DCIT Circle-25 (1), New Delhi V. Arun Aggarwal, New Delhi

ITA 2630/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8348 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 02-06-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 05-08-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Section: 145; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA : VICE PRESIDENT; A ND SRI AAKASH DEEP JAIN : JUDICIAL MEMBER ITA NO. 2630/DEL/08 ASSTT. YR: 2005-06 DCIT CIR. 25(1), VS. ARUN AGGARWAL, NEW DELHI. C-1/64, RAJASTHALI APPT. PITAMPURA, DELHI. PAN/GIR NO. AAHPA5972E ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : MS. PRATIMA KAUSHIK SR. DR RESPONDENT BY : NONE O R D E R PER G.E. VEERABHADRAPPA, V.P: THIS APPEAL, BY THE REVENUE, ARISES OUT OF THE ORDE R DATED 21-5-2008 OF THE CIT(A), NEW DELHI, FOR A.Y. 2005-06. 2. THE ONLY DISPUTE IN THIS APPEAL IS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND FACTS OF THE CASE BY DELETING THE ADDITION OF RS. 6,75,545/- MADE BY THE AO BY ENHANCING THE G.P. RATE (TRADING RESULTS) BY HALF PERCENT BY REJECTING BOOKS OF ACCOUNT U/S 145 AND M ADE THE ASSESSMENT IN THE MANNER PROVIDED IN SECTION 144 OF I.T. ACT 1961 . 3. WE HAVE HEARD BOTH SIDES ON THE ISSUE AND CAREFU LLY GONE THROUGH THE RECORDS. THE AO HAS NOT POINTED OUT ANY DISCREPANCY IN THE MAINTENANCE OF THE BOOKS OF ACCOUNT BY THE ASSESSEE, IN THE ABSENC E OF WHICH ADDITION MADE 2 IN RESPECT OF THE GROSS PROFIT CANNOT BE SUSTAINED . AFTER ALL ESTIMATION OF INCOME CANNOT BE BASED UPON CERTAIN ARITHMETICAL CA LCULATIONS. THE ASSESSEE HAS DONE THE BUSINESS WITH THOSE FIGURES. UNLESS TH EY ARE DEFECTIVE, IT IS NOT OPEN TO THE AO TO DISTURB THE BOOK RESULTS BY JUST JUSTIFYING THE SAME BY CERTAIN ARITHMETICAL CALCULATIONS OF RATES OF GROSS PROFIT. THE LEARNED CIT(A) HAS CORRECTLY DELETED THE ADDITION, ON THE FACTS A ND CIRCUMSTANCES OF THE CASE. WE DECLINE TO INTERFERE. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 2-6-2009. ( AAKASH DEEP JAIN ) ( G.E. VEERABHADRA PPA ) JUDICIAL MEMBER VICE PRESIDENT DATED: 2-06-2009. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 3