M/S MATAJI REALITY DEVELOPERS PVT. LTD., BEAWAR V. INCOME TAX OFFICER, WARD-1, BEAWAR

ITA 548/JPR/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9009 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 18-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K C SHARMA DHK
• Keywords: Corroborative evidences; Onus to prove; Set aside
• Section: 44AD; 142(1); 133(6); 144; 68

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH B, JAIPUR JH JESK LH-'KEKZ] YS[KK LNL; ,OA JH FOT; IKY JKO] U;KF;D LNL; DS LE{K BEFORE : SHRI RAMESH C.SHARMA, AM & SHRI VIJAY PAL RAO, JM VK;DJ VIHY LA-@ ITA NO. 548/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 M/S. MATAJI REALITY DEVELOPERS PVT. LTD. MATAJI TOWERS, MEWARI BAZAR BEAWAR CUKE VS. THE ITO WARD-1 BEAWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAHCM 1290 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY :SHRI P.C. PARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY : SHRI K.C. SHARMA, ADDL. CIT-DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 02/07/2019 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 04/07/2019 VKNS'K@ ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 14-08-2017 OF LD. CIT(A), AJMER FOR THE ASSESSMENT YEAR 2013-14. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THE LD. CIT(A) HAS ERRED ON FATS AND IN LAW IN CONFIRMING THE TRADING ADDITION OF RS. 73,49,533/- BY DISALLOWING 25% OF CONSTRUCTION EXPENSES OF S 2,93, 98,132/-. ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 2 2. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN DISALLOWING RS. 27,692/- BEING 20% OF TOTAL INDIREC T EXPENSES OF RS. 1,38,490/-. 3. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS. 9 LACS U/S 68 OF IT ACT BY INCORRECTLY HOLDING THAT ASSESSEE HAS FAILED TO SAT ISFACTORILY EXPLAIN THE NATURE AND SOURCE OF THE CREDIT. 2.1 THE GROUND NO 1 IS REGARDING TRADING ADDITION M ADE BY THE AO BY DISALLOWING 25% OF CONSTRUCTION EXPENSES. 2.2 THE ASSESSEE IS ENGAGED IN THE BUSINESS OF REAL ESTATE AND CONSTRUCTION WORK. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION DECLARING TOTAL INCOME OF RS.4, 93,870/-. THE CASE WAS SELECTED FOR SCRUTINY THROUGH CASS. THE AO ISSUED N OTICES U/S 143(2) AS WELL AS U/S 142(1) OF THE ACT. HOWEVER, THERE WAS N O COMPLIANCE BY THE ASSESSEE DESPITE THE NOTICES WERE SERVED UPON THE A SSESSEE. FINALLY THE AO ISSUED SHOW CAUSE NOTICE DATED 29-02-2016 ASKING AS TO WHY SELLING PRICES OF FLATS/SHOPS/APARTMENTS MAY NOT BE TAKEN A T PREVAILING MARKET PRICES AND FURTHER PURCHASE AND DIRECT EXPENSES SHO ULD NOT BE DISALLOWED AT 10% OF THE TOTAL CLAIM FOR WANT OF SUPPORTING V OUCHERS. IN RESPONSE THE ASSESSEE FILED ITS REPLY DATED 10-03-2016. THE AO AGAIN ASKED THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT INCLUDING THE JOURNAL, STOCK ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 3 REGISTER, PURCHASE AND SALE VOUCHERS OF ALL THE EXP ENSES DEBITED TO THE PROFIT & LOSS ACCOUNT. SINCE THE ASSESSEE DID NOT P RODUCE THE BOOKS OF ACCOUNT AND SUPPORTING VOUCHERS FOR THE EXPENSES, T HE AO INVOKED THE PROVISIONS OF SECTION 143 OF THE ACT AND REJECTED T HE BOOK RESULTS. THE AO THE MADE DISALLOWANCE @ 25% OF THE CONSTRUCTION AND DIRECT PURCHASE EXPENSES AMOUNTING TO RS. 73,49,533/-. 2.3 THE ASSESSEE CHALLENGED THE ACTION OF THE AO BE FORE THE LD. CIT(A) WHO HAS RESTRICTED THE DISALLOWANCE TO 10% OF THE T OTAL EXPENSES AS AGAINST 25% MADE BY THE AO. 2.4 BEFORE US, THE LD.AR OF THE ASSESSEE HAS SUBMIT TED THAT THE ASSESSEE IS MAINTAINING THE COMPLETE BOOKS OF ACCOUNT WHICH ARE SUBJECT TO AUDIT U/S 44AB OF THE ACT. THE LD.AR FURTHER SUBMITTED TH AT IN THE COURSE OF ASSESSMENT PROCEEDING, THE ASSESSEE COULD NOT PRODU CE THE BOOKS OF ACCOUNT AS THE SAME WERE MISPLACED BUT IN SUPPORT O F THE CLAIM OF EXPENSES, THE LEDGER ACCOUNT OF VARIOUS EXPENSES WE RE FILED BEFORE THE AO. IN THE LEDGER ACCOUNT, THE DETAILS OF THE EXPEN SES ALONGWITH BILL NOS., NAMES OF THE SUPPLIERS FROM WHOM PURCHASES WERE MAD E ARE DULY RECORDED. ENTRIES IN THE BOOKS OF ACCOUNT ARE DULY SUPPORTED BY BILLS AND ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 4 VOUCHERS WHICH WERE VERIFIED BY THE AUDITOR. THUS T HE DISALLOWANCE MADE BY THE AO AND SUSTAINED BY THE LD. CIT(A) ON ACCOUN T OF PURCHASE AND DIRECT EXPENSES IS UNJUSTIFIED AND UNCALLED FOR. AL TERNATIVELY, THE LD.AR OF THE ASSESSEE HAS SUBMITTED THAT ONCE THE AO HAS INV OKED THE PROVISION OF SECTION 145(3) OF THE ACT THEN ASSESSMENT OUGHT TO HAVE BEEN FRAMED AS PER THE PROVISION OF SECTION 144 OF THE ACT FOR MAK ING BEST JUDGEMENT ASSESSMENT. THE AO INSTEAD OF FRAMING THE ASSESSMEN T BY ESTIMATING THE INCOME HAS MADE DISALLOWANCE OF EXPENDITURE WHICH I S NOT PERMISSIBLE. EVEN IN THE CASE OF BEST JUDGEMENT ASSESSMENT, THE AO CANNOT ACT ARBITRARILY FOR WHICH HE IS BOUND BY JUDICIAL PRINC IPLES AND ASSESSMENT SHOULD BE GUIDED BY RULES OF JUSTICE AFTER TAKING INTO ACCOUNT ALL THE MATERIALS AVAILABLE AS WELL AS GATHERED BY THE AO. THE LD.AR OF THE ASSESSEE RELIED ON THE DECISION OF HON'BLE JURISDIC TIONAL HIGH COURT IN THE CASE OF CIT VS K.N. CONSTRUCTION CO. (2015) 371 ITR 325. 2.5 ON THE OTHER HAND, THE LD. DR HAS SUBMITTED THA T THE ASSESSEE HAS NOT PRODUCED EVEN THE BOOKS OF ACCOUNT BEFORE THE A O BUT ONLY LEDGER ACCOUNTS WERE PRODUCED IN SUPPORT OF THE CLAIM. THE REFORE, THE CLAIM OF THE ASSESSEE COULD NOT BE VERIFIED FROM ANY SUPPORT ING EVIDENCE. HENCE, ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 5 THE AO HAS REJECTED THE BOOKS OF ACCOUNT AND MADE P ART DISALLOWANCE OF THE EXPENDITURE DUE TO FAILURE ON THE PART OF THE A SSESSEE TO SUBSTANTIATE THE CLAIM. HE RELIED ON THE ORDERS OF THE AUTHORITI ES BELOW. 2.6 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WEL L AS THE RELEVANT MATERIALS AVAILABLE ON RECORD. ADMITTEDLY, THE ASSE SSEE HAS FAILED TO PRODUCE THE BOOKS OF ACCOUNT BEFORE THE AO. EVEN TH E SUPPORTING DOCUMENTS LIKE VOUCHERS AND BILLS FOR THE CLAIM OF PURCHASE AND DIRECT EXPENSES WERE NOT PRODUCED BEFORE THE AO TO VERIFY THE CORRECTNESS OF THE CLAIM. CONSEQUENTLY, THE AO REJECTED THE BOOKS OF ACCOUNT OF THE ASSESSEE BY INVOKING THE PROVISIONS OF SECTION 145( 3) OF THE ACT. WE DO NOT FIND ANY ERROR IN SUCH DECISION OF THE AO IN RE JECTING THE BOOKS OF ACCOUNT. EVEN THE ASSESSEE HAS ALSO NOT CHALLENGED THE DECISION OF THE AO REJECTING THE BOOKS OF ACCOUNT. IN CASE THE AO INVO KED THE PROVISIONS OF SECTION 145(3) DUE TO THE REASON THAT THE CORRECT R ESULTS OF BUSINESS ACTIVITIES OF THE ASSESSEE COULD NOT BE DEDUCED FRO M THE RECORD THEN THE AO OUGHT TO HAVE FRAMED THE ASSESSMENT BASED ON BES T JUDGEMENT U/S 144 OF THE ACT. THE BEST JUDGEMENT MEANS THAT THE INCOM E OF THE ASSESSEE HAS TO BE ESTIMATED BASED ON THE MATERIAL AVAILABLE WIT H THE AO. THE AO ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 6 INSTEAD OF ESTIMATING THE INCOME ON THE BASIS OF SO ME REASONABLE AND PROPER CRITERIA BEING GP OR NP HAS RESORTED TO MAKE DISALLOWANCE OF EXPENSES WHICH IS NOT A PERMISSIBLE COURSE OF ACTIO N UNDER THE PROVISIONS OF SECTION 145(3) OF THE ACT READ WITH SECTION 144 OF THE ACT. IT IS SETTLED PRINCIPLES OF LAW THAT AFTER REJECTION OF BOOKS OF ACCOUNT, THE INCOME OF THE ASSESSEE SHOULD BE BASED ON AVERAGE GP DECLARED BY THE ASSESSEE IN THE PRECEDING YEARS OR THE PREVAILING GP IN THE SAM E TRADE OR BUSINESS. IN THE CASE IN HAND, SINCE IT IS THE FIRST YEAR OF RE PORTING THE INCOME BY THE ASSESSEE, THEREFORE, THE PAST HISTORY OF THE GP IS NOT AVAILABLE AND HENCE THE ONLY OPTION FOR MAKING THE ESTIMATION OF INCOME OF THE ASSESSEE IS TO ADOPT REASONABLE AND PROPER GP/NP PREVAILING IN THE INDUSTRY. SINCE THE ASSESSEE IS IN THE BUSINESS OF REAL ESTATE AND CONS TRUCTION, THEREFORE, THE PROVISIONS OF SECTION 44AD OF THE ACT ALSO PROVIDES GUIDANCE FOR ESTIMATION OF INCOME. THE DECISION RELIED ON BY THE LD.AR OF THE ASSESSEE THOUGH RENDERED IN THE CASE OF THE PARTNERSHIP FIRM ENGAGED IN THE BUSINESS OF CONSTRUCTION, HOWEVER, THE HON'BLE HIGH COURT AFTER TAKING THE NOTE OF THE NP RATE DECLARED AT 5.38% BY SAID F IRM HELD THAT THE ADDITION MADE BY THE AO WAS NOT JUSTIFIED. IN THE C ASE IN HAND, THE ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 7 ASSESSEE HAS DECLARED NP AT 1.22%, THEREFORE, THE D ECISION OF HON'BLE JURISDICTIONAL HIGH COURT CANNOT BE APPLIED TO THE FACTS OF THE PRESENT CASE. SINCE THE INCOME OF THE ASSESSEE IS REQUIRED TO BE ESTIMATED ON SOME REASONABLE AND PROPER BASIS, THEREFORE, IN THE FAC TS AND CIRCUMSTANCES OF THE CASE, WE SET ASIDE THIS ISSUE TO THE RECORD OF THE AO FOR ESTIMATION OF INCOME BY APPLYING A PROPER AND REASONABLE BASIS OF GP/NP. NEEDLESS TO SAY THAT THE ASSESSEE BE GIVEN PROPER OPPORTUNITY OF HEARING BEFORE PASSING THE AFRESH ORDER. 3.1 GROUND N. 2 IS REGARDING DISALLOWANCE OF INDIRE CT EXPENSES. 3.2 THE ASSESSEE CLAIMED INDIRECT EXPENSES OF RS.1, 38,490/-. THE AO HAS MADE DISALLOWANCE OF 20% OF THE SAID EXPENSES F OR WANT OF SUPPORTING EVIDENCE. THE LD. CIT(A) HAS CONFIRMED T HE DISALLOWANCE MADE BY THE AO ON THIS ACCOUNT. 3.3 BEFORE US, THE LD.AR OF THE ASSESSEE SUBMITTED THAT LOOKING AT THE TURNOVER OF THE ASSESSEE FOR THE YEAR UNDER CONSIDE RATION AT RS. 2,46,39,390/-, THE EXPENDITURE CLAIMED BY THE A SSESSEE IS JUST 0.56% WHICH IS VERY REASONABLE FOR CARRYING OUT THE DAY T O DAY OPERATION. HENCE, NO DISALLOWANCE OF INDIRECT EXPENSES IS CALLED FOR. ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 8 3.4 ON THE OTHER HAND, THE LD. DR HAS RELIED ON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE H AS FAILED TO DISCHARGE ITS ONUS TO PROVE THE CORRECTNESS OF THE CLAIM AND FURTHER THE EXPENDITURE CLAIMED BY THE ASSESSEE HAS BEEN INCURRED WHOLLY AN D EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. SINCE THE ASSESSEE HAS FAILED TO PRODUCE ANY SUPPORTING EVIDENCE, THEREFORE, 20% OF THE DISALLOW ANCE IS JUSTIFIED AND REASONABLE. 3.5 HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIALS AVAILABLE ON RECORD, WE NOTE THAT THE ASS ESSEE HAS FAILED TO PRODUCE THE BOOKS OF ACCOUNT AS WELL AS THE SUPPORT ING BILLS AND VOUCHERS REGARDING CLAIM OF INDIRECT EXPENSES. THE AO CONSEQ UENTLY MADE THE DISALLOWANCE OF 20% OF THE INDIRECT EXPENSES WHICH WAS CONFIRMED BY THE LD. CIT(A). THOUGH THERE IS A FAILURE ON THE PART OF THE ASSESSEE TO SUBSTANTIATE ITS CLAIM, HOWEVER, ONCE THE CLAIM IS FOUND TO BE REASONABLE AND BY NATURE ALL THE EXPENSES ITSELF REVEALS THAT THE SAID EXPENDITURE WAS INCURRED FOR THE PURPOSE OF THE BUSINESS OF THE ASS ESSEE THEN THE DISALLOWANCE OF 20% WITHOUT GIVING ANY BASIS IS HIG HLY ARBITRARY. SINCE THE ISSUE OF BEST JUDGEMENT ON THE BASIS OF ESTIMAT ION OF INCOME OF THE ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 9 ASSESSEE HAS BEEN SET ASIDE TO THE RECORD OF THE AO , ACCORDINGLY THIS ISSUE IS ALSO SET ASIDE TO THE RECORD OF THE AO TO RECONS IDER AND DECIDE AFRESH AFTER GIVING A PROPER OPPORTUNITY OF HEARING. WE M AY CLARIFY IF THE INCOME OF THE ASSESSEE IS ESTIMATED APPLYING GP RAT E THEN ONLY ISSUE OF DISALLOWANCE OF INDIRECT EXPENSES ARISES. ON THE OT HER HAND, IF THE INCOME OF THE ASSESSEE IS ESTIMATED ON THE BASIS OF NP RAT E THEN NO QUESTION OF DISALLOWANCE OF INDIRECT EXPENSES ARISES. 4.1 GROUND NO. 3 IS REGARDING ADDITION MADE U/S 68 OF THE ACT. 4.2 DURING THE COURSE OF ASSESSMENT PROCEEDING, THE AO NOTED THAT THE ASSESSEE HAS TAKEN LOAN FROM VARIOUS PERSONS. THE A SSESSEE WAS ASKED TO FURNISH THE CONFIRMATION OF THE LOAN / CASH CREDITO RS . THE AO ALSO ISSUED NOTICES U/S 133(6) OF THE ACT CALLING INFORMATION F ROM THE LOAN CREDITORS. AFTER CONSIDERING THE DETAILS OF CONFIRMATIONS RECE IVED FROM THE LOAN CREDITORS, THE AO NOTED THAT THERE ARE DISCREPANCIE S IN THE LOANS SHOWN BY THE ASSESSEE IN THE BOOKS OF ACCOUNTS AND THE CONFI RMATIONS FURNISHED BY THE LOAN CREDITORS. SO FAR AS THE TRANSACTIONS WHIC H WERE NOT LOAN/CASH CREDITS TAKEN DURING THE YEAR UNDER CONSIDERATION, THE AO HAS TAKEN NO ACTION. HOWEVER, FOR THE TRANSACTIONS OF THE LOANS WHERE THERE WAS ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 10 DISCREPANCIES IN THE AMOUNTS OF THE LOANS SHOWN IN THE BOOKS AND IN THE CONFIRMATION, THE AO HAS MADE THE ADDITION OF RS. 9 .00 LACS U/S 68 OF THE ACT. 4.3 ON APPEAL, THE LD. CIT(A) CONFIRMED THE ADDITIO N MADE BY THE AO. 4.4 BEFORE US, THE LD.AR OF THE ASSESSEE HAS SUBMIT TED THAT THE AO HAS MADE ADDITION OF RS. 9.00 LACS U/S 68 OF THE ACT I N RESPECT OF 04 LOAN CREDITORS. THE AO HAS MADE THIS ADDITION ONLY DUE T O REASON THAT THERE WAS DISCREPANCY IN THE NAMES AGAINST WHICH ASSESSEE HAS SHOWN THE LOANS WHEREAS THE CONFIRMATION WAS GIVEN BY ANOTHER PERSO NS. THE LD.AR OF THE ASSESSEE POINTED OUT THAT THOUGH THE LOAN WAS SHOW N IN THE NAME OF SHRI PRAKASH CHAND JAIN OF RS. 3.00 LACS YET THE AMOUNT WAS RECEIVED FROM SMT. VIDYA DEVI JAIN W/O SHRI PRAKASH CHAND JAIN. S INCE THE AMOUNT WAS RECEIVED FROM THE BANK ACCOUNT, THEREFORE, THERE WA S SOME DISCREPANCY AND MISTAKE IN THE ACCOUNTS REGARDING THE CORRECT N AME OF THE CREDITOR. HE HAS FURTHER CONTENDED THAT SIMILAR MISTAKE AND DISC REPANCY OCCURRED IN THE CASE OF OTHER LOAN CREDITORS WHO BELONGED TO TH E SAME GROUP. THEREFORE, THE TOTAL AMOUNT OF THE LOAN IS NOT IN D ISPUTE AND ONLY SOME CROSS ENTRY OCCURRED IN THE BOOKS REGARDING THE AMO UNT AND ONE CREDITOR ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 11 HAS BEEN SHOWN AGAINST THE NAME OF ANOTHER CREDITOR . THE LD.AR FURTHER SUBMITTED THAT CORRECTNESS OF THE LOAN TAKEN BY THE ASSESSEE CAN BE VERIFIED FROM THE BANK STATEMENT WHERE THIS AMOUNT HAS BEEN SHOWN TO EACH LOAN CREDITORS. HE HAS REFERRED TO THE BANK S TATEMENT AT PAGE 47 OF THE PAPER BOOK AND SUBMITTED THAT SINCE THESE CHEQU ES WERE RECEIVED FROM THE ACCOUNTS OF THESE PARTIES, THEREFORE, THE ENTRI ES IN THE BOOKS OF ACCOUNT IS ONLY AGAINST ONE PARTY WHEREAS THE CONFIRMATION WAS GIVEN BY OTHER PARTIES. ACCORDINGLY, HE HAS SUBMITTED THAT THE TRA NSACTIONS CAN BE VERIFIED FROM THE BANK STATEMENT AS WELL AS LOAN CR EDITORS. THE MERE DISCREPANCY IN THE NAMES OF THE LOAN CREDITOR ON RE SPECTIVE AMOUNT DUE TO CROSS ENTRY CANNOT BE TREATED AS UNEXPLAINED CASH C REDIT. 4.5 ON THE OTHER HAND, THE LD. DR HAS SUBMITTED THA T WHEN THE ASSESSEE IS NOT CLEAR ABOUT THE LOAN CREDITORS THEN THE EXPL ANATION OF THE ASSESSEE IS NOT SATISFACTORY TO ACCEPT THE CLAIM OF LOAN. HE HA S RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 4.6 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WEL L AS RELEVANT MATERIALS AVAILABLE ON RECORD. THE AO AFTER CONDUCT ING ENQUIRY REGARDING LOAN CREDITORS SHOWN IN THE BOOKS OF ACCOUNT MADE T HE ADDITION U/S 68 OF ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 12 THE ACT IN RESPECT OF 04 PARTIES. THE NAMES AND AMO UNTS OF 04 PARTIES ARE AS UNDER:- S.N. NAME OF THE LENDER AMOUNT 1. SHRI PRAKASH CHAND JAIN RS. 3,00,000/- 2. PRAKASH CHAND SHANTI LAL HUF RS. 1,00,000/- 3. SUSHIL KUMAR JAIN RS. 4,00,000/- 4. SANJAY JAIN RS. 1,00,000/- TOTAL RS. 9,00,000/- SINCE THE ASSESSEE HAS NOW EXPLAINED THE REASONS OF DISCREPANCY IN RECORDING THE TRANSACTIONS IN THE BOOKS OF ACCOUNT WHICH COULD BE VERIFIED FROM THE BANK STATEMENT OF THE ASSESSEE AS WELL AS LOAN CREDITORS, THEREFORE, THIS ISSUE REQUIRES A PROPER VERIFICATIO N AND EXAMINATION AT THE LEVEL OF THE AO. ACCORDINGLY, IN THE FACTS AND CIR CUMSTANCES OF THE CASE, WE SET ASIDE THIS ISSUE TO THE RECORD OF THE AO FOR CONDUCTING A PROPER VERIFICATION BY TAKING INTO CONSIDERATION THE BANK STATEMENT OF THE ASSESSEE AS WELL AS LOAN CREDITORS FOR RECONCILIATI ON OF THE DISCREPANCY AS NOTED DURING THE ASSESSMENT PROCEEDING. NEEDLESS TO SAY THAT THE ASSESSEE BE GIVEN PROPER OPPORTUNITY OF HEARING BEFORE PASSI NG AFRESH ORDER. ITA NO. 548/JP/2019 M/S. MATAJI REALITY DEVELOPER PVT. LTD. VS. ITO, WARD 1 , BEAWAR 13 5.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04/07/20 19. SD/- SD/- JESK LH 'KEKZ FOT; IKY JKO (RAMESH C. SHARMA) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 04 /07/ 2019 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. MATAJI REALITY DEVELOPERS PVT. LTD., 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.548/JP/2019) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR