MANOHAR LAL JETHANI, Jaipur V. ITO, Jaipur

ITA 245/JPR/2011

• Counselvise Citation: 24523114 RSA 2011
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 21-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Section: 133A

Judgement Text

1 ITA 245-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 245/JP/2011 ASSTT. YEAR : 2003-04. SHRI MONOHAR LAL JETHANI, VS. THE INCOME-TAX OFFI CER, PROP.M/S.SARVANAND VARITIES, WARD 2(1), 11, KANOTA HOUSE, HALDION KA RASTA, JAIPUR. JOHARI BAZAR, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANISH AGARWAL RESPONDENT BY : SHRI D.K. MEENA ORDER DATE OF ORDER : 05/08/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2003-04. 2. THE ASSESSEE IS OBJECTING IN UPHOLDING THE ADDIT ION OF RS. 2,36,838/- MADE ON ACCOUNT OF NEGATIVE CASH BALANCES FOUND DURING THE COURSE OF SURVEY IN THE MONTHS OF OCTOBER AND NOVEMBER, 2002. 3. A SURVEY WAS CONDUCTED AT THE BUSINESS PREMISES OF THE ASSESSEE UNDER SECTION 133A ON 2.12.2002. DURING THE COURSE OF SURVEY NO BOOKS OF ACCOUNT WERE FOUND AND NO STOCK REGISTER WAS FOUND TO HAVE BEEN MAINTAINED. IT WAS NOTED BY THE SURVEY PARTY THAT THERE WAS NEGATIVE CASH BALANCE. DURING THE COURSE OF SURVEY THE BOOKS OF ACCOUNT WERE PRODUCED AND IT WAS SUBMITTED THAT THE BOOKS OF ACC OUNT WERE RECONCILED AT A LATER STAGE AND SOME OF THE SALE BILLS COULD NOT BE ENTERED IN THE BOOKS DURING THE COURSE OF SURVEY. 2 THEREAFTER THE BOOKS OF ACCOUNT WERE AUDITED AND TH ERE IS NO NEGATIVE CASH BALANCE IN THE MONTHS OF OCTOBER AND NOVEMBER, 2002. HOWEVER, AO W AS NOT SATISFIED, ACCORDINGLY THE CONTENTION OF THE ASSESSEE WAS NEGATIVED. HOWEVER, NO SEPARATE ADDITION WAS MADE AS AN ADDITION OF RS. 7,00,000/- ON ACCOUNT OF SURRENDER OF INCOME WAS MADE BY THE AO. THE LD. CIT (A) SUSTAINED THIS ADDITION ON ACCOUNT OF D EFICIT CASH POSITION ON INDIVIDUAL DAYS IN THE MONTHS OF OCTOBER AND NOVEMBER, 2002 AS HE H AS DELETED THE ADDITION OF RS. 7,00,000/- MADE BY AO ON ACCOUNT OF EXCESS STOCK ET C. 4. AFTER CONSIDERING THE SUBMISSIONS AND THE ORDERS OF THE AUTHORITIES BELOW, WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN THIS GROUND. THE BOOKS WERE RECONCILED ON A LATER STAGE AND AS PER RECONCILED BOOKS OF ACCOUNT, THERE WAS NO CASH SHORTAGE IN THE MONTHS OF OCTOBER AND NOVEMBER, 2002. THE BOOKS WERE AUDITED AND WERE PRODUCED BEFORE THE AO DURING THE ASSESSMENT PROCEEDINGS. NOTHING HAS B EEN COMMENTED UPON BY THE AO IN RESPECT OF MAINTENANCE OF BOOKS OF ACCOUNT NEITHER THE LD. CIT (A) HAS CONSIDERED THIS ASPECT. SINCE AS PER RECONCILED BOOKS OF ACCOUNT T HERE IS NO CASH SHORTAGE IN THESE DAYS, THEREFORE, IN OUR VIEW THE ADDITION MADE AND SUSTAI NED IS NOT JUSTIFIED ON ACCOUNT OF NEGATIVE CASH BALANCE. ACCORDINGLY THE SAME IS DEL ETED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 05. 08.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- 3 COPY FORWARDED TO :- SHRI MANOHAR LAL JETHANI, JAIPUR. THE ITO WARD 2(1), JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 245/JP/2011) BY ORDER, AR ITAT JAIPUR.