ACIT- Circle-3, Gwalior V. M/s Deepak Silicate Pvt. Ltd, Gwalior

ITA 366/AGR/2009

• Counselvise Citation: 36620314 RSA 2009
• Duration Of Justice: 2 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-11-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 09-09-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Assessee Lawyers: B D GIRI
• Section: 143(3); 142(1); 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO. 350/AGRA/2009 ASSTT. YEAR : 2006-07 M/S. DEEPAK SILICATE PVT. LTD., VS. A.C.I.T., RA NGE-1, 23-B, MAHARAJPURA INDL. AREA, GWALIOR. GWALIOR. (M.P.). (PAN : AAACD 7032 N). ITA NO. 366/AGRA/2009 ASSTT. YEAR : 2006-07 A.C.I.T., CIRCLE 3, VS. M/S. DEEPAK SILICATE PV T. LTD., GWALIOR 23-B, MAHARAJPURA INDL. AREA, GWALIOR. (M.P.). (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI B.D. GIRI, ADVOCATE FOR REVENUE : SHRI A.K. SHARMA, JR. D.R. DATE OF HEARING : 18.11.2011 DATE OF PRONOUNCEMENT : 24.11.2011 ORDER PER BENCH: THE ASSESSEE AND THE REVENUE HAVE FILED THE PRESEN T CROSS APPEALS AGAINST THE IMPUGNED ORDER DATED 14.05.2009 PASSED BY THE LD. CIT(A), GW ALIOR. 2. IN THE AFORESAID APPEALS, THE ASSESSEE HAS CHALL ENGED THE IMPUGNED ORDER PASSED BY THE LD. FIRST APPELLATE AUTHORITY ON THE GROUND THAT THE LD . FIRST APPELLATE AUTHORITY HAS WRONGLY APPLIED THE PROVISIONS OF SECTION 145(3) OF THE INCOME-TAX ACT IN THE CASE OF THE ASSESSEE AND APPLIED G.P. RATE @ 20% ON ESTIMATED SALES WHICH IS CONTRAR Y TO THE LAW AND IN FACTS OF THE CASE ON 2 RECORD. THE ASSESSEE FURTHER STATED THAT THE LD. F IRST APPELLATE AUTHORITY HAS WRONGLY ESTIMATED THE SALES OF RS.1.60 CRORES AS AGAINST SALE OF RS.1,48, 86,022/- AS PER BOOKS OF ACCOUNTS CONTRARY TO THE FINDING OF THE LD. FIRST APPELLATE AUTHORITY BY HOLDING THAT EACH AND EVERY SALE IS REFLECTED IN THE LEDGER ACCOUNT OF SALE AND THERE IS NO SALE OUT SIDE THE BOOKS. 3. ON THE CONTRARY, THE REVENUE IS ALSO AGGRIEVED B Y THE IMPUGNED ORDER IN WHICH THE LD. FIRST APPELLATE AUTHORITY HAS DELETED THE ADDITION OF RS.18,18,670/- MADE ON ACCOUNT OF CASH SALES. BOTH THE PARTIES RELIED UPON THEIR RESPECTIVE GROUN DS OF APPEALS. 4. AFTER HEARING BOTH THE PARTIES AND CONSIDERING T HE ORDERS PASSED BY THE REVENUE AUTHORITIES, WE ARE OF THE CONSIDERED OPINION THAT THE ASSESSING OFFICER HAS COMPLETED THE ASSESSMENT IN DISPUTE ON 31.12.2008 U/S. 143(3) OF THE ACT BY MAKING THE ADDITION IN DISPUTE MERELY ON THE BASIS OF ESTIMATION. AS PER RECORD, T HE ASSESSEE FILED ITS RETURN OF INCOME ON 30.03.2007 DECLARING INCOME OF RS.2,52,910/- AND TH E ASSESSING OFFICER ISSUED NOTICE U/S. 143(2) OF THE ACT ON 12.10.2007 AND NOTICE U/S. 142(1) ON 27.05.2008.. IN RESPONSE TO THE SAME, THE AR OF THE ASSESSEE APPEARED ON 21.08.2008 AND THE CASE WAS ADJOURNED FOR 27.08.2008. AFTER THAT ON 04.09.2008 AND 30.09.2008, 06.10.2008, 15.10.2008, THE ASSESSEES AR APPEARED AND FILED SOME DOCUMENTARY EVIDENCE BEFORE THE ASSESSING OFFICER W HICH WERE NOT AS PER REQUIREMENT OF THE ASSESSING OFFICER. LASTLY, THE ASSESSING OFFICER IN VOKED THE PROVISIONS OF SECTION 145 OF THE ACT AND MADE ADDITION ON ESTIMATION BASIS. SIMILARLY, T HE LD. FIRST APPELLATE AUTHORITY HAS ALSO UPHELD THE ORDER OF ASSESSING OFFICER REGARDING APPLICATIO N OF SECTION 145(3) AND REJECTION OF ACCOUNT BOOKS AND MADE THE ADDITION ON ESTIMATION BASIS. KE EPING IN VIEW THE ORDERS PASSED BY THE REVENUE AUTHORITIES, WE OF THE VIEW THAT THE REVENU E AUTHORITIES HAVE NOT GIVEN SUFFICIENT 3 OPPORTUNITY TO THE ASSESSEE FOR SUBSTANTIATING ITS CLAIM. THEREFORE, IN THE INTEREST OF JUSTICE, THE ISSUE IN DISPUTE DESERVES TO BE SET ASIDE AND RESTO RED TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE ISSUE IN DISPUTE AFRESH UNDER LAW AFTER GIVING PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.11.2011. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 TH NOVEMBER, 2011 *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE ASSISTANT REGISTRAR TRUE COPY