Shri Madan Lal Jain, Dehradun V. ITO, New Delhi

ITA 4865/DEL/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6393 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 18-02-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 13-09-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA
• Assessee Lawyers: S K GUPTA
• Keywords: Principle of natural justice

Judgement Text

1 ITA NO. 48 65/DEL/2012 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT ME MBER & SMT. BEENA PILLAI, JUDICIAL MEMBER I.T.A .NO.-4865/DE L/2012 (ASSESSMENT YEAR-2006- 07) MADAN LAL JAIN, PROPRIETOR OF JAIN TRADING CO. CP-154, PITAMPURA DEHRADUN. AECPJ3371D VS ITO WARD 28(1) NEW DELHI. APPELLANT BY SHRI S.K. GUPTA, CA RESPONDENT BY SHRI P DAM KANUNJNA, SR. DR ORDER PER BEENA PILLAI, JUDICIAL MEMBER : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A)-XXV , NEW DELHI DATED 28/02 /2011 ON THE FOLLOWING GROUNDS OF APPEAL: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE AUTHORITIES BELOW HAVE ERRED IN MAKING/CONFIRMING I LLEGAL ADDITION OF RS. 9,87,325/- AS NOTIONAL INCOME OF TH E APPELLANT AND THE ILLEGAL ADDITION IS LIABLE TO BE DELETED WITH CONSEQUENTIAL RELIEF TO THE APPELLANT AFTER HEARING BOTH SIDES. 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER: DATE OF HEARING 18.02.2016 DATE OF PRONOUNCEMENT 09.03.2016 2 ITA NO. 48 65/DEL/2012 THE ASSESSEE IS AN INDIVIDUAL AND HAD FILED ITS RET URN OF INCOME FOR THE RELEVANT YEAR UNDER CONSIDERATION ON 31/10/2006 . THE CASE WAS SELECTED FOR SCRUTINY AND STATUTORY NOTICE U/S 143(2) WERE ISSUED AND SERVED UPON THE ASSESSEE. 3. DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS THE AO CALLED FOR VARIOUS DETAILS IN RESPECT OF THE COMMISSION IN COME, PERSONAL DRAWINGS FOR HOUSEHOLD EXPENSES, AND THE ALLEGED PR OFIT STRIPING AS OBSERVED BY THE LD. AO. AS NO DETAILS COULD BE FIL ED, THE LD.AO, MADE AN ADDITION AND COMPLETED THE ASSESSMENT AT RS . 12,32,700/- . 4. AGGRIEVED BY THE ORDER OF THE LD. AO THE ASSESSE E PREFERRED AN APPEAL BEFORE THE LD. CIT(A). BEFORE THE LD. CIT(A ) THE ASSESSEE AGAIN COULD NOT SUBMIT ANY DOCUMENTS TO SUBSTANTIAT E THE INCOME EARNED UNDER COMMISSION, PERSONAL DRAWINGS FOR HOUS EHOLD EXPENSES AND THE ADDITION MADE BY THE LD. AO UNDER THE HEAD PROFIT STRIPING. THE LD. CIT(A), THEREFORE, CONF IRMED THE ADDITIONS MADE BY THE LD. AO. 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A) THE ASS ESSEE IS IN APPEAL BEFORE US ONLY ON THE ADDITION MADE UNDER TH E HEAD PROFIT STRIPING. THE LD. AR SUBMITTED THAT ASSESSEE IS A BROKER/AGENT AND TOWARDS IN FOOD GRAINS LIKE RICE, SUGAR AND PULSES, ETC. THE ASSESSEE DURING THE YEAR HAD A TURNOVER OF RS. 14,1 0,67,447/- AND HAD DECLARED GROSS PROFIT @ 1.03%. FROM THE PAPER BOOK FILED BY THE ASSESSEE BEFORE US, WE NOTE THAT AT PAGE NO. 3, 13 AND 41 WERE NOT FILED BEFORE THE AUTHORITIES BELOW. TO OUR MIN D THESE DOCUMENTS WOULD HAVE RELEVANCE IN DECIDING THE ISSU E 3 ITA NO. 48 65/DEL/2012 CONSIDERATION. WE, THEREFORE, FOLLOWING THE PRINCI PLE OF NATURAL JUSTICE SET ASIDE THE ISSUE TO THE LD. AO FOR VERIF YING THE DETAILS AND RECONSIDER THE ADDITION MADE BY THE AO ON THE BASIS OF THE DOCUMENTS AT THESE PAGES. THE LD. AO MAY CALL FOR ANY FURTHER DETAILS SO REQUIRED FOR DECIDING THE ISSUE. THE AS SESSEE IS ALSO AT LIBERTY TO FILE ALL NECESSARY DOCUMENTS FOR RECONSI DERATION OF THE ISSUE BY THE LD. AO. THE GROUNDS OF THE APPEAL ARE STATISTICALLY ALLOWED. HENCE, THE APPEAL IS STATISTICALLY ALLOWE D. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09.03. 2016 SD/- SD/- (N.K. SAINI) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09.03.2016 *KAVITA, P.S. COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 48 65/DEL/2012