NIRANJANA KUMARI NARANG, BHARATPUR V. ACIT, BHARATPUR

ITA 907/JPR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99541 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 3 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: 26-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK
• Keywords: Income from undisclosed sources
• Section: 40A(3)

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. 907/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 SMT. NIRANJANA KUMARI NARANG PROP. M/S. NARANG GAGSAW VILLAGE: MURRKI, BAYANA, BHARATPUR CUKE VS. THE ACIT CIRCLE- BHARATPUR BHARATPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AEZPN 9360 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI RAJENDRA AGARWAL JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 24/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30 /11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-, ALWAR DATED 13-09-2013 FOR THE ASSESSMENT YEAR 200 8-09 WHEREIN FOLLOWING GROUNDS ARE RAISED:- LD. CIT(A) ERRED IN LAW AND ON FACT IN CONFIRMING ADDITIONS: I. RS. 60,000/- BASED ON VALUATION OF STOCK DURING THE COURSE OF SURVEY. II. RS. 60,000/- U/S 40A(3) III. NOT ALLOWING SET OFF OF ALLEGED UNACCOUNTED INCOME WITH UNACCOUNTED EXPENSES. ITA NO. 907/JP/2013 SMT. NIRANJANA KUMARI NARANG VS. ACIT, CIRCLE- BHAR ATPUR . 2 2.1 LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT ASSE SSEE LADY IS A TRADER OF MARBLE ON A SMALL SCALE, DURING THE COURSE OF SU RVEY A STOCK INVENTORY WAS PREPARED SHOWING SOME EXCESS STOCK, IT WAS EXPL AINED THAT SOME OF THE STOCK OF OTHER GROUP CONCERN M/S NARANG ENTERPR ISES WAS INCLUDED WRONGLY, BESIDES DEFECTIVE STOCK WAS VALUED AS FRES H STOCK AND QUANTITY WAS ADOPTED BY SURVEY TEAM ON ESTIMATE AND NOT ACTU AL MEASUREMENT. DURING THE COURSE OF ASSESSMENT THE STOCK VALUATION DIFFERENCE WAS LESS THAN 10% WHICH WAS ACCORDINGLY EXPLAINED. LOWER AUT HORITIES DID NOT CONSIDER THE EXPLANATION AND SUMMARILY HELD THAT RE PLY IS NOT ACCEPTABLE. THE ADDITION BEING BASELESS AND ARBITRARY MAY BE DE LETED. 2.2 APROPOS GROUND ( II), IT IS CONTENDED THAT A C ASH PAYMENT WAS MADE ON 27-5-07 WHICH WAS SUNDAY AND FALLS IN THE E XCEPTIONS CARVED OUT BY RULE 6 DD(J); REMAINING 2 CASH PAYMENTS ARE LESS THAN RS. 20,000/- , SEC. 40A(3) IS NOT APPLICABLE. 2.3 LD. DR SUPPORTED THE ORDERS OF AUTHORITIES BELO W. 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. GROUND NO. I. DESERVES TO BE A LLOWED AS STOCK VALUATION IS ESSENTIALLY A QUESTION OF ESTIMATE AND ASSESSEE HAS TENDERED PROPER EXPLANATION TO JUSTIFY THE VALUATION DIFFERE NCE. GROUND NO. (II) DESERVES TO BE ALLOWED AS 27-5-07 IS NOT DISPUTED T O BE A SUNDAY WHEN ITA NO. 907/JP/2013 SMT. NIRANJANA KUMARI NARANG VS. ACIT, CIRCLE- BHAR ATPUR . 3 BANKS REMAIN CLOSED, REMAINING TWO CASH PAYMENTS AR E LESS THAN RS. 20,000/- EACH. IN VIEW OF THESE FACTS AND CIRCUMSTA NCES, BOTH ADDITIONS ARE DELETED. CONSEQUENTLY THE GROUND FOR SET OFF BE COMES ACADEMIC. 3.0 IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 /11/ 2015 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- SMT. NIRANJANA KUMARI NARANG,BHARATP UR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT, BHARATPUR 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. 907/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR