AMG JEWELLERY, Jaipur V. ITO, Jaipur

ITA 759/JPR/2011

• Counselvise Citation: 75923114 RSA 2011
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 26-08-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA

Judgement Text

1 ITA 759-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 759/JP/2011 ASSTT. YEAR : 2007-08. AMG JEWELLERY, VS. THE INCOME-TAX OFFICER, C-110-114, ROAD NO. 9C, WARD 4(2), VKI AREA, JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MUKESH KHANDELWAL RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 09.01.2012. DATE OF PRONOUNCEMENT : 30.01.2012. ORDER DATE OF ORDER : 30/01/2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE IS OBJECTING IN SUSTAINING THE ACTI ON OF THE AO IN APPLYING PROVISIONS OF SECTION 145(3) AND FURTHER SUSTAINING THE DISALL OWANCE OF RS. 5,62,641/- MADE BY AO ON ACCOUNT OF ALLEGED UNVERIFIABLE PURCHASES. 3. THE ASSESSEE HAS SHOWN PURCHASES OF RS. 22,50,56 7/- FROM FOUR PARTIES WHICH REMAINED UNVERIFIABLE. THEREFORE, AO DISALLOWED 25 % OF THE SAME WHICH RESULTED IN AN ADDITION OF RS. 5,62,641/-. THE LD. CIT (A) ALSO C ONFIRMED THE ACTION OF THE AO. 2 4. AFTER CONSIDERING THE ORDERS OF THE AUTHORITIES BELOW AND WRITTEN SUBMISSIONS OF THE ASSESSEE, WE FIND THAT ASSESSEE DESERVES TO SUC CEED IN ITS APPEAL IN PART. THE BENCHES ARE TAKING A CONSISTENT VIEW THAT WHERE CERTAIN PUR CHASES REMAINED UNVERIFIABLE, PROVISIONS OF SECTION 145(3) ARE APPLICABLE. THEREF ORE, APPLICATION OF PROVISIONS OF SECTION 145(3) IS SUSTAINED. 5. THE BENCHES ARE ALSO TAKING A CONSISTENT VIEW TH AT WHERE CERTAIN PURCHASES REMAINED UNVERIFIABLE, THE TRADING RESULT SHOULD BE DRAWN ON THE BASIS OF PAST HISTORY AND TAKING INTO CONSIDERATION THE CURRENT EVENTS OF THE CASE AS HELD BY HONBLE HIGH COURT IN CASE OF GOTAN LIME & KHANIZ UDYOG, 256 ITR 253 AND IN CASE OF MALANI RAM JIVAN JAGANATH, 207 CTR 19. THE ASSESSEE HAS DECLARED GP AT 22.52% ON A TURNOVER OF RS. 1.99 CRORES AS AGAINST GP RATE OF 22.62% SHOWN IN THE IMMEDIATELY PRECEDING YEAR ON A TURN OVER OF RS. 1.98 CRORES. THE GP RATE DECLARED BY ASSESSEE IS MARGINALLY ON LOWER SIDE AS COMPARED TO EARLIER YEAR. KEEPING IN MIND THIS FACT AND TAKING INTO CONSIDERATION CERTAIN PURCHASES REMAINED UNVERIFIABLE, WE ARE OF THE VIEW THAT IF AN ADDITION OF RS. 50,000/- IS SUSTAINED THAT WILL MEET THE ENDS OF JU STICE AND TAKE CARE OF LEAKAGE OF REVENUE, IF ANY. WE ORDER ACCORDINGLY. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 7. 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/- 3 COPY FORWARDED TO :- AMG JEWELLERY, JAIPUR. THE ITO WARD 4(2), JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 759/JP/11) BY ORDER, AR ITAT JAIPUR.