SHIVA APPARELS, MUMBAI V. ASST CIT RG 24(2), MUMBAI

ITA 4625/MUM/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4390 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 13-01-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 09-07-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIVEK OJHA
• Keywords: Business income; Bad and doubtful debts
• Section: 143(3); 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E, MUMBAI BEFORE SHRI JASON P. BOAZ ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA NO. 4625/MUM/2012 (ASSESSMENT YEAR 2006-07) SHIV APPARELS, IQBAL COMPOUND, PATHANWADI, BEHIND AIR INDIA STAFF BLDG., RANISATI MARG, MALAD(E), MUMBAI 400 097 PAN:AACFS 1482J ... APPELLANT VS. THE ACIT, RANGE -24(2) MUMBAI .... RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI VIVEK OJHA DATE OF HEARING : 05/01/2016 DATE OF PRONOUNCEMENT : 08/01/2016 ORDER PER JASON P. BOAZ, A.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE CIT(APPEALS)-34, MUMBAI DATED 12/6/2012 FOR ASSESSM ENT YEAR 2006- 07. 2. THE FACTS OF THE CASE, BRIEFLY, ARE AS UNDER:- 2.1 THE ASSESSEE, A FIRM ENGAGED IN THE BUSINESS OF MANUFACTURE AND TRADING IN READYMADE GARMENTS/CLOTH, FILED ITS RETU RN OF INCOME FOR 2 ITA NO. 4625/MUM/2012 (ASSESSMENT YEAR 2006-07) ASSESSMENT YEAR 2006-07 ON 30/10/2006 DECLARING INC OME OF RS.34,92,030/-. A SURVEY UNDER SECTION 133A OF THE INCOME TAX ACT, 1961( IN SHORT THE ACT) WAS CONDUCTED IN THE ASSE SSEES BUSINESS PREMISES ON 10/11/2005. THE ASSESSMENT WAS COMPLET ED U/S. 143(3) OF THE ACT VIDE ORDER DATED 23/12/2008, WHEREIN THE IN COME OF THE ASSESSEE WAS DETERMINED AT RS.54,04,640/- AS AGAINS T THE RETURNED INCOME OF RS.34,92,030/-, IN VIEW OF AN ADDITION OF INTER-ALIA RS.19,12,604/- THERETO ON ACCOUNT OF DIFFERENCE IN NET PROFIT. ON APPEAL, THE CIT(APPEALS)-34, MUMBAI DISMISSED THE A SSESSEES APPEAL VIDE ORDER DATED 12/06/2012. 3. AGGREIVED BY THE ORDER OF THE CIT(APPEAL)-34, MU MBAI FOR THE ASSESSMENT YEAR 2006-07 DATED 12/6/2012 THE ASSESSE E HAS PREFERRED THIS APPEAL RAISING THE FOLLOWING GROUNDS:- 1. THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY A.O ON ACCOUNT OF STOCK OF RS.33,58,997/-. 2. THE LEARNED CIT(A) ERRED IN CONFIRMING THE ADD ITION MADE ON ESTIMATE BASIS IN SURVEY PROCEEDING ASSESSMENT PASSED U/S.14 3(3). 3. THE LEARNED CIT(A) ERRED IN IGNORING THE FACT TH AT BAD DEBTS CLAIMED BY APPELLANT IN ASSESSMENT PROCEEDINGS HAS NOT BEEN AL LOWED BY A.O. 4. THE LEARNED CIT(A) HAS ERRED IN CONFIRMING THE A DDITION PASSING THE ORDER AFTER THE LAPSE OF MORE THAN TWO YEARS OF SUBMISSIO N. 5. THE APPELLANT RESERVES THE RIGHT TO ADD, TO DEL ETE AND/OR AMEND ANY OF THE FOREGOING GROUND OF APPEAL. 4. THIS CASE WAS FIXED FOR HEARING ON VARIOUS DATES . ON FOUR OCCASIONS, THE CASE WAS ADJOURNED ON THE REQUEST OF THE LD. REPRESENTATIVE FOR THE ASSESSEE AND ON OTHER DATES NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. TODAY I.E. 05/01/2016, WHEN THE CASE WAS CALLED FOR HEARING, ONE WAS PRESENT ON BEHALF OF TH E ASSESSEE. THE 3 ITA NO. 4625/MUM/2012 (ASSESSMENT YEAR 2006-07) LD.D.R, HOWEVER, WAS PRESENT FOR REVENUE. IN THESE CIRCUMSTANCES IT APPEARS TO US THAT THE ASSESSEE IS NOT INTERESTED I N PURSUING THIS APPEAL AND, WE THEREFORE, PROCEED TO DISPOSE OFF THIS CASE WITH THE ASSISTANCE OF THE LD. D.R AND THE MATERIAL ON RECORD. 5. AFTER CONSIDERING THE SUBMISSIONS MADE BY THE LD . D.R IN SUPPORT OF THE IMPUGNED ORDER OF THE LD. CIT(A) AND THE FIN DINGS RENDERED THEREIN AND THE MATERIAL ON RECORD, WE FIND THAT TH E ASSESSEE HAS BEEN UNABLE TO REBUT OR CONTROVERT THE FINDINGS OF LD. C IT(A) WITH REGARD TO THE ADDITIONS; (I) ON ACCOUNT OF DIFFERENCE IN STOCK - RS. 33 ,58,997/-; (II) ON ACCOUNT OF ESTIMATION OF NET PROFITS @ 1.4% ON TOTAL SALES AND (III) ON ACCOUNT OF DISALLOWANCE OF ADMINISTRATIVE EXPENDITURE CONSEQUENTLY, THE GROUNDS AT SL.NOS. 1 TO 3 RAISED BY THE ASSESSEE ARE DISMISSED. THE GROUNDS AT SL.NOS 4 & 5 BEING GENER AL IN NATURE AND NOT BEING ARGUED BEFORE US ARE DISMISSED AS INFRUCTUOUS . 6. IN THE RESULT, THE ASSESSEES APPEAL FOR ASSESSM ENT YEAR 2006-07 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08/01/2016 SD/- SD/- (RAMLAL NEGI) (JASON P. BOAZ) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI, DATED 08/01/2016 4 ITA NO. 4625/MUM/2012 (ASSESSMENT YEAR 2006-07) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS