GANPATAJ SISODIA, Ajmer V. DCIT, Ajmer

ITA 54/JPR/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54100 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 24-01-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Keywords: Business income

Judgement Text

1 ITA 54-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 54/JP/2011 ASSTT. YEAR : 2007-08. SHRI GANPATRAJ SISODIA, VS. THE DCIT, CIRCLE-1, MARBLE MANDI, HARMADA ROAD, AJMER. KISHANGARH. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI D.K. MEENA ORDER DATE OF ORDER : 05/08/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2007-08. 2. THE FIRST GROUND IS AGAINST DISMISSING THE APPEA L WITHOUT AFFORDING REASONABLE OPPORTUNITY. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE HERE BEF ORE THE TRIBUNAL ALSO, THEREFORE, WITHOUT ANY ARGUMENT OR MATERIAL, THE FIRST GROUND IS REJECTED. 4. SECOND GROUND IS AGAINST ESTIMATING THE INCOME A T RS. 7,16,570/- @ 20% OF SALES OF RS. 35,82,850/-. 5. THE LD. D/R PLACED RELIANCE ON THE ORDER OF A.O. THE APPEAL IS BEING DISPOSED OFF AFTER CONSIDERING THE ORDERS OF AO AND LD. CIT (A) IN THIS RESPECT. 2 6. THE ASSESSMENT IN THIS CASE COMPLETED UNDER SECT ION 143(3). THE AO ESTIMATED INCOME @ 20% OF THE TOTAL TURNOVER DEPOSITED IN THE BANK. IN FACT, THE AO FOUND THAT ASSESSEE HAS DEPOSITED RS. 10,000/- TO RS. 1,50,000 /- IN VARIOUS BRANCHES OF THE BANK ON VARIOUS OCCASIONS. THESE DEPOSITS STAND WITHDRAWN W ITHIN SHORT SPAN OF TIME. SINCE THERE WAS NO EXPLANATION ON BEHALF OF THE ASSESSEE, THE A O TREATED THESE AMOUNTS OF DEPOSITS AS TURNOVER OF THE ASSESSEE AND ESTIMATED THE PROFIT @ 20%. THE LD. CIT (A) CONFIRMED THE ACTION OF THE AO WHILE PASSING ORDER EX PARTE. 7. IN THE GROUND OF APPEAL, THE ASSESSEE HAS MENTIO NED THAT AS PER SECTION 44AF IN CASE OF TURNOVER BELOW RS. 40 LACS, A SUM EQUAL TO 5% OF THE TURNOVER IS DEEMED AS BUSINESS INCOME. THEREFORE, IT HAS BEEN PLEADED IN THE GROUND THAT INCOME OF THE ASSESSEE SHOULD BE ESTIMATED ONLY AT RS. 1,79,152/- @ 5% OF THE TOTAL TURNOVER. THE CONTENTION OF THE ASSESSEE THROUGH GROUND OF APPEAL SEEMS TO BE REASONABLE. THE ASSESSEE HAS DEPOSITED CERTAIN CASH IN THE BANK ACC OUNT WHICH FURNISHES THAT IT IS ON ACCOUNT OF TURNOVER OF THE ASSESSEE. THEREFORE, WE FEEL THAT IN VIEW OF PROVISIONS OF SECTION 44AF IF THE TURNOVER OF THE ASSESSEE IS LES S THAN RS. 40,00,000/-, THE INCOME SHOULD BE DETERMINED @ 5% OF TOTAL TURNOVER OF RS. 35,82,850/- WHICH IS EQUAL TO RS. 1,79,142/-. ACCORDINGLY THE AO IS DIRECTED TO MODI FY HIS ORDER. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 05. 08.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- 3 COPY FORWARDED TO :- SHRI GANPATRAJ SISODIA, KISHANGARH. THE DCIT, CIRCLE-1, AJMER. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 54/JP/2011) BY ORDER, AR ITAT JAIPUR.