ACIT, Jaipur V. SHAKUM ADVERTISING PVT. LTD., Jaipur

ITA 538/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5410 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 31-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R PAREEKH
• Assessee Lawyers: S L PODDAR DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 538/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 THE DCIT CENTRAL CIRCLE- 2 JAIPUR CUKE VS. M/S. SHAKUN ADVERTISING (P) LTD. B-3, GIRRAJ MANSION, IST FLOOR, NEW COLONY, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AABCS 9742 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI G.R. PAREEKH, JCIT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.L. PODDAR, ADVOCATE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18/04/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 18/04/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-CENTRAL, JAIPUR DATED 05-05-2014 FOR THE AS SESSMENT YEAR 2007- 08 WHEREIN FOLLOWING GROUND HAS BEEN RAISED BY THE REVENUE . 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) HAS ERRED IN DELETING PENALTY U/S 271(1) (C) OF RS. 20.00 LACS IGNORING HER OWN FINDINGS OF FACT RECORD ED IN PARA 5.4 OF HER QUANTUM APPEAL ORDER DATED 26-09-2014 WH ICH HAVE NOT BEEN REBUTTED BY THE ITAT IN ORDER DATED 1 3-03- 2014. ITA NO. 538/JP/2014 THE DCIT, CENTRAL CIRCLE- 2, JAIPUR VS M/S. SHAKUN ADVERTISING (P) LTD., JAIPUR . 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A)-CENTRAL, JAIPUR HAS ERRED IN DELETING TH E PENALTY U/S 271(1)(C) OF THE ACT BY RELYING UPON ITAT ORDER DATED 13-03-2014 WHICH HAS BEEN CHALLENGED BY THE DEPARTM ENT BEFORE THE HON'BLE HIGH COURT ON PERVERSITY OF FACT S. 2.1 AT THE OUTSET OF THE HEARING, THE BENCH OBSERVE D THAT THE ISSUE OF QUANTUM WAS DECIDED IN FAVOUR OF THE ASSESSEE BY COORDINATE BENCH VIDE ITS ORDER DATED 13-03-2014 IN ITA NO. 821/JP/2 012 FOR THE ASSESSMENT YEAR 2007-08 BY FOLLOWING OBSERVATIONS. 7.5 WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAREFULLY PERUSED THE ENTIRE MATERIAL ON RECORD. WE HAVE FOUND THAT IN THE CASE OF THE ASSESSEE THE BOOKS OF ACCOUNT AR E AUDITED U/S 44AB OF THE ACT AND A COPY OF THE AUDIT REPORT HAD BEEN FURNISHED BEFORE THE A.O. IN THE AUDIT REPORT, THE CHARTERED ACCOUNTANT HAS NOT POINTED OUT ANY SERIOUS DEFICIENCY OR DEFECT. D URING THE COURSE OF ASSESSMENT PROCEEDINGS, ALL THE BOOKS OF ACCOUNT CONSISTING OF CASH BOOK, LEDGER, JOURNAL, BANK BOOK ETC. WERE PRO DUCED BEFORE THE A.O. AND THE SAME WERE EXAMINED BY HIM. THIS FA CT IS FOUND MENTIONED IN PARA 4 OF THE ASSESSMENT ORDER. THE AS SESSEE HAS DISCLOSED HIGHER GROSS PROFIT RATE ON INCREASED TUR NOVER. THE TURNOVER OF THE ASSESSEE HAS GONE UP TO RS. 47,94,1 2,190/- FROM RS. 32,56,24,724/- IN A.Y. 2006-07. THE INCREASE IN TUR NOVER IS 50%. THE ASSESSEE HAS DISCLOSED THE GROSS PROFIT RATE OF 2.18% IN COMPARISON TO1.84% AND 2.16% IN A.Y. 2006-07 AND 20 05-06, RESPECTIVELY. THUS THE GROSS PROFIT RATE DISCLOSED IN THIS YEAR IS ITA NO. 538/JP/2014 THE DCIT, CENTRAL CIRCLE- 2, JAIPUR VS M/S. SHAKUN ADVERTISING (P) LTD., JAIPUR . 3 BETTER THAN THE LAST YEAR. WHEN THE BOOKS OF ACCOUN T ARE REJECTED, THE BEST METHOD TO COMPARE THE TRADING RESULTS WITH EARLIER AND IF THEY ARE FOUND BETTER THAN THEM, NO FURTHER TRADI NG ADDITION CAN BE MADE. HENCE, IN VIEW OF THE FACTS AND CIRCUMSTAN CES OF THE ABOVE CASE, WE ORDER TO DELETE THE ENTIRE ADDITION THUS GROUND NO. 2 OF THE ASSESSEE IS ALLOWED. 2.2 DURING THE COURSE OF HEARING, THE LD. DR RELIED ON THE ORDER OF THE AO CONTENDING THAT THE AO HAS RIGHTLY IMPOSED PENAL TY OF RS. 20 LACS ON THE ASSESSEE U/S 271(1)( C) OF THE ACT. 2.3 THE LD. AR OF THE ASSESSEE RELIED ON ITAT ORDER DATED 13-03-2014 (SUPRA) AND FURTHER PRAYED THAT THE LD. CIT(A) HAS RIGHTLY DELETED THE PENALTY OF RS. 20 LACS IMPOSED BY THE AO U/S 271(1) (C) OF THE ACT. 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT EMERGES FROM THE RECORD THA T WHEN ITAT COORDINATE BENCH VIDE ITS ORDER DATED 13-03-2014 HA S DELETED THE QUANTUM AS MENTIONED HEREINABOVE THEN THERE IS NO R EASON TO IMPOSE THE PENALTY ON THE ASSESSEE U/S 271(1) OF THE I.T. ACT ,1961. THUS IN VIEW OF THE ABOVE DELIBERATIONS, WE ARE NOT INCLINED TO INT ERFERE WITH THE ORDER OF THE LD. CIT(A) WHICH IS SUSTAINED. THEREFORE, THE APPEAL OF THE REVENUE IS DISMISSED. ITA NO. 538/JP/2014 THE DCIT, CENTRAL CIRCLE- 2, JAIPUR VS M/S. SHAKUN ADVERTISING (P) LTD., JAIPUR . 4 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/04/2016 . SD/- SD/- FOE FLAG ;KNO VKJ-IH-RKSYKUH (VIKRAM SINGH YADAV) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 18 /04/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE DCIT, CENTRAL CIRCLE-2, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S. SHAKUN ADVERTISING (P) LTD. , 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.538/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR