SHRI BHUPENDRA KUMAR SAINI, Jaipur V. ITO, BEHROR

ITA 691/JPR/2012

• Counselvise Citation: 69123114 RSA 2012
• Duration Of Justice: 2 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 26-07-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL: JAIPUR BENCH JAIPUR BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI B. C. MEENA, ACCOUNTANT MEMBER. ITA.NO.691/JP/2012 (ASSESSMENT YEAR:2005-06) SH. BHUPENDRA KUMAR SAINI PROP. M/S ARJUN STONE COMPANY, PIPLI STAND, ANTELA, TEHSIL VIRAT NAGAR, DIST: JAIPUR APPELLANT VS. ITO, WARD - BEHROR RESPONDENT PAN: AXPPS8884E /BY APPELLANT : SHRI P. C. PARWAL, A.R. / BY RESPONDENT : SHRI RAJESH OJHA, D.R. /DATE OF HEARING : 27.11.2014 /DATE OF PRONOUNCEMENT : 28 .11.2014 I.T.A. NO. 691/JP/2012 A.Y. 2005-06 (SH. BHUPENDRA KR. SAINI VS. ITO) PAGE 2 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), ALWA R, DATED 04.10.2010 FOR A.Y.2005-06 ON THE FOLLOWING GROUND: 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) H AS ERRED ON FACTS AND IN LAW IN CONFIRMING ADDITION OF RS.4 LACS MADE BY AO BY TREATING OPENING CAPITAL TO THIS EXTENT AS UNEXPLAINED. 2. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE TRADING ADDITION OF RS.42,913/-. HE HAS FURTHER ERRED IN CONFIRMING THE ADDITION WHEN ASSESSEE HAS DECLARED THE INCOME U/S.44AF OF THE ACT. 3. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN ESTIMATING THE HOUSEHOLD EXPENSES OF THE ASSESSEE AT RS.78,000/- AS AGAINST RS.36,000/- DECLARED BY THE ASSESSEE. 2. ASSESSEE IS A PROPRIETOR OF ARJUN STONE CO., PIP LI ANTELA DISTT: JAIPUR. 3. FIRST ISSUE IS AGAINST ADDITION OF RS.4 LACS ON ACCOUNT OF CAPITAL BROUGHT FORWARDED AS UNEXPLAINED. ASSESSEE DID NOT MAINTAIN BOOKS OF ACCOUNT ALONG WITH SALES AND PURC HASE BILLS. HE PURCHASED STONE FROM THE DRIVERS OF TRUCK DIRECT LY WHICH WAS SOLD EITHER TO THE KARIGAR OR ACTUAL USER. KOT A STONE HAD BEEN PURCHASED THROUGH CONTRACTORS THEY DID NOT PRO VIDE ANY SALE BILL ON WHICH HE EARNED PROFIT @ 5% TO 6%. HE MAINTAINED KACHI PARCHI & KACHE BILL ON THE BASIS OF THIS KACH A ACCOUNT, I.T.A. NO. 691/JP/2012 A.Y. 2005-06 (SH. BHUPENDRA KR. SAINI VS. ITO) PAGE 3 HE FILED INCOME TAX AND SALE TAX RETURN. HE COULD NOT EVEN PRODUCE KACHI PARCHI TO ASSESSING OFFICER. ASSESSI NG OFFICER EXAMINED OPENING CAPITAL AT RS.4,90,202/-. IN HIS STATEMENT, ASSESSEE ADMITTED THAT THIS AMOUNT HAS BEEN GIVEN B Y HIS FATHER AND GRAND MOTHER AND ALSO RECEIVED ON PARTIT ION OF THE FAMILY. HE SPECIFICALLY DID NOT REMEMBER THE ITEM RECEIVED ON PARTITION BUT ADMITTED THAT HE INVESTED 2.5 LAC HIM SELF AND 1.75 LAC FROM PARTITION AND REMAINING INVESTMENT WA S RECEIVED FROM GRAND MOTHER AS HE RECEIVED RS.62,500/- AFTER SELLING OF OLD JEWELLERY OF HER. AFTER CONSIDERING THE SUBMIS SION OF ASSESSEE, ASSESSING OFFICER TREATED UNDISCLOSED INC OME OF ASSESSEE AT RS. 4 LACS, WHICH WAS CONFIRMED BY CIT( A). 3.1 SAME HAS BEEN OPPOSED BEFORE US ON BEHALF OF AS SESSEE. ON OTHER HAND, LD. AUTHORIZED REPRESENTATIVE SUPPOR TED THE ORDERS OF AUTHORITIES BELOW. ASSESSEE FILED AFFIDA VITS OF RELATIVE OF ASSESSEE BUT WHEN SAME PERSONS WERE CROSS EXAMIN ED U/S. 131, THEY WERE NOT ABLE TO ESTABLISH THEIR CLAIM NO T ONLY WITH EVIDENCE BUT THERE WERE ALSO CONTRADICTED THE STATE MENTS. AUTHORIZED REPRESENTATIVE CLAIMED THAT OPENING CAPI TAL IS CARRY FORWARDED CAPITAL OF PRECEDING YEAR BUT HE HAS ALSO NOT SUPPORTED THE SAME WITH ANY EVIDENCE. WHATEVER DEB TORS LIST FILED BEFORE CIT(A) COULD NOT BE EXPLAINED BY ASSES SEE. ASSESSING OFFICER HAS ALREADY ALLOWED SET OFF OF RS .90,202/- OF EARLIER YEAR ACCUMULATION OF CAPITAL. THEREFORE, C IT(A) WAS JUSTIFIED IN CONFIRMING ADDITION OF RS.4 LACS ON TH IS ACCOUNT I.T.A. NO. 691/JP/2012 A.Y. 2005-06 (SH. BHUPENDRA KR. SAINI VS. ITO) PAGE 4 MADE BY ASSESSING OFFICER BY TREATING OPENING CAPIT AL. SAME IS UPHELD. 4. NEXT ISSUE IS WITH REGARDS TO TRADING ADDITION O F RS.42,913/-. ASSESSING OFFICER MADE ADDITION OF RS .42,913/- AFTER REJECTING BOOKS OF ACCOUNT OF ASSESSEE, WHICH WAS CONFIRMED BY CIT(A). 5. LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT CIT (A) ERRED ON FACTS AND LAW IN CONFIRMING TRADING ADDITION OF RS.42,913/-. HE FURTHER ERRED IN CONFIRMING ADDITION WHEN ADDITI ON HAS DECLARED INCOME U/S. 44AF OF ACT. WE FIND THAT ASS ESSING OFFICER HAS POINTED OUT VARIOUS DEFECTS IN BOOKS OF ACCOUNTS SPECIFICALLY OPENING CAPITAL ACCOUNT. HE DID NOT P RODUCE PURCHASE AND SELL VOUCHERS. ASSESSEE COULD NOT EST ABLISH WHETHER HIS CASE IS COVERED U/S.44AF OF ACT. ASSES SEE ADMITTED THAT HE HAS FILED RETURN ON THE BASIS OF E STIMATION BEFORE INCOME TAX DEPARTMENT AS WELL AS SALES TAX DEPARTMENT. IN THIS BACKGROUND, CIT(A) RIGHTLY APP ROVED THE ACTION OF ASSESSING OFFICER WHO HAS APPLIED PROVISI ONS OF SECTION 145(3) FOR REJECTION OF BOOKS AND MAKING TR ADING ADDITION OF RS. 42,913/- BY WAY OF ESTIMATING INCOM E. AS DISCUSSED ABOVE, SAME IS UPHELD. 6. LAST ISSUE IS WITH REGARDS TO ESTIMATING HOUSEHO LD EXPENSES OF ASSESSEE AT RS.78,000/- AS AGAINST RS.3 6,000/- DECLARED BY ASSESSEE. TAKING ALL FACTS AND CIRCUMS TANCES INTO I.T.A. NO. 691/JP/2012 A.Y. 2005-06 (SH. BHUPENDRA KR. SAINI VS. ITO) PAGE 5 CONSIDERATION, ADDITION ON ACCOUNT OF HOUSEHOLD EXP ENSES ARE RESTRICTED TO RS.20,000/-. 7. AS A RESULT, APPEAL FILED BY THE ASSESSEE IS PAR TLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY OF NOVEMBER, 2014. SD/- SD/- (B. C. MEENA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R TRUE COPY S.K.SINHA COPY FORWARDED TO: 1. THE APPELLANT- SH. BHUPENDRA KR. SAINI 2. THE RESPONDENT- ITO, WARD-BEHROR 3. THE CIT 4. CIT(APPEALS) 5. THE DR 6. GUARD FILE (ITA NO. 691/JP/2012) BY ORDER A.R., JAIPUR.