Shri Jivanlal Joitaram Patel, Ahmedabad V. The Asstt. Commissioner of Income Tax, Kheda Circle, Nadiad

ITA 3139/AHD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4102 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 29-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL R SHAH
• Keywords: Competent authority; Set aside
• Section: 143(3); 201; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHRI AMARJIT SINGH , ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER M/S. JIVANLAL JOITARAM PATEL, PARISHRAM PATEL ESTATE, STATION ROAD, THASRA, DIST. KHEDA - 388250 PAN: AABFJ3791L (APPELLANT) VS THE ACIT, KHEDA CIRCLE , NADIAD (RESPONDENT) REVENUE BY : S H RI MUDIT NAGPAL , SR. D . R. ASSESSEE BY: SHRI ANIL R. SHAH AND MS. KINJAL SHAH, AR S DATE OF HEARING : 05 - 03 - 2 019 DATE OF PRONOUNCEMENT : 12 - 03 - 2 019 / O RDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2012 - 13 , ARI SES FROM ORDER OF THE CIT(A) - 2, VADODARA DATED 09 - 09 - 2 016 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION OF LD. CIT(A) IN CONFIRMING ADDITION OF RS. 27 , 44 , 542/ - OF CONTRACT RECEIPT MADE BY THE ASSESSING OFFICER BASED ON INFORMATION APPEARING IN 26AS. I T A NO . 3139 / A HD/20 16 A SS ES SMENT YEAR 2012 - 13 I.T.A NO. 3139 /AHD/20 16 A.Y. 2012 - 13 PAGE NO M/S. JIVANLAL JOITARAM PATEL VS. ACIT 2 3. THE FACT IN BRIEF IS THAT ASSESSEE HAS FILED RETUR N OF INCOME DECLARING INCOME AT RS. 45 , 53 , 440/ - ON 30 TH SEP, 2012. SUBSEQUENTLY, THE CASE WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT ON 7 TH AUGUST, 2013. DURING THE COURSE OF ASSESSMENT ON VERIFICATION OF THE RECEIPT SHOWN IN THE BOOKS OF ACCOUNTS AND COMPARING IT WITH THE RECEIPT APPEARING IN FORM NO. 26AS, THE ASSESSING OFFICER HAS NOTICED THAT ASSESSEE HAS NOT SHOWN CONTRACT RECEIPT OF RS. 27 , 44 , 542/ - FROM PRADHAN MANTRI GRAM SADAK YOGNA. THE ASSESS ING OFFICER HAS ADDED TH E SAME TO THE TOTAL INCOME OF THE ASSESSEE ON THAT GROUND THAT ASSESSEE S COUNSEL COULD NOT COMPULSORY EXPLAINED THE SAME. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. 5. WE HA VE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. DURING THE COURSE OF HEARING BEFORE US, THE LD. COUNSEL HAS CONTENDED THAT LD. CIT(A) HAS INCORRECTLY ADJUDICATED THAT SUM OF RS. 27,44,542/ - HAS NOT BEEN INCLUDED IN THE WORK - IN - PROGRESS REFLECTED AT RS . 2.07 CRORES IN THE P & L A/C. IT WAS ALSO CONTENDED THAT ASSESSEE WAS NOT ASKED TO PROVIDE THE BREAK - UP OF WORK - IN - PROGRESS BY T H E LOWER AUTHORITIES . AS PER THE MATERIAL ON RECORD ON T H E BASIS OF FORM NO. 26AS , THE ASSESSING OFFICE R HAS NOTICED THAT THE ASSESSEE HAS RECEIVED CONTRACTUAL RECEIPT OF RS.27,44,542/ - FROM PRADHAN MANDRI GRAM SADAK YOJANA. THE ASS EESSEE HAD CLAIMED THAT THE BILL FOR THE AFORESAID AMOUNT WAS FINALIZED ON 10 - 01 - 2013 , THEREFORE , THE IMPUGNED RECEIPT WAS NOT C ONSIDERED WHILE FILING THE RETURN OF INCOME ON 30.09.2012 AND THE VALUE OF PENDING BILL WAS ACCOUNTED I.T.A NO. 3139 /AHD/20 16 A.Y. 2012 - 13 PAGE NO M/S. JIVANLAL JOITARAM PATEL VS. ACIT 3 IN THE WORK IN PROGRESS. THE LD. CIT(A) HAS HELD THAT THE BREAKUP OF CLOSING INVENTORIES WAS ALSO NOT FILED BY THE ASSESSEE BEFORE THE ASSESSING OFFICE R. WE HAVE GONE THROUGH THE ORDER OF THE ASSESSING OFFICER AND OBSERVED THAT TH E ASSESSING OFFICER HAS NOT CATEGORICALLY GIVEN ANY FINDING THAT THE ASSESSEE HAS FAILED TO ESTABLISH WITH COGENT EVIDENCES THAT THE WORK - IN - PROGRESS OF PRADHAN MANTRI GRAM SAD AK YOJANA WAS N OT REFLECTED IN THE CLOSING STOCK INVENTORIES. IN THE LIGHT OF THE ABOVE FACT AND AFTER CONSIDERING THE SUBMISSION O F T HE ASSESSEE THAT AT THE YEAR END AS ON 31 - 03 - 2012, THE VALUE OF PENDING BILL WAS LAYING UNDER WORK IN PROGRESS AS THE BIL LS WERE NOT FINALIZED BY THE COMPETENT AUTHORITY, WE ARE OF THE VIEW IT WILL BE APPROPRIATE TO RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE SAME AFRESH AFTER EXAMINATION OF THE RELEVANT MATERIAL TO BE PROVIDED BY THE ASSSESSEE IN T HE SET ASIDE PROCEEDINGS. ACCORDINGLY, WE RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING AS DIRECTED ABOVE AFTER AFFORDING ADEQUATE OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTIC AL PURPOSE S. ORDER PR ONOUNCED IN THE OPEN C OURT ON 12 - 03 - 201 9 SD/ - SD/ - ( MADHUMITA ROY ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 12 /03 /2019 / COP Y OF ORDER FORWARDED TO: - I.T.A NO. 3139 /AHD/20 16 A.Y. 2012 - 13 PAGE NO M/S. JIVANLAL JOITARAM PATEL VS. ACIT 4 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,