JEEVAN KUMAR SAXENA, LUCKNOW V. ITO 6(2), LUCKNOW, LUCKNOW

ITA 55/LKW/2021

AI Insights

The case involves Shri Jeevan Kumar Saxena, a trader in gold ornaments, who appealed against the assessment order passed by the Income Tax Officer, Lucknow, for the assessment year 2017-18. The Assessing Officer had rejected the books of account produced by the assessee and estimated the profit based on a percentage of total receipts, leading to an addition to the assessee's income. The CIT(A) upheld this decision. The Tribunal, after noting contradictions in the submissions regarding the production of books of account, decided to remit the matter back to the Assessing Officer for a thorough examination of the books and supporting documents.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 113262 (ITAT-LUCKNOW)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 28-11-2022
• Assessment Year: misc
• Appeal Filed On: 05-04-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 145(3)

Judgement Text

I.T.A. No.55/Lkw/2021 Assessment Year:2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.55/Lkw/2021 Assessment Year:2017-18 Shri Jeevan Kumar Saxena, 13, Bahron Tola, Chowk, Lucknow. PAN:AQSPS5375A Vs. Income Tax Officer-6(2), Lucknow. (Appellant) (Respondent) O R D E R PER BENCH: This appeal filed by the assessee is arising out of the order of learned CIT(A)-2, Lucknow in appeal No. CIT(A), Lucknow-2/10506/2019-20 dated 21/09/2020 against the assessment order passed by Income Tax Officer (6)- 2, Lucknow u/s 143 of the I.T. Act (hereinafter referred to as the “Act”) dated 17/12/2019 for assessment year 2017-18. 2. Brief facts of the case are that the assessee is engaged in wholesale and retail trade of gold ornaments. The return of income was filed on 25/10/2017 reporting total income of Rs.11,27,830/-. The Assessing Officer in the course of assessment proceedings noted that assessee has disclosed total receipts of Rs.3,49,66,567/- against which net profit of Rs.12,69,186/- was reported in the profit & loss account. Among other things, Assessing Appellant by None Respondent by Smt. Alka Singh, D.R. Date of hearing 29/11/2022 Date of pronouncement 30/11/2022 I.T.A. No.55/Lkw/2021 Assessment Year:2017-18 2 Officer noted that assessee failed to produce books of account with supporting documents for verification and examination and thus completed the assessment based on material available on record. By observing this, Assessing Officer noted that he is not satisfied about the correctness and completeness of accounts in terms of section 145(3) of the Act and he estimated the profit by applying rate of 8% on the total receipts of Rs.3,49,66,567/- working out at Rs.27,97,325/-. An addition was made to the total income for Rs.15,28,139/- after giving credit for the net profit already disclosed by the assessee in his return. Aggrieved, the assessee went in appeal before CIT(A). learned CIT(A) upheld the rejection of books of account so made by the Assessing Officer and upheld the addition made by the Assessing Officer on account of net profit. Aggrieved, the assessee is in appeal before the Tribunal. 3. Before us, adjournment application has been moved from the office of the Learned counsel for the assessee Shri Ashish Raj Shukla, Advocate dated 28/11/2022 seeking adjournment owing to he is suffering from Dengue and having high fever. Considering the facts and the material on record, we find it appropriate to adjudicate the matter ex-parte qua the assessee by rejecting the said adjournment application and by taking assistance from the learned Sr. D.R. Smt. Alka Singh. 4. From the perusal of the assessment order we noted that Assessing Officer has observed that in response to notices issued by him assessee has made compliance from time to time through e-proceedings. He has also noted that facts of the case and the submissions of the assessee have been examined/considered thoroughly. In the same assessment proceedings, the Assessing Officer had made an addition of Rs.45 lacs towards deposit of cash in the bank account by treating it as unexplained cash credit which on appeal before learned CIT(A) has been deleted. Learned CIT(A) has I.T.A. No.55/Lkw/2021 Assessment Year:2017-18 3 observed the contention made by the assessee that books of account were submitted by him before the Assessing Officer who did not consider the same. Thus, there are stark contradiction in the submissions made by the assessee, observations made by the Assessing Officer and those by learned CIT(A) in respect of production of books of account for verification. Upon specific query by the Bench to learned Sr. D.R. if she had any objection on remitting the matter back to the file of the Assessing Officer to give an opportunity to the assessee to produce books of account as required by the Assessing Officer along with the supporting bills and vouchers to substantiate his claim, nothing was objected upon. Accordingly, to set right the contradiction, as stated above, in the interest of justice and fair play, we find it proper to remit the matter back to the file of the Assessing Officer for verification of books of account and bills and vouchers and accordingly assess the net profit of the assessee in accordance with the provisions of the Act. Needless to say, the assessee be given reasonable opportunity of being heard and make all necessary submissions to substantiate his claim. 5. In the result, the appeal of the assessee is allowed for statistical purposes. (Order pronounced in the open court on 30/11/2022) Sd/. Sd/. (MAHAVIR SINGH) (GIRISH AGRAWAL) Vice President Accountant Member Dated:30/11/2022 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. The CIT(A) 5. D.R., I.T.A.T., Lucknow Assistant Registrar