ITO, Dausa V. SHRI AMAR NARAIN GUPTA, Dausa

ITA 925/JPR/2011

• Counselvise Citation: 92523114 RSA 2011
• Duration Of Justice: 3 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 03-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL: JAIPUR BENCH JAIPUR BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI B. C. MEENA, ACCOUNTANT MEMBER. ITA.NO.925/JP/2011 (ASSESSMENT YEAR:2007-08) ITO, WARD, DAUSA APPELLANT VS. SH. AMAR NARAIN GUPTA PROP. M/S CHOUDHARY IRON TRADERS, AGRA ROAD, DAUSA RESPONDENT PAN: ABVPG8394B /BY APPELLANT : SHRI RAJESH OJHA, D.R. /BY RESPONDENT : NONE (ADJ. APPLICATION REJECTED) /DATE OF HEARING : 26.11.2014 /DATE OF PRONOUNCEMENT : 28 .11.2014 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), ALWA R, DATED 17.08.2011 FOR A.Y.2007-08 ON THE FOLLOWING GROUNDS : I.T.A. NO. 925/JP/2011 A.Y. 2007-2008 (ITO VS. SH. AMAR NARAIN GUPTA) PAGE 2 1. THAT THE LD COMMISSIONER OF INCOME TAX (A) ERR ED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF TH E CASE IN DELETING THE DISALLOWANCE OF RS.3,17,585/- ON A/C OF INTEREST INCOME AS MADE BY THE AO. 2. THAT THE LD COMMISSIONER OF INCOME TAX (A) ERRE D IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF TH E CASE IN RESTRICTING TRADING ADDITION TO RS.1,00,000 /- OUT OF TOTAL ADDITION OF RS.4,20,680/-. 3. THAT THE LD COMMISSIONER OF INCOME TAX (A) ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF TH E CASE IN RESTRICTING DISALLOWANCE OF RS.21,000/- OUT OF TOTAL ADDITION OF RS.57,000/- ON ACCOUNT OF HOUSE H OLD EXPENSES. 2. FIRST ISSUE IS REGARDING DISALLOWANCE OF RS.3,17 ,585/- ON ACCOUNT OF INTEREST INCOME. ASSESSING MADE ADDITIO N OF RS.3,17,585/- FOR ACCRUED INTEREST EARNED ON MONEY LEADING BUSINESS ON ESTIMATION BASIS. ASSESSEE IS A PROPRI ETOR OF M/S CHOUDHARY IRON TRADERS AND IS ENGAGED IN TRADING OF IRON TOR/SARIYA/IRON SHEETS/ OTHER IRON ITEMS. ASSESSEE IS ALSO ENGAGED IN MONEY LENDING BUSINESS ON A SMALL SCALE ON RELEVANT POINT OF TIME. ASSESSING OFFICER OBSERVED THAT ASSESSEE RECOVERED ALL MONEY LENDING OUTSTANDING SH OWN IN PREVIOUS YEAR AND NO ANY INTEREST WAS ACCRUED AND R ECEIVED. AS PER BOOKS OF ACCOUNT, RECOVERED AMOUNT WAS DEPOS ITED AGAINST OUTSTANDING INCOME TAX DEMAND. HOWEVER, AS SESSING OFFICER ESTIMATED THE ACCRUED INTEREST RS.3,17,585/ - ON 12 DEBTORS ON ESTIMATED BASIS. 2.1 MATTER WAS CARRIED BEFORE FIRST APPELLATE AUTHO RITY, WHEREIN CONSIDERING THE SUBMISSION ON BEHALF OF ASS ESSEE CIT(A) DELETED ADDITION IN QUESTION. SAME HAS BEEN OPPOSED I.T.A. NO. 925/JP/2011 A.Y. 2007-2008 (ITO VS. SH. AMAR NARAIN GUPTA) PAGE 3 ON BEHALF OF LD. DEPARTMENTAL REPRESENTATIVE, INTER ALIA, SUBMITTING THAT CIT(A) WAS NOT JUSTIFIED IN DELETIN G THE DISALLOWANCE OF RS. 3,17,585/- ON ACCOUNT OF INTERE ST INCOME AS MADE BY ASSESSING OFFICER. ACCORDINGLY, ORDER O F CIT(A) BE SET ASIDE AND THAT OF ASSESSING OFFICER ON THAT ISS UE BE RESTORED. 2.2 NONE APPEARED ON BEHALF OF ASSESSEE, HOWEVER, M ATTER IS BEING DECIDED ON THE BASIS OF SUBMISSION OF LD. DEP ARTMENTAL REPRESENTATIVE AND MATERIAL ON RECORD. WE FIND THA T ASSESSING OFFICER MADE ADDITION OF RS.3,17,585/- OF ACCRUED I NTEREST ON DEBTORS (MONEY LENDING) WITHOUT HAVING ANY BASIS OR EVIDENCE FOR THE SAME. THERE IS NOTHING ON RECORD TO SUGGES T THAT ASSESSEE HAS EITHER RECEIVED INTEREST OR ENTITLED T O ON ACCRUED BASIS. ASSESSING OFFICERS ACTION IS BASED ON SURM ISES AND CONJUNCTURE. IN VIEW OF ABOVE, ALLEGED INTEREST IN COME IS NOT REAL INCOME OF THE ASSESSEE. ACCORDINGLY, SAME WAS RIGHTLY DELETED BY CIT(A). WE UPHOLD THE SAME. 3. NEXT ISSUE IN ASSESSEES APPEAL IS PERTAINED TO TRADING ADDITION OF RS.4,20,680/- BY TREATING GP RATE AS 5 % AS AGAINST DECLARED GP RATE OF 3.53%. 3.1 MATTER WAS CARRIED BEFORE FIRST APPELLATE AUTHO RITY, WHEREIN CONSIDERING THE SUBMISSION ON BEHALF OF ASS ESSEE, CIT(A) RESTRICTED THIS ADDITION TO RS. 1 LAC AND AS SESSEE GOT I.T.A. NO. 925/JP/2011 A.Y. 2007-2008 (ITO VS. SH. AMAR NARAIN GUPTA) PAGE 4 RELIEF OF RS.3,20,680/-. SAME HAS BEEN OPPOSED BEF ORE US ON BEHALF OF REVENUE. 3.2 MATTER IS BEING DECIDED ON THE BASIS OF ARGUMEN TS OF LD. DEPARTMENTAL REPRESENTATIVE WHO SUPPORTED THE ORDER OF ASSESSING OFFICER AND MATERIAL ON RECORD, WE FIND T HAT ASSESSEE HAS NOT MAINTAINED DAY TO DAY STOCK REGISTER BUT QU ANTITY OF OPENING AND CLOSING STOCK AND PURCHASE OR SALES ARE FULLY VERIFIED. THERE IS NO ANY LEAKAGE OF REVENUE IN TH E SHAPE OF QUANTITY DIFFERENCE. THE MARKET CONDITIONS LIKE CO MPETITION IN THE MARKET AND FLUCTUATION IN PRICES OF IRON CANNOT BE RULED OUT IN ASSESSEES BUSINESS. TAKING ALL FACTS AND CIRCUMSTANCES, CIT(A) RIGHTLY RESTIRCTED THE TRADIN G ADDITION TO RS. 1 LAC. THIS REASONED FINDING OF CIT(A) NEEDS N O INTERFERENCE FROM OUR SIDE. WE UPHOLD THE SAME. 4. NEXT ISSUE IS WITH REGARDS TO DISALLOWANCE ON AC COUNT OF HOUSEHOLD EXPENSES. ASSESSING OFFICER MADE ADDITIO N OF RS. 57,000/- ON ACCOUNT OF HOUSEHOLD EXPENSES. ASSESSE E HAS SHOWN WITHDRAWALS FOR HOUSEHOLD EXPENSES OF RS. 63, 000/- AND ASSESSING OFFICER ESTIMATED HOUSEHOLD EXPENSE O F RS. 1,20,000/-. THE DIFFERENCE OF RS. 57,000/- WAS ADD ED AS INCOME OF ASSESSEE, WHICH WAS RESTRICTED BY CIT(A) TO RS. 21,000/-. TAKING ALL FACTS AND CIRCUMSTANCES INTO CONSIDERATION, WE ARE NOT INCLINED TO INTERFERE IN THE FINDING OF CIT(A) WHO HAS RESTRICTED THIS ESTIMATED ADDITION T O I.T.A. NO. 925/JP/2011 A.Y. 2007-2008 (ITO VS. SH. AMAR NARAIN GUPTA) PAGE 5 RS.21,000/- OUT OF RS.57,000/- ON ACCOUNT OF HOUSEH OLD EXPENSES. SAME IS UPHELD. 5. AS A RESULT, APPEAL FILED BY THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY OF NOVEMBER, 2014. SD/- SD/- (B. C. MEENA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R TRUE COPY S.K.SINHA COPY FORWARDED TO: 1. THE APPELLANT- ITO WARD, DAUSA 2. THE RESPONDENT- SH. AMAR NARAIN GUPTA 3. THE CIT 4. CIT(APPEALS) 5. THE DR 6. GUARD FILE (ITA NO. 925/JP/2011) BY ORDER A.R., JAIPUR.