M/S PAHARGANJ GRIH NIRMAN SAHKARI SAMITI, Jaipur V. ACIT, Jaipur

ITA 266/JPR/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7768 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2002-2003
• Appeal Filed On: 20-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S L CHANDEL CIT DHK
• Assessee Lawyers: SADAF RAIS
• Keywords: Opportunity of being heard

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 266/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2002-03. PAHARGANJ GRIH NIRMAN SAHAKARI SAMITI LTD. 6, GAURAV TOWER, OPP. POLICE STATION TRANSPORT NAGAR, JAIPUR 302003 CUKE VS. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, NEW CENTRAL REVENUE BUILDING STATUE CIRCLE, C-SCHEME, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAGFP 2917 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : MS. SADAF RAIS (C.A) JKTLO DH VKSJ LS@ REVENUE BY : SH. S.L. CHANDEL (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 16.08.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 04/09/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)- I, JAIPUR DATED 09.01.2012 PERTAINING TO ASSESSMENT YEAR 2002-03. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL :- 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDI TION OF RS. 15,91,607/- MADE BY THE AO APPLYING 10% RATE OF NET PROFIT ON G ROSS RECEIPTS OF THE SOCIETY WHICH IS NOT A TAXABLE ENTITY. 2. THE LD. CIT(A) HAS ALSO ERRED IN HOLDING THAT CO MPLETE DETAILS WERE NOT PRODUCED BEFORE THE AO IN RESPECT OF ACTIVITY OF SO CIETY CARRIED OUT DURING THE YEAR UNDER CONSIDERATION. 2. BRIEFLY, STATED THE FACTS ARE THAT, THIS IS A SE COND ROUND OF LITIGATION, IN EARLIER ROUND, MATTER WAS RESTORED TO THE FILE OF THE ASSES SING OFFICER BY THE CO-ORDINATE 2 ITA NO.266/JP/2012 PAHARGANJ GRIH NIRMAN SAHAKARI SAMITI LTD., JAIPUR. BENCH OF THIS TRIBUNAL IN ITA NO. 732/JP/2006 HAD R ESTORED THE ISSUE OF THE AO BY DIRECTING AS UNDER:- 9. WE HAVE PERUSED THE FACTS OF THE CASE AND FIND THAT THE ASSESSEE DID NOT PRODUCE THE BOOKS OF ACCOUNT ON THE LAST DAY ON 17-3-2005. THE AO CAME TO BE CONCLUSION THAT THE ASSESSEE IS HAVING N ON-COOPERATIVE ATTITUDE WITH THE DEPARTMENT AND PASSED THE ASSESSMENT ORDER ON 28-3-2005. IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT THE ASSESSEE I S MAINTAINING THE BOOKS OF ACCOUNT AND THE ASSESSE HAS PRODUCED ALL THE EVIDEN CES IN RESPECT OF CASH MADE TO THE LANDLORD AGAINST THE LAND AND MEMBERSHI P FEES OF THE MEMBER IS ALSO RECORDED IN THE BOOKS OF ACCOUNTS. IT APPEARS THAT THE AO HAS NOT VERIFIED THE BOOKS OF ACCOUNT AND OTHER DETAILS MAI NTAINED BY THE ASESSEE. THE LAST DAY OF HEARING BEING 17-3-05 AND THE ORDER HAS BEEN PASSED ON 28- 3-2005. THE AO HAS RELIED UPON THE FINDINGS IN ASS ESSEES OWN CASE BY THE AO AND ITAT, JAIPUR BENCH IN ASSESSEES OWN CASE FO R THE BLOCK PERIOD, HAS DECIDED THE ISSUE EVEN WITHOUT TAKING INTO ACCOUNT THE REPLY DATED 21-3-2005. IN THE INTEREST OF JUSTICE, WE RESTORE THE MATTER T O THE FILE OF THE AO WHO WILL DECIDED THE ISSUE DE NOVO AFTER VERIFYING THE BOOKS OF ACCOUNT BUT BY PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE. THUS THE SOLITARY GROUND OF THE REVENUE IS ALLOWED FOR STATI STICAL PURPOSES. 3. IN PURSUANCE OF THE SAID DIRECTION THE AO YET AGAIN MADE ADDITION OF RS. 15,91,607/- ON APPEAL TO THE LD. CIT , THIS ADDITIO N WAS SUSTAINED. NOW THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL CHALLENG ING THE ORDER OF LD. CIT. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SIMILAR ADDITIONS WERE MADE IN THE ASSESSMENT YEAR 2001-02 AND THIS TRIBUNAL WAS PLEAS ED TO DELETE THE SAME. HOWEVER, THE ADDITION PERTAINING TO THE YEAR UNDER APPEAL WAS NOT DELETED BUT THE ISSUE WAS RESTORED TO THE FILE OF THE AO FOR DENOVO ASSESSMENT. LD. COUNSEL 3 ITA NO.266/JP/2012 PAHARGANJ GRIH NIRMAN SAHAKARI SAMITI LTD., JAIPUR. SUBMITTED THAT THE AUTHORITIES BELOW WERE NOT JUSTI FIED IN MAKING THE ADDITION AND CONFIRMING THE SAME. THEREFORE, THE ADDITION MAY B E DELETED. 4. ON THE CONTRARY, LD. D/R OPPOSED THE SUBMISSIONS AND STATED THAT THE ASSESSEE REMAINED NON-COOPERATIVE THROUGHOUT THE DE NOVO ASSESSMENT PROCEEDING AND NOW ASSESSEE CANNOT BE ALLOWED TO TAKE ADVANTAG E OF ITS OWN NEGLIGENCE. THE ASSESSEE WAS REQUIRED TO PRODUCED BOOKS OF ACCOUNTS AND OTHER EVIDENCES AS DIRECTED BY THE AO, NON-PRODUCTION OF THIS BY THE A SSESSEE HAS NOT ONLY VIOLATED THE DIRECTION GIVEN BY THIS TRIBUNAL, BUT ALSO NON-PROD UCTION PROVES THAT THE ASSESSEE HS NO GENUINE CLAIM. 5. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD. THERE IS NO DISPUTE WITH REGARD TO THE FAC TS. THIS TRIBUNAL HAS DIRECTED THE AO TO DECIDE THE ISSUE DENOVO, AFTER VERIFYING THE BOOKS OF ACCOUNTS BY PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD, TO THE ASSESSE E. FROM THE ASSESSMENT ORDER IT IS TRANSPIRED THAT THE ASSESSING OFFICER HAS GIVEN MANY OPPORTUNITIES AS RECORDED IN THE PARA 1 PAGE NO. 2 OF THE ASSESSMENT ORDER. IN THE ASSESSMENT PROCEEDING IT IS OBSERVED BY THE ASSESSING OFFICER THAT THE ASSESSEE WAS ASKED TO FURNISH THE DETAILS/ EVIDENCE OF PAYMENT MADE FOR LAND PURCHASE IN CASH AND SUPPORTING RECEIPTS BOOKS, ENTRIES IN ITS BOOKS, DETAILS OF ISSUING MEMBERSHIP FORMS, ALLOTMENT LETTERS, DETAILS PARTY CONCERNS, EVIDENCE OF RECEIPTS OF AMOUNT FOR LAND IN CASH-RECEIPT. IT IS STATED BY THE LD. COUNSEL FOR THE ASSESSEE THAT, COMPLETE DETAILS I.E. BANK STATEMENT, COPY OF AGREEMENT ETC. WERE FURNISHED WHICH IS ENCLOSED AT PAPER BOOK PAGE NO. 21 TO 39. THESE EVIDENCES DEMONSTRATE THE TRANSACTION IN BANK AND THE PURCHASE OF LAND BUT ASSESSEE HAS NOT FURNISHED THE DETAILS RELATED TO ITS MEMBERS. IN THE ABSENCE OF MEMBER WISE SUBSCRIPTION, IN OUR VIEW, THE AO WAS N OT IN A POSITION TO MAKE PROPER 4 ITA NO.266/JP/2012 PAHARGANJ GRIH NIRMAN SAHAKARI SAMITI LTD., JAIPUR. ASSESSMENT. IT WAS INCUMBENT UPON THE ASSESSEE TO FURNISH THE DETAILS. ACCORDINGLY, WE DISMISSED THIS GROUND OF ASSESSEES APPEAL. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO. 266/JP/2012 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 04 TH DAY OF SEPTEMBER 2017. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 04/09/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- PAHARGANJ GRIH NIRMAN SAHAKARI SA MITI LTD., JAIPUR. 2. THE RESPONDENT- ASSISTANT COMMISSIONER OF INCOM E TAX, JAIPUR. 3. THE CIT 4. THE CIT (A) 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 266/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO.266/JP/2012 PAHARGANJ GRIH NIRMAN SAHAKARI SAMITI LTD., JAIPUR.