ITO, SRIGANGANAGAR V. Smt. Pushpa Gupta, RAISINGHNAGAR

ITA 28/JODH/2014

• Counselvise Citation: 2823314 RSA 2014
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 17-07-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 06-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PURCHASES WERE VERIFIED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA , JUDICIAL MEMBER AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 28 / JU/ 20 1 4 ASSESSMENT YEAR: 200 9 - 10 THE INCOME - TAX OFFICER VS. SMT. PUSHPA GUPTA WARD - 2 PROP. M/S. JAS RAJ BANWARI SRIGANGANAGAR. LAL, 61 - OLD DHAN MANDI, RAISINGHNAGAR. PAN NO. AASPG2392K (APPELLANT) (RESPONDENT) A SSESSEE B Y : NONE (W/S) DEPARTMENT B Y : SHRI N.A. JOSHI , DR DATE OF H EARING : 17 . 0 7 .201 4 DATE OF PRONOUNCEMENT : 23 . 0 7 . 201 4 ORDER PER HARI OM MARATHA , J .M. TH IS APPEAL BY THE REVENUE IS DIRECTED A GAINST THE ORDER OF THE CIT (A) , BIKANER DATED 23 . 10 .20 1 3 PERTAINING TO A.Y 200 9 - 20 10 . 2 2. BRIEFLY STATED, TH E FACTS OF THIS CASE ARE THAT THE ASSESSEE, AS INDIVIDUAL, HAS BEEN CARRYING ON BUSINESS OF ARHAT (FOODGRAIN - MERCHANT ON COMMISSION BASIS). HE FILED HIS RETURN OF INCOME (RETURN OF INCOME [ROI]) FOR A.Y. 2009 - 10, ON 30.09.2009, DECLARING TOTAL INCOME OF R S. 80,530/ - . THE ASSESSEE HAS SHOWN ARHAT RECEIPTS OF RS. 6,35,571/ - AND PROFIT OF RS. 6,12,133/ - IN THE TRADING OF AGRICULTURAL COMMODITIES. THE ASSESSEE MAINTAINED HIS BOOKS OF ACCOUNTS WHICH ARE AUDITED U/S 44AB OF THE I.T. ACT, 1961 (THE ACT FOR SHOR T). THE ENTIRE SALES AND PURCHASES WERE VERIFIED AND FOUND TO BE CORRECT. HOWEVER, FROM THE P&L ACCOUNT IT WAS FOUND THAT THE ASSESSEE HAS CLAIMED A LOSS OF RS. 6,26,753/ - IN THE GUWAR ACCOUNT. IN THIS ACCOUNT THE ASSESSEE AT SHOWN OPENING BALANCE OF GUWAR AS ON 01.04.2008 AT 3140.12 QTLS. BY TAKING RATE OF RS. 1700/ - PER QTL. AS PER THE A.O. NO EVIDENCE HAS BEEN FURNISHED IN THIS REGARD. FOR PURCHASES OF GWAR BETWEEN 13.10.2008 TO 12.12.2008 OF 7068 QTLS THE ASSESSEE HAS APPLIED AVERAGE RATE OF RS. 1543/ - AND FOR THAT NO EXACT AND DATE - WISE PROOF AS PER THE A.O., HAS BEEN PRODUCED. THEREFORE, HE HAS DISALLOWED CLAIMED LOSS OF RS. 6,26,753/ - IN THE GWAR A CCOUNT AND HAS ADDED IN HIS TOTAL 3 INCOME OF THIS YEAR. FURTHER, IN THE P&L ACCOUNT, THE ASSESSEE HAS CLAI MED INTEREST OF RS. 9,29,978/ - . IT WAS NOTICED THAT THE ASSESSEE HAS NOT SHOWN ANY INTEREST RECEIPTS FROM THE DEBTORS ACCOUNT. THE ASSESSEE HAS NOT CHARGED INTEREST FROM THE FOLLOWING DEBTORS : - 1.M/S. JAI BAJRANG KHAL BHANDAR, PUNDRI D. BAL RS. 91,66, 389 2. M/S. JAGDAMBA OIL AND GEN MILL, CHIKA RS. 1,07,08,638 3. M/S. BANSAL COTTON & OIL MILL, KAITHAL RS. 24,78,733 THE PLEA OF THE ASSESSEE IS THAT NEITHER HE HAS PAID INTEREST TO THE CREDITORS NOR HAS CHARGED FROM THE TRADE DEBTORS. HOWEVER, THE A.O. DID NOT FIND THE ABOVE EXPLANATION OF THE ASSESSEE FULLY CORRECT, THEREFORE, HE HAS DISALLOWED RS. 9,29,278/ - AND HAS ADDED THE SAME BACK TO HIS TOTAL INCOME OF THIS YEAR. 2.1. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A), WHO VIDE THE IMPUGNED ORDER HAS DELETED BOTH THE ABOVE ADDITIONS. NOW, REVENUE HAS COME IN APPEAL JUSTIFYING BOTH ADDITIONS. 4 2.2 WE HAVE HEARD LD. SR. D.R. AT LENGTH. WE HAVE GONE THROUGH THE WRITTEN SUBMISSIONS FILED ON BEHALF OF THE RESPONDENT. IT MAY BE MENTIONED THAT AFTER THE RECEIPT OF REQUEST OF THE ASSESSEE THROUGH A.R. THAT THE APPEAL MAY BE DECIDED ON THE BASIS OF W RITTEN S UBMISSIONS, THE BENCH AGAIN CALLED THE RESPONDENT, IF HE COULD MAKE ORAL SUBMISSIONS, IT WAS NOT RESPONDED TO, THEREFORE, TO AVOID DELAY , THE WRITTEN SUBMISSIONS OF THE ASSESSEE WERE CONSIDERED. 2.3 WE HAVE FOUND THAT THE LOSS OF RS. 6,26,753/ - SUFFERED IS REAL, DUE TO MARKET CONDITION. THE A.O. HAS VERIFIED ENTIRE PURCHASES AND SALES OF GWAR AND HAS NOT FOUND ANY ANOMALY. THE BOOKS OF A CCOUNTS ARE AUDITED AS PER LAW AND THERE ARE NO ADVERSE REMARKS OF THE CHARTERED ACCOUNTANT. THE A.O. HAS HIMSELF ACCEPTED THE RESULTS DECLARED BY THE ASSESSEE. THE SALES ARE TO THIRD PARTIES AND NOT TO ANY SISTER CONCERN. ENOUGH EVIDENCE TO PROVE HIS CLA IM HAS BEEN PRODUCED BY THE ASSESSEE. THEREFORE, WE DONT FIND ANY INFIRMITY IN DELETION OF ADDITION OF RS. 6,26,753/ - . 5 3. REGARDING DISALLOWANCE OF INTEREST OF RS. 9,29,278/ - , IT IS FOUND THAT INTEREST HAD BEEN PAID TO THE BANK FOR CREDIT FACILITIES. ON NORMAL OBSERVATION THAT THE ASSESSEE IS NOT PAYING INTEREST TO CREDITORS AND NOT CHARGING INTEREST FROM DEB TORS, NO SUCH DISALLOWANCE CAN BE MADE. ACCORDINGLY, THIS DELETION IS ALSO IN ORDER. 4. AS A RESULT, BOTH THE GROUNDS OF REVENUES APPEAL STAND DI SMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRON OUNCED IN THE COURT ON 23 RD JULY , 2014. SD/ - SD/ - (N.K.SAINI) [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEM B ER DATED : 23 RD JULY , 201 4 VL/ - COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT BY ORDER 4. THE CIT(A) 5. THE DR ASSISTANT REGISTRAR ITAT, JODHPUR