Shri Chandrakant Jivanbhai Patel, Surat V. The Income Tax Officer, Ward-3(2), Surat

ITA 2599/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9273 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 18-01-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 01-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 143(3); 92; 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 2599/AHD/2013 (ASSESSMENT YEAR:2009-10) SHRI CHANDRAKANT JIVANBHAI PATEL A-8, DURGAPURI SOCIETY, NR. MORA BHAGAL CHAR RASTA, RANDER ROAD, SURAT APPELLANT VS. ITO, WARD 3(2), SURAT RESPONDENT PAN: ABBPP0993M /BY ASSESSEE : NONE /BY REVENUE : SHRI P. S. CHAUDHARY, SR. D.R. /DATE OF HEARING : 18.01.2017 /DATE OF PRONOUNCEMENT : 08.02.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 ARISES AGAINST THE CIT(A)-IV, SURATS EX PARTE ORDER DATED 14.08.2013 PASSED IN APPEAL NO. CAS-IV/II/250/11-12, CONFIRMING ASSESSING OFFICERS ACTION ADDING A SUM OF RS.19,09,393/- ON ACCOUNT OF GROSS PROFITS ESTIMATI ON, IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. ITA NO. 2599/AHD/2013 (SHRI CHANDRAKANT J. PATEL VS . ITO) A.Y. 2009-10 - 2 - 2. CASE CALLED TWICE. NONE APPEARS AT ASESSEES BEH ALF. HE IS ACCORDINGLY PROCEEDED EX PARTE. WE THUS TAKE UP THE MAIN APPEA L FOR ADJUDICATION ON MERITS. 3. THIS ASSESSEE IS ENGAGED IN DIAMOND TRADING BUSI NESS. HIS TURN OVER READS A FIGURE OF RS.25,88,24,670/- ALONG WITH GP D ECLARED @ 0.26% COMING TO RS.06,78,854/- AS AGAINST THE IMMEDIATE PRECEDIN G ASSESSMENT YEAR TURN OVER FIGURES OF RS.8,41,525/- WITH 9.02% GROSS PROF ITS RATE COMING TO RS.76,105/-. THE ASSESSING OFFICER ASKED HIM TO PR ODUCE ALL BOOKS OF ACCOUNTS , BILLS, VOUCHERS AND RELEVANT INFORMATION TO ASCERTAIN THE REASON OF ABOVESTATED DECLINE IN GROSS PROFITS. HE FURTHER I SSUED SECTION 133(6) NOTICES TO ASSESSEES SUPPLIER OF ROUGH AND POLISHED DIAMON DS WHICH SHOULD RETURN. THE ASSESSING OFFICER FRAMED REGULAR ASSESSMENT IN THESE CIRCUMSTANCES ON16.12.2011 TO ESTIMATE GP @ 1% AFTER REJECTING AS SESSEES BOOKS THEREBY MAKING THE IMPUGNED ADDITION OF RS.19,09,393/- BEIN G THE DIFFERENCE BETWEEN ESTIMATED GP AND THE ONE STATED IN ASSESSEE S BOOKS. THE CIT(A) CONFIRMS THE SAME. 4. WE HAVE HEARD LD. DEPARTMENTAL REPRESENTATIVE. CASE FILE PERUSED. THE SOLE ISSUE IN THE INSTANT CASE IS ABOUT CORRECT NESS OF ESTIMATED GROSS PROFITS DETERMINED @1% OF ASSESSEES TURNOVER AS AG AINST 0.26% DECLARED AT ASSESSEES BEHEST. THERE IS NO DISPUTE THAT PRECED ING ASSESSMENT YEARS GORSS PROFIT RATE IS MUCH HIGHER @ 9.02%. THE ASSESSE HA D NEITHER BEEN ABLE TO SUBSTANTIATE THE SAME NOR HAS HE PLACED ON RECORD A LL RELEVANT DETAILS IN ORDER TO PROVE THE SAID STEEP DECLINE. THE ASSESSING OFF ICERS EFFORTS TO VERIFY EVEN ASSESSEES PURCHASES HAVE BEEN PROVED FUTILE. COUP LED WITH THIS, THE ASSESSEE HAS NOT FILED ANY INDEPENDENT EVIDENCE REGARDING HI S 12 PURCHASE PARTY TO PROVE GENUINENESS OF HIS BOOKS OF ACCOUNTS COMPELLI NG THE ASSESSING OFFICER TO REJECT THE SAME UNDER THE PROVISIONS OF THE ACT. WE THUS FIND NO REASON TO ITA NO. 2599/AHD/2013 (SHRI CHANDRAKANT J. PATEL VS . ITO) A.Y. 2009-10 - 3 - INTERFERE IN THE WELL REASONED CIT(A)S ORDER UNDER CHALLENGE. THE ASSESSEES SOLE SUBSTANTIVE GROUND FAILS ACCORDINGL Y. 5. THIS ASSESSEES APPEAL IS DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 08 TH DAY OF FEBRUARY, 2017.] SD/- SD/- ( MANISH BORAD ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 08/02/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0