Manish Kumar Prop. , Karnal V. ITO, Ward- 2, Karnal

ITA 451/DEL/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6800 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 17-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: RAJEEV SACHDEVA
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.451/DEL./2018 ASSESSMENT YEAR 2010-2011 SHRI MANISH KUMAR, PROP. M/S. MOHAN TRADERS, PURANI MANDI, KARNAL. PAN ABXPK5572B VS. THE INCOME TAX OFFICER, WARD-2, KARNAL. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI RAJEEV SACHDEVA, C.A. FOR REVENUE : SHRI S.L. ANURAGI, SR. D.R. DATE OF HEARING : 12 .0 7 .2018 DATE OF PRONOUNCEMENT : 12 .0 7 .2018 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), KARNAL, DATED 29.11.20 17, FOR THE A.Y. 2010-2011, CHALLENGING THE ADDITION OF RS.12,0 2,512/- ON ACCOUNT OF CLOSING STOCK. 2. THE TRADING ACCOUNT FILED ALONG WITH THE RETURN, SHOWS THE VALUE OF CLOSING STOCK AT RS.36,15,921/-. QUANTITY WISE DETAILS OF CLOSING STOCK WITH ITS VALUE WAS SHOWN AND 2 ITA.NO.451/DEL./2018 SHRI MANISH KUMAR KARNAL. PROVIDED DURING THE ASSESSMENT PROCEEDINGS WHICH IS REPRODUCED AT PAGE-4 OF THE ASSESSMENT ORDER. THE A.O. ALSO NOTED THAT DURING THE YEAR ASSESSEE ALSO ENJOYED CA SH CREDIT LIMIT FROM HDFC BANK AGAINST HYPOTHECATION OF STOCK WHERE THE AMOUNT PAYABLE TO THE BANK AS ON 31.03.2010 WAS SHO WN AT RS.30,92,018/-. ENQUIRIES WERE MADE FROM THE BANK U NDER SECTION 133(6) OF THE LT ACT WITH A REQUEST TO PROV IDE THE COPY OF STOCK STATEMENT FILED BY THE ASSESSEE. THE BANK HAS SUBMITTED COPY OF STOCK STATEMENT FILED BY THE ASSE SSEE SHOWING THE POSITION OF STOCK AS ON 31.03.2010 AT RS.48,86, 936/-. THE ASSESSEE WAS CONFRONTED OF THE AFORESAID FACT. THE ASSESSEE SUBMITTED BEFORE THAT IT WAS AN ESTIMATED YEARLY ST OCK POSITION FURNISHED WITH THE BANK. THE A.O. ASKED THE BANK AU THORITIES TO FILE COPY OF THE STOCK STATEMENT FILED BY THE AS SESSEE IN TERMS OF VALUE AND QUANTITY OF EACH ITEM OF THE STOCK END ING FINANCIAL YEAR. HOWEVER, IT WAS INTIMATED THAT LOAN DOCUMENTS WERE DESTROYED IN FIRE, THEREFORE, REQUIRED INFORMATION COULD NOT BE SUPPLIED. THE A.O. DID NOT ACCEPT THE CONTENTION OF ASSESSEE AND REJECTED THE BOOK RESULTS UNDER SECTION 145(3) OF T HE I.T. ACT AND 3 ITA.NO.451/DEL./2018 SHRI MANISH KUMAR KARNAL. TAKEN VALUE OF THE CLOSING STOCK AT RS.48,86,936/- AND DIFFERENCE OF RS.12,02,512/- WAS ADDED AND TAKEN IT AS INCOME FROM OTHER SOURCES. THE ASSESSEE FILED DETAILED WRI TTEN SUBMISSIONS BEFORE LD. CIT(A) TO DISPUTE THE CORREC TNESS OF THE ADDITION. THE LD. CIT(A), HOWEVER, INSTEAD OF DECID ING THE ISSUE ON MERIT, SUMMARILY REJECTED THE CLAIM OF ASSESSEE. THE FINDINGS OF THE LD. CIT(A) AT PAGE-9 OF THE ORDER IS REPRODU CED AS UNDER : THE FACTS ON RECORD, GIVEN THE SITUATION THAT SALE VOUCHERS AND QUALITY WISE DETAILS OF OPENING AND CLOSING STO CK WERE NOT SUBMITTED IS ENOUGH PROOF OF THE UNRELIABILITY OF THE APPELLANTS ACCOUNT. THE A.OS ACTION WAS THEREFORE JUSTIFIED AND I CONFIRM THE SAME. THIS GROUND OF APPEAL IS DISMISSED. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I AM O F THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT TH E LEVEL OF THE LD. CIT(A). THE LD. CIT(A) REPRODUCED THE WRITTEN S UBMISSIONS OF THE ASSESSEE AND REPRODUCED THE ORDER OF THE A.O . IN THE APPELLATE ORDER AND WITHOUT CONSIDERING THE FINDING S AND 4 ITA.NO.451/DEL./2018 SHRI MANISH KUMAR KARNAL. MATERIAL ON RECORD, REJECTED THE CLAIM OF ASSESSEE BY DECIDING THE ISSUE AS ABOVE. THE ORDER OF THE LD. CIT(A) IS UNREASONED AND WITHOUT REFERENCE TO ANY EVIDENCE OR MATERIAL O N RECORD. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASS ESSEE HAS FILED COMPLETE DETAILS BEFORE THE AUTHORITIES BELOW WHICH HAVE NOT BEEN CONSIDERED BY THE LD. CIT(A). IN THIS VIEW OF THE MATTER, I SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(A) AN D RESTORE THE APPEAL OF ASSESSEE ON THIS GROUND TO THE FILE OF LD . CIT(A) WITH A DIRECTION TO RE-DECIDE THE APPEAL OF ASSESSEE ON TH IS GROUND STRICTLY ON MERITS BY REFERRING TO ALL THE MATERIAL ON RECORD. THE LD. CIT(A) SHALL GIVE REASONABLE, SUFFICIENT OPPORT UNITY OF BEING HEARD TO THE ASSESSEE AND SHALL PASS REASONED ORDER . 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 12 TH JULY, 2018 VBP/- 5 ITA.NO.451/DEL./2018 SHRI MANISH KUMAR KARNAL. COPY TO 1. THE APP ELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.