LAXMI DEVI BANSAL, Jaipur V. ITO, BEHROR

ITA 44/JPR/2011

• Counselvise Citation: 4423114 RSA 2011
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 19-01-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K C MEENA
• Assessee Lawyers: PRASANT BANSAL; R N GOYAL
• Section: 69

Judgement Text

1 ITA 44-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 44/JP/2011 ASSTT. YEAR : 2005-06. SMT. LAXMI DEVI BANSAL, VS. THE INCOME-TAX OFFICE R, D/O SHRI GHANSHYAM DAS AGARWAL, BEHROR, C/O RTM HOTEL, NH ROAD NO. 8, DIST. ALWAR. KOTPUTLI, DIST. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.N.GOYAL & SHRI PRASANT BANSAL RESPONDENT BY : SHRI K.C. MEENA ORDER DATE OF ORDER : 28/07/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE IS OBJECTING IN SUSTAINING THE ADDI TION OF RS. 3,85,313/- ON ACCOUNT OF UNDISCLOSED INVESTMENT IN CONSTRUCTION AND CONFI RMING AN ADDITION OF RS. 28,000/- ON ACCOUNT OF CHANNEL GATES FIXED IN THE BUILDING AND SUSTAINING AN ADDITION OF RS. 20,260/- AS INCOME FROM UNDISCLOSED INCOME BY REDUCING THE A GRICULTURAL INCOME FROM RS. 60,260/- TO RS. 40,000/-. 3. THE AO MADE ADDITION OF RS. 3,85,313/- UNDER SEC TION 69 BY OBSERVING THAT THE ASSESSEE CONSTRUCTED A BUILDING DURING THE YEAR AND SHOWN TOTAL INVESTMENT OF RS. 36,49,160/- AS ON 31.3.2005. THE AO FOUND VARIOUS DISCREPANCIES IN ACCOUNTING OF 2 BUILDING MATERIAL. THE ASSESSEE FILED VALUATION RE PORT PREPARED BY VALUER AS ON 31.3.2005 OF RS. 40,34,453/-. THE VALUER REDUCED 10% FROM T HE COST ON ACCOUNT OF SELF SUPERVISING AND ARRANGING MATERIALS. THE VALUER HA S FURTHER REDUCED RS. 6,25,340/- ON ACCOUNT OF CHEAP LABOUR 4%, CHEAP MATERIAL 4% AND P OOR FURNISHING 7.5%. HOWEVER, THE AO WAS NOT SATISFIED WITH THE REDUCTION ALLOWED BY THE DVO, THEREFORE, HE MADE ADDITION OF RS. 3,85,313/- WHICH WAS THE DIFFERENCE BETWEEN THE VALUE SHOWN BY ASSESSEE AND THE VALUE PREPARED BY THE VALUER. THE LD. CIT (A) ALSO CONFIRMED THE ACTION OF THE AO. 4. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING T HE MATERIAL ON RECORD, WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN THIS GROUND. T HE VALUER HAS GIVEN THE VALUE ON THE BASIS OF ESTIMATE WHEREAS ASSESSEE HAS SHOWN THE IN VESTMENT AS PER ACTUAL INVESTMENT WHICH IS RECORDED IN THE BOOKS OF ACCOUNT. THERE M AY BE MINOR DIFFERENCE IN THE VALUATION. THE VALUATION IS LESS THAN 15%, THEREFO RE, 15% DIFFERENCE IN THE VALUATION AND AS PER VALUE SHOWN BY ASSESSEE IS IGNORABLE. ACCOR DINGLY WE DELETE THIS ADDITION. 5. REGARDING OTHER TWO ADDITIONS SUSTAINED BY LD. C IT (A), WHICH WERE MADE BY THE AO, WE ARE OF THE VIEW THAT THESE ADDITIONS ARE ON HIGHER SIDE. THEREFORE, WE DIRECT TO ALLOW 50% OF THE ADDITION AS RELIEF TO THE ASSESSEE . THE AO IS DIRECTED TO RE-COMPUTE THE INCOME OF THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 7. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 28. 7.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- 3 COPY FORWARDED TO :- LAXMI DEVI BANSAL, KOTPUTLI. THE ITO BEHROR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 44/JP/2011) BY ORDER, AR ITAT JAIPUR.