M/s Rajesh Exports Limited , Bangalore V. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

ITA 464/BANG/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1132 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 07-03-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Rejection of books of accounts; Corroborative evidences
• Section: 143(3); 142(1); 10B; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES A BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 464/BANG/2019 (ASSESSMENT YEAR: 20 05 - 06 ) M/S. RAJESH EXPORTS LIMITED, NO.4, BATAVIA CHAMBERS, KUMARA KRUPA PARK (EAST), BENGALURU 560 001 PAN: AAACR 8642N VS. ASST. COMMISSIONER OF INCOME TAX , CENTRAL CIRCLE 1(2), B ENGALURU . (APPELLANT) (RESPONDENT) ASSESSEE BY: NONE. REVENUE BY: SHRI UJJWAL KUMAR, JCIT (D.R) DATE OF HEARING : 07.08 .2019 DATE OF PRONOUNCEMENT : 13 .09 .2019 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 11, BANGALORE PASSED UNDER SECTION 143(3) R.W.S. 254 AND 250 OF THE INCOME TAX ACT, 1961. 2. BEFORE WE GO INTO THE MERITS OF THE CASE NONE APPEARED ON BEHALF OF THE ASSESSEE AND NOTICE OF HEARING WAS SENT BY RPAD AND COPY OF RECEIPT OF THE NOTICE BY THE ASSESSEE ON 4.6.2019 IS 2 ITA NO. 464/BANG/2019 PLACED ON RECORD. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 3 ITA NO. 464/BANG/2019 3. THE BRIEF FACTS O F THE CASE ARE THAT THE ASSESSEE HAS FILED THE RETURN OF INCOME ON 31.10.2005 WITH A LOSS OF RS.103,48,99,551. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSIN ESS OF GOLD, BULLION, JEWELLERY AND MEDALLIONS AND HAS TWO UNITS, MAIN UNIT AND EOU UNIT . FURTHER THE ASSESSEE CLAIMED EXEMPTION UNDER SECTION 10B OF THE ACT IN RESPECT OF 100% EOU LOCATED AT BANGALORE AND DECLARED PROFIT FR O M THE MAIN UNIT . FINALLY THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) ON 26.03.2007 WITH TOTAL INCOME OF RS.184,09,88,965 . ON APPEAL, THE CIT(APPEAL S) GRANTED PARTIAL RELIEF TO THE ASSESSEE AND ON FURTHER APPEAL, ITAT IN ITA NOS.858 & 859/BANG/2010 FOR THE ASSESSMENT YEARS 2005 - 06 AND 2006 - 07 HAS REMITTED THE ABOVE ISSUE TO THE FILE OF ASSESSING OFFICER WITH DIRECTION S ON TH E ISSUE OF WASTAGE AND REJECTION OF BOOKS OF ACCOUNTS REFERRED AT PAGE 2 PARA 5 OF THE ASSESSMENT ORDER. 4 ITA NO. 464/BANG/2019 SUBSEQUENTLY A NOTICE UNDER SECTION 142(1) OF THE ACT DT.3.10.2017 WAS ISSUED. IN RESPONSE, THE ASSESSEE'S MANAGING DIRECTOR ATTENDED FROM TIME TO TIM E AND SUBMITTED THE DETAILS AND BOOKS OF ACCOUNTS WERE ALSO PRODUCED . T HE ASSESSEE COMPANY HAS MADE SUBMISSIONS REFERRED AT PARA 7 OF THE ORDER. WHEREAS THE ASSESSING OFFICER HAS DEALT ON THE SUBMISSIONS AND DIRECTIONS OF THE ITAT, FINALLY COMPUTED THE INC OME DISALLOWING THE L O S S AND ASSESSED THE TOTAL INCOME OF RS.47,69,88,616 AND PASSED ORDER UNDER SECTION 143(3) R.W.S. 254 DT.29.10.2017. ON FURTHER APPEAL, THE CIT(APPEALS) HAS CONCURRED WITH THE OBSERVATIONS AND FINDINGS OF THE ASSESSING OFFICER AND DISMISSED THE ASSESSEE'S APPEAL. AGGRIEVED BY THE CIT(A)S ORDER, THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE OR ANY ADJOURNMENT LETTER HAS BEEN FILED BY THE ASSESSEE. WE CONSIDERING THE FACTS OF RECEIPT OF THE NOTICE BY THE ASSESSEE PLACED O N THE RECORD RPAD PROCEEDED TO HEAR THE SUBMISSIONS OF THE LD. DR. THE LD. DR SUPPORTED THE ORDERS OF CIT(APPEALS) AND PRAYED FOR DISMISSAL OF APPEAL. 5 ITA NO. 464/BANG/2019 5. WE HEARD THE LD. DR SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, THE CIT(APPEALS) CONSIDERING THE SUBMISSIO NS OF THE ASSESSEE ON DISALLOWANCE OF CLA IM OF OPERATIONAL LOSS HAS OBSERVED THAT NO DOCUMENTARY EVIDENCE HAS BEEN FURNISHED BY THE ASSESSEE ON T HE ASPECT OF THE OPERATIONAL LOSS AND DISMISSED THE ASSESSEE'S APPEAL AND WE CONSIDER IT PROPER TO REFER TO THE FINDINGS OF THE CIT(APPEALS) AT PAGE 4 PARAS 8 TO 17 WHICH READ AS UNDER : 6 ITA NO. 464/BANG/2019 EVEN BEFORE US, NOTHING WAS FILED ON RECORD BY THE ASSESSEE BY WAY OF PAPER BOOK OR THE SUPPORTING EVIDENCE S OR DOCUMENTS IN RESPECT OF INCURRING OF OPERATIONAL LOSS. HENCE WE CONSIDERING THE MATERIAL ON RECORD, FINDINGS OF THE ASSESSING OFFICER AND CIT(APPEALS) OBSERVATIONS FOUND THE ORDER PASSED BY THE CIT(APPEAL S) IS REASONABLE AND CANNOT BE INTERFERED. 7 ITA NO. 464/BANG/2019 ACCORDINGLY, WE UPHELD THE ORDER OF THE CIT(APPEALS) AND DISMISS THE GROUNDS OF APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE ASSESSEE'S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 3 T H SEPT., 2 019. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 1 3 .09. 2019. *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE