Shri Bhagwati Naryan Rathi, JODHPUR V. ITO, JODHPUR

ITA 402/JODH/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9446 (ITAT-JODHPUR)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-02-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 21-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI V.D. RAO, JUDICIAL MEMBER ITA NO: 402 / JU / 2010 ASSTT. YEAR: 2007 2008 SHRI BHAGWATI NARAYAN RATHI, VS INCOME-TAX OFFICER , JODHPUR. WARD 3 (2), (PAN: AAYPR 9686 D) JODHPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJEND RA JAIN, A.R., RESPONDENT BY : SHRI AMIT NIG AM, D.R., ORDER PER V.D. RAO: JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDERS OF THE LD. CIT (A), JODHPUR, DATED 4 TH FEBRUARY, 2010 RELATING TO ASSESSMENT YEAR 2001 2002. THE SOLE GROUND RAISED BY THE ASSESSEE RELATING TO ADDITION IN RESPECT OF RS. 1,2 5,214/-. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS A PROPRI ETOR OF M/S RATHI & COMPANY, WHICH DEALS IN PURCHASE AND SALES OF BAL L-BEARINGS; 2 VARIOUS TYPES OF V-BELTS; MS ROD, CASTING ITEMS; MO TOR PARTS; MACHINERY PARTS OF INDUSTRIES; AND OTHER ALLIED ITE MS ON WHOLESALE- CUM-RETAIL BASIS. THERE WAS A SURVEY CONDUCTED IN THE ASSESSEES PREMISES ON 2 ND MARCH, 2001 AND IT WAS FOUND EXCESS STOCK OF RS. 3,32,360/- AND THE SAME WAS SURRENDERED DURING THE COURSE OF THE SURVEY TO THE EXTENT OF RS. 3,32,360/-. BUT DURING THE SURVEY PROCEEDINGS, THE ASSESSEE NOT EXPLAINED THE PURCHAS E OF GOODS WORTH RS.1,25,214/- WHICH WERE NOT RECORDED IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE. THE ASSESSING OFFICER HA S ASKED THE ASSESSEE WHY THE GOODS WORTH RS. 1,25,214/- NOT REC ORDED IN THE BOOKS OF ACCOUNTS AND WHY IT WAS NOT EXPLAINED DURI NG THE COURSE OF THE SURVEY. IT WAS SUBMITTED BEFORE THE ASSESSI NG OFFICER THAT THESE GOODS WORTH RS. 1,25,214/- WERE LAID WITH THE ASSESSEES SON SO THAT HE WAS UNABLE TO EXPLAIN. HOWEVER, THE ASS ESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AN D THE GOODS WORTH RS. 1,25,214/- ADDED TO THE TOTAL INCOME OF T HE ASSESSEE. THE ORDER OF THE ASSESSING OFFICER WAS CONFIRMED BY THE LD. CIT (A). 3 3. AT THE TIME OF HEARING OF APPEAL THE LEARNED COU NSEL FOR THE ASSESSEE HAS SUBMITTED BEFORE US FILED A PAPER BOOK AND POINTED OUT THAT PAGE NOS. 7 TO 44 IN RESPECT OF GOODS WORT H RS.1,25,214/- THE COPIES OF BILLS AND THE DETAILS IN RESPECT OF T HE GOODS PURCHASED FROM THE PARTIES AVAILABLE AND ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO SUBSTANTIATE HIS CASE AND REQUES TED THE ISSUE MAY BE REMITTED BACK TO THE ASSESSING OFFICER. 4. THE LEARNED D.R. HAS SUBMITTED THAT THE ASSESSEE FAILED TO EXPLAIN DURING THE COURSE OF SURVEY THAT THE GOODS WORTH RS. 1,25,214/- NOT INCLUDED IN THE BOOKS OF ACCOUNTS AN D SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD BOTH THE SIDES, PERUSE THE RECORDS AND GONE TO THE ORDERS OF THE AUTHORITIES BELOW. 6. THE ASSESSING OFFICER HAS MADE AN ADDITION IN RE SPECT OF GOODS AMOUNTING TO RS. 1,25,214/- AND IN RESPECT OF THE SAME THE COPIES OF THE BILLS AND DETAILS IN RESPECT OF PARTI ES FROM WHOM IT WAS PURCHASED ARE AVAILABLE WITH THE ASSESSEE. THE REFORE, IN OUR OPINION IN THE INTEREST OF JUSTICE, AN OPPORTUNITY MUST BE GIVEN TO 4 THE ASSESSEE. WE, THEREFORE, SET ASIDE THE ORDER P ASSED BY THE LD. CIT (A) AND REMIT THE MATTER BACK TO THE ASSESSING OFFICER, DIRECT THE ASSESSING OFFICER TO CONSIDER THE PAPER BOOK FI LED BY THE ASSESSEE PARTICULARLY PAPER BOOK PAGE NOS. 7 TO 44 , DECIDE THE MATTER IN ACCORDANCE WITH LAW AFTER BEING GIVEN REA SON OPPORTUNITY TO THE ASSESSEE. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSE. 8. O RDER WAS PASSED IN THE OPEN COURT DATED ON 11 TH FEBRUARY, 2011. SD/- SD/- (S.V. MEHROTRA) (V.D. RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 11 TH FEBRUARY,2011 KAMAL KUMAR COPY FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. INCOME-TAX OFFICER 4. CIT 5. D/R 6. GUARD FILE