SHRI LALARAM GURJAR, JAIPUR V. INCOME TAX OFFICER, WARD-1-2, AJMER

ITA 661/JPR/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4527 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 07-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMAR SINGH NEHRA ADD CIT A
• Keywords: Reopening of assessment; Income from undisclosed sources; Opportunity of being heard; Source of fund; Additional evidence; Accommodation entries; Non compliance; Competent authority
• Section: 142(1); 234B; 133(6); 147; 131; 148; 144

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,A JAIPUR JH LAANHI XKSLKBZ] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI SANDEEP GOSAIN, JM & SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 661 & 662/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2009-10 & 2010-11 SHRI LALARAM GURJAR S/O- SHRI MEWARAM GURJAR, VILL- DEVPURA, SHIKHWANA, AJMER-305624. CUKE VS. THE ITO, WARD-1(2), AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: APRPG 3369 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE JKTLO DH VKSJ LS @ REVENUE BY : SHRI AMAR SINGH NEHRA (ADD. CIT) A LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 12/04/2021 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 30/04/2021 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THESE ARE TWO APPEALS FILED BY THE ASSESSEE AGAINS T THE ORDERS OF THE LD. CIT(A), AJMER BOTH DATED 27.02.2 019 FOR THE ASSESSMENT YEARS 2009-10 & 2010-11 RESPECTIVELY. SI NCE COMMON ISSUES ARE INVOLVED, BOTH THE APPEALS WERE HEARD TO GETHER AND DISPOSED OFF BY THIS COMMON ORDER. 2. IN ITA NO. 661/JP/2019 FOR A.Y 2009-10, THE ASS ESSEE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL:- ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 2 1.1 THE IMPUGNED ADDITION AND DISALLOWANCES MADE I N THE ORDER U/S 144/147/148 DATED 27.12.2016 ARE BAD IN LAW AND ON FACTS OF THE CASE, FOR WANT OF JURISDICTION AND VARIOUS OTHE R REASONS AND HENCE THE SAME KINDLY BE DELETED. 1.2 THE VERY ACTION TAKEN U/S 147 R/W 148 IS BAD IN LAW WITHOUT JURISDICTION AND BEING VOID AB-INITIO, THE SAME KIN DLY BE QUASHED. CONSEQUENTLY THE IMPUGNED ASSESSMENT FRAMED U/S 144 /147/148 DATED 27.12.2016 ALSO KINDLY BE QUASHED. 2. THE LD. CIT(A) ERRED IN LAW AS WELL AS ON THE FA CTS OF THE CASE IN PARTLY SUSTAINING THE IMPUGNED ADDITION UPTO RS. 10,72,934/-BY APPLYING ESTIMATED NOT PROFIT AT THE RATE OF 0.20% ON THE TURNOVER OF RS. 53,64,67,051/-. THE ADDITION SO PAR TLY CONFIRMED BY THE LD. CIT(A) BEING CONTRARY TO THE PROVISIONS OF LAW AND FACTS KINDLY BE DELETED IN FULL. 3. THE LD. AO FURTHER ERRED IN LAW AS WELL AS ON TH E FACTS OF THE CASE IN CHARGING INTEREST U/S 234A & 234B OF THE AC T. THE APPELLANT TOTALLY DENIES ITS LIABILITY OF CHARGING OF ANY SUCH INTEREST. THE INTEREST SO CHARGED, BEING CONTRARY T O THE PROVISIONS OF LAW AND FACTS, KINDLY BE DELETED IN FULL. 3. AT THE OUTSET, IT IS NOTED THAT THE LD AUTHORISE D REPRESENTATIVE HAS WITHDRAWN HIS POWER ATTORNEY AS APPARENT FROM T HE RECORD AND IN PARTICULAR, ORDER SHEET ENTRY DATED 08.10.2020. THE REAFTER, THE REGISTRY WAS DIRECTED TO SERVE THE NOTICE TO THE ASSESSEE TH ROUGH THE OFFICE OF LD. DR. THE LD. DR VIDE E-MAIL COMMUNICATION DATED 12.04.2021 HAS CONFIRMED THE SERVICE OF NOTICE ON THE ASSESSEE ON 9.04.2021. IT IS NOTED THAT IN SPITE OF SERVICE OF THE NOTICE TO THE ASSESSEE, NEITHER THE ASSESSEE NOR ANY AUTHORIZED REPRESENTATIVE HAS APPE ARED ON THE SCHEDULED DATE OF HEARING I.E. 12.04.2021. GIVEN T HAT THE MATTER HAS BEEN PENDING SINCE MAY, 2019 WHEN THE APPEAL WAS IN STITUTED AND HAS BEEN ADJOURNED FROM TIME TO TIME, IT WAS FELT THAT NO USEFUL PURPOSE WOULD BE SERVED IN ADJOURNING THE MATTER ANY FURTHE R AND IT WAS ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 3 DECIDED TO HEAR THE MATTER EX-PARTE QUA THE ASSESSEE CONSIDERING THE MATERIAL AVAILABLE ON RECORD. 4. BRIEFLY THE FACTS OF THE CASE ARE THAT BASIS INF ORMATION RECEIVED FROM ADIT/(INV.)/UNIT-7(4), MUMBAI REGARDING DEPOSI TS AND WITHDRAWALS AMOUNTING TO RS. 10,96,58,828/- IN ASSESSEES BANK ACCOUNT, NOTICE U/S 148 WAS ISSUED ON 31.03.2016 AND SERVED ON THE ASSE SSEE AT HIS MUMBAI ADDRESS. IN RESPONSE, THE ASSESSEE DID NOT FILE ANY RETURN OF HIS INCOME NOR RESPOND TO SUBSEQUENT NOTICES ISSUED . THEREAFTER, A SHOW CAUSE DATED 03.08.2016 ALONG WITH NOTICE U/S 1 42(1) OF THE ACT WAS ISSUED TO THE ASSESSEE AS TO WHY THE ADDITION A MOUNTING TO RS. 61,13,51,505/- SHOULD NOT BE MADE ON ACCOUNT OF UNEXPLAINED DEPOSITS/CREDIT ENTRIES IN THE BANK ACCOUNTS MAINTA INED BY THE ASSESSEE AS UNEXPLAINED INCOME OUT OF UNDISCLOSED SOURCES AN D TO COMPLETE ASSESSMENT U/S 144 OF THE ACT. THERE WAS NO RESPONS E FROM THE ASSESSEE TO THE SHOW-CAUSE NOTICE AND THEREAFTER, T HE ASSESSMENT WAS COMPLETED EX-PARTE U/S 144 OF THE ACT BASIS MATERIAL/INFORMATION AVAILABLE ON RECORD WHICH REVEALS THAT THE ASSESSEE WAS DOING THE BUSINESS OF GOODS AS LICENSEE AS EVIDENT FROM BANK STATEMENTS AND COPY OF LICENSEE AGREEMENT AVAILABLE ON RECORD. TH E AO HELD THAT IT WOULD BE FAIR AND REASONABLE TO CONSIDER NET PROFIT @ 8% OF THE TOTAL CREDIT ENTRIES/DEPOSITS OF RS. 61,13,51,505/- AND R S. 4,89,08,120/- WAS DETERMINED AS INCOME FROM UNDISCLOSED SOURCES AND B ROUGHT TO TAX IN HANDS OF THE ASSESSEE. ON APPEAL BY THE ASSESSEE, T HE LD CIT(A) HAS CONFIRMED THE ADDITION OF RS. 10,72,934/- AND REMAI NING ADDITION OF RS. 4,78,35,186/- WAS DELETED. AGAINST THE SAID FIN DINGS OF THE LD CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 4 5. WE HAVE HEARD THE LD. DR AND CONSIDERED THE MATE RIAL AVAILABLE ON RECORD. WE HAVE GONE THROUGH THE FINDINGS OF THE LD. CIT(A) WHICH ARE CONTAINED AT PARA 5.3 OF HIS ORDER WHICH READ A S UNDER:- 5.3 I HAVE GONE THROUGH THE ASSESSMENT ORDER, STAT EMENT OF FACTS, GROUNDS OF APPEAL, WRITTEN SUBMISSION, REMAN D REPORT AND REJOINDER CAREFULLY. IT IS SEEN FROM THE ASSESSMENT ORDER THAT NOTICE U/S 148 WAS ISSUED IN THIS CASE ON 31.03.201 6, ON THE BASIS OF THE INFORMATION RECEIVED FROM ADIT(INVSG.), UNIT - 7(4), MUMBAI ON 30.03.2016 IN RESPECT OF DEPOSITS AND WITHDRAWAL MADE AT RS. 10,96,58,828/- IN THE ACCOUNT NUMBER 23301020002091 6, 233010100364478 AND 575010200003902 WITH AXIS BANK. AS THE NOTICES ISSUED BY THE AO DURING THE COURSE OF ASSES SMENT PROCEEDINGS COULD NOT BE SERVED ON THE APPELLANT, T HEREFORE, NO COMPLIANCE OF THE NOTICES ISSUED BY THE AO WAS MADE BY THE APPELLANT. THEREFORE, THE AO COMPLETED THE ASSESSME NT U/S 144 BY TREATING ENTIRE CREDIT ENTRIES/ DEPOSITS OF RS. 61,13,51,505/- APPEARING IN THE BANK ACCOUNTS MAINTAINED BY THE AP PELLANT, AS UNDISCLOSED TURNOVER OF THE APPELLANT AND ESTIMATED THE NET PROFIT @8% ON SUCH UNDISCLOSED TURNOVER OF RS. 61,13,51,50 5/-. ACCORDINGLY, THE TOTAL INCOME WAS ASSESSED AT RS. 4 ,89,08,120/- AS INCOME FROM UNDISCLOSED SOURCES. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE APP ELLANT FURNISHED COMPLETE DETAILS OF BUSINESS TRANSACTIONS CARRIED ON BY HIM DURING THE PREVIOUS YEAR RELEVANT TO A.Y. 2009- 10 WHICH WAS FORWARDED TO THE AO ON 03.01.2019. THE AO SUBMITTED THE REMAND REPORT DATED 14.02.2019 WHICH WAS REVISED ON 27.02.2019 AS UNDER: KINDLY REFER TO YOUR OFFICE LETTER NO. CIT (A)/AJM/ 2018-19/4491 DATED 03.01.2019, ON THE SUBJECT CITED ABOVE. IN THIS CONNECTION, IT IS SUBMITTED THAT AS PER THE DIRECTION OF YOUR HONOR, AN OPPORTUNITY VIDE THIS OFFICE. LETTER NO. 2201 DATED 31.01.2019 WAS PROVIDED TO THE ASSESSEE AND HE WAS REQUESTED ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 5 TO PRODUCE ALL SUPPORTING DETAILS/EVIDENCES/BOOKS O F ACCOUNTS/DOCUMENTS IN SUPPORT OF HIS CONTENTION/GRO UNDS RAISED BEFORE YOUR HONOR IN APPELLATE PROCEEDINGS BY 04.01 .2019. IN COMPLIANCE TO THE ABOVE, THE AR OF THE ASSESSEE VID E HIS LETTER DATED 04.02.2019, RECEIVED THROUGH MAIL REQUESTED T O ADJOIN THE CASE BY 14.02.2019. SHRI LALRAM GURJAR, ASSESSEE & SHRI J.C. SOMANI, C. A. AR OF THE ASSESSEE APPEARED ON 14.02.2019 & FILED WRITTEN SUB MISSION, PRODUCE BOOKS OF ACCOUNTS, PURCHASE BILLS, SALES BI LLS, STOCK REGISTER AND THE CASE WAS DISCUSSED WITH HIM. DURIN G THE PROCEEDINGS STATEMENT OF THE ASSESSEE WERE RECORDED U/S 131 OF THE I.T. ACT, 1961. IT WAS STATED BY THE ASSESSEE T HAT DURING THE F.Y. 2008-09 & 2009-10 THE ENTRIES WHICH ARE REFLEC TING IN HIS BANK ACCOUNTS ARE RELATING TO HIS DIAMOND BUSINESS WHICH HE WAS DOING ON THE COMMISSION BASIS AND HE WAS GETTIN G COMMISSION @ 0.10 PAISA TO 0.15 PAISA PER TRANSACTI ON, IT WAS CLEARED BY HIM THAT HE WAS GETTING ONLY 0.10% TO 0. 15% OF GROSS COMMISSION ON THE SAID TRANSACTION WHICH ARE REFLECTING IN HIS BANK STATEMENTS. IT WAS ALSO SUBMITTED BY THE A SSESSEE IN HIS STATEMENT THAT DURING THE F YRS. MOST OF THE TRADIN G OF DIAMOND BUSINESS WAS DEAL WITH M/S EXCELLENT DIAMOND PVT. L TD., SURAT AND BRANCH AT MUMBAI. ACCORDINGLY, NOTICE U/S 133(6) OF THE I.T. WAS ISSU ED THROUGH MAIL TO M/S EXCELLENT DIAMOND PVT. LTD, SURAT TO CONFIRM THE TRANSACTION WITH THE ASSESSEE AND SEND THE COPY OF LEDGER ACCOUNT OF THE ASSESSEE, BANK STATEMENT, COPY OF PU RCHASE BILLS AND COPY OF SEALE BILLS ETC. IN COMPLIANCE TO THE A BOVE M/S EXCELLENT DIAMOND PVT. LTD, SURAT SENT THE DESIRED INFORMATION THROUGH MAIL. IT WAS ALSO SUBMITTED BY THE ASSESSEE THAT DURING T HE E. Y. 2010- 11 WHICH IS PERTAINS TO THE A.Y. 2011-12 ARE NOT BU SINESS ENTRIES WHICH ARE ONLY DEBTORS CREDITORS ENTRIES OF HIS LAS T BUSINESS ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 6 YEARS. IN THIS REGARD THE ALT OF THE ASSESSEE SUBMI TTED A COPY OF LIST OF DEBTORS AND CREDITORS. IT WAS ALSO SUBMITTED BY THE ASSESSEE THAT DURING T HE YEAR UNDER CONSIDERATION 'HIS INCOME WAS BELOW TAX LIMIT BUT D UE TO LACK OF TECHNICAL KNOWLEDGE HE DID NOT FILED HIS ITR FOR TH E RELEVANT PERIOD A COPY OF THE STATEMENTS OF THE ASSESSEE IS END HEREWITH FOR YOUR KIND PERUSAL. BRIEF FACTS OF THE CASE:- IN THIS CASE INFORMATION WAS RECEIVED FROM THE ASST T. DIRECTOR OF INCOME- CN1 TAX(INV.), UNIT-7(4), MUMBAI THAT ASSES SEE HAD MADE HUGE DEPOSIT OF RS. 10,96,57,828/- IN HIS BANK ACCOUNT NO. 233010200020916 MAINTAINED WITH AXIS BANK MARINE LI ES, MUMBAI DURING THE F.Y. 2008-09 RELEVANT TO THE A.Y. 2009-10. IN ADDITION TO THIS BANK ACCOUNT, THE ASSESSEE IS ALSO REPORTED TO HAVE MAINTAINED TWO MORE BANK ACCOUNTS HAVING A/C N OS. 233010100364489 & 575010200003902 WITH AXIX BANK, M ARINE LINES, MUMBAI IN THE NAME OF M/S SHUBH TRADING COMP ANY. HOWEVER, ON VERIFICATION OF THE ASSESSEES RECORDS, IT IS OBSERVED THAT HE HAS NOT FILED ANY RETURN OF INCOME FOR THE A.Y. 2009-10. THEREFORE THE HIGH VALUE DEPOSITS OF RS. 10,96,57,8 28/- MADE BY THE ASSESSEE REMAINED UNVERIFIED. ACCORDINGLY, AFTER OBTAINING THE PRIOR APPROVAL BY THE COMPETENT AUTHORITY NOTICE U/S 148 OF THE I.T. ACT, 1961 WAS ISSUED ON 31.032016. WHICH WAS NON COMPLIANCE BY THE ASSESSE E. AGAIN TIME TO TIME NOTICE U/S 142(1) OF THE I.T. ACT, 196 1 WAS ISSUED TO THE ASSESSEES WHICH WERE ALSO NON-COMPLIANCE BY THE ASSESSEE. SINCE, IT IS A TIME BARRING CASE, THEREFORE, MATTER AVAILABLE WITH THE RECORDS ORDER U/S 144 OF THE I.T. ACT, 1961 WAS PASSED BY THE A.O. ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 7 IT WAS INFORMED BY THE ADIT(INV.), MUMBAI VIDE HIS LETTER DATED 28.03.2016 IT WAS STATED BY HIM THAT SUMMON U/S 131 OF THE I.T. ACT, 1961 WAS ISSUED TO THE ASSESSEE BUT THE ASSESS EE DID NOT COMPLY WITH THE SUMMON. DURING THE ASSESSMENT PROCE EDING AS PER INFORMATION AVAILABLE ON RECORDS , AN INFORMATI ON U/S 133(6) OF THE IT ACT 1961 FROM THE AXIS BANK MUMBAI IN RES PECT OF ACCOUNT NO. 233010200020916, 233010100364478 AND 575010200003902 REGARDING THE BANK STATEMENTS AND O THER FDRS DETAILS AND OTHER ACCOUNTS DETAILS, IF ANY WAS CALLED FOR ON 06.05.2016. AN INFORMATION U/S 133(6) OF THE IT ACT 1961 WAS ALSO CALLED FROM KOTAK MAHINDRA BANK LTD REQUIRING THE BANK STATEMENT OF M/S GOYAL FINANCIAL (INDIA) LTD ON 06. 05.2016, SINCE, IT IS A TIME BARING CASE , ACCORDINGLY, A SH OW CAUSE LETTER WAS ISSUED ON 25.05.2016 TO THE ASSESSEE TO FINALIZ E THE ASSESSMENT AS AN EX- PARTY U/S 144 OF THE IT ACT 19 61 ON THE BASIS OF MATERIAL AVAILABLE ON RECORD REGARDING VAR IOUS DEPOSIT ENTRIES /CREDIT ENTRIES IN HIS VARIOUS BANK ACCOUNT MAINTAIN WITH AXIX BANK AND KOTAK MAHINDRA BANK TREATING AS UNEXP LAINED INVESTMENT AS UNDISCLOSED SOURCES OF INCOME. BUT TH IS SHOW CASE LETTER WAS ALSO RETURNED BACK BY THE POSTAL AUTHORI TY WITH THE REMARKS 'NOT K_NOW'23-A. AGAIN A SHOW CAUSE LETTER WAS ISSUED ON THE ASSESSEE'S THANE, MAHARASHTRA ADDRESS BUT THE SAME WAS ALSO RETURNED BACK WITH THE POSTAL AUTHORI TY REMARKS THAT 'LEFT & RETURN TO SENDER'. AS PER KYC AND OPENING FORMS OF BANK ACCOUNT OF THE ASSESSEE OBTAINED U/S 133(6)0 THE I.T. ACT, 1961 BY THE UNDE RSIGNED FROM THE AXIS BANK AND KOTAK MAHINDRA HANK OF THE PERSON S REGARDING THE BUSINESS ACTIVITIES AND OUTSTANDING BALANCES. A CCORDINGLY. DURING THE ASSESSMENT PROCEEDINGS LETTERS WERE ISSU ED TO ALL THE LIVE CONCERNED PERSONS BUT ALL THE LETTERS WERE ALS O RETURNED BACK BY THE POSTAL AUTHORITIES REMARKS 'L111' NOT KNOWN' RETURN TO SENDER. IN VIEW OF THE TOTALITY OF THE FACTS AND CONSIDERIN G THE MATERIAL AVAILABLE ON RECORDS AND AFTER GATHERING THE INFORM ATION U/S ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 8 133(6) OF THE I.T. ACT. 1961 THE AO I HAD NO ALTERN ATIVE BUT TO COMPLETE THE ASSESSMENT AS AN EX-PARTE U/S 144 OF T HE IT. ACT, 1961 ON THE BASIS OF MATERIAL AVAILABLE ON RECORDS. ON THE BASIS OF MATERIAL AVAILABLE WITH THE RECORDS IT IS REVEAL ED THAT THE ASSESSEE WAS DOING THE BUSINESS OF C.) GOODS AS LIC ENSEE AS EVIDENT FROM THE HANK STATEMENTS AS WELL AS LICENSE AGREEMENT CN AVAILABLE ON RECORDS. IN VIEW OF THE ABOVE FACTS THAT THE ASSESSEE DID NO T UTILIZE THE NUMEROUS OPPORTUNITIES GIVEN BY THE AO, THE THEN AO WAS JUSTIFIED IN ASSESSING THE INCOME @ 8% OF THE TOTAL CREDIT ENTRIES/DEPOSITS OF RS. 61. 13,51.505/- WHICH COMES TO RS. 4,89,08, 120/- AS INCOME FROM UNDISCLOSED SOURCES T HOUGH IT NOSY APPEARS THAT THE ASSESSEE WAS A ONLY INVOLVED IN PR OVIDING ACCOMMODATION ENTRIES ON COMMISSION BASIS. IN VIEW OF THE ABOVE FACTS AS SUBMITTED ABOVE, WHIC H HAVE ALSO BEEN DISCUSSED IN THE BODY OF THE ASSESSMENT ORDER. IT I S WORTHWHILE TO MENTION HERE THAT THE ADDITIONS WERE MADE AFTER PRO VIDING PROPER OPPORTUNITY OF BEING HEARD. IT IS HUMBLY SUBMITTED THAT IN MY VIEW THE SUBMISSION FILED BY THE LD. COUNSEL OF THE APPE LLANT BEFORE YOUR HONOURS ARE NOT ACCEPTABLE ON ANY POINT AS SUBMITTE D ABOVE.' IT CAN BE SEEN FROM THE REMAND REPORT DATED 27.02.2 019 THAT DURING THE COURSE OF REMAND PROCEEDINGS, THE APPELL ANT ALONG WITH HIS A/R APPEARED BEFORE THE AO ON 14.02.2019 A ND FILED WRITTEN SUBMISSION, PRODUCED BOOKS OF ACCOUNTS, PUR CHASE BILLS, SALES BILLS AND STOCK REGISTERS. THE AO ALSO RECORD ED THE STATEMENT OF THE APPELLANT U/S 131, WHEREIN THE APP ELLANT EXPLAINED THAT THE ENTRIES APPEARING IN HIS BANK AC COUNT ARE RELATING TO HIS DIAMOND BUSINESS WHICH HE WAS DOING ON COMMISSION BASIS AND HE WAS GETTING COMMISSIONS @10 TO 15 PAISA PER TRANSACTION. THE AO ALSO CONDUCTED ENQUIR IES U/S 133(6) AND RECEIVED CONFIRMATION FROM THE PARTY. TH E APPELLANT HAS ALSO FILED THE COPY OF AUDIT REPORT. THE AO HAS NOT FOUND OUT ANY DISCREPANCY IN THE PURCHASE, SALE OR STOCK REGI STER PRODUCED ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 9 BEFORE HIM BY THE APPELLANT. THE AO HAS ALSO NOT FO UND ANY DISCREPANCY IN THE REPLY RECEIVED IN RESPONSE TO NO TICE ISSUED U/S 133(6). IT IS SEEN FROM THE ASSESSMENT ORDER THAT THE AO ES TIMATED THE NET PROFIT @8% TREATING THE ENTIRE CREDITS/ DEPOSIT S AS TURNOVER OF THE APPELLANT, BECAUSE NO ONE HAS ATTENDED BEFORE H IM NOR ANY REPLY/ EXPLANATION WAS FILED. HOWEVER, DURING THE C OURSE OF APPELLATE PROCEEDINGS THE APPELLANT HAS FURNISHED C OMPLETE DETAILS OF THE PURCHASE AND SALES RECORDED BY HIM I N THE BOOKS OF ACCOUNTS ALONG WITH AUDIT REPORT EXPLAINING THAT EN TRIES APPEARING IN THE BANK ACCOUNTS OF THE APPELLANT WER E ONLY TRANSACTIONS RELATED TO THE DIAMOND BUSINESS CARRIE D ON BY HIM ON COMMISSION BASIS. THE APPELLANT HIMSELF HAS ADMI TTED IN THE STATEMENT RECORDED U/S 131 THAT HE WAS GETTING COMM ISSION @0.15% TO 0.20%. THE APPELLANT IN THE REJOINDER DAT ED 27.02.2019 HAS ALSO GIVEN COMPARATIVE RATES OF GROS S PROFIT OF DIFFERENT CONCERNS DOING SAME KIND OF BUSINESS WHIC H IS REPRODUCED HEREUNDER: S. NO . NAME OF THE ASSESSEE PAN A. Y. G.P. TO SALES (IN PERCENTAG 1. MAHAK DIAM PRIAVTE LIMITED AAGCM9673E 2017 - 18 2018 - 19 0.03 - 1.59 2. DARSH EXIM PRIVATE LIMITED AAFCD0287N 2017 - 18 2018-19 - 0.05 -1.15 3. YASHIKA JEWELS PRIVATE LIMITED AAACY5072H 2017 - 18 2018-19 - 0.61 -1.15 4. KUMKUM DIAMONDS PRIVATE LIMITED AADCK8656N 2011-12 0.18 5. GANGOTRI EXIM PRIVATE LIMITED AADCG7410Q 2011 - 12 0.17 6. GOLDSTONE EXIM PRIVATE LIMITED AADCG8161E 2011 - 12 0.19 7. EXCELLENT DIAMONDS PRIVATE LTD. AACCE0160G 2010 - 11 2011-12 0.18 0.21 THEREFORE, I AM OF THE CONSIDERED VIEW THAT IT WOUL D BE FAIR AND REASONABLE TO ESTIMATE THE NET PROFIT @0.20% ON THE TURNOVER OF RS. 53,64,67,051/-. THE NET PROFIT COMPUTED @0.20% ON THE ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 10 TURNOVER OF RS. 53,64,67,051/- WOULD BE RS. 10,72,9 34/-. ACCORDINGLY, OUT OF TOTAL ADDITION OF RS. 4,89,08,1 20/-, ADDITION OF RS. 10,72,934/- IS CONFIRMED AND REMAINING ADDITION OF RS. 4,78,35,186/- (RS. 4,89,08,120 RS. 10,72,934) IS HEREBY DELETED. AS THERE WERE HUGE DEPOSITS/ CREDIT ENTRIES IN THE BANK ACCOUNT MAINTAINED BY THE APPELLANT AND NO RETURN OF INCOME WAS FILED BY THE APPELLANT, THEREFORE, I AM OF THE CONSIDERED VI EW THAT THE AO HAD SUFFICIENT MATERIAL WITH HIM TO FORM THE BELIEF THAT INCOME PERTAINING TO A.Y. 2009-10 HAD ESCAPED ASSESSMENT. ACCORDINGLY, THE REOPENING OF ASSESSMENT U/S 147 AND ISSUE OF NO TICE U/S 148 ARE HELD TO BE VALID AND IN ACCORDANCE WITH THE PRO VISIONS OF LAW. FURTHER, IT IS SEEN FROM THE ASSESSMENT ORDER THAT THE AO HAD TRIED HIS BEST TO SERVE THE STATUTORY NOTICES ON TH E ADDRESSES AVAILABLE WITH HIM. AS NO COMPLIANCE OF THE NOTICES ISSUED BY THE AO WERE MADE BY THE APPELLANT, THEREFORE, THE AO WA S COMPELLED TO COMPLETE THE ASSESSMENT U/S 144. HENCE, THE COMP LETION OF ASSESSMENT U/S 144 IS ALSO HELD TO BE VALID AND IN ACCORDANCE WITH THE PROVISIONS OF LAW . 6. WE NOTE THAT THE LD CIT(A), AFTER ADMITTING THE ADDITIONAL EVIDENCE SUBMITTED BY THE ASSESSEE UNDER RULE 46A A ND CALLING FROM THE REMAND REPORT FROM THE AO AND SUBMISSIONS AND R EJOINDER FILED BY THE ASSESSEE, HAS HELD THAT THE ENTRIES APPEARING I N HIS BANK ACCOUNT WERE RELATED TO DIAMOND BUSINESS CARRIED ON BY HIM ON COMMISSION BASIS AND HAS ESTIMATED THE COMMISSION @ 0.20% ON T OTAL TURNOVER OF RS. 53,64,67,051/- TAKING INTO ACCOUNT STATEMENT OF ASSESSEE U/S 131 RECORDED DURING THE REMAND PROCEEDINGS BEFORE THE A O ADMITTING RECEIPT OF COMMISSION IN RANGE OF 0.15% TO 0.20% AN D COMPARATIVE THIRD PARTY CASES ENGAGED IN SIMILAR LINE OF BUSINE SS AS REFERRED BY THE ASSESSEE HIMSELF DURING THE APPELLATE PROCEEDINGS. ACCORDINGLY, ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 11 ADDITION OF RS. 10,72,934/- WAS CONFIRMED AND REMAI NING ADDITION OF RS. 4,78,35,186/- WAS DELETED. WE THEREFORE DONT S EE ANY INFIRMITY OR PERVERSITY IN THE SAID FINDINGS OF THE LD. CIT(A) W HO HAS TAKEN INTO CONSIDERATION THE ENTIRETY OF FACTS AND CIRCUMSTANC ES OF THE CASE INCLUDING THE ADDITIONAL EVIDENCE, STATEMENT OF THE ASSESSEE U/S 131, BESIDES THE SUBMISSIONS MADE BY THE ASSESSEE DURING THE APPELLATE PROCEEDINGS. FURTHER, THE LD CIT(A) HAS RIGHTLY UP HELD THE REOPENING OF ASSESSMENT U/S 147 AND PASSING OF ASSESSMENT ORDER U/S 144 OF THE ACT. ACCORDINGLY, WE ARE OF THE CONSIDERED VIEW TH AT THERE IS NO LEGAL OR FACTUAL BASIS FOR US TO INTERFERE IN THE FINDINGS O F THE LD CIT(A) AND THE SAME ARE HEREBY CONFIRMED AND THE GROUNDS OF APPEAL SO TAKEN BY THE ASSESSEE ARE THUS DISMISSED. IN THE RESULT, THE APP EAL OF THE ASSESSEE IS DISMISSED. 7. IN ITA NO. 662/JP/19 FOR A.Y 2010-11, WE HAVE G ONE THROUGH THE MATERIAL AVAILABLE ON RECORD AND NOTE THAT THE FACT S AND CIRCUMSTANCES OF THE CASE ARE EXACTLY IDENTICAL AS IN ITA NO. 661 /JP/2019. THEREFORE, OUR FINDINGS AND DIRECTIONS CONTAINED IN ITA NO. 66 1/JP/2019 SHALL APPLY MUTATIS MUTANDIS TO THIS MATTER AS WELL. THE APPEAL OF THE ASSESSE E IS THUS DISMISSED. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/04/2021. SD/- SD/- LANHI XKSLKBZ FOE FLAG ;KNO ( SANDEEP GOSAIN ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/04/2021. ITA NO. 661 & 662/JP/2019 SHRI LALARAM GURJAR VS. ITO 12 *SANTOSH VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI LALARAM GURJAR, AJMER. 2. IZR;FKHZ@ THE RESPONDENT- ITO, WARD-1(2), AJMER. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 661 & 662/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR