ACIT, Jaipur V. KIRAN MODES, Jaipur

ITA 713/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99514 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 21-10-2014
• Result in Favour of: Revenue
• 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, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA- @ ITA NO. 713/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2008-09 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, JAIPUR. CUKE VS. M/S KIRAN MODES, G-1/269, INDUSTRIAL AREA, SITAPURA, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AADFK 5111 D VIHYKFKHZ@ APPELL ANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI O.P. BHATEJA (ADDL. CIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI G.G. MUNDRA (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 26/11/2015 MN?KKS'K .KK DH RKJH[ K@ DATE OF PRONOUNCEMENT :27/11/2015 VKNS'K@ ORDER PER: T.R. MEENA, A.M.: THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDER OF THE LD. CIT(A), CENTRAL, JAIPUR DATED 04/08/2014 FOR THE ASS ESSMENT YEAR 2008- 09 RAISING THEREIN THE FOLLOWING GROUNDS AS UNDER:- I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT(A)(C), JAIPUR WAS NOT JUSTIFIED IN RESTRICTING THE TRADING ADDITION OF RS. 17,96,720/- TO RS. 3,39,512/- MADE ON ACCOUNT OF UNVERIFIABLE PURCHASE S OF RS. 71,86,876/- BY THE A.O. U/S 145(3) DESPITE ITA 713/JP/2014 ACIT VS M/S KIRAN MODES 2 UPHOLDING REJECTION OF BOOKS OF ACCOUNT MADE BY THE A.O. 2. THE LD. DR IS HEARD WHO RELIED ON THE ORDERS OF TH E LOWER AUTHORITIES. 3. LD. COUNSEL OF THE ASSESSEE RELIED ON THE ORDER OF LD. CIT(A). 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE ISSUE UNDER CONSIDERATION RELATES TO TAXABILITY OF UNVERIFIABLE PURCHASES OF PRECIOUS AND SEMI PRECIOUS STONES USED IN JEWELLERY MANUFACTURING. THE COORDINATE BENCH OF ITAT IN A BUNCH OF APPEALS, ON SIMILAR ISSUE, BY CONSOLIDATED ORDER IN THE CASE OF ANUJ KUMAR VARSHNEY & OTHERS VS. ITO (I TA NO. 187/JP/2012 DATED 22-10-2014) HAS HELD THAT 15% OF UNVERIFIABLE PURCHASES SHALL BE HELD TO BE INCOME OF THE ASSESSEE FROM UNDISCLOSED SOURCES IN THE RELEVANT YEARS. IT IS ALSO BROUGHT TO OUR NOTICE TH AT BOTH REVENUE AND ASSESSEE HAVE GONE IN APPEAL BEFORE HONBLE RAJASTH AN HIGH COURT AGAINST THIS BUNCH OF ORDERS. IN SIMILAR CASES, TO AVOID MULTIPLICITY OF APPEALS, THIS BENCH HAS SET ASIDE THE IMPUGNED ISSU ES RAISED IN SUCH APPEALS, TO THE FILE OF THE AO TO DECIDE THE SAME A FRESH AFTER THE JUDGMENT OF HONBLE RAJASTHAN HIGH COURT IN THE CAS E OF ANUJ KUMAR VARSHNEY & OTHERS (SUPRA) IS DELIVERED. THEREFORE, FOLLOWING OUR EARLIER ITA 713/JP/2014 ACIT VS M/S KIRAN MODES 3 ORDERS ON THE SAME LINES, THE ISSUE RAISED IN SUBJE CT APPEAL IS ALSO ACCORDINGLY SET ASIDE TO THE FILE OF THE AO TO DECI DE AFRESH AFTER THE DECISION OF HONBLE RAJASTHAN HIGH COURT IN CASE OF ANUJ KUMAR VARSHNEY & OTHERS VS. ITO (SUPRA) AFTER GIVING ADEQUATE OPPO RTUNITY OF BEING HEARD TO THE PARTIES. THUS THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, REVENUES APPEAL IS ALLOWED FOR S TATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 27/11/2015. SD/- SD/- YFYR DQEKJ VH-VKJ-EHUK (LALIET KUMAR) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27 TH NOVEMBER, 2015 * RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CENTRAL CIRCLE-2, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- M/S KIRAN MODES, 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. 713/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR