M/s. Shree Bajrang Trading Company, BIKANER V. ITO, BIKANER

ITA 503/JODH/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7898 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-07-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 04-10-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Assessee Lawyers: S L HARSH
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.K. SAINI ) ITA NO. 503/JODH/2010 ASSTT. YEAR : 2006-07 PAN: AAEFS 5098 L M/S. SHREE BAJRANG TRADING COMPANY VS. THE ITO C/O SHRI S.L. HARISH (ADVOCATE) WARD- 2(2) 2, VAKILON KI GALI, BIKANER BIKANER (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.L. HARSH DEPARTMENT BY : SHRI G.R. KOKANI DATE OF HEARING : 26.07.2012. DATE OF PRONOUNCEMENT : 22.08.2012 ORDER DATED : 22/08/2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF THE LD.CIT(A), BIKANER DATED 30- 07-2010 FOR THE ASSESSMENT YEAR 2006-07. 2.1 THE GROUND NOS. 1 TO 4 OF THE ASSESSEE ARE AGAI NST CONFIRMING THE ADDITION OF RS. 6.62,893/- U/S 68 OF THE ACT. 2.2 THE BRIEF FACTS OF THE CASE ARE THAT AS PER BAL ANCE SHEET, THERE WAS A CREDIT BALANCE ON ACCOUNT OF VARIOUS PARTIES TOTALING TO RS. 10,2 0,703/-. THE ASSESSEE COULD NOT EXPLAIN THE CREDIT ENTRIES. THEREFORE, THE ADDITION WAS MAD E BY THE AO. 2.3 VARIOUS DETAILS WERE FILED BEFORE THE LD. CIT(A ) WHO AFTER CONSIDERING THE SAME SUSTAINED THE ADDITION OF RS. 6,62,893/- OUT OF TOT AL ADDITION MADE BY THE AO. 2 2.4 DURING THE APPELLATE PROCEEDINGS HERE BEFORE TH E TRIBUNAL, THE LD. AR STATED THAT IN FACT THE ASSESSEE HAS PURCHASED THE GOODS FROM V ARIOUS FARMERS THROUGH KRISHI UPAJ MANDI SAMITI AND IN SUBSEQUENT YEAR, THE PURCHASE AMOUNT HAS BEEN PAID. THEREFORE, THE PROVISION OF SECTION 68 OF THE ACT SHOULD NOT BE AP PLIED. 2.5 ON THE OTHER HAND, THE LD. DR STATED THAT THIS STAND HAS BEEN TAKEN FOR THE FIRST TIME. THEREFORE, THE MATTER SHOULD BE SENT BACK TO THE FILE OF THE AO FOR EXAMINING THE SAME FOR WHICH THE LD. AR DID NOT OBJECT TO THE CON TENTION OF THE LD. DR. 2.6 AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE P ARTIES, WE FIND THAT THE MATTER SHOULD GO BACK TO THE FILE OF THE AO TO CONSIDER IT AFRESH. IT IS SAID THAT THE CREDIT ENTRIES IN THE BALANCE SHEET WERE ON ACCOUNT OF PURCHASE O F GOODS FROM VARIOUS FARMERS. IF THIS FACT IS CORRECT THEN THE ADDITION U/S 68 OF THE ACT CANNOT BE MADE. HOWEVER, SINCE THIS FACT WAS NOT EXAMINED BY THE AO OR BY THE LD. CIT(A ), THEREFORE, WE RESTORE BACK THE MATTER TO THE FILE OF THE AO TO EXAMINE THE ISSUE A FRESH AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ORDE R ACCORDINGLY. 3.1 THE REMAINING GROUND OF THE ASSESSEE IS AGAINST SUSTAINING THE ADDITION OF RS. 8,0000/-. 3.2 THE AO MADE AN ADDITION OF RS. 12,000/- OUT OF SHOP EXPENSES AND HAMALI/ WAGES EXPENSES FOR WANT OF COMPLETE VOUCHERS. THE LD. CIT (A) REDUCED THESE DISALLOWANCES TO RS. 8,000/-. 3.3 AFTER CONSIDERING THE ORDERS OF THE AO, LD. CIT (A) AND THE SUBMISSIONS OF THE PARTIES, WE ARE OF THE VIEW THAT IF THE ADDITION OF RS. 4,000/- IS SUSTAINED THEN THAT WILL MEET THE ENDS OF JUSTICE. WE ORDER ACCORDINGLY 3 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART AND PARTLY ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED ON 22.08.2012 . SD/- SD/- ( N.K. SAINI ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, *MISHRA COPY FORWARDED TO :- 1. M/S. SHREE BAJRANG TRADING COMPANY, BIKANER . 2. THE ITO, WARD- 2 (2), BIKANER. 3. THE LD CIT (A) 4. THE LD. CIT 5. THE D/R 6. GUARD FILE (ITA NO.503/JODH/2010) BY ORDER, AR ITAT JODHPUR.