PRAVEEN PULVERIZERS, Jaipur V. ITO, BEAWAR

ITA 515/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5415 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 17-07-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK
• Assessee Lawyers: DEEPAK GUPTA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 515/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 SHRI PRAVEEN PULVERIZERS 3-165, RIICO INDUSTRIAL AREA BEAWAR CUKE VS. THE ITO WARD- 1 (3) BEAWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACFP 10005 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI DEEPAK GUPTA, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22/01/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 29/02/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A), AJMER DATED 16-05-2014 FOR THE ASSESSMENT YEAR 2009-10 RAISING THEREIN FOLLOWING GROUNDS. (I) UNDER THE FACTS AND CIRCUMSTANCES, LD AO HAS ERRED IN LAW BY REJECTING THE BOOKS OF ACCOUNT U/S 145(3) OF THE I.T. ACT. FURTHER THE LD. CIT(A) ERRED BY SUSTA INING THE SAME. (II) UNDER THE FACTS AND CIRCUMSTANCES, LD. AO HAS ERRED IN APPLYING NET PROFIT RATE. HE FURTHER ERRED BY APPLYING 8% GROSS PROFIT RATE AND MAKING A TRADING ADDITION OF RS. ITA NO. 515/JP/2014 SHRI PRAVEEN PULVERIZERS VS. ITO ,WARD- 1, BEAWAR . 2 2,41,480/-, FURTHER THE LD. CIT(A) ERRED BY SUSTAIN ING THE SAME. THE VIEW TAKEN IN THIS REGARD IS UNJUSTIFIED AND RESULTANT ADDITION OF INCOME IS UNJUSTIFIED, ILLEGA L OR EXCESSIVE. 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE F IRM IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND JOB WORK OF MINERAL P OWDER. THE ASSESSEE HAD DISCLOSED GROSS PROFIT RATE OF 7.96% ON TURNOVE R OF RS. 3,51,84,182/- AS AGAINST GROSS PROFIT RATE OF 6.70% ON TURNOVER OF RS. 4,10,97,213/- IN THIS YEAR. THE AO REJECTED THE BOOKS OF ACCOUNT OF THE ASSESSEE HOLDING THAT ASSESSEE'S PURCHASES ARE NOT FULLY VOUCHED AND QUANTITATIVE STOCK WAS NOT AVAILABLE. THUS THE AO MADE TRADING ADDITION OF RS. 2,41,480/- BY APPLYING GROSS PROFIT RATE OF 8% BESIDES THE AO MA DE ADDITION OF RS. 10,000/-. 2.2 AGGRIEVED, THE ASSESSEE PREFERRED FIRST APPEAL BEFORE THE LD. CIT(A) WHO CONFIRMED THE ORDER OF THE AO. 2.3 NOW THE ASSESSEE IS BEFORE THIS BENCH AGAINST T HE ORDER OF THE LD. CIT(A). 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN MY CONSIDERED VIEW, THE ASS ESSEE'S BOOKS OF ACCOUNT HAVE RIGHTLY BEEN REJECTED BY THE LOWER AUT HORITIES WHICH IS UPHELD. APROPOS TRADING ADDITION, IT IS FOUND THAT TURNOVER IN THIS YEAR ITA NO. 515/JP/2014 SHRI PRAVEEN PULVERIZERS VS. ITO ,WARD- 1, BEAWAR . 3 HAS SUBSTANTIALLY INCREASED BY ABOUT RS. 60 LACS. B ESIDES, THE SAME GROSS PROFIT CANNOT BE EARNED BY THE ASSESSEE EVERY YEAR. TAKING INTO CONSIDERATION ALL THE FACTS AND CIRCUMSTANCES OF TH E CASE, THE TRADING ADDITION IS RESTRICTED TO RS. 1.00 LAC. SINCE THE B OOKS OF ACCOUNT ARE REJECTED AND GROSS PROFIT IS ESTIMATED THEREFORE, T HERE IS NO JUSTIFICATION IN MAKING ANY SEPARATE ADDITION. HENCE, THE ADDITION M ADE OF RS. 10,000/- IS DELETED. THUS THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 3.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED ORDER PRONOUNCED IN THE OPEN COURT ON 29 / 02/2 016 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 29/02/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI PRAVEEN PULVERIZERS, BEAWAR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD-1, BEAWAR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 515/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR