Parmod Kumar Garg, Faridabad V. ITO, Ward-11(1), Faridabad

ITA 7769/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5747 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 06-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Section: 142(1); 131; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.7769/DEL/2018 ASSESSMENT YEAR: 2013-14 PARMOD KUMAR GARG, S/O RAJ KUMAR GARG, HOUSE NO.813, WARD NO.7, GALI NO.4, KHAND-B, JAWAHAR COLONY, NIT, FARIDABAD, HARYANA. PAN: AIAPG0371L VS. ITO, WARD-11(1), FARIDABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SURESH KUMAR GUPTA, CA REVENUE BY : SHRI S.L. ANURAGI, SR. DR DATE OF HEARING : 06.05.2019 DATE OF PRONOUNCEMENT : 08.05.2019 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 26 TH SEPTEMBER, 2018 PASSED BY THE CIT(A), FARIDABAD, RELATING TO A SSESSMENT YEAR 2013-14. THE ASSESSEE IN THE VARIOUS GROUNDS OF APPEAL HAS CHALL ENGED THE ORDER OF THE CIT(A) IN CONFIRMING THE ADDITION OF RS.39,05,470/- MADE BY T HE ASSESSING OFFICER BY ESTIMATING THE NET PROFIT @ 4% AS AGAINST 0.24% SHO WN BY THE ASSESSEE. 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS AN INDIVIDUAL AND IS ENGAGED IN THE BUSINESS OF PURCHASE AND SALE OF SCRAP. HE FIL ED HIS RETURN OF INCOME ON 30 TH ITA NO.7769/DEL/2018 2 SEPTEMBER, 2013 DECLARING THE TOTAL INCOME AT RS2,5 6,750/-. THE ASSESSING OFFICER ISSUED STATUTORY NOTICES U/S 142(1) TO THE ADDRESS GIVEN BY THE ASSESSEE IN THE RETURN OF INCOME AND THE LD. COUNSEL FOR THE ASSESSEE FILED T HE COPY OF ITR, BALANCE SHEET, COMPUTATION OF INCOME AND AUDIT REPORT. SUBSEQUENT LY, THE CASE WAS ADJOURNED AND SINCE NONE APPEARED ON BEHALF OF THE ASSESSEE, THE ASSESSING OFFICER ISSUED FRESH NOTICE U/S 142(1) FIXING THE CASE FOR HEARING ON 15 TH FEBRUARY, 2016. THE SAID NOTICE WAS RECEIVED BACK UNDELIVERED WITH THE POSTAL REMAR K REFUSED. HOWEVER, THE COUNSEL OF THE ASSESSEE WHO APPEARED BEFORE THE ASSESSING O FFICER WAS DIRECTED TO FURNISH CERTAIN INFORMATION AND PRODUCE THE BOOKS OF ACCOUN T. SINCE THERE WAS NO COMPLIANCE AND THE SUMMONS ISSUED BY THE ASSESSING OFFICER U/S 131 OF THE IT ACT WAS ALSO RECEIVED BACK UNDELIVERED WITH THE POSTAL REMARK R EFUSED, THE ASSESSING OFFICER PROCEEDED TO COMPLETE THE ASSESSMENT U/S 144 OF THE IT ACT. FROM THE VARIOUS DETAILS FURNISHED BY THE ASSESSEE, THE ASSESSING OFFICER NO TED THAT THE ASSESSEE HAS SHOWN PURCHASE AT RS.10,39,06,759/- AND SALES AT RS.10,40 ,55,635/-. SIMILARLY, THE SUNDRY CREDITORS WAS SHOWN AT RS.1,16,07,101/- AND SUNDRY DEBTORS AT RS.99,58,250/-. THE ASSESSEE HAS SHOWN NET PROFIT OF RS.0.24% WHICH, AC CORDING TO THE ASSESSING OFFICER, WAS QUITE LOW IN THE LINE OF BUSINESS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER ASKED THE ASSESSEE TO EXPLAIN AS TO WHY NET PROFIT RATE OF 4% SHOULD NOT BE APPLIED. IN ABSENCE OF PROPER COMPLI ANCE FROM THE SIDE OF THE ASSESSEE, THE ASSESSING OFFICER ADOPTED NET PROFIT RATE OF 4% ON THE TURNOVER OF RS.10,40,55,635/- AND MADE AN ADDITION OF RS.39,05, 470/-. IN APPEAL, THE LD.CIT(A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICE R ITA NO.7769/DEL/2018 3 3. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. I HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BO TH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD. I HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BY THE LD. COUNSEL FOR THE ASSESSEE INCLUDING THE DECISION OF THE TRIBUNAL IN THE CASE OF VISHNU AGGARWAL, VIDE ITA NO.357/DEL/2017, ORDER DATED 26 TH APRIL, 2019, WHEREIN UNDER SOMEWHAT IDENTICAL CIRCUMSTANCES, THE NET PROFIT RA TE OF 0.77% WAS ACCEPTED. IT IS AN ADMITTED FACT THAT THE ASSESSEE, IN THE INSTANT CAS E, HAS NOT PRODUCED THE BOOKS OF ACCOUNT AND FILED THE REQUISITE DETAILS AS ASKED FO R BY THE ASSESSING OFFICER. THEREFORE, THE DECISION IN THE CASE OF VISHNU AGGA RWAL (SUPRA) CITED BY THE LD. COUNSEL FOR THE ASSESSEE IS NOT APPLICABLE TO THE F ACTS OF THE PRESENT CASE. SINCE THE LD. COUNSEL SUBMITTED THAT THE ASSESSEE WAS MAINTAINING PROPER BOOKS OF ACCOUNT AND GIVEN AN OPPORTUNITY THE ASSESSEE IS IN A POSITION TO SUBSTANTIATE HIS CASE TO THE SATISFACTION OF THE ASSESSING OFFICER REGARDING THE PROFIT DECLARED BY THE ASSESSEE, THEREFORE, CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO S UBSTANTIATE HIS CASE. THE ASSESSEE IS HEREBY DIRECTED TO PRODUCE THE BOOKS OF ACCOUNT AND NECESSARY DETAILS AS CALLED FOR BY THE ASSESSING OFFICER AND SUBSTANTIATE HIS CASE TO HIS SATISFACTION, FAILING WHICH THE ASSESSING OFFICER IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. NEEDLESS TO SAY, THE ASSESSING OFFICER SHALL GIVEN THE ASSESSEE AN OPPOR TUNITY OF BEING HEARD AND SHALL ITA NO.7769/DEL/2018 4 DECIDE THE ISSUE AS PER FACT AND LAW. I HOLD AND DI RECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATIST ICAL PURPOSES. 5. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 0 8.05.2019. SD/- (R.K. PANDA) ACCOUNTANT MEMBER DATED: 8 TH MAY, 2019 DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI