DROPADI TRADERS, Jaipur V. ITO, Jaipur

ITA 622/JPR/2013

• Counselvise Citation: 62223114 RSA 2013
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 12-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D C SHARMA; ANITA RI TESH
• Assessee Lawyers: WRITTEN SUBMISSION
• Section: 143(3)

Judgement Text

1 ITA 622-13 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR BEFORE SHRI B.R. JAIN, ACCOUNTANT MEMBER ITA NO. 622/JP/2013 ASSTT. YEAR : 2008-09. M/S. DROPADI TRADERS, VS. THE INCOME-TAX OFFICER , 223, BICHUN HOUSE, KISHANPOLE WARD 1(3), BAZAR, JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : WRITTEN SUBMISSION RESPONDENT BY : SHRI D.C. SHARMA & MS ANITA RI TESH DATE OF HEARING : 12.08.2013. DATE OF PRONOUNCEMENT : 12.08.2013 ORDER THIS APPEAL BY ASSESSEE AGAINST THE ORDER DATED 14 .03.2013 OF LD. CIT (APPEALS), BIKANER, CAMP AT JAIPUR, RAISES THE FOLLOWING GROUN DS :- 1. THE IMPUGNED ORDER U/S 143(3) DATED 16.12.2010 I S BAD IN LAW AND ON FACTS OF THE CASE FOR WANT OF JURISDICTION AND VARI OUS OTHER REASONS AND HENCE THE SAME MAY KINDLY BE QUASHED. 2.1. RS. 21,259/-. THE LD. CIT (A) HAS GROSSLY ERRE D IN LAW AS WELL AS ON THE FACTS OF THE CASE IN CONFIRMING THE INVOKING OF THE PROVISIONS OF SEC. 145(3) BY THE A.O. THE PROVISION SO INVOKED AND CON FIRMED BY THE CIT (A) BEING CONTRARY TO THE PROVISIONS OF LAW AND FACTS, HENCE THE SAME MAY KINDLY BE QUASHED. CONSEQUENTLY THE TRADING ADDITIO N OF RS. 21,259/- MAY KINDLY BE DELETED IN FULL. ALTERNATIVELY AND WITHOUT PREJUDICE TO ABOVE 2.2. RS. 21,259/-. THE LD. CIT (A) FURTHER HAS GROS SLY ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN CONFIRMING THE APPLICAT ION OF GP RATE OF 6.97% AS AGAINST 5.08% DECLARED BY THE ASSESSEE AND THERE BY MAKING TRADING 2 ADDITION OF RS. 21,259/- AFTER TAKING INTO CONSIDER ATION DIFFERENCE IN THE CLOSING STOCK. THE DETERMINING OF GROSS PROFIT AND ADDITION SO MADE BY THE A.O. AND CONFIRMED BY THE CIT (A) IS BEING TOTA LLY CONTRARY TO THE PROVISIONS OF LAW AND FACTS ON THE RECORD AND HENCE THE ADDITION MAY KINDLY BE DELETED IN FULL. 3. RS. 2,82,693/-. THE LD. CIT (A) HAS GROSSLY ERRE D IN LAW AS WELL AS ON THE FACTS OF IN CONFIRMING THE DISALLOWANCE OF RS. 2,82 ,693/- ON ACCOUNT OF INTEREST FREE LOANS ADVANCES TO THE PARTNERS AND FA MILY MEMBERS. HENCE THE DISALLOWANCE SO MADE BY THE A.O. AND CONFIRMED BY THE CIT (A) IS BEING TOTALLY CONTRARY TO THE PROVISIONS OF LAW AND FACTS ON THE RECORD AND HENCE THE SAME MAY KINDLY BE DELETED IN FULL. 4. RS. 2,704/-. THE LD. CIT (A) HAS GROSSLY ERRED I N LAW AS WELL AS ON THE FACTS OF IN CONFIRMING THE DISALLOWANCE OF RS. 2704 /- OUT OF RS. 27,043/- ON ACCOUNT OF TELEPHONE. HENCE THE DISALLOWANCE SO MADE BY THE A.O. AND CONFIRMED BY THE CIT (A) IS BEING TOTALLY CONTR ARY TO THE PROVISIONS OF LAW AND FACTS ON THE RECORD AND HENCE THE SAME MAY KINDLY BE DELETED IN FULL. 5. RS. 9,460/-. THE LD. CIT (A) HAS GROSSLY ERRED I N LAW AS WELL AS ON THE FACTS OF IN CONFIRMING DISALLOWANCE OF RS. 9,460/- OUT OF RS. 94,597/- ON ACCOUNT OF WAGES, FREIGHT AND FORWARDED EXPENSES. H ENCE THE DISALLOWANCE SO MADE BY THE A.O. AND CONFIRMED BY T HE CIT (A) IS BEING TOTALLY CONTRARY TO THE PROVISIONS OF LAW AND FACTS ON THE RECORD AND HENCE THE SAME MAY KINDLY BE DELETED IN FULL. 6. THE LD. A.O. HAS GROSSLY ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN CHARGING INTEREST U/S 234B/234C. THE APPELLANT TOTA LLY DENIES IT LIABILITY OF CHARGING OF ANY SUCH INTEREST. THE INTEREST, SO CH ARGED, BEING CONTRARY TO THE PROVISIONS OF LAW AND FACTS, MAY KINDLY BE DELE TED IN FULL. 2. I HAVE HEARD LD. D/R EX PARTE QUA ASSESSEE WITH REFERENCE TO WRITTEN SUBMISSIONS LAID ON RECORD BY THE APPELLANTS COUNSEL. ASSESSME NT RECORD HAS BEEN CALLED FOR AND EXAMINED. THE ORDER SHEET ENTRIES REVEAL THAT THE A SSESSING OFFICER VIDE ORDER SHEET ENTRY DATED 5.12.2010 FOUND THAT THE ASSESSEE HAS DISCLOS ED LOSS OF RS. 2,91,660/- IN THE RETURN OF INCOME FILED DURING THE YEAR UNDER CONSIDERATION . LOOKING INTO THE FALL IN NET PROFIT RATE, HE REQUIRED THE ASSESSEE TO EXPLAIN AS TO WH Y THE BOOKS OF ACCOUNT BE NOT REJECTED AND ASSESSMENT MADE BY APPLYING GROSS PROFIT RATE. HOWEVER, WHILE MAKING ASSESSMENT 3 HE TOOK SEVERAL REASONS FOR REACHING THE FINDING TH AT THE CORRECT PROFITS FOR THE YEAR UNDER CONSIDERATION CANNOT BE DEDUCED IN VIEW OF SERIOUS DEFECTS IN THE BOOKS OF ACCOUNT INCLUDING DIFFERENCE IN OPENING STOCK. HE THUS DID NOT AFFORD REASONABLE OPPORTUNITY TO THE APPELLANT TO STATE HIS CASE ON THE DEFECTS THAT WERE CONSIDERED NECESSARY FOR REJECTING BOOKS OF ACCOUNT AS SUCH. THE LD. CIT (A) ALSO DID NOT APPRECIATE THE ISSUE IN RIGHT PERSPECTIVE. I, THEREFORE, SET ASIDE HIS DECISION IN THIS RESPECT AND REMIT THE MATTER BACK TO THE ASSESSING OFFICER SO THAT THE DEFECTS IN THE BOOKS OF ACCOUNT AS FOUND BY HIM ARE PUT TO THE ASSESSEE BEFORE A DECISION IS TAKEN AFRE SH THEREON. IN THE REMIT PROCEEDINGS, THE ASSESSING AUTHORITY SHALL ALSO CONSIDER OTHER ADDIT IONS/DISALLOWANCES AFRESH AFTER HEARING THE ASSESSEE SO THAT DECISION IS TAKEN IN ACCORDANC E WITH LAW. 3. IN THE RESULT, APPEAL STANDS ALLOWED FOR STATIST ICAL PURPOSES ONLY AS ANNOUNCED IN THE OPEN COURT IMMEDIATELY AFTER CONCLUSION OF HEAR ING ON 12.08.2013. SD/- ( B.R. JAIN ) ACCOUNTANT MEMBER JAIPUR, DATED : 12/08/2013. D/- COPY FORWARDED TO :- M/S. DROPADI TRADERS, JAIPUR. THE ITO WARD 1(3), JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 622/JP/2013) BY ORDER, AR ITAT JAIPUR. 4