ITO, Jaipur V. ANIL KUMAR DANGAYACH, HUF, Jaipur

ITA 931/JPR/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99406 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 19-12-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT DHK
• Assessee Lawyers: PRAVIN SARASWAT
• 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, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 931/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 THE ITO , WARD- 3 (2), JAIPUR CUKE VS. SHRI ANIL KUMAR DANGAYACH, HUF D-49, HATHI BABU MARG BANI PARK, , JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACHA 0340 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO. 56/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 SHRI ANIL KUMAR DANGAYACH, HUF D-49, HATHI BABU MARG BANI PARK, , JAIPUR CUKE VS. THE ITO , WARD- 3 (2), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACHA 0340 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO. 932/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 THE ITO , WARD- 3 (2), JAIPUR CUKE VS. SHRI ANIL KUMAR DANGAYACH, HUF D-49, HATHI BABU MARG BANI PARK, , JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACHA 0340 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA-@ ITA NO.57/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 SHRI ANIL KUMAR DANGAYACH, HUF D-49, HATHI BABU MARG BANI PARK, , JAIPUR CUKE VS. THE ITO , WARD- 3 (2), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACHA 0340 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT ITA NO. 931/JP/2012 ITO, WARD- 3 (2) VS. ANIL KUMAR DANGAYACH, HUF , JA IPUR 2 FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI PRAVIN SARASWAT, CA JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA, JCIT LQUOKBZ DH RKJH[K@ DATE OF HEARING : 26/10/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 26/10/2015 VKNS'K@ ORDER PER VIKRAM SINGH YADAV, AM THE APPEALS FILED FOR THE ASSESSMENT YEAR 2008-09 AND 2009-10 ARE THE CROSS APPEALS RELATING TO THE ORDERS OF THE LD. CIT(A)-1, JAIPUR DATED 5-10-2012 AND 8-10-2012 RESPECTIVELY. 2.1 THE ABOVE MENTIONED CROSS APPEALS RELATE TO UNV ERIFIABLE PURCHASES AND THE RESULTANT APPLICATION OF GROSS PROFIT RATE. FOR THE SAKE OF CONVENIENCE, THE GROUNDS RAISED BY THE ASSESSEE AND THE REVENUE FOR THE ASSESSMENT YEAR 2008-09 ARE AS UNDER:- ASSESSEE APPEAL FOR A.Y. 2008-09 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING TRADING ADDITION OF RS. 3,88,635/- BY APPLYING GROSS PROFIT RATE OF 4.40% AS AGAINST 2.90% DECLARED BY THE ASSESSEE ON DECLARED SALES BY IGNORING IMMEDIATE PAST YEAR GROSS PROFIT 1.25% DECLARED/ ACCEPTED REVENUES APPEAL FOR A.Y. 2008-09 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS JUSTIFIED IN RES TRICTING THE TRADING ADDITION MADE BY THE AO FROM RS. 13,07,436/ - TO RS. 3,88,635/- ITA NO. 931/JP/2012 ITO, WARD- 3 (2) VS. ANIL KUMAR DANGAYACH, HUF , JA IPUR 3 3.1 AT THE OUTSET, THE LD. DR CONTENDS THAT THE COO RDINATE BENCH OF ITAT IN BUNCH OF APPEALS BY ITS CONSOLIDATED ORDER IN THE CASE OF ANUJ KUMAR VARSHNEY & OTHERS VS. ITO (ITA NO. 187/JP/201 2 DATED 20-10- 2014) HAS HELD THAT 15% OF THE UNVERIFIABLE PURCHAS ES SHALL BE THE INCOME OF THE ASSESSEE FROM UNDISCLOSED SOURCES IN THE RELEVANT YEAR. THEREFORE, THE APPEALS MAY BE DECIDED IN VIEW OF TH E ITAT ORDER. AT THE SAME TIME, IT IS PLEADED THAT BOTH THE REVENUE AND ASSESSEE HAVE GONE IN APPEAL BEFORE HON'BLE RAJASTHAN HIGH COURT AGAINS T THIS BUNCH OF ORDERS. 3.2 THE LD. AR OF THE ASSESSEE ALSO CONTENDS THAT T HE ISSUE IN QUESTION MAY BE SET ASIDE TO THE FILE OF THE AO TO DECIDE TH E SAME AFRESH AFTER THE JUDGEMENT RENDERED IN THE CASE OF SHRI ANUJ KUMAR V ARSHNEY AND OTHERS VS. ITO (SUPRA) BY HON'BLE RAJASTHAN HIGH COURT, A FTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD IN ACCORDANCE WITH LAW. 3.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND MERIT IN THE PROPOSAL OF BOTH THE PARTIES. ACCORDINGLY, WE ARE INCLINED TO SET ASIDE THE ISSUE S RAISED IN THE CROSS APPEALS FOR THE ASSESSMENT YEAR 2008-09 AND RESTOR E THE MATTERS TO THE FILE OF AO TO DECIDE THE SAME AFRESH AFTER THE JUDG MENT OF HON'BLE ITA NO. 931/JP/2012 ITO, WARD- 3 (2) VS. ANIL KUMAR DANGAYACH, HUF , JA IPUR 4 RAJASTHAN HIGH COURT IN THE CASE OF ANUJ KUMAR VARS HNEY AND OTHERS VS. ITO (SUPRA) IS DELIVERED, AFTER GIVING ADEQUATE OPP ORTUNITY OF BEING HEARD TO THE PARTIES. THUS THE ISSUE OF UNVERIFIABLE PURC HASES RELATING TO BOTH THE PARTIES ARE ALLOWED FOR STATISTICAL PURPOSES. 4.1 NOW WE TAKE UP THE APPEALS OF THE ASSESSEE AND REVENUE FOR THE ASSESSMENT YEAR 2009-10 WHEREIN BOTH THE PARTIES RA ISED FOLLOWING GROUND. ASSESSEE APPEAL FOR A.Y. 2009-10 1. THE LD. CIT(A) HAS ERRED IN CONFIRMING TRADING ADDITION OF RS. 4,99,302/- BY APPLYING GROSS PROFIT RATE OF 6.75% AS AGAINST 5.25% DECLARED BY THE ASSESSEE ON DECLARED SALES BY IGNORING IMMEDIATE PAST YEAR GROSS PROFIT 2.90% DECLARED BY ASSESSEE REVENUES APPEAL FOR A.Y. 2009-10 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS JUSTIFIED IN RED UCING THE TRADING ADDITION MADE BY THE AO FROM RS. 55,46,466/ - TO RS. 4,99,302/- 4.2 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE SIMILAR ISSUE OF ASSESSEE AND REVENUE FOR THE ASSESSMENT YEAR 2008-09 AS TO UNVERIFIABLE PURCHASE S HAS BEEN RESTORED TO THE FILE OF THE AO TO DECIDE THE SAME AFRESH AFTER THE JUDGEMENT OF THE JUDGEMENTS OF HON'BLE RAJASTHAN HIGH COURT. IN VIE W THEREOF, WE RESTORE THESE MATTERS TO THE FILE OF AO AS WELL TO DECIDE T HE SAME AFRESH AFTER THE ITA NO. 931/JP/2012 ITO, WARD- 3 (2) VS. ANIL KUMAR DANGAYACH, HUF , JA IPUR 5 JUDGMENT OF HON'BLE RAJASTHAN HIGH COURT IN THE CA SE OF ANUJ KUMAR VARSHNEY AND OTHERS VS. ITO (SUPRA) IS DELIVERED, A FTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE PARTIES. THUS T HE ISSUE RAISED BY BOTH THE PARTIES AS TO UNVERIFIABLE PURCHASES FOR THE A SSESSMENT YEAR 2009-10 ARE ALLOWED FOR STATISTICAL PURPOSES. 5.0 IN THE RESULT, THE CROSS APPEALS FOR THE ASSESS MENT YEAR 2008-09 AND 2009-10 ARE ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON 26/10/201 5. SD/- SD/- VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 26 /10/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD- 3(2), JAIPUR 2. IZR;FKHZ@ THE RESPONDENT-SHRI ANIL KUMAR DANGAYACH, HUF ,JA IPUR 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.931/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR