The ACIT, 3(1), V. M/s S A Trading & Investment Pvt. Ltd.,

ITA 364/IND/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1409 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 04-11-2009
• Assessment Year: 2000-2001
• Appeal Filed On: 25-05-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T K SHAH
• Assessee Lawyers: S S MUNDRA
• Keywords: Reassessment proceedings; Set aside
• Section: 147

Judgement Text

PAGE 1 OF 5 I.T.A.NO.307 & 364/IND/2007 S.A.TRADING &INVESTMENT. P.LTD.,INDORE. IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : AAECS7674A I.T.A.NO. 307/IND/2007 A.Y. : 2000-01 M/S. S.A.TRADING & INVESTMENT LIMITED, ACIT, F-1/79, ARERA COLONY, VS 3(1), BHOPAL. BHOPAL. APPELLANT RESPONDENT I.T.A.NO. 364/IND/2007 A.Y. : 2000-01 ACIT, M/S. S.A.TRADING & INVESTMENT LIMITED, 3(1), VS F-1/79, ARERA COLONY, BHOPAL. BHOPAL. APPELLANT RESPONDENT ASSESSEE BY : SHRI S.S.MUNDRA, C. A. DEPARTMENT BY : SHRI T.K.SHAH, CIT DR DATE OF HEARING : 04/11/2009 O R D E R PER V.K. GUPTA, A.M. THESE CROSS APPEALS ARISE OUT OF ORDER OF THE LD. C IT(A) DATED 12.3.2007, FOR THE ASSESSMENT YEAR 2000-01. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. PAGE 2 OF 5 I.T.A.NO.307 & 364/IND/2007 S.A.TRADING &INVESTMENT. P.LTD.,INDORE. 3. FIRST, WE SHALL TAKE UP THE ASSESSEES APPEAL IN I. T.A.NO. 307/IND/2007, WHEREIN THE ASSESSEE HAS CHALLENGED T HE VALIDITY OF INITIATION OF REASSESSMENT PROCEEDINGS U/S 147 OF T HE INCOME-TAX ACT, 1961. 4. THE LEARNED COUNSEL FOR THE ASSESSEE CONTENDED THAT THIS ISSUE WAS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECIS ION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2001-02 IN I.T.A.NO. 671/IND/2006 ORDER DATED 25.4.2007 AND REFERRED TO PARA 15.8 TO 15.12 AT PAGES 76 TO 78 OF THE SAID ORDER. THE LD. CIT DR, H OWEVER, PREFERRED TO RELY ON THE ORDER OF THE LD. CIT(A). 5. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH THE SIDES, MATERIAL ON RECORD AND THE ORDERS OF THE AUTHORITIE S BELOW. IT IS NOTED THAT ON IDENTICAL FACTS, THE ASSESSMENT OF THE ASSESSEE COMPANY FOR ASSESSMENT YEAR 2001-02 WAS REOPENED AND SUCH REOPENING HAS BE EN QUASHED BY THE TRIBUNAL VIDE ITS IMPUGNED ORDER. HENCE, RESPECTFUL LY FOLLOWING THE RATIO OF THE SAID DECISION OF COORDINATE BENCH OF THE TRI BUNAL AND QUASH THE PROCEEDINGS U/S 147 FOR THE YEAR UNDER CONSIDERATIO N ALSO. 6. AS REGARD THE ISSUE RAISED IN GROUNDS NO. 2, 3, 3.1 & 3.2 IN RESPECT OF NOTIFICATION OF PROVISIONS OF SECTION 14 5(3) AND ESTIMATE OF GROSS PROFIT AND ALSO THE ONLY GROUND OF REVENUES APPEAL IN RESPECT OF NATURE OF EXPORT TURNOVER, THE LEARNED COUNSEL, AT THE VERY OUT-SET, SUBMITTED THAT THESE ISSUES WERE ALSO COVERED BY TH E ORDER OF THE PAGE 3 OF 5 I.T.A.NO.307 & 364/IND/2007 S.A.TRADING &INVESTMENT. P.LTD.,INDORE. TRIBUNAL CITED HEREINBEFORE AND REFERRED TO PARA 17 .13 AND 17.14 & 17.15 OF THE SAID ORDER AT PAGES 116 117 OF THE IMPUGNE D ORDER. 7. THE LD. DEPARTMENTAL REPRESENTATIVE, HOWEVER, PREFE RRED TO RELY ON THE ORDER OF THE A.O. IN RESPECT OF DEPARTMENTAL APPEAL AND ON THE ORDER OF THE LD. CIT(A) IN RESPECT OF THE ASSESSEE S APPEAL. 8. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH THE SIDES, MATERIAL ON RECORD AND THE ORDERS OF THE AUTHORITIE S BELOW. IT IS NOTED THAT SIMILAR ISSUES AROSE IN ASSESSEES OWN CASE IN ASSE SSMENT YEAR 2001-02 AS WELL. THE MATTER REACHED TO THE TRIBUNAL AND THE TR IBUNAL HELD AS UNDER :- 17.13 CONSIDERING THE ABOVE DISCUSSIONS AND MATERI AL ON RECORD, WE ARE OF THE VIEW THAT ASSESSEE MADE GENUI NE EXPORT SALES, WHICH ARE CO-RELATED WITH THE PURCHASES MADE FROM THE PARTIES MENTIONED ABOVE. EVEN IN THE COMPARABLE CAS ES THE GROSS PROFIT RATE ALMOST SIMILAR TO THE GROSS PROFI T RATE DECLARED BY THE ASSESSEE IS ACCEPTED BY THE INCOME TAX AUTHORITIES. I.T.A.T. JAIPUR BENCH IN THE SIMILAR CIRCUMSTANCES AND IDENTICAL FACTS AND PARTIES DELET ED THE ADDITIONS OF THE SIMILAR NATURE AS REFERRED TO ABOV E. THE OVERWHELMING EVIDENCE AND MATERIAL ON RECORD CLEARL Y PROVED THAT ASSESSEE MADE GENUINE PURCHASES AND EXP ORT SALES. THE A.O. HAS FAILED TO BRING SUFFICIENT EVID ENCE AGAINST THE ASSESSEE TO PROVE THAT ASSESSEE MADE BO GUS PURCHASES. A.O. HAS NOT BROUGHT ANY EVIDENCE ON REC ORD TO DISPUTE THE EXPORT TURN OVER/SALES MADE BY THE ASSE SSEE. THE PAGE 4 OF 5 I.T.A.NO.307 & 364/IND/2007 S.A.TRADING &INVESTMENT. P.LTD.,INDORE. LD. CIT(A) IS THEREFORE NOT JUSTIFIED IN REJECTING BOOK RESULTS OF THE ASSESSEE U/S 145(3) OF THE INCOME-TAX ACT, 1 961,. 17.14 IN THIS VIEW OF THE LATTER, WE HOLD THAT A.O. WAS N OT JUSTIFIED IN MAKING ADDITION OF THE ENTIRE SALES/EX PORT TURN OVER AS UNEXPLAINED INCOME OF THE ASSESSEE. WE FURTHER HOLD THAT CIT(A) WAS NOT JUSTIFIED IN UPHOL DING THE REJECTION OF THE BOOKS OF ACCOUNT U/S 145(3) AN D IN MAKING PART ADDITION AGAINST THE ASSESSEE. THE ENTI RE ADDITION ON THIS ISSUE IS UNJUSTIFIED AND LIABLE TO BE DELETED. WE ACCORDINGLY SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW ON THIS ISSUE. THE ENTIRE ADDITIO N ON MERIT IS THEREFORE DELETED. THE APPEAL OF THE ASSES SEE IN I.T.A.NO. 693/IND/2006 IS ALLOWED ON THIS ISSUE AND DEPARTMENTAL APPEAL IN I.T.A.NO. 732/IND/2006 IS DISMISSED. 17.15 LD. REPRESENTATIVES OF BOTH THE PARTIES SUBMITTED T HAT THE SIMILAR GROUNDS OF APPEAL IN THE OTHER APPEALS OF THE ASSESSEE AND DEPARTMENTAL APPEALS ARE TAKEN AND THE VIEW TAKER EARLIER MAY BE FOLLOWED IN REMAINING APPEALS. WE FIND THAT IN REMAINING CROSS APPEALS OF THE ASSESSEES AND REVENUE, SIMILAR GROUNDS ARE TAKEN BY THE ASSESSEE AND THE REVENUE AND ON THE IDENTICAL REASONING. CIT(A) MAINTAINED PART ADDITION. SINCE W E HAVE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW ON THE IDENTICAL ISSUE IN GROUP CASES ABOVE, THEREFORE BY FOLLOWING THE SAME REASONING IN THE ORDER, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW ON THE SA ME ISSUE IN ALL REMAINING APPEALS. AS A RESULT, ALL ADDITIONS SUSTAINED BY CIT(A) ARE DELETED AND ALL T HE PAGE 5 OF 5 I.T.A.NO.307 & 364/IND/2007 S.A.TRADING &INVESTMENT. P.LTD.,INDORE. REMAINING APPEALS OF THE ASSESSEE ARE ALLOWED AND A LL DEPARTMENTAL APPEALS ARE DISMISSED. THIS ISSUE IS THEREFORE DECIDED IN FAVOUR OF THE ASSESSEES AND AGAINST THE REVENUE. 9. THUS, RESPECTFULLY FOLLOWING THE RATIO OF THE ABOVE DECISION, WE HOLD THAT THE ASSESSEES GROUNDS ARE TO BE ALLOWED AND THE DEPARTMENTAL APPEAL IS TO BE DISMISSED. WE ORDER ACCORDINGLY. 10. IN THE RESULT, THE ASSESSEES APPEAL STANDS ALLOWED AND DEPARTMENTAL APPEAL STANDS DISMISSED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 12 TH NOVEMBER, 2009. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 12 TH NOVEMBER, 2009. CPU* 4.10.