Bhaiya Ram Singh, Bokaro V. ITO WARD-3(1), Bokaro

ITA 263/RAN/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7786 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 29-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: NITIN PASARI
• Keywords: Reasonable cause; Revised return

Judgement Text

1 ITA NO. 263 /RAN/ 201 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 263 /RAN/201 6 A .Y. : 2010 - 2011 BHAIYA RAM SINGH, QTR.NO.2217, STREET - 22, SECTOR - 8/B, B.S.CITY, JHARKHA ND - 827004 V S ITO, WARD - 3(1), BOKARO, JHARKHAND P AN NO. : BCGPS 2112 C (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI NITIN PASARI , ADV. REVENUE BY :SHRI P.K.MONDAL, JCIT DATE OF HEARING : 2 2 . 05 .201 8 DATE OF PR ONOUNCEMENT : 24.05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), HAZARIBAG , DATED 27.05.2016 , FOR THE ASSESSMENT YEAR 2010 - 11. 2. THE SOLE ISSUE INVOLVED IN THE PRESENT APPEAL OF THE ASSESSEE IS WITH RESPECT TO ESTIMATION OF INCOME AT 8% BY THE AO AND THEREBY CONFIRMED BY THE CIT(A). 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE DERIVES INCOME FROM CATTLE FEED BUSINESS AND FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2 011 - 2012 ON 28.06.2012 WITH TOTAL INCOME OF RS. 1,58,750/ - . AS PER THE AIR INFORMATION THE ASSESSEE HAD MADE HUGE CASH DEPOSITS IN HIS TWO BANK ACCOUNTS ON DIFFERENT DATES. AS THE INCOME HAS ESCAPED, THEREFORE, 2 ITA NO. 263 /RAN/ 201 6 THE AO ISSUED NOTICE U/S.148 OF THE ACT ON 31 .05.2013 FOR A.Y.2011 - 12. IN RESPONSE TO NOTICE U/S.148, THE ASSESSEE F ILED THE RETURN OF INCOME FOR A.Y.2011 - 2012 SHOWING TOTAL INCOME OF RS.1,59,900/ - . LATER THE ASSESSEE HAS FILED REVISED RETURN ON 05.01.2015 DECLARING TOTAL INCOME OF RS.1,59,900/ - ON GROSS RECEIPT OF RS.1,36,31,350/ - AND EXPENSES CLAIMED ON ESTIMATE BASIS. THE RETURN OF INCOME WAS PROCESSED U/S.143(1) OF THE ACT. SUBSEQUENTLY NOTICE U/S.142(1) & 143(2) OF THE ACT WAS ISSUED TO THE ASSESSEE . IN COMPLIANCE THE LD. AR OF THE ASSESSEE APPEARED FROM TIME TO TIME AND FILED THE RELEVANT DOCUMENTS. THE AO ON PERUSAL OF BANK STATEMENT FOUND THAT THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF CASH DEPOSITED IN THE BANK. THEREFORE, A SHOW CAUSE LETTER WAS ALSO ISSUED BY THE AO TO THE ASSESSEE AND THE AS SESSEE REPLIED TO THE SHOW CAUSE LETTER. HOWEVER, THE AO FOUND THAT THE ASSESSEE COULD NOT SUBMIT THE DOCUMENTARY EVIDENCE OF SOURCE OF CASH DEPOSIT IN HIS BANK ACCOUNTS AND ACCORDINGLY ESTIMATED THE INCOME OF THE ASSESSEE AT 8% AND ASSESSED TOTAL INCOME O F RS. 13,03,920/ - AND PASSED ORDER U/S. 143/147 OF THE ACT, DATED 26.02.2015 . 4 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS LD. AR OF THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE S UBMISSIONS AND LD.CIT(A) HAVING CONSIDERED THE FINDINGS AND THE SUBMISSIONS OF THE ASSESSEE DEALT ON THE DISPUTED ISSUES AND DISMISSED THE APPEAL OF THE ASSESSEE. 3 ITA NO. 263 /RAN/ 201 6 5 . AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 6 . BEFORE US, LD.AR SUBMITTED THAT THE AO HAS ERRED IN ESTIMATING THE INCOME AT 8% IRRESPECTIVE OF THE FACT THAT THE ASSESSEE HAS BEEN OFFERING INCOME AT 2% AND ALSO FILED PAPER BOOK EXPLAINING THAT IN SUBSEQUENT YEARS THE TURNOVER OF THE ASSESSEE HAS INCRE ASED AND NP HAS BEEN OFFERED AT 1.17% TO 1.20% AND, THEREFORE, PRAYED THAT PERCENTAGE OF ADDITION MADE BY THE AO AT 8% AND CONFIRMED BY THE CIT(A) MAY BE SET ASIDE AND APPEAL OF THE ASSESSEE MAY BE ALLOWED. 7 . CONTRA, LD. DR RELIED ON THE ORDER OF LOWER A UTHORITIES. 8 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, THE ASSESSEE HAS INCOME FROM CATTLE FEED BUSINESS. THE AO ON PERUSAL OF FINANCIAL STATEMENTS AND SUBMISSION OF ASSESSEE HAS ESTIMATED THE INCOME OF THE ASS ESSEE AT 8%. THE AO OBSERVED THAT THE ASSESSEE HAS NOT SUBMITTED ANY REASONABLE CAUSE WHICH PREVENTED THE ASSESSEE TO GET HIS ACCOUNT AUDITED U/S.44AB OF THE ACT AND ON APPEAL THE CIT(A) HAS CONFIRMED THE SAME. THE ASSESSEE HAS MENTIONED THAT BOOKS OF ACCO UNTS HAVE BEEN MAINTAINED, HOWEVER, AND BILLS AND VOUCHERS COULD NOT BE FILED. LD.AR FURTHER SUBMITTED BEFORE US THAT THE BUSINESS OF THE ASSESSEE IS WHOLESALE WHEREIN THE MARGIN IS VERY LOW AS COMPARED TO RETAIL BUSINESS. WE , IN THE INTEREST OF SUBSTANTI AL JUSTICE AND FAIRPLAY, PROVIDE ONE MORE OPPORTUNITY TO SUBSTANTIATE ITS CLAIM BEFORE THE AO AND REMIT THE ENTIRE ISSUE TO THE FILE OF AO , WHO SHALL VERIFY AND EXAMINE THE 4 ITA NO. 263 /RAN/ 201 6 SAME AND PASS ORDER AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE . THE ASSESSEE IS DIRECTED TO COOPERATE IN SUBMITTING THE INFORMATION BEFORE THE AO. ACCORDINGLY, THE GROUND OF APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN CO URT ON 24 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 24 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. CIT , CONCERN ED 5. DR, ITAT, RANCHI 6. GUARD FILE.