWARDS PURCHASE/CONSTRUCTION OF THE FLAT AT VANNIA R STREET, COMPLETION :-17-: ITA NOS. 216 TO 220 & 112/CHNY/2017 CERTIFICATE ETC., TO CROSS-VERIFY THE CLAIM OF THE APPELLANT THAT THE NEW PROPERTY HAS BEEN ACQUIRED WITHIN THE PRESCRIBED TI ME LIMIT. SUBJECT TO FULFILMENT OF THE CONDITIONS LAID DOWN U/S. 54F, TH E ASSESSING OFFICER SHALL PASS A SPEAKING ORDER, ALLOWING EXEMPTION U/S. 54F TO TH E APPELLANT AND HENCE PLEADED THAT THE DECISION OF THE CIT(A) MAY BE UPHE LD. 13. WE CONSIDERED THE RIVAL SUBMISSIONS. SINCE, TH E CIT(A) AFTER DUE APPLICATION OF THE RATIOS HAS DIRECTED THE AO TO VE RIFY THE CLAIM AND PASS A SPEAKING ORDER WITH WHICH WE DO NOT FIND ANY REASON TO INTERFERE. THE REVENUES APPEAL IS DISMISSED. 14. IN THE RESULT, THE ASSESSEES APPEAL IN ITA NO. 220/CHNY/2017 IS DISMISSED AND APPEAL NOS. 216 TO 219/CHNY/2017 ARE PARTLY ALLOWED AND THE REVENUES APPEAL IN ITA NO. 112/CHNY/2017 IS DISMIS SED. ORDER PRONOUNCED ON TUESDAY, THE 03 RD DAY OF APRIL, 2018 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) !' /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ' /ACCOUNTANT MEMBER /CHENNAI, 2 /DATED: 03 RD APRIL, 2018 :-18-: ITA NOS. 216 TO 220 & 112/CHNY/2017 JPV -34565 /COPY TO: 1. 8/ APPELLANT 2. 3:8 /RESPONDENT 3. ; ) (/CIT(A) 4. ; /CIT 5. 53 /DR 6. = /GF