SHREE RAM BOREWELL & CONSTRUCTION CO., Sikar V. ACIT, Sikar

ITA 340/JPR/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5068 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA CIT DHK
• Keywords: Income from undisclosed sources; Principle of natural justice; Additional evidence
• Section: 143(3); 234B; 144

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 340/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12. SHREE RAM BOREWELL & CONSTRUCTION CO., VEER TEJA COLONY, NAWALGARH ROAD, SIKAR. CUKE VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE, SIKAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ABSFS 7272 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MAHENDRA GARGIEYA (ADVOCATE) JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22.09.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 27/09/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THE APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS)- 3, JAIPUR DATED 24.02.2015 PERTAINING TO ASSESSMENT YEAR 2011-12. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. THE LD.CIT (A) ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN PASSING THE IMPUGNED ORDER DATED 24.02.2015 WITHOUT AFFORDING ADEQUATE AND REASONABLE OPPORTUNITY. THE IMPUGNED O RDER HAVING BEEN FRAMED IN GROSS BREACH OF NATURAL JUSTICE, KIN DLY BE QUASHED OR ALTERNATIVELY BE SET ASIDE. 2. RS 1,00,19,500/-: THE LD. CIT (A) ERRED IN LAW AS W ELL AS ON THE FACTS OF THE CASE IN CONFIRMING ADDITION OF RS. 1,0 0,19,500/.- MADE ON ACCOUNT OF ADDITION IN THE CAPITAL ACCOUNTS OF T HE PARTNERS AS INCOME FROM UNDISCLOSED SOURCES. THE ADDITION SO MA DE AND CONFIRMED IS TOTALLY CONTRARY TO THE PROVISIONS OF LAW AND FACTS AND HENCE, THE SAME KINDLY BE DELETED IN FULL. 2 ITA NO. 340/JP/2015 SHREE RAM BOREWELL & CONSTRUCTION CO. 3. RS. 38,80,560/-: THE LD. CIT (A) ERRED IN LAW AS WE LL AS ON THE FACTS OF THE CASE IN CONFIRMING DISALLOWANCE OF RS. 38,80 ,560/- MADE ON ACCOUNT OF INTEREST AND REMUNERATION PAID TO THE PA RTNERS. THE DISALLOWANCE SO MADE AND CONFIRMED, IS TOTALLY CONT RARY TO THE PROVISIONS OF LAW AND FACTS ON THE RECORD AND HENCE , THE SAME KINDLY BE DELETED IN FULL. 4. RS. 2,30,677/-: THE LD. CIT (A) ERRED IN LAW AS WEL L AS ON THE FACTS OF THE CASE IN CONFIRMING DISALLOWANCE RS. 2,30,677 /- CLAIMED ON ACCOUNT OF DUTIES & TAXES AND SUNDRY CREDITORS. THE DISALLOWANCE SO MADE AND CONFIRMED, IS TOTALLY CONTRARY TO THE P ROVISIONS OF LAW AND FACTS ON THE RECORD AND HENCE, THE SAME KINDLY BE DELETED IN FULL. 5. RS. 16,70,362/-: THE LD. CIT (A) ERRED IN LAW AS WE LL AS ON THE FACTS OF THE CASE IN CONFIRMING DISALLOWANCE OF RS. 16,70 ,362/- BEING 55 OF THE VARIOUS EXPENSES DEBITED TO THE PROFIT & LOS S A/C (OF RS. 3,34,07,247/-). THE DISALLOWANCE SO MADE AND CONFI RMED, IS TOTALLY CONTRARY TO THE PROVISIONS OF LAW AND FACTS ON THE RECORD AND HENCE, THE SAME KINDLY BE DELETED IN FULL. 6. THE LD.CIT (A) FURTHER ERRED IN LAW AS WELL AS ON T HE FACTS OF THE CASE IN CONFIRMING INTEREST U/S 234A, 234B & 234C O F THE ACT. THE APPELLANT TOTALLY DENIES ITS LIABILITY OF CHARGING. THE INTEREST SO CHARGED AND CONFIRMED, BEING CONTRARY TO THE PROVIS IONS OF LAW AND FACTS, KINDLY BE DELETED IN FULL. 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE HAS FILED AN APPLICATION SEEKING ADMISSION OF ADDITIONAL EVIDENC ES. IT IS CONTENDED THAT THESE EVIDENCES COULD NOT BE PLACED AS NO SUFFICIENT OPPO RTUNITY WAS GIVEN. IT IS ALSO CONTENDED THAT THE AO HAS PASSED THE ASSESSMENT ORD ER AT THE BACK OF THE ASSESSEE UNDER SECTION 143(3) READ WITH SECTION 144 OF THE I NCOME TAX ACT, 1961. THE LD. CIT (A) ALSO DID NOT GIVE SUFFICIENT OPPORTUNITY. UNDER THESE FACTS, HE SUBMITTED THAT IN THE INTEREST OF JUSTICE, THESE EVIDENCES BE ADMI TTED. 3 ITA NO. 340/JP/2015 SHREE RAM BOREWELL & CONSTRUCTION CO. 2.1. ON THE CONTRARY, THE LD. D/R HAS OPPOSED THE S UBMISSIONS AND SUBMITTED THAT THE ASSESSEE WAS GIVEN SUFFICIENT OPPORTUNITY. 2.2. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED TH E MATERIAL AVAILABLE ON RECORD. THE ADDITIONAL EVIDENCES AS SUBMITTED BY T HE ASSESSEE INCLUDED THE AFFIDAVITS BY THE PARTNERS OF ASSESSEE FIRM. IT IS ALSO OBSERVED THAT THE AO PASSED THE ORDER UNDER SECTION 144 THEREBY COMPUTING TOTAL INCOME AT RS. 1,74,70,140/- AGAINST THE INCOME DECLARED AT RS. 16,69,040/-. IT IS ALSO OBSERVED THAT THE ADJOURNMENT WAS SOUGHT ON THE GROUND OF ILLNESS OF THE PARTNER. THE AO HAS MADE THE ADDITION ON ACCOUNT OF INTRODUCTION OF THE CAPI TAL BY THE PARTNER AMOUNTING TO RS. 1,00,19,500/-. THE PARTNER HAS GIVEN THE AFFID AVIT HAVING ADMITTED THE INTRODUCTION OF THE CAPITAL IN THE PARTNERSHIP FIRM . BEFORE LD. CIT (A) ALSO THE ASSESSEE REMAINED UNREPRESENTED. THE FACTUM OF INTR ODUCTION OF CAPITAL NEEDS VERIFICATION AT THE END OF AO. THEREFORE, AFTER CON SIDERING THE TOTALITY OF THE FACTS AND IN THE INTEREST OF JUSTICE, WE HEREBY SET ASIDE THE ORDER OF THE LD. CIT (A) AND RESTORE THE ADDITIONAL EVIDENCES FILED BY THE ASSES SEE TO THE FILE OF THE AO WITH A DIRECTION TO FRAME DENOVO ASSESSMENT AFTER GIVING R EASONABLE OPPORTUNITY TO THE ASSESSEE. 3. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27/09/201 6. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 27/09/2016. DAS/ 4 ITA NO. 340/JP/2015 SHREE RAM BOREWELL & CONSTRUCTION CO. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SHREE RAM BOREWELL & CONSTRUCTIO N CO., SIKAR. 2. THE RESPONDENT- THE ACIT, CIRCLE, SIKAR. 3. THE CIT, 4. THE CIT (A) 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 340/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR