GAURI SHANKAR AGARWAL, Jaipur V. ACIT, Jaipur

ITA 754/JPR/2013

• Counselvise Citation: 75423114 RSA 2013
• Duration Of Justice: 2 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 01-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT LD DR DHK

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 VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 754/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 SHRI GAURI SHANKAR AGARWAL PROP. M/S. GEMS & JEWELS B-9, LAXMINARYAN PURI, SURAJPOLE GATE, JAIPUR CUKE VS. THE ACIT CIRCLE- 5 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ABBPT 2469 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VIJAY GOYAL, AND SHRI GULSHAN AGARWAL, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT LD. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30 /11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS ASSESSEES APPEAL ARISING OUT OF THE ORDER OF LD. CIT(A) BIKANER (CAMP AT JAIPUR); DATED 28-08-2013 FOR AY 2 009-10, RAISING TWO GROUNDS THAT LD. CIT(A) ERRED IN LAW AND ON FACTS I N:- 1. CONFIRMING REJECTION OF BOOKS U/S 145(3). 2. CONFIRMING ESTIMATION OF GP RESULTING IN LUMP SUM A DDITION OF RS. 3,50,000/-. ITA NO. 754/JP/2013 SHRI GAURI SHANKAR AGARWAL VS. ACIT , CIRCLE- 5, JA IPUR . 2 2.1 LD. COUNSEL FOR THE ASSESSEE FILED WRITTEN SUBM ISSIONS AND CONTENDS THAT ASSESSEE MAINTAINS REGULAR BOOKS OF A CCOUNTS WHICH ARE DULY MAINTAINED ALONG WITH STOCK INVENTORY AND AUDI TED U/S 44AB OF THE ACT. RETURN OF INCOME WAS ACCORDINGLY FILED BASED O N SUCH AUDITED STATEMENTS AND REPORT IN FORM 3CD. LD. AO HAS NOT P OINTED OUT ANY SPECIFIC DEFECTS IN BOOKS OF ACCOUNTS AND REJECTED BOOKS OF ACCOUNTS BY A FLIMSY GROUND THAT QUALITY WISE STOCK REGISTER FOR EACH KIND OF GEM STONES DEALT IN IS NOT MAINTAINED; THE STOCK HAS BEEN CONS ISTENTLY VALUED BY SAME METHODOLOGY. BESIDE SUCH QUALITY WISE REGISTER OF G EM STONES AS REQUIRED BY LD. AO IS IMPOSSIBLE TO MAINTAIN LOOKING AT THE VARIABLE PARAMETERS OF DEGREE OF QUALITY WHICH AGAIN VARIES FROM TRADER TO TRADER AND FROM VALUER TO VALUE. BESIDES LD. AO CALLED IN QUESTION THE SLI GHT FALL IN CURRENT GP RATE. ASSESSEE FURNISHED A DETAILED REPLY JUSTIFYIN G THE VERACITY OF BOOKS OF ACCOUNTS AND THE FACT THAT AUDITORS HAVE NOT GIV EN ANY ADVERSE REMARK IN STOCK VALUATION. LD. AO WITHOUT APPRECIATING THE SUBMISSION MADE LUMP SUM ADDITION OF RS. 3,50,000/-. 2.2 IN FIRST APPEAL THOUGH TOOK A VIEW THAT GP AS P ER PAST HISTORY MAY BE ADOPTED BUT ERRONEOUSLY IMPLIED THAT PAST HISTOR Y MEANS ONLY IMMEDIATELY PRECEDING YEAR. THEREBY AOS ADDITION W AS CONFIRMED WITHOUT APPRECIATING THE ASSESSEES CONTENTIONS IN RESPECT OF VERACITY OF ITA NO. 754/JP/2013 SHRI GAURI SHANKAR AGARWAL VS. ACIT , CIRCLE- 5, JA IPUR . 3 A/C BOOKS AND GP ALSO BEING COMMENSURATE AS PER AVE RAGE PAST HISTORY OF AY 2006-07 AT 12.4%; AY 2007-08 AT 16.65% AVERAGING TO 14.53% AS AGAINST GP FOR YEAR IN QUESTION BEING 14.54%. THUS NEITHER BOOKS OF ACCOUNTS DESERVE TO BE REJECTED NOR CAN ANY ADDITIO N BE MADE AS THE GP IS MORE THAN PAST HISTORY. RELIANCE IS PLACED ON VARIO US JUDICIAL PRECEDENTS MENTIONED IN WRITTEN SUBMISSIONS. 2.3 LD. DR RELIED ON THE ORDERS OF AUTHORITIES BELO W. 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE FACTS AND MATERIAL ON RECORD IT CLEARLY EMERGES THAT ASSESSEE MAINTAINS REGULAR BOOKS OF AC COUNTS WHICH ARE DULY MAINTAINED ALONG WITH STOCK INVENTORY AND AUDITED U /S 44AB. AUDITORS HAVE NOT GIVEN ANY ADVERSE REMARK ON MAINTENANCE OF BOOKS AND VALUATION OF CLOSING STOCK, BESIDES STOCK INVENTORY IS PREPARED AS PER PAST PRACTICE. THESE FACTS HAVE NOT BEEN DISPUTED BY LD DR. THE QUALITY WISE STOCK REGISTER OF GEMSETONES AS CONTEMPLATED BY LD. AO IS NOT POSSIBLE TO BE MAINTAINED AS VALUATION IS A MATTER OF OPINION A ND SUBJECTIVE IN NATURE. NO OTHER SPECIFIC DEFECTS IN BOOKS OF ACCOUNTS ARE INDICATED BY LD. AO. UNDER THESE FACTS AND CIRCUMSTANCES THERE IS NO JUS TIFICATION IN REJECTING THE BOOKS OF ACCOUNTS OF THE ASSESSEE WHICH ARE UPH ELD. LOOKING AT THE ITA NO. 754/JP/2013 SHRI GAURI SHANKAR AGARWAL VS. ACIT , CIRCLE- 5, JA IPUR . 4 GP ANGLE ALSO, THE ASSESSEE RATE DECLARED BY ASSESS EE IS SATISFACTORY AS COMPARED TO AVERAGE OF PAST TWO YEARS. IN VIEW OF T HESE OBSERVATIONS, BOTH GROUNDS OF ASSESSEE ARE ALLOWED. 3.0 IN THE RESULT ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 /11/20 15 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/11/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI GAURI SHANKAR AGARWAL, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT, CIRCLE- 5 JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 754/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR