The ITO, Ward-2(2), RAJKOT-GUJARAT V. Shri Atulbhai Samarth Khode, Indore

ITA 237/RJT/2014

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6873 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 03-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SONTAKKE
• Assessee Lawyers: MJ RANPURA
• Keywords: Tax effect

Judgement Text

I.T.A. NO. 237 / RJT /201 4 ASSESSMENT Y EAR: 20 0 9 - 10 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CORAM: PRAMOD KUMAR AM AND RAJPAL YADAV JM] ITA NO. 237 /RJT/201 4 ASSESSMENT YEAR: 200 9 - 10 INCOME TAX OFFICER , WARD 2(2) , RAJKOT . ....... .. . .....APPELLANT VS. ATULBHAI SAMARTH KHODE, ...........................RESPONDENT BLOCK NO.60, INDRAPURI COLONY, J.B. ROAD, INDORE (MADHYA PRADESH). [PAN A QJPK 4265 E ] APPEARANCES BY: ARVIND SONTAKKE FOR THE APPELLANT M.J. RANPURA F OR THE RESPONDENT DATE OF CONCLUDI NG THE HEARING : 3 1 . 10 .2017 DATE OF PRONOUNCING THE ORDER : 31 .10 . 2017 O R D E R PER PRAMOD KUMAR AM: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 2 2.01.2014 , PASSED BY THE L EARNED CIT(A) - I II , RAJKOT FOR THE ASSESSMENT YEAR 20 0 9 - 10 , ON THE FOLLOWING GROUND S : - 1. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) - III, RAJKOT HAS ERRED IN DELETING THE ADDITION OF RS.24,80,271/ - MADE BY THE ASSESSING OFFICER. 2. THE LD. CIT(A) - III, RAJKOT WAS INCORRECT IN ACCEPTING THE EXPLANATION OF THE ASSESSEE THAT THE CASH DEPOSITS IN HIS SAVING BANK WERE IN RESPECT OF THE BUSINESS CARRIED OUT BY HIM, WITHOUT EVEN VER IFYING ANY EVIDENCES , IN REGARD T HERETO . I.T.A. NO. 237 / RJT /201 4 ASSESSMENT Y EAR: 20 0 9 - 10 PAGE 2 OF 3 3. THE LD. CIT(A) - III, RAJKOT HAS ERRED IN ACCEPTING THE FIGURE OF SAL E S AMOUNTING TO RS.27.92 LAKHS FURNISHED BY THE ASSESSEE IGNORING THE FACTS THAT THE SALES WERE NOT VERIFIABLE , BEING IN CASH. HE MISGUIDED HIMSELF BY RELYING ON THE UNAUDITED AND CONCOCTED BOOKS OF ACC OUNTS WHICH WERE NOT EVEN THE BASIS FOR FILING THE RETURN OF INCOME. 4. WITHOUT PREJUDICE TO THE ABOVE, THE LD. CIT(A) - III, RAJKOT WAS INCORRECT IN REJECTING THE BOOKS OF ACCOUNTS AND ESTIMATING THE INCOME OF THE ASSESSEE AT THE R A TE OF 12% INSTEAD OF THE DISCLOSED OPERATING PROFIT OF 17.7%. 5. WITHOUT PREJUDICE TO THE ABOVE, THE LD. CIT(A) - III, RAJKOT WAS INCORRECT IN APPLYING AN ADHOC GP RATE OF 12% IN SPITE OF THE FACT THAT ALL THE COMPONENTS OF THE TRADING ACCOUNT I.E. OPENING AND CLOSING STOCKS, PU RCHASES AND SALES WERE AVAILABLE AND HE COULD HAVE WORKED OUT THE PROFIT, BY RECASTING THE TRADING ACCOUNT AS UNDER : RS. RS. OPENING STOCK 2,06,408 SALES 27,92,500 PURCHASES 23,25,700 CLOSING STOCK 2,32,650 GROSS PROFIT 4,93,042 TOTAL 30,25,150 T OTAL 30,25,150 6. ON THE FACTS OF THE CASE, THE LD. CIT(A) - III, RAJKOT OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 7 . IT IS , THEREFORE , PRAYED THAT THE ORDER OF THE LD . CIT (A) - III, RAJKOT MAY BE SET ASIDE AND THAT OF THE ASSESSING O FFICER MAY KINDLY BE RESTORED BACK TO THE EXTENT . 2 . WE HAVE NOTICED THAT THE TAX EFFECT INVOLVED IN TH IS APPEAL IS LESS THAN RS.10,00,000/ - . IN VIEW OF THIS UNDISPUTED FACT AND IN THE LIGHT OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE CONSIDERED VIEW THAT TH IS APPEAL IS LIABLE TO BE DISMISSED AS WITHDRAWN FOR THE SIMPLE REASON THAT TAX EFFECT INVOLVED IN TH IS APPEAL IS LESS THAN RS.10,00,000/ - . 3 . IN THE RESULT, APPEAL IS DISMISSED . PR O NOUNCED IN THE OPEN COURT TODAY ON THE 31 ST DAY OF OCTOBER , 2017. SD/ - SD/ - RAJPAL YADAV PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) RAJKOT, THE 31 ST DAY OF OCTOBER, 201 7 I.T.A. NO. 237 / RJT /201 4 ASSESSMENT Y EAR: 20 0 9 - 10 PAGE 3 OF 3 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT