SHRI TIKAM KHANDELWAL, Jaipur V. ACIT, Jaipur

ITA 469/JPR/2011

• Counselvise Citation: 46923114 RSA 2011
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 18-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K L MOOLCHANDAN I; R K KHUTETA
• Section: 40A(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.469/ JP/2011 ASSESSMENT YEAR 2002-03 PAN: AKGPK 7401 H SHRI TIKAM KHANDELWAL VS. THE ACIT A-2, RANA PRATAP NAGAR CENTRAL CIRCLE- 1 JHOTWARA, JAIPUR JAIPUR (APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI K.L. MOOLCHANDANI & SHRI R.K. KHUTETA DEPARTMENT BY : SHRI SUNIL MATHUR DATE OF HEARING: 2-08-2011 DATE OF PRONOUNCEMENT:19-08-2011 ORDER PER N.L. KALRA, AM:- THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), CENTRAL JAIPUR DATED 18-03-2011 FOR THE ASSESSMENT YEAR 2002-03. 2.1 THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE I S THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 19,780/ - U/S 40A(3) OF THE ACT. 2.2 WE HAVE HEARD BOTH THE PARTIES. THE PLOT NO. 11 OF JAGDISH COLONY HAS BEEN CARRIED TO NEXT YEAR AS CLOSING STOCK BY THE A SSESSEE. AT THE TIME OF PURCHASE, IT WAS SHOWN AS FIXED ASSETS. SINCE THE A SSESSEE HAS NOT CLAIMED ANY DEDUCTION IN RESPECT OF EXPENSES, THEREFORE, N O DISALLOWANCE U/S 40A(3) IS TO BE MADE. THE JAIPUR BENCH IN THE CASE OF SING HAL BUILDERS CONTRACTORS 2 VS. ADDL. CIT 12 TAXMAN.COM 199 HAS HELD THAT NO DI SALLOWANCE CAN BE MADE U/S 40A(3) IN CASE THE GROSS PROFIT RATE OR NE T PROFIT RATE IS APPLIED. FOLLOWING OUR ORDER FOR THE ASSESSMENT YEAR 2008-09 IN THE CASE OF SHRI SHANKAR LAL KHANDELWAL IN ITA NO . 392/JP/2011 , WE HOLD THAT THE NO DISALLOWANCE U/S 40A(3) IS TO BE MADE BECAUSE THE B OOKS OF ACCOUNT ARE BEING REJECTED. THUS THE SOLITARY GROUND OF THE ASS ESSEE IS 3.. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 19-08 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 19 /08/2011 *MISHRA COPY FORWARDED TO :- 1. SHRI TIKAM KHANDELWAL, JAIPUR 2. THE ACIT, CENTRAL CIRCLE- 1, JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5. THE LD.DR 6. THE GUARD FILE (ITA NO.469/JP /11) A.R, ITAT, JAIPUR 3 4