ACIT, Jaipur V. M/S BALAJI INDUSTRIAL PRODUCTS LTD., Jaipur

ITA 732/JPR/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59540 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 11-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Keywords: Rejection of books of accounts

Judgement Text

1 ITA 732-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 732/JP/2011 ASSTT. YEAR : 2008-09. THE ACIT, CIRCLE-3, VS. M/S. BALAJI INDUSTRIAL P RODUCTS., JAIPUR. 48, INDUSTRIAL AREA, JHOTWARA, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : SHRI ASHISH SHARMA DATE OF HEARING : 10.01.2012. DATE OF PRONOUNCEMENT : 30.01.2012. ORDER DATE OF ORDER : 30/01/2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2008-09. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE TRAD ING ADDITION OF RS. 24,88,533/- MADE BY AO BY APPLYING G.P. RATE OF 17.2% IN PLACE OF GP RATE OF 17.08% DECLARED BY ASSESSEE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED ITS RETURN OF INCOME ON 29.9.2008 DECLARING TOTAL INCOME OF RS. 6,35,00,260 /-. THE CASE WAS TAKEN UP FOR SCRUTINY. THE ASSESSEE IS MANUFACTURING IRON AND S TEEL PRODUCTS AND SUPPLIES TO VARIOUS GOVERNMENT DEPARTMENTS LIKE NTPC, STATE ELECTRICITY BOARDS AND BHEL ETC. IN THE 2 ASSESSMENT ORDER THE AO OBSERVED THAT THE ASSESSEE HAD NOT MAINTAINED ANY STOCK REGISTER IN RESPECT OF SPARES, STORES, PATTERNS, FUEL GASES AND PACKING MATERIAL ETC. SIMILARLY, EXPENSES UNDER THE VARIOUS HEADS COULD NOT BE VERIF IED IN ABSENCE OF VOUCHERS AND COMPLETE ADDRESSES OF THE RECIPIENTS. AFTER TAKING INTO CONSIDERATION THE REPLY OF THE LD. A/R, THE AO REJECTED THE BOOKS OF ACCOUNTS AND ESTI MATED THE INCOME OF THE ASSESSEE BY APPLYING GP RATE OF 17.2% IN STEAD OF 17.08% SHOWN BY THE ASSESSEE ON GROSS TURN OVER OF RS. 217,55,79,096/- AND MADE AN ADDITION OF RS. 24,88,533/- TO THE INCOME OF THE ASSESSEE. 4. IT WAS SUBMITTED BEFORE LD. CIT (A) THAT ON SIMI LAR FACTS, THE ADDITION WAS MADE FOR ASSESSMENT YEAR 2007-08 WHICH WAS DELETED BY LD . CIT (A) FOR EARLIER YEAR ALSO AND ORDER OF LD. CIT (A) HAS BEEN AFFIRMED BY THE TRIBU NAL. 5. AFTER CONSIDERING THE SUBMISSIONS, THE LD. CIT ( A) FOUND THAT ADDITION MADE DURING THE YEAR WAS MADE ON IDENTICAL FACTS AS INVO LVED IN EARLIER YEAR. THE LD. CIT (A) FURTHER NOTED THAT IN EARLIER YEAR ADDITION MADE WA S DELETED BY LD. CIT (A) AND ORDER OF LD. CIT (A) HAS BEEN AFFIRMED BY THE TRIBUNAL. ACC ORDINGLY, HE DELETED THE ADDITION MADE BY AO. 6. NOW THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. 7. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A) ON WHICH RELIANCE HAS BEEN PLACED BY THE RESPECTIVE PARTY, WE FIND THAT I SSUE IS SQUARELY COVERED BY THE DECISION OF THE TRIBUNAL FOR EARLIER YEAR. EARLIER YEAR ALS O THE TRADING ADDITION WAS MADE AT RS. 27,19,875/- BY INVOKING PROVISIONS OF SECTION 145(3 ). THE LD. CIT (A) DELETED THE ADDITION BY OBSERVING THAT G.P. RATE IS INCREASED. THE ORDER OF LD. CIT (A) HAS BEEN CONFIRMED BY THE TRIBUNAL IN ITA NO. 990/JP/2010 AS SESSMENT YEAR 2007-08 VIDE ORDER 3 DATED 13.1.2011. SINCE FACTS ARE IDENTICAL, THEREF ORE, IN VIEW OF PRECEDENCE, WE CONFIRM THE ORDER OF LD. CIT (A) FOR THE YEAR UNDER CONSIDE RATION ALSO. 8. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30. 01.2012. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- THE ACIT, CIRCLE-3, JAIPUR. M/S. BALAJI INDUSTRIAL PRODUCTS LTD., JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 732/JP/2011) BY ORDER, AR ITAT JAIPUR.