SHRI ASHOK CHANDAK, Jaipur V. ADD. CIT, Jaipur

ITA 890/JPR/2010

• Counselvise Citation: 89023114 RSA 2010
• Duration Of Justice: 1 year(s) 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-07-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Keywords: Income from undisclosed sources; Corroborative evidences

Judgement Text

1 ITA 890-10 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 890/JP/2011 ASSTT. YEAR : 2006-07. SHRI ASHOK CHANDAK, VS. THE ADDL. CIT, B 37-38, HANUMAN NAGAR, RANGE-3, KHATIPURA, JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANISH AGARWAL RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 23.8.2011 DATE OF PRONOUNCEMENT : 02.09.2011. ORDER DATE OF ORDER : 02/09/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2006-07. 2. GROUND NO. 1 RELATES TO CONFIRMING THE ADDITION OF RS. 4,94,680/- MADE BY AO BY ESTIMATING THE INCOME FROM VARIOUS SOURCES AT RS. 2 2.50 LACS AGAINST RS. 17,55,320/- SHOWN BY ASSESSEE. 3. THE ASSESSEE IS A MINING CONTRACTOR. ON SALE OF RS. 47.94 LACS OR ODD, ASSESSEE DECLARED GROSS PROFIT RATE OF 8.48% AND NET PROFIT RATE AT 1.52%. ASSESSEE HAS SHOWN INCOME FROM BROKERAGE, COMMISSION, HOSTEL, HORSE HI RE AND RESTAURANT. THE INCOME SHOWN BY ASSESSEE IS SHOWN AS PER METHOD ADOPTED IN THE EARLIER YEAR I.E. ON ESTIMATE BASIS. AS PER ORDER OF AO, NO SUPPORTING EVIDENCES WERE FILED AND, THEREFORE, INCOME 2 WAS NOT VERIFIABLE. ACCORDINGLY, HE ESTIMATED THE INCOME OF THE ASSESSEE AT RS. 22.50 LACS AGAINST RS. 17.55 LACS OR ODD SHOWN BY ASSESSE E. IT WAS SUBMITTED THAT ASSESSEE HAS SHOWN HIGHER INCOME AS COMPARED TO EARLIER YEAR, TH OUGH THE ASSESSEE HAS SHOWN INCOME ON ESTIMATE BASIS. HOWEVER, AO HAS MADE THE ADDITI ON WITHOUT ANY BASIS OR WITHOUT ASSIGNING ANY COGENT REASON. THE LD. CIT (A) WAS NO T SATISFIED WITH THE CONTENTION OF THE ASSESSEE, THEREFORE, HE CONFIRMED THE ORDER OF THE AO ON THIS ISSUE. 4. THE LD. COUNSEL OF THE ASSESSEE FILED WRITTEN SU BMISSION. 5. ON THE OTHER HAND, LD. D/R PLACED RELIANCE ON TH E ORDER OF THE AO. 6. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING T HE MATERIAL ON RECORD, WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN THIS GROUND IN PART. THOUGH ASSESSEE HAS SHOWN BETTER RESULT IN THE YEAR UNDER CONSIDERATION, HOWE VER, THE INCOME AS SHOWN BY ASSESSEE IS ALSO ON THE BASIS OF ESTIMATE. THE AO HAS ALSO MAD E HIS ESTIMATE FOR MAKING ADDITION OF RS. 4.94 LACS OR ODD. THE GROSS PROFIT RATE SHOWN BY ASSESSEE IS 8.48% AND NET PROFIT RATE SHOWN AT 1.52% AS AGAINST GROSS PROFIT RATE OF 6.52 % AND NET PROFIT RATE OF 1.38% IN EARLIER YEAR. THOUGH GROSS PROFIT RATE AND NET PRO FIT RATE SHOWN ARE HIGHER AS COMPARED TO EARLIER YEAR, HOWEVER, TO COVER UP LEAKAGE, WE ARE OF THE VIEW THAT IF AN ADDITION OF RS. 50,000/- SUSTAINED THAT WILL MEET THE ENDS OF JUSTI CE. ACCORDINGLY WE REDUCE THE ADDITION TO RS. 50,000/- AGAINST RS. 4,94,680/- SUSTAINED BY LD. CIT (A). 7. REMAINING ISSUE IS AGAINST UPHOLDING THE AGRICUL TURAL INCOME OF RS. 1,82,344/- AS INCOME FROM UNDISCLOSED SOURCES. 8. THE ADDITION WAS MADE BY THE AO FOR WANT OF DETA ILS IN RESPECT TO AGRICULTURAL HOLDING. THE LD. CIT (A) ALSO CONFIRMED THE ORDER O F AO. 3 9. NOW THE ASSESSEE HAS FILED DETAILS OF AGRICULTUR AL HOLDING WHICH COULD NOT BE FILED BEFORE AO AND LD. CIT (A) BECAUSE THERE WAS A DISPU TE IN THE FAMILY AND THESE DETAILS COULD NOT BE GATHERED EARLIER. IT WAS FURTHER SUBM ITTED THAT IN EARLIER YEAR THE AGRICULTURAL INCOME SHOWN BY ASSESSEE HAS BEEN ACCEPTED BY THE D EPARTMENT ITSELF. ATTENTION OF THE BENCH WAS DRAWN ON WRITTEN SUBMISSIONS. 10. ON THE OTHER HAND, THE LD. D/R PLACED RELIANCE ON THE ORDERS OF AO AND LD. CIT (A). 11. AFTER CONSIDERING THE SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD, WE ARE OF THE VIEW THAT THIS MATTER SHOULD GO BACK TO THE FIL E OF AO TO EXAMINE THE DETAILS OF AGRICULTURAL HOLDING AND PASS A FRESH ORDER. THE AO WILL ALSO LOOK INTO THE FACTS THAT THERE IS AGRICULTURAL INCOME IN THE EARLIER YEAR ALSO AND SAME HAS BEEN ACCEPTED BY THE DEPARTMENT. IN VIEW OF THESE FACTS, WE RESTORE THE ISSUE TO THE FILE OF AO. 12. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED AND PARTLY FOR STATISTICAL PURPOSES. 12. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 02 .09.2011 SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- SHRI ASHOK CHANDAK, JAIPUR. THE ADDL. CIT, RANGE-3, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 890/JP/2010) BY ORDER, AR ITAT JAIPUR. 4