AMRAPALI JEWELS PVT. LTD., Jaipur V. DCIT, Jaipur

ITA 303/JPR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5539 (ITAT-JAIPUR)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 30-03-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DHK
• Keywords: Rejection of books of accounts; 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 BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 303 /JP/15 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 M/S AMRAPALI JEWELS PVT. LTD. PANCH BATI, M.I. ROD, JAIPUR CUKE VS. THE DCIT, CIRCLE-2, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCAAABCA277 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 29/01 /2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 04 /02/2016. VKNS'K@ ORDER- PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-I, JAIPUR DATED 07.0.2014 WHEREIN THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL: (1) THAT ON THE FACT AND IN THE CIRCUMSTANCES OF THE C ASE THE LD. CIT(A) UPHOLDING THE REJECTION OF BOOKS OF ACCOUNTS BY APPLYING PROV ISION OF SECTION 145(3). (2) THAT THE LD. CIT(A) IS FURTHER WRONG AND HAS ERRED IN LAW IN CONFIRMING TRADING ADDITION OF RS. 2,35,500/- (CORRECT AMOUNT OF RS. 2 ,32,500/-) BY DISALLOWING 15% OF THE ALLEGED UNVERIFIABLE PURCHASES OF RS. 1 5,50,000/- MADE FROM M/S ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 2 BRIGHT STONE. HE HAS FURTHER ERRED IN NOT CONSIDE RING THE FACT THAT M/S BRIGHT STONE, A PROPRIETOR CONCERN OF SHRI SHARAD AGARWAL IS REGULARLY ASSESSED TO TAX IS NOT THE SAME PARTY AS IS REFERRED IN THE INV ESTIGATION CARRIED BY THE BCCT WING OF THE DEPARTMENT . (3) THAT THE LD. CIT(A) IS FURTHER WRONG AND HAS ERRED IN LAW IN CONFIRMING DISALLOWANCE OF RS. 25,000/- OUT OF OFFICE AND GENE RAL EXPENSES. 2. REGARDING GROUND NO. 1 & 2 THE MATTER RELATES TO UNVERIFIABLE PURCHASES OF RS. 15,50,000/- MADE FROM M/S BRIGHT STONE. GIV EN CONSISTENT STAND TAKEN BY THIS BENCH IN RESPECT OF UNVERIFIABLE PURCHASES , THE MATTER IS SET ASIDE TO THE FILE OF THE AO TO EXAMINE THE SAME AFRESH AFTER CONSIDE RING THE DECISION OF HONBLE RAJASTHAN HIGH COURT IN THE CASE OF ANUJ KUMAR VARSHN EY & OTHERS VS ITO (ITA NO. 187/JP/2012 DATED 20.10.2014) AFTER GIVING REA SONABLE OPPORTUNITY TO THE ASSESSEE. THUS GROUND NO. 1& 2 ARE ALLOWED FOR ST ATISTICAL PURPOSES. 3. REGARDING GROUND NO.3, THE MATTER RELATES TO AN ADHOC DISALLOWANCE OF 10% OF THE OFFICE AND GENERAL EXPENSES. SINCE AO HAS NOT POINTED OUT ANY SPECIFIC EXPENDITURE WHICH IS EITHER BOGUS OR NOT INCURRED FOR THE PURPOSES OF THE BUSINESS, THE ADHOC DISALLOWANCE CANNOT BE SUS TAINED IN EYE OF LAW AND IS HEREBY DELETED. HENCE GROUND NO.3 IS ALLOWED . ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 3 IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED ORDER PRONOUNCED IN THE OPEN COURT ON 04 /02/2 016 SD/- SD/- VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- O4 / 02 /2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/ AMRAPALI JEWELS PVT. LTD. JAIPU R 2. THE RESPONDENT- THE DCIT, CIRCLE-2, JAIPUR 3. THE CIT(A),I, JAIPUR 4. THE CIT-I, JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 303/JP/14) VKNS'KKUQLKJ@ BY ORDER, LGK;DIATHDKJ@ ASSISTANT. REGISTRAR. ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 4 SL. NO. DATE INITIAL 1 DATE OF DICTATION 2 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER OTHER MEMBER 3 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P.S./P.S 4 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 5 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./P.S. 6 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 7 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 8 THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER 9 DATE OF DISPATCH OF THE ORDER ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 5 ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 6 1 AT THE OUTSET, THE LD. DR CONTENDS THAT THE COO RDINATE BENCH OF ITAT IN BUNCH OF APPEALS BY ITS CONSOLIDATED ORDER IN THE CASE OF ANUJ KUMAR VARSHNEY & OTHERS ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 7 VS. ITO (ITA NO. 187/JP/2012 DATED 20.10.2014) HAS HELD THAT 15% OF THE UNVERIFIABLE PURCHASES SHALL BE THE INCOME OF THE A SSESSEE FROM UNDISCLOSED SOURCES IN THE RELEVANT YEAR. THEREFORE, THE APPEAL S MAY BE DECIDED IN VIEW OF THE ITAT ORDER. AT THE SAME TIME, IT IS PLEADED THAT B OTH THE REVENUE AND ASSESSEE HAVE GONE IN APPEAL BEFORE HONBLE RAJASTHAN HIGH C OURT AGAINST THIS BUNCH OF ORDERS. 2.2 THE LD.AR OF THE ASSESSEE ALSO CONTENDS THAT TH E ISSUE IN QUESTION MAY BE SET ASIDE TO THE FILE OF THE AO TO DECIDE THE SAME AFRESH AFTER THE JUDGEMENT RENDERED IN THE CASE OF SHRI ANUJ KUMAR VARSHNEY AND OTHERS VS. ITO (SUPRA) BY HONBLE RAJASTHAN HIGH COURT, AFTER GIVING THE ASSES SEE A REASONABLE OPPORTUNITY OF BEING HEARD IN ACCORDANCE WITH LAW. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND MERIT IN THE PROPOSAL OF BOTH THE PARTIES. ACCORDINGLY, WE ARE INCLINED TO SET ASIDE THE ISSUES RAISED IN THE APPE AL FOR THE ASSESSMENT YEAR 2008- 09 AND RESTORE THE MATTER TO THE FILE OF AO TO DECI DE THE SAME AFRESH AFTER THE JUDGEMENT OF HONBLE RAJASTHAN HIGH COURT IN THE CASE OF ANUJ KUMR VARSHNEY AND OTHER VS. ITO(SUPRA) IS DELIVERED, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HERD TO THE PARTIES. THUS GROUND NO. 1 & 2 ARE AL LOWED FOR STATISTICAL PURPOSES. ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 8 3. REGARDING GROUND NO.3, THE ASSESSEE HAS CHALLENG ED THE DISALLOWANCE OF INTEREST OF RS. 20,000/- MADE BY THE AO. 3.1 DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAS ADMITTED THE SUM BORROWED FROM ANC JEWELS (P) LTD. WAS GIVEN TO THE PROPRIETOR SHRI ANIL GUPTA. GIVEN THIS ADMITTED FACTS THE DISALLOWANCE OF RS. 20,000/- PAID TO M/S ANC JEWELS PVT. LTD. IS HEREBY CONFIRMED AS THE NEC ESSARY NEXUS HAS BEEN ESTABLISHED AND ADMITTED BY THE ASSESSEE HIMSELF. H ENCE GROUND NO.3 TAKEN BY THE ASSESSEE IS DISMISSED. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON /01/20 16 VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- / 01 /2016 ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 9 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHRI ANIL GUPTA, JAIPUR 2. THE RESPONDENT- THE ACIT, CIRCLE-1, JAIPUR 3. THE CIT(A),I, JAIPUR 4. THE CIT-I, JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 396/JP/14) VKNS'KKUQLKJ@ BY ORDER, LGK;DIATHDKJ@ ASSISTANT. REGISTRAR. SL. NO. DATE INITIAL 1 DATE OF DICTATION 2 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ITA NO. 303/JP/14 KAILASH CHANDRA KABRA VS. ACIT, CENTRAL CIRCLE, JM ER 10 OTHER MEMBER 3 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P.S./P.S 4 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 5 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./P.S. 6 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 7 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 8 THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER 9 DATE OF DISPATCH OF THE ORDER