Shri Tulsibhai Devrajbhai Patel, Morbi V. The Income Tax Officer, Ward-5(3), Morbi

ITA 357/RJT/2014

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5173 (ITAT-RAJKOT)
• Duration Of Justice: 4 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 04-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MJ RANPURA
• Keywords: Gross profit estimation; Unexplained expenditure; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [ CONDUCTED THROUGH E-COURT AT AHMEDABAD ] BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ITA NO.357/RJT/2014 ( / ASSESSMENT YEAR : 2003-04) SHRI TULSIBHAI DEVRAJBHAI PATEL PROP. OF PATEL SALES CORPORATION VORA BAUG, MORBI / VS. THE INCOME TAX OFFICER WARD-5(3) MORBI ./ ./ PAN/GIR NO. : AIPPP 4940 F ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI M.J. RANPURA, AR / RESPONDENT BY : SHRI PRAVEEN VERMA, SR.DR / DATE OF HEARING 29/01/2019 !'# / DATE OF PRONOUNCEMENT 31/01/2019 / O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)IV, RAJKOT [CIT(A) IN SHORT] VIDE APPEAL NO.CIT(A)-IV/0 105/08-09 DATED 25/03/2014 ARISING IN THE ASSESSMENT ORDER PASSE D UNDER S.143(3) R.W.S.147 OF THE INCOME TAX ACT, 1961(HEREINAFTER R EFERRED TO AS 'THE ACT') DATED 24.12.2008 RELEVANT TO ASSESSMENT YEA R (AY) 2003-04. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL:- ITA NO.357/RJT/2014 SHRI TULSIBHAI DEVRAJBHAI PATEL VS. ITO ASST .YEAR 2003-04 - 2 - 1. THE GROUNDS OF APPEAL MENTIONED HEREUNDER ARE WITHOUT PREJUDICE TO ONE ANOTHER. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS )-IV, RAJKOT [HEREINAFTER REFERRED TO AS THE CIT(A)) ERRED ON FACTS AS ALSO IN LAW IN CONFIRMING INITIATION OF ACTION U/S.147 OF T HE ACT AS VALID. 3. THE LD. CIT(A) ERRED ON FACTS AS ALSO IN LAW IN RETAINING ADDITION OF 9,22,500/- ON ACCOUNT OF ALLEGED UNRECORDED SALES AND PURCHASE. THE ADDITION MAY KINDLY BE DELETED. 4. THE LD. CIT(A) ERRED ON FACTS AS ALSO IN LAW IN RETAINING ADDITION OF 76,57,293/- U/S.69C OF THE ACT ON ACCOUNT OF ALLEGE D UNEXPLAINED EXPENDITURE/PAYMENTS. THE ADDITION MAY KINDLY BE DELETED. 5. THE LD.CIT(A) ERRED ON FACTS A ALSO IN LAW IN S USTAINING AO'S ACTION OF THE REJECTION OF BOOKS OF ACCOUNT AND THE REBY MAKING ADDITION OF 10,540/- MADE ON ACCOUNT OF LOW GROSS PROFIT. THE ADDITION MAY KINDLY BE DELETED AND THE BOOK RESULTS MAY KINDLY BE ACCEPTED. 6. THE LEARNED CIT(A) ERRED ON FACTS AS ALSO IN LA W IN RETAINING ADDITION OF 36,000/- ON ACCOUNT OF ALLEGED LOW HOUSEHOLD WITHDRAWALS. THE ADDITION MAY KINDLY BE DELETED. 2. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE B EFORE US SUBMITTED THAT THE LD. CIT(A) HAS PASSED EX-PARTE ORDER WITHOUT GIVING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCOR DINGLY, THE LD.AR FOR THE ASSESSEE PRAYED BEFORE US TO RESTORE THE MATTER TO THE FILE OF LD.CIT(A) FOR FRESH ADJUDICATION AS PER THE PROVISI ONS OF LAW. 3. A SPECIFIC QUESTION WAS RAISED FROM THE BENCH TO THE LD.COUNSEL FOR THE ASSESSEE TO JUSTIFY THE REASONS FOR NON-APPEARA NCE BEFORE THE ITA NO.357/RJT/2014 SHRI TULSIBHAI DEVRAJBHAI PATEL VS. ITO ASST .YEAR 2003-04 - 3 - LD.CIT(A), THE LD.AR FAILED TO PROVIDE ANY PLAUSIBL E REASONS FOR THE NON-APPEARANCE OF THE ASSESSEE BEFORE THE LD.CIT(A) . 4. INDEED THE PROVISIONS OF SECTION 250(6) OF THE I NCOME TAX ACT, 1961 CASTS OBLIGATION UPON THE LD.CIT(A) TO PASS A REASONED ORDER AFTER GIVING A PROPER OPPORTUNITY OF HEARING TO THE ASSES SEE. BUT THE NEGLIGENT/DILLY-DALLY APPROACH OF THE ASSESSEE IN P URSUING THE MATTER BEFORE THE LD.CIT(A) CANNOT BE NEGLECTED. THEREFOR E, WE ARE INCLINED TO LEVY A COST OF RS.10,000/- UPON THE ASSESSEE FOR A DOPTING THE NEGLIGENT APPROACH IN PURSUING THE MATTER BEFORE THE LD.CIT(A ). ACCORDINGLY, WE DIRECT THE ASSESSEE TO DEPOSIT A SUM OF RS.10,000/- TO THE INCOME TAX DEPARTMENT PRIOR TO THE COMMENCEMENT OF HEARING BEF ORE THE LD.CIT(A). 5. THE LD.DR DID NTO RAISE ANY OBJECTION IF THE MAT TER IS RESTORED TO THE FILE OF LD.CIT(A) FOR FRESH ADJUDICATION IN ACC ORDANCE WITH THE PROVISIONS OF LAW. 6. IN VIEW OF THE ABOVE, WE ARE INCLINED TO RESTORE THE ISSUE TO THE FILE OF LD.CIT(A) SUBJECT TO PAYMENT OF RS.10,000/- TO T HE INCOME TAX DEPARTMENT AS DISCUSSED ABOVE FOR AFRESH ADJUDICATI ON AS PER THE PROVISIONS OF LAW. HENCE, THE APPEAL OF THE ASSESS EE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.357/RJT/2014 SHRI TULSIBHAI DEVRAJBHAI PATEL VS. ITO ASST .YEAR 2003-04 - 4 - 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES AS NARRATED ABOVE. THIS ORDER PRONOUNCED IN OPEN COURT ON 31/01/2019 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANTMEMBER JUDICIAL MEMBER AHMEDABAD; DATED 31/01/2019 &.., .(../ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-IV, RAJKOT 5. 012 ((*+ , *+# , !& /DR,ITAT, RAJKOT 6. 2=> ? / GUARD FILE. / BY ORDER, 0 ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) $%, !& / ITAT, RAJKOT 1. DATE OF DICTATION .. 31.1.2019 (DICTATION-PAD 5 -PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 31.1.2019 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.31.1.2019 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 31.1.2019 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER