TEXTORIUM, Jaipur V. ITO, Jaipur

ITA 665/JPR/2013

• Counselvise Citation: 66523114 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 17-07-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: G G MUNDRA

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 IH-DS-CALY] YS[KK LNL; DS LE{K BEFORE: SHRI P.K. BANSAL, ACCOUNTANT MEMBER VK;DJ VIHY LA- @ ITA NO. 665/JP/2013 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2009-10 M/S TEXTORIUM, M.I. ROAD, JAIPUR. CUKE VS. INCOME TAX OFFICER, WARD 2(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AAAFT 0470 L VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI G.G. MUNDRA, (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI O.P. BHATEJA (ADDL.CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 04/11/2015 MN?KKS'K .KK DH RKJH[ K @ DATE OF PRONOUNCEMENT : 05/11/2015 VKNS'K @ ORDER PER P.K. BANSAL, A.M. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER DATED 07/05/2013 PASSED BY THE LD CIT(A)-I, JAIPUR FOR A.Y . 2009-10 BY TAKING THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL. 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE LD CIT(A) IS WRONG, UNJUST AND HAS ERRED IN LAW IN CONFIRMING REJECTION OF THE BOOKS OF ACCOUNT OF THE APPELLANT BY LD ASSESSING OFFICER U/S 145(3) OF THE I.T. ACT, 1961. ITA 665/JP/2013_ M/S TEXTORIUM VS ITO 2 2. THAT THE LD CIT(A) IS FURTHER WRONG AND HAS ERRED IN LAW IN DIRECTING APPLICATION OF G.P. RATE OF 20% ON DECLAR ED SALES AS AGAINST G.P. RATE OF 17.74% DECLARED BY THE APPE LLANT RESULTING IN CONFIRMATION OF TRADING ADDITION TO TH E EXTENT OF RS. 4,72,858/-. 2. GROUND NO. 1 RELATE TO SUSTENANCE OF REJECTION O F BOOKS OF ACCOUNT BY THE LD CIT(A). AFTER HEARING THE RIVAL CONTENTION S OF BOTH THE PARTIES AND GOING THROUGH THE ORDERS OF THE TAX AUTHORITIES BELOW, I NOTED THAT THE ASSESSING OFFICER REJECTION HAS BOOKS OF ACCOUN T. THE ASSESSEE HAS NOT MAINTAINED THE STOCK REGISTER. THE ASSESSEE WHIL E ISSUING THE MATERIAL TO JOB WORKERS MENTIONED THE AMOUNT OF JOB ON THE CH ALLAN, THUS, THERE IS NO DESCRIPTION OF THE NATURE OF JOB TO BE DONE ON T HIS CHALLANS. IN SOME CASES, BOTH THE COPIES OF THE SALES BILLS ARE WITH T HE ASSESSEE. THE SALES RECORDED BY THE ASSESSEE CANNOT BE CORRELATED WITH T HE PURCHASES AS THERE IS NO DESCRIPTION OF THE MATERIAL ON THE SALE BILL. ON SOME DATES, THERE IS CASH SHORTAGE. 3. THE LD AR, EVEN THOUGH, VEHEMENTLY CONTENDED THA T THE DISCREPANCIES ARE NOT SO SERIOUS AS TO REJECT THE B OOKS OF ACCOUNT BUT COULD NOT SUBMIT THE EXPLANATION ABOUT THE NON-MAIN TENANCE OF THE STOCK RECORD OR QUANTITATIVE RECONCILIATION OF THE STOCK. I ALSO NOTED THAT THIS ITA 665/JP/2013_ M/S TEXTORIUM VS ITO 3 GROUND HAS NOT BEEN PRESSED BY THE ASSESSEE BEFORE THE LD CIT(A). I, THEREFORE, DISMISS THIS GROUND. 4. GROUND NO. 2 OF APPEAL RELATE TO ESTIMATION OF P ROFIT. AFTER HEARING THE RIVAL SUBMISSIONS OF BOTH THE PARTIES, I NOTED THAT THE ASSESSEE HAS DECLARED G.P. @ 17.74% WHILE THE LD CIT(A) HAS DIRECTE D THE ASSESSING OFFICER TO ESTIMATE THE PROFIT BY APPLYING G.P. @ 20 %. THIS TRIBUNAL VIDE ITS ORDER DATED 13/3/2015 DURING THE ASSESSMENT YEA R 2007-08, SUSTAINED THE G.P. @ 18.52%. THE ASSESSMENT FOR THE ASSESSMENT YEAR 2008-09 HAS BEEN COMPLETED U/S 143(1) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). IN VIEW OF THE DECISION OF THIS TRIBUNAL IN ITA NO. 354/JP/2012 IN DIRECT THE ASSESSING OFFICER TO ESTIMATE THE G.P. @ 18.52% AS IN MY OPINION THAT THE ASSESSEES OWN CASE WILL BE BEST CO MPARABLE INSTANCE. ACCORDINGLY, THIS GROUND OF APPEAL IS PARTLY ALLOWED . 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/11/2015. SD/- IH-DS-CALY (P.K. BANSAL) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ @ JAIPUR FNUKAD @ DATED:- 05 TH NOVEMBER, 2015 ITA 665/JP/2013_ M/S TEXTORIUM VS ITO 4 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- M/S TEXTORIUM, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE ITO, WARD 2(2), JAIPUR. 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. 665/JP/2013) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR