SHRI YASH BATRA, Indore V. THE ITO - Ward 1(1), Indore

ITA 286/IND/2015

• Counselvise Citation: 28622714 RSA 2015
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-07-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 01-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S SOLANKI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 286/IND/2015 A.Y. : 2005-06 SHRI YASH BATRA, ITO PROP. M/S. SIMRAN ORGANICS, VS WARD 1(1), INDORE. INDORE APPELLANT RESPONDENT PAN NO. AABPB8124D APPELLANT BY : SHRI S. S. SOLANKI, CA RESPONDENT BY : SHRI R.A.VERMA, SR. DR DATE OF HEARING : 02 . 0 7 .201 5 DATE OF PRONOUNCEMENT : 18 . 0 8 .201 5 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-I, INDORE, DATED 19.11.2014 FOR THE ASSE SSMENT YEAR 2005-06. -: 2: - 2 2. THE SHORT FACTS OF THE CASE ARE AS UNDER. 3. THE ASSESSEE IS ENGAGED IN MANUFACTURING PHARMACEUTICALS ITEMS. THUS, HE IS EXPECTED TO MAIN TAIN QUANTITATIVE DETAILS OF THE PRINCIPAL ITEMS OF RAW MATERIAL, FURNISHED PRODUCTS. BUT IN THE TAX AUDIT REPORT, IT IS MENTIONED THAT THE ASSESSEE IS NOT MAINTAINING QUANTITATIVE D ETAILS OF MATERIAL AND FINISHED PRODUCTS. THE AO HAS FURTHER EXAMINED THE BOOKS OF ACCOUNT AND FOUND THAT BILLS FOR CONSU MABLE ITEMS DEBITED TO THE PROFIT AND LOSS ACCOUNT WERE N OT AVAILABLE WITH THE ASSESSEE. SIMILARLY, PURCHASE OF RS. 2,40, 337/- ARE SHOWN IN THE BOOKS OF ACCOUNT, BUT THE SAME WERE NO T AVAILABLE, WHILE THE AUDITOR HAS AUDITED HIS BOOKS OF ACCOUNT. SIMILARLY, THE PURCHASE OF RS. 2,87,500/- WAS NOT SATISFACTORILY EXPLAINED BY THE ASSESSEE. THEREFORE , THE AO HAS REJECTED THE BOOKS OF ACCOUNT U/S 145(3) OF THE ACT AND THEY HAVE ESTIMATED THE GROSS PROFIT AND MADE THE ADDITI ON OF RS. RS. 13,82,215/-. 4. THE MATTER CARRIED TO LD. CIT(A). THE LD. CIT(A) HA S REDUCED THE ADDITION TO RS. 3,46,443/-. -: 3: - 3 5. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. THE ASSESSEE HAS FURNISHED THE BILL OF IMPORT OF SU LPHAMIDE FROM GOLDLINK IND. CO. LTD., CHINA, DATED 23.07.200 4, BUT FAILED TO GIVE BREAK UP OF TOTAL BILL AMOUNT. SIMIL ARLY, THE ASSESSEE COULD NOT EXPLAIN THE PURCHASE OF SULPHAMI DE FROM M/S. ISHITA INTERNATIONAL OF RS. 2,87,500/-. SIMILA RLY, THERE WAS NO PURCHASE BILLS OF CONSUMER ITEMS, NEITHER ST OCK REGISTER NOR DAY TO DAY STOCK WAS MAINTAINED. THERE FORE, THE AO HAS REJECTED THE BOOKS OF ACCOUNT BY INVOKING PR OVISIONS OF SECTION 145(3) OF THE ACT. THEREFORE, THE AO HAS RE JECTED THE BOOK RESULT AND ESTIMATED THE GROSS PROFIT AND THE LD. CIT(A) HAS CONFIRMED THE ADDITION OF RS. 3,46,443/-, WHICH IS ON HIGHER SIDE. THEREFORE, IT IS REDUCED TO RS. 2 LAKH S AND THE ASSESSEE GETS THE RELIEF OF RS. 1,46,443/-. -: 4: - 4 6. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 18 TH AUGUST, 2015. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 18 TH AUGUST, 2015. CPU*