M/S JAIKISAN ENTERPRISES, DHANBAD V. ITO WARD-1(3), DHANBAD

ITA 283/RAN/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9517 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 13-11-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NISHA SINGHMARR J
• Section: 143(3); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A NO.283/RAN/2017 ASSESSMENT YEAR: 2006-07 M/S JAI KISHAN ENTERPRISES KHILKINARI, GOVINDPUR, DHANBAD. VS. ITO-1(3), DHANBAD PAN/GIR NO. : AADFJ2936P ( APPELL ANT ) .. (RESPONDENT) APPELLANT BY SHRI DEVESH PODDAR, ADVOCATE RESPONDENT BY SMT. NISHA SINGHMARR, JCIT(DR) DATE OF HEARING 03.03.2020 DATE OF PRONOUNCEMENT 03.03.2020 O R D E R S. S. GODARA(ORAL): THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2006-07 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS), DHANBAD, JHARKHAND DATED 08.06.2017 PASSED IN CASE NO.102/DHN/2008-09 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD SHRI PODDAR, LEARNED AUTHORISED REPRESENTATIVE AND SMT. NISHA SINGHMARR, JCIT-DR APPEARING AT THE REVENUES BEHEST. 2. COMING TO THE FORMER ISSUE OF EXCESS STOCK ADDITION AMOUNTING TO RS.5,66,590/-, LEARNED COUNSEL IS FAIR ENOUGH IN NOT DISPUTING THE SAME IN PRINCIPLE SINCE BASED ON INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SURVEY. HIS ONLY CASE IS THAT THE IMPUGNED ADDITION OUGHT TO HAVE ONLY QUA PROFIT ELEMENT EMBEDDED THEREIN. I FIND MERIT IN ASSESSEES INSTANT ARGUMENT BY HONBLE CALCUTTA HIGH COURT IN PCIT VS. SUBARNA RICE MILL ITAT 196 OF 2015 GA 4047 OF 2015 DATED 20.07.18 HOLDS THAT ONLY PROFIT ELEMENT IN CASE OF EXCESS STOCK ADDITION HAS TO BE MADE. I THUS DECLINE THE REVENUES ARGUMENTS TO THIS LIMITED EXTENT. THE ASSESSING OFFICER IS DIRECTED TO ADD A LUMPSUM AMOUNT OF RS.50,000/- AS ESTIMATED PROFIT ADDITION. IT IS MADE CLEAR THAT INSTANT ESTIMATION SHALL NOT BE TREATED A PRECEDENT. SECTION 234A AND 234B INTEREST SHALL BE COMPUTED AS PER LAW. I.T.A NO.283/RAN/2017 M/S JAI KISHAN ENTERPRISES 2 3. LEARNED COUNSEL IS FAIR ENOUGH IN NOT PRESSING FOR ASSESSEES LATTER SUBSTANTIVE GROUND SEEKING TO DELETE ADDITION OF RS.33,000/- KEEPING IN MIND THE SMALLNESS OF THE AMOUNT. THE SAME STANDS AFFIRMED THEREFORE. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER IS PRONOUNCED IN THE OPEN COURT ON 03.03.2020. SD/- (S. S. GODARA) JUDICIAL MEMBER DATED:03.03.2020. RS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) - 5. THE DR, ITAT, RANCHI 6. GUARD FILE BY ORDER SR. P.S., ITAT, RANCHI (ON TOUR)