HARVINDER SINGH, Jaipur V. ACIT, Jaipur

ITA 927/JPR/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5516 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 29-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DR DHK
• Assessee Lawyers: G M MEHTA
• Keywords: Opportunity of being heard

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. 927/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 SHRI HARVINDER SINGH PROP. M/S. KANU EXPORTS 475/5, VYAS MARG, RAJA PARK, JAIPUR CUKE VS. THE ACIT CIRCLE-5 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: ACMPS 9383 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI G.M. MEHTA CA JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA, JCIT- DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 01/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 27 /01/2016 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 04-09-2013 FOR THE ASSESS MENT YEAR 2007-08. 2.1 THE ASSESSEE IS AGGRIEVED THAT THE LD. CIT(A) H AS ERRED IN: - (I) SUSTAINING THE APPLICABILITY OF PROVISIONS OF S ECTION 145(3) OF THE ACT (II) SUSTAINING THE DISALLOWANCE OF RS. 77,290/- BE ING 25% OF TOTAL PURCHASES OF RS. 3,09,158/-, THE EXPORT SA LES OF WHICH WAS FOUND AND ACCEPTED AS GENUINE ITA NO. 972/JP/2013 SHRI HARVINDER SINGH VS. ACIT, CIRCLE- 5, JAIPUR . 2 (III) SUSTAINING THE DISALLOWANCE OF RS. 84,791/- O N ACCOUNT OF FOREIGN TOUR EXPENSES PAID THROUGH FOREI GN TOUR AGENT FOR AIR TICKER AND FOREIGN TRADE FARES. 3.1 DURING THE COURSE OF HEARING, THE LD. AR OF THE ASSESSEE HAS NOT PRESSED GROUND NO. 1 REGARDING REJECTION OF BOOKS O F ACCOUNT U/S 145(3) OF THE ACT . THE SAME IS DISMISSED BEING NOT PRESSE D. 4.1 APROPOS GROUND NO. 2 OF THE ASSESSEE REGARDING UNVERIFIABLE PURCHASES, THE LD. AR OF THE ASSESSEE DURING THE CO URSE OF HEARING CONTENDS THAT THIS BENCH OF ITAT IN BUNCH OF APPEAL S BY CONSOLIDATED ORDER IN THE CASE OF ANUJ KUMAR VARSHNEY & OTHERS V S. ITO (ITA NO. 187/JP/2012 DATED 22-10-2014) HAS HELD THAT 15% OF UNVERIFIABLE PURCHASES SHALL BE HELD TO BE INCOME OF THE ASSESSE E FROM UNDISCLOSED SOURCES IN THE RELEVANT YEARS. THEREFORE, THE APPEA L MAY BE DECIDED IN VIEW OF THE ITAT ORDER. HOWEVER, AT THE SAME TIME, IT IS PLEADED TO SET ASIDE THE MATTER AS THAT BOTH REVENUE AND ASSESSEE HAVE GONE IN APPEAL BEFORE HON'BLE RAJASTHAN HIGH COURT AGAINST THIS B UNCH OF ORDERS. 4.2 THE LD. DR HAS ALSO CONFIRMED THAT REVENUE HAS GONE IN APPEAL BEFORE THE HON'BLE RAJASTHAN HIGH COURT. 4.3 AT THE END OF THE ARGUMENTS, BOTH THE PARTIES A GREED THAT THE ISSUE IN QUESTION MAY BE SET ASIDE TO THE FILE OF THE AO TO DECIDE THE SAME ITA NO. 972/JP/2013 SHRI HARVINDER SINGH VS. ACIT, CIRCLE- 5, JAIPUR . 3 AFRESH AFTER THE JUDGEMENT RENDERED IN THE CASE OF ANUJ KUMAR VARSHNEY & OTHERS VS. ITO (SUPRA) BY HON'BLE RAJASTHAN HIGH COURT, AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEAR D IN ACCORDANCE WITH LAW. 4.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THERE IS MERIT IN THE PROPOSAL OF BOTH THE PARTIES. ACCORDINGLY, THE ISSUE RAISED IN ASSESSEE'S APPEAL IS SET ASIDE AND RESTORED BACK TO THE FILE OF THE AO TO DECIDE THE SAME AFRES H AFTER THE JUDGMENT OF HON'BLE RAJASTHAN HIGH COURT IN THE CASE OF ANUJ KU MAR VARSHNEY & OTHERS (SUPRA) IS DELIVERED, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THUS GROUND NO . 2 OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5.1 APROPOS GROUND NO. 3 OF THE ASSESSEE REGARDING SUSTAINING THE DISALLOWANCE OF RS. 84,791- ON ACCOUNT OF FOREIGN T OUR EXPENSES PAID THROUGH TOUR AGENT. THE ASSESSEE IS 100% EXPORTER A ND NO DISALLOWANCE OUT OF FOREIGN TRAVEL EXPENSES WERE MADE IN EARLIER YEARS. THE AO DISALLOWED 20% OF THE EXPENDITURE ON AD HOC BASIS. THE LD. CIT(A) HAS CONFIRMED THE SAME TO COVER UP ANY POSSIBLE ELEMENT OF PERSONAL TRAVEL. ITA NO. 972/JP/2013 SHRI HARVINDER SINGH VS. ACIT, CIRCLE- 5, JAIPUR . 4 5.2 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN MY CONSIDERED VIEW, SUCH TY PE OF FOREIGN TRAVEL EXPENSES FOR PERSONAL ELEMENT CANNOT BE SUSTAINED. THE SAME IS DELETED. 6.0 IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 /01/2 016. SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27 /01/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI HARVINDER SINGH, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT, CIRCLE-5, JAIPUR 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. 927/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR