SHRI SITA RAM SHARMA, JAIPUR V. INCOME TAX OFFICER, WARD-3-2, JAIPUR

ITA 725/JPR/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2213 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 27-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA JHA CIT DHK
• Assessee Lawyers: K L MOOLCHANDAN I
• Keywords: Principle of natural justice; Additional evidence
• Section: 68

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 HKKXPAN] YS[KK LNL; ] DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 725/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13 SITA RAM SHARMA, PROP.- M/S SHARMA & COMPANY, SOMANI BUILDING, STATION ROAD, JAIPUR. CUKE VS. INCOME TAX OFFICER, WARD-3(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AFEPS 5403 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI K.L. MOOLCHANDANI (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA JHA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 05/01/2018 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 08/01/2018 VKNS'K@ ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATES FR OM THE ORDER OF THE LD. CIT(A)-I, JAIPUR DATED 19/07/2017 FOR THE A.Y. 2012-13, WHEREIN THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF A PPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE LEARNED CIT(A) HAS FACTUALLY AND LEGALLY ERRED IN NOT ADMIT TING THE ADDITIONAL EVIDENCES UNDER RULE 46A OF THE I.T. RUL ES, 1962. THIS IS CONTRARY TO THE PRINCIPLES OF EQUITY AND NATURAL JUSTICE AS THESE DETAILS AND EVIDENCES GO TO THE ROOT OF THE P OINT. ITA 725/JP/2017_ SITA RAM SHARMA VS ITO 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LEARNED CIT(A) HAS FACTUALLY AND LEGALLY ERRED IN EXERCISIN G THE CO- TERMINUS POWERS TO INVOKE PROVISIONS OF SECTION 68 OF THE ACT FOR MAKING ADDITION ON ACCOUNT OF THE OUTSTANDING DEBTORS. AS PER ACCOUNTANCY RULES, NO VALID ADDITION CAN BE MADE U/ S 68 OF THE ACT ON ACCOUNT OF THE UNDISPUTED OUTSTANDING DEBTO RS. 3. ON THE FACTS AND IN THE CIRCUMSTANCES, THE AUTHO RITIES BELOW HAVE ERRED IN MAKING ADDITION OF RS.3,19,380/- WITHOUT APPRECIATING THE FACTS OF THE CASE IN RIGHT PERSPEC TIVE. THE ADDITION SO MADE IS FACTUALLY AND LEGALLY INCORRECT AND SAME DESERVES TO BE DELETED SUMMARILY. 2. AT THE OUTSET OF HEARING, THE LD AR HAS SUBMITTE D THAT THE ASSESSEE SUBMITTED ADDITIONAL EVIDENCES BEFORE THE LD. CIT(A) AS PER RULE 46A OF THE INCOME TAX RULES, 1962 (IN SHORT THE RULES) BUT THE SAME HAS NOT BEEN CONSIDERED BY HIM. HE SUBMITTED T HAT IN THE INTEREST OF JUSTICE AND EQUITY, THE ADDITIONAL EVIDENCES SUB MITTED BY THE ASSESSEE MAY BE ADMITTED AND MATTER MAY BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER AS THE FACTUAL VERIFICATIO N WITH REGARD TO THE SALES MADE BY THE ASSESSEE TO THE M/S VIJAY LAXMI A GRO AND THE PAYMENTS RECEIVED IN RESPONSE TO THAT NEEDS VERIFIC ATION. LD. A.R. SUBMITTED THAT THE LEDGER ACCOUNT OF M/S VIJAY LAXM I AGRO CLEARLY ESTABLISHES THAT THE ASSESSEE HAS SOLD AGRICULTURAL IMPLEMENTS AND HAS RECEIVED THE AMOUNT BACK IN VARIOUS INSTALLMENTS, WH ICH HAS BEEN DULY REFLECTED IN THE CASH BOOK OF THE ASSESSEE AS WELL A S THE LEDGER ACCOUNT ITA 725/JP/2017_ SITA RAM SHARMA VS ITO 3 OF M/S VIJAY LAXMI AGRO. THEREFORE, ON THE MERITS AL SO, THIS ADDITION DESERVES TO BE DELETED. 3. ON THE OTHER HAND, THE LD SR.DR HAS RELIED ON TH E ORDERS OF THE AUTHORITIES BELOW. 4. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE FACTUAL POSITION OF THE ISSUE, THE BENCH IS OF THE VIEWS THAT IN THE INTEREST OF JUSTICE AND EQUITY, THE MATTER NEEDS A RELOOK AT THE LEVEL OF T HE ASSESSING OFFICER PARTICULARLY WHEN THE ASSESSEE HAS SOLD THE GOODS TO M/S VIJAY LAXMI AGRO AND THE PAYMENTS HAS BEEN DENIED IN RESPECT OF THESE SALES. HENCE, THE MATTER IS RESTORED BACK TO THE FILE OF T HE ASSESSING OFFICER. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 08/01/2018. SD/- HKKXPAN (BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 08 TH JANUARY, 2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI SITA RAM SHARMA, JAIPUR. ITA 725/JP/2017_ SITA RAM SHARMA VS ITO 4 2. IZR;FKHZ @ THE RESPONDENT- THE ITO, WARD-3(2), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 725/JP/2017) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR