M/S P.R. GEMS, Jaipur V. ITO, Jaipur

ITA 514/JPR/2011

• Counselvise Citation: 51423114 RSA 2011
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 21-11-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 25-05-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Assessee Lawyers: ARVIND DHA DDA; YASH DHADDA

Judgement Text

1 ITA 514-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 514/JP/2011 ASSTT. YEAR : 2006-07. M/S. P.R. GEMS, VS. THE INCOME-TAX OFFICER, 1464, PARTANION KA RASTA, WARD 1(1), JOHARI BAZAR, JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI YASH DHADDA & SHRI ARVIN D DHADDA RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 21.11.2011 DATE OF PRONOUNCEMENT : 09.01.2012. ORDER DATE OF ORDER : 09.01.2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. THE GROUND OF THE ASSESSEE IS AGAINST CONFIRMING THE ADDITION OF RS. 68,422/- BY DISALLOWING 25% OF UNVERIFIABLE PURCHASES. 3. THE JAIPUR BENCHES OF THE TRIBUNAL ARE TAKING A CONSISTENT VIEW THAT WHERE CERTAIN PURCHASES REMAINED UNVERIFIABLE, THE REJECTION OF B OOKS OF ACCOUNT IS JUSTIFIED. HOWEVER, ADDITION, IF ANY CAN BE MADE THAT CAN BE MADE TAKIN G INTO CONSIDERATION THE PAST HISTORY OF THE CASE AND CURRENT EVENTS OF THE CASE. IN THE PA ST, ASSESSEE HAS SHOWN GP RATE AT 22.91% AND 23.9% FOR ASSESSMENT YEARS 2005-06 AND 0 4-05 RESPECTIVELY. REASON FOR 2 DECLINE IN GP RATE, IT IS STATED THAT IN EARLIER YE AR THERE WAS MANUFACTURING ACTIVITY DONE BY THE ASSESSEE. HOWEVER, IN THE YEAR UNDER CONSIDE RATION, THERE IS TRADING ACTIVITY ONLY. THEREFORE, THE GP RATE HAS DECLINED. KEEPING IN VI EW ALL THESE FACTS AND CIRCUMSTANCES AND TAKING INTO CONSIDERATION THE UNVERIFIABLE PURC HASES, WE ARE OF THE VIEW THAT IF A TRADING ADDITION OF RS. 10,000/- IS SUSTAINED THAT WILL MEET THE ENDS OF JUSTICE. WE ORDER ACCORDINGLY. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 5. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09. 01.2012. ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- M/S. P.R. GEMS JAIPUR. THE ITO WARD 1(1), JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 514/JP/2011) BY ORDER, AR ITAT JAIPUR.