NANAGRAM BHAGWATI LAL SARAF, Jaipur V. ITO, Jaipur

ITA 324/JPR/2011

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7210 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 21-10-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 12-04-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Assessee Lawyers: T C JAIN
• Section: 131

Judgement Text

1 ITA 324-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 324/JP/2011 ASSTT. YEAR : 2006-07. M/S. NANAGRAM BHAGWATI LAL SARAF, VS. THE INCOME-T AX OFFICER, 12, RAMGANJ BAZAR, JAIPUR. WARD 1(3), JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.C. JAIN RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 21.10.2011. DATE OF PRONOUNCEMENT : 04.11.2011. ORDER DATE OF ORDER : 04/11/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. AT THE TIME OF ASSESSMENT PROCEEDINGS, THE AO NO TICED THAT OUT OF PURCHASES OF RS. 70 LACS OR ODD, PURCHASES OF RS. 61 LACS OR ODD WERE MADE FROM UNREGISTERED DEALERS IN CASH. ASSESSEE WAS REQUIRED TO PRODUCE 10 PERSO NS OUT OF LIST OF 15 PERSONS BUT HE COULD NOT PRODUCE ANY PERSON. SUMMONS UNDER SECTIO N 131 WERE ALSO SENT BUT THE SAME WERE RECEIVED BACK AS THE ADDRESSES WERE INCOMPLETE . THEREFORE, THE AO DISALLOWED 5% URD PURCHASES WHICH RESULTED IN A TRADING ADDITION OF RS. 3,07,616/-. BESIDES THIS, THE AO MADE TRADING ADDITION OF RS. 1,77,647/- ON THE REASON THAT GP DECLARED BY ASSESSEE IS 2 LOWER AND SALES ARE ALSO NOT VERIFIABLE. THE LD. CI T (A) DELETED THE TRADING ADDITION. HOWEVER, HE SUSTAINED THE ADDITION ON ACCOUNT OF UN VERIFIABLE PURCHASES. 3. NOW ASSESSEE IS IN APPEAL HERE BEFORE THE TRIBUN AL. 4. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING T HE MATERIAL ON RECORD, WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN ITS APPEAL IN PART. TRADING ADDITIONS HAVE ALREADY BEEN DELETED BY LD. CIT (A) AGAINST WHICH NO APPEAL HAS BEEN PREFERRED BY DEPARTMENT. THIS IS UNDISPUTED FACT THAT PURCHASES OF RS. 61 LA CS OR ODD REMAINED UNVERIFIABLE AND GP RATE DECLARED BY ASSESSEE WAS LOWER AS COMPARED TO EARLIER YEAR. IN EARLIER YEAR GP RATE WAS 23.67% WHEREAS IN THE YEAR UNDER CONSIDERATION GP RATE IS 22.61%. KEEPING IN MIND THE LOWER GP AND NATURE OF UNVERIFIABLE PURCHASES, WE ARE OF THE VIEW THAT IF AN ADDITION OF RS. 2 LACS IS SUSTAINED ON THIS ACCOUNT THAT WIL L MEET THE ENDS OF JUSTICE. WE ORDER ACCORDINGLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 04. 11.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- M/S. NANAGRAM BHAGWATI LAL SARAF, JAIPUR. THE ITO WARD 1(3), JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 324/JP/2011) BY ORDER, AR ITAT JAIPUR. 3