MANGI LAL SHARMA, Sikar V. DCIT, Sikar

ITA 661/JPR/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 5597 (ITAT-JAIPUR)
• Duration Of Justice: 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 14-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI DCIT DR DHK
• Assessee Lawyers: S R SHARMA
• Keywords: Opportunity of being heard; Bonafide belief

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 661/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11 SHRI MANGI LAL SHARMA PROP. M/S. JAI MATA DI ENERGY SYSTEM LAXMANGARH , SIKAR CUKE VS. THE DCIT CIRCLE- SIKAR SIKAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AZQPS 2615 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI S.R. SHARMA & SHRI RAJNI KANT BHATRA, CA JKTLO DH VKSJ LS@ REVENUE BY :SMT. POONAM RAI, DCIT- DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 08/02/2017 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 09/02/2017 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-35, NEW DELHI (CAMP OFFICE AT JAIPUR) DATE D 18-03-2016 FOR THE ASSESSMENT YEAR 2010-11 RAISING THEREIN GROUNDS OF APPEAL AS UNDER:- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) IS WRONG, UNJUST AND HAS ERRED IN CO NFIRMING ACTION OF THE ASSESSING OFFICER IN:- (I) REJECTION OF BOOKS OF ACCOUNT OF THE APPELLANT BY THE ASSESSING OFFICER U/S 145(3) OF THE I.T. ACT, 1961 AND ITA NO. 661/JP/2016 SHRI MANGI LAL SHARMA VS. DCIT , CIRCLE- SIKAR 2 (II) APPLICATION OF NET PROFIT RATE OF 11% ON DECLA RED CONTRACT RECEIPTS OF RS. 4,51,07,789/- AS AGAINST D ECLARED NET PROFIT RATE OF 7.32% RESULTING IN CONFIRMATION OF T RADING ADDITION OF RS. 6,43,793/-. 2.1 DURING THE COURSE OF HEARING OF THE APPEAL OF T HE ASSESSEE, THE LD. LD. AR OF THE ASSESSEE PRAYED FOR RESTORATION OF T HE APPEAL TO THE AO WITH FOLLOWING SUBMISSIONS AS NARRATED IN THE WRITT EN SUBMISSION. .IN THIS CONNECTION, ASSESSEE SUBMITS THAT ON RECEIPT OF EVERY NOTICE FROM AO, HE DEPUTED HIS ACC OUNTANT ALONGWITH ALL BOOKS OF ACCOUNT WITH BILLS VOUCHERS ETC. TO ATTEND THE PROCEEDINGS BEFORE THE AO. THEY ALWAYS R EPORTED TO ASSESSEE THAT PROCEEDINGS BEFORE AO WAS ATTENDED AND BOOKS OF ACCOUNTS, BILLS & VOUCHERS ETC. WERE PRODU CED. IN FACT COUNSEL OF ASSESSEE HAD WRITTEN AND FILED A LE TTER TO AO ON 18-03-2013 THAT HE PRODUCED BOOKS OF ACCOUNTS ET C. ON 29-10-2012 BEFORE HIM WHICH ALSO LD. AO REFUTED IN ASSESSMENT ORDER. THE ASSESSEE ONLY SUBMITS THAT IN VOKING OF SECTION 145(3) BY AO HAS CAUSED INJUSTICE TO HIM TH OUGH HE NEVER HAD DELIBERATELY AVOIDED ANY NOTICE AND REMAI NED IN BONAFIDE BELIEF THAT ACCOUNTANT AND COUNSEL ENGAGED BY HIM ARE ATTENDING PROCEEDINGS BEFORE THE AO APPROPRIATE LY. THE ASSESSEE THUS PRAYS YOUR HONOUR THAT IF DEEM FIT AN D IN THE INTEREST OF JUSTICE THE CASE MAY BE SENT TO AO AND ASSESSEE SINCERELY ASSURES TO FULLY COOPERATE AND ATTEND THE PROCEEDINGS BEFORE AO APPROPRIATELY. 2.2 IT IS NOTED FROM THE ASSESSMENT ORDER THAT THE AO INVOKED THE PROVISIONS OF SECTION 145(3) OF THE ACT AND ESTIMAT ED THE NET PROFIT RATE AT 11% WHICH WORKS OUT TO RS. 49,61,857/-(TOTAL CONTRA CT RECEIPTS OF RS. 4,51,07,789/-) OUT OF WHICH THE ASSESSEE HAD DECLAR ED NET PROFIT OF RS. ITA NO. 661/JP/2016 SHRI MANGI LAL SHARMA VS. DCIT , CIRCLE- SIKAR 3 33,18,064/-. THEREFORE, A SUM OF RS. 16,43,793/- IS ADDED BY THE AO TO THE TOTAL INCOME OF THE ASSESSEE. IN FIRST APPEAL, THE LD. CIT(A) AT PARA 5.7 OF HIS ORDER HAS CONFIRMED THE ACTION OF THE AO. 2.3 DURING THE COURSE OF HEARING, THE LD. DR RELIED ON THE ORDER OF AUTHORITIES BELOW. 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS NOT IMPERATIVE TO DISCUS S THE CASE OF THE ASSESSEE REGARDING INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT AND CONFIRMING THE ADDITION OF RS. 16,43,793/- WHICH HA S BEEN ELABORATELY DISCUSSED BY THE LOWER AUTHORITIES. THE ISSUE IN QU ESTION IS THAT THE ASSESSEE COULD NOT CONTEST THE CASE BEFORE THE AO O N THE BELIEF THAT HIS ACCOUNTANT AND COUNSEL ARE APPEARING BEFORE THE AO AND PRODUCING ALL THE BILLS, VOUCHERS AND RELEVANT RECORDS AS DESIRED BY THE AO BUT IT WAS NOT DONE SO. KEEPING IN VIEW OF THE PRAYER OF THE A SSESSEE (SUPRA), IT WILL BE IN THE INTEREST OF EQUITY AND JUSTICE TO RESTOR E THE APPEAL OF THE ASSESSEE TO THE FILE OF THE AO TO DECIDE IT AFRESH BY PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASS ESSEE IS ALSO DIRECTED TO SUBMIT ALL THE RELEVANT RECORDS CONCERNING THE CASE BEFORE THE AO AND COOPERATE IN THE ASSESSMENT PROCEEDINGS. THUS THE A PPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 661/JP/2016 SHRI MANGI LAL SHARMA VS. DCIT , CIRCLE- SIKAR 4 3.0 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 09-02-20 17. SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 09 /02/ 2017 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI MANGI LAL SHARMA, SIKAR 2. IZR;FKHZ@ THE RESPONDENT- THE DCIT, CIRCLE- SIKAR 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. 661/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR