The ACIT, Circle-9, Ahmedabad V. Shri Pannalal Dahyalal Shah, Ahmedabad

ITA 491/AHD/2010

• Counselvise Citation: 49120514 RSA 2010
• Duration Of Justice: 2 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 28-02-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 12-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T SANKAR SRDR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE SHRI, A.K.GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.491/AHD/2010 ASSESSMENT YEAR :2006-07 ASSTT. CIT(OSD), CIRCLE- 9, AHMEDABAD V/S . SHRI PANNALAL DAHYALAL SHAH, PROP. M/S. D.K. ENGINEERS, H-21, TAKSHSHILA TOWERS, VASTRAPUR, AHMEDABAD [ PAN NO.AFLPS 9249F ] / APPELLANT .. / RESPONDENT) /BY APPELLANT SHRI T. SANKAR, SR-DR /BY RESPONDENT NONE /DATE OF HEARING 28-02-2013 /DATE OF PRONOUNCEMENT 08-03-2013 / // / O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL OF REVENUE IS DIRECTED AGAINST THE ORD ER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XV, AHMEDABAD (CIT(A) FOR SHORT) DATED 09-12-2009 PERTAINING TO ASSESSMENT YEAR (AY) 2006-07. THE REV ENUE HAS RAISED SOLITARY EFFECTIVE GROUND, WHICH READS AS UNDER:- THE LD. COMMISSIONER OF INCOME-TAX (A)-XV, AHMEDAB AD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.465 0307/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ESTIMATION OF NET P ROFIT AT 5% IN PLACE OF THE DECLARED RATE OF 1.07%. ITA NO.491/AHD/2010 A.Y. 2006-07 ACIT(OSD) CIR-9 ABD V. SH. PANNALAL D SHAH PAGE 2 2. BRIEFLY STATED FACTS ARE THAT CASE OF THE ASSESS EE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S. 144 OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FINALIZE D THEREBY THE ASSESSING OFFICER MADE VARIOUS ADDITIONS INCLUDING THE NET PR OFIT ESTIMATION OF RS.46,50,307/-. AGAINST THIS, ASSESSEE FILED APPEAL BEFORE LD. CIT(A) WHO AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE PARTL Y ALLOWED THE APPEAL. 3. NOW THE REVENUE BEING AGGRIEVED CARRIED THE MATT ER BEFORE THE TRIBUNAL. 4. NONE APPEARED ON BEHALF OF ASSESSEE, HOWEVER, IT IS A LETTER FROM THE REVENUE PLACED ON RECORD WHEREIN IT HAS BEEN MENTIO NED THE NOTICE OF HEARING WAS SERVED BY WAY OF AFFIXTURE. THEREFORE, THE APPEAL IS TAKEN UP FOR HEARING IN THE ABSENCE OF ASSESSEE. 5. LD. SR-DR, SHRI T SANKAR FOR THE REVENUE STRONGL Y SUPPORTED THE ORDER OF ASSESSING OFFICER AND SUBMITTED THAT LD. CIT(A) ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER. 6. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA LS AVAILABLE ON RECORD. WE FIND THAT LD. CIT(A) HAS DECIDED THIS IS SUE IN PARA-7 OF HIS ORDER, WHICH IS REPRODUCED HEREINBELOW:- 7. AFTER GOING THROUGH RIVAL SUBMISSIONS I AM OF T HE VIEW THAT BOOKS OF ACCOUNT CAN BE REJECTED ONLY ON THE BASIS OF CERTAI N DISCREPANCIES NOTICED ON VERIFICATION OF ACCOUNTS, THAT TOO AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. IN THIS CASE LEDGER ACCOUNT COPIES WERE PROVIDED TO THE AO OF EXPENSES ETC., BUT NO INDEPENDENT INQUIRI ES WERE MADE TO DETECT ANY DISCREPANCIES EVEN AT THE REMAND REPORT STAGE, THEREFORE THE AO IS DIRECTED TO DELETE THE ADDITION. ITA NO.491/AHD/2010 A.Y. 2006-07 ACIT(OSD) CIR-9 ABD V. SH. PANNALAL D SHAH PAGE 3 FROM THE ABOVE FINDING OF LD. CIT(A), IT IS EVIDENT THAT ASSESSING OFFICER WAS GIVEN OPPORTUNITY TO MAKE INDEPENDENT INQUIRIES, HO WEVER, SAME WAS NOT CONDUCTED. THEREFORE, WE DO NOT FIND ANY INFIRMITY INTO THE ORDER OF LD. CIT(A) AND SAME IS HEREBY UPHELD. THIS GROUND OF REVENUES APPEAL IS REJECTED. 7. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE. SD/- SD/- (A.K.GARODIA) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, *DKP !' #- 08/03/2013 *+, - ../ ../ ../ ../ 0/ 0/ 0/ 0/ / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. ','.2 3 / CONCERNED CIT 4. 3- / CIT (A) 5. /67 ...2, .2 , *+, / DR, ITAT, AHMEDABAD 6. 7:; <= / GUARD FILE. BY ORDER/ , /TRUE COPY/ >/* '? .2 , *+, - STRENGTHEN PREPARATION & DELIVERY O F ORDERS IN THE ITAT 1) DATE OF TAKING DICTATION 01/03 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE NO 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 01/03 4) DATE OF CORRECTION 04/03 5) DATE OF FURTHER CORRECTION - - 6) DATE OF INITIAL SIGN BY MEMBERS 06/03 7) ORDER UPLOADED ON - - 8) ORIGINAL DICTATION PAD-PART HAS BEEN ENCLOSED IN THE FILE YES 9) FINAL ORDER AND 2 ND COPY SEND TO BENCH CLERK ON 11/03