JAIN AGENCIES, Jaipur V. ITO, Jaipur

ITA 527/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5363 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 30-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK
• Assessee Lawyers: H M SINGHVI

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. 527/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 M/S. JAIN AGENCIES DOONI HOUSE, FILM COLONY JAIPUR CUKE VS. THE ITO WARD- 1(2) JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABFJ 2485 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI H.M. SINGHVI - CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT-.. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17/02/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 25/04/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-I, JAIPUR DATED 09-05-2014 FOR THE ASSESS MENT YEAR 2008-09 RAISING FOLLOWING GROUNDS OF APPEAL:- 1.1 THAT THE LD. CIT(A) WITHOUT DECIDING THE GROU ND REGARDING THE APPLICATION OF PROVISION OF SECTION 145(3) 1.2 THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) CONFIRMED THE TRADING ADDITION OF RS . 1,46,083/- MADE BY THE AO BY APPLYING THE PROVISION OF SECTION 145(3) WITHOUT POINTING OUT ANY DEFECTS IN THE BOOKS OF ACCOUNT. ITA NO. 527//JP/2013 M/S. JAIN AGENCIES VS. ITO ,WARD- 1(2) JAIPUR . 2 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A WHOLESALER OF MEDICINES. REGULAR BOOKS OF ACCOUNT ARE MAINTAINED WHICH ARE DULY AUDITED. THE RECORDS INCLUDE MAINTENANCE OF STOCK R EGISTER ON COMPUTER SINCE MEDICINES ARE COMMODITY. THE ASSESSEE MAINTAI NS REGULAR BOOKS OF ACCOUNT AND STOCK REGISTER. ACCORDING TO THE ASSESS EE, THERE ARE NO MATERIAL DEFECTS IN THE BOOKS OF ACCOUNT AND AO HAS REJECTED THE SAME WITHOUT GIVING ANY COGENT REASONS. THE ITEM WISE AN D DATE WISE DETAILS OF THE MEDICINES STOCK ARE AVAILABLE ON COMPUTER. FOR THE SAKE OF EASE, THE ASSESSEE PROVIDED CONSOLIDATED STATEMENT OF STOCK O F THE RECORD. THE AO HAS MISCONCEIVED THAT THE ASSESSEE IS NOT MAINTAINI NG DAY TO DAY STOCK REGISTER. THE INFERENCE IS NOT BEING BORN OUT FROM THE RECORD. THE REJECTION OF BOOKS OF ACCOUNT IS GROSSLY UNJUSTIFIE D AND CONSEQUENT ADDITION HAS NO BASIS. RELIANCE IS PLACED AS UNDER: - (1) CIT VS. A KRISHNASWAMI MUDALIAR , 53 ITR 122 (SC) (2) CIT VS. SUPERIOR CRAFTS, 353 ITR (DELHI) (3) PANDIT BROTHERS, 26 ITR 159 (P&H) (4) RAM AVTAR ASHOK KUMAR VS. CST (1980) 45 STC 355 (ALL.) (5) R.V.S. AND SONS DAIRY FARM VS. CIT , 257 ITR 7 64(MAD. ) (6) ACTION ELECTRICALS VS. DCIT ,258 ITR 188 (DEL. ) (7) CIT VS. JAS JACK ELEGANCE EXPORTS, 324 ITR 95 (DEL.) (8) CIT VS. SMT. POONAM RANI, 326 ITR 223 (DEL.) 2.2 THE LD. DR SUPPORTED THE ORDERS OF THE AUTHORIT IES BELOW. ITA NO. 527//JP/2013 M/S. JAIN AGENCIES VS. ITO ,WARD- 1(2) JAIPUR . 3 2.3 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN MY CONSIDERED VIEW THE MEDI CINES TRADE OF THE ASSESSEE IS CONTROLLED BY THE DRUG DEPTT. OF THE GO VT. FROM THE RECORD, IT CLEARLY EMERGES THAT THE ASSESSEE HAS BEEN MAINTAIN ING PROPER RECORD AND DAY TO DAY ITEM WISE STOCK ALONG WITH BOOKS OF ACCO UNT. THE OBSERVATION OF THE AO THAT THE ASSESSEE IS NOT MAINTAINING DAY TO DAY ITEMS WISE STOCK IS NOT BORNE OUT FROM THE RECORD. IN VIEW THEREOF, THE REJECTION OF BOOKS OF ACCOUNT U/S 145(3) OF THE ACT UNJUSTIFIED AND THE B OOKS OF ACCOUNT OF THE ASSESSEE ARE UPHELD AND THUS CONSEQUENT ESTIMATED A DDITION IS DELETED. 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25/0 4/2016 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 25 /04/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. JAIN AGENCIES, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- 1(2), JAIPUR 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. 527/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR