SURESH DEWAN HUF, Sikar V. ACIT, Sikar

ITA 975/JPR/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4824 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 14-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH DHK
• 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 HKKXPAN] YS[KK LNL; ] DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 975/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 SURESH DEWAN HUF, V&P, PATAN, TEHSIL- NEEM KA THANA, DISTT.-SIKAR (RAJ). CUKE VS. A.C.I.T., CIRCLE, SIKAR (RAJ). LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAJHS 0378 E VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SATISH GUPTA (CA). JKTLO DH VKSJ LS@ REVENUE BY : SHRI NARENDRA SINGH. LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22/12/2016 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 23/12/2016 VKNS'K@ ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 01/09/2015 PASSED BY THE LD CIT(A)-III, JAIPUR FOR THE A.Y. 2009-10, WHEREIN THE ASSESSEE HAS RAISED SOLE GROUND OF THE A PPEAL, WHICH IS AGAINST CONFIRMING THE DISALLOWANCE OF RS. 4,43,465/ - ON ACCOUNT OF MATERIAL PURCHASED AND OF RS. 3,54,270/- ON ACCOUNT OF LABOUR EXPENSES. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CONSTRUCTION AND SUPPLY WORK ON CONTRACT . IN THE ASSESSMENT ITA 975/JP/2015_ SURESH DEWAN HUF VS ACIT 2 PROCEEDINGS THE ASSESSING OFFICER FOUND THAT THE AS SESSEE HAS MADE EXPENDITURE OF RS. 2,87,65,697/- ON ACCOUNT OF BUIL DING MATERIAL AND AMOUNT OF EXPENDITURE OF RS. 94,97,814/- TOWARDS THE LABOUR CHARGES. THE ASSESSING OFFICER IDENTIFIED VOUCHERS WORTH OF RS , 4,33,465/- FROM THE BUILDING MATERIAL EXPENDITURE AND RS. 3,54,270/ - FROM THE LABOUR CHARGES AS NON-GENUINE. 3. THE LD. CIT(A) HAD CONFIRMED THE ADDITION BY HOLDI NG THAT THE ASSESSING OFFICER HAS SPECIFICALLY HIGHLIGHTED THE DEFECTS IN THE BOOKS OF ACCOUNT/VOUCHERS, WHICH THE AR HAS BEEN NEGATE. 4. BEFORE ME, THE LD AR OF THE ASSESSEE HAS SUBMITT ED THAT THE ASSESSING OFFICER HAS NOT MENTIONED ANYTHING SPECIF IC VOUCHERS/BILLS. HE SUBMITTED THAT THE ASSESSING OFFICERS ALLEGATION T HAT THE EXPENSES WAS NOT FULLY VOUCHED, IS ALSO NOT FACTUALLY CORRECT. TH E ASSESSING OFFICERS ALLEGATION IN THE BILLS AND VOUCHERS, QUANTITY OF P URCHASES AND RATES WERE NOT PRESCRIBED IS ALSO NOT CORRECT. THE LABOUR VOUCH ERS WERE NOT CARRYING ANY SIGNATURE OR THUMP IMPRESSION OF THE LABOUR IS ALSO INCORRECT. THE ASSESSEES NET PROFIT RATE FOR THE YEAR UNDER CONSI DERATION WAS BETTER THAN THE EARLIER YEAR. HE VEHEMENTLY SUBMITTED THAT THE ASSESSING OFFICER HAS NOT GIVEN THE LIST OF VOUCHERS, WHICH HE HAD IDE NTIFIED AND HELD TO BE NON-GENUINE. THE ASSESSEE WAS NOT GIVEN ANY DETAIL IN THIS REGARD. HE ITA 975/JP/2015_ SURESH DEWAN HUF VS ACIT 3 SUBMITTED THAT THE ASSESSEE IS A SUB-CONTRACTOR AND WORKING IN THE REMOTE AREAS OF NORTH EAST WHERE THE WORKING CONDITI ONS ARE NOT CONDUCIVE TO CONDUCT THE BUSINESS. IN ASSESSEES OW N CASE, NP RATE OF 3.15% HAS BEEN FOUND REASONABLE IN THE ASSESSMENT Y EAR 2006-07 BY THE HONBLE ITAT, THE COPY OF WHICH IS ALSO FILED BEF ORE THIS BENCH. HE ALSO SUBMITTED THAT THE NP RATE WAS @ 3.37%. HE FURTH ER SUBMITTED THAT THE ASSESSING OFFICERS ALLEGATION THAT BILLS VOUCH ERS OF RS. 3,54,270/- OF LABOUR CHARGES WERE NOT CARRYING OUT ANY SIGNATURE/T HUMB IMPRESSION OF THE PAYEES IS ALSO NOT SPECIFYING WHICH VOUCHERS WERE NOT CARRYING SIGNATURE OR THUMB IMPRESSION. HE SUBMITTED THAT NP RATE WAS BETTER THAN THE IMMEDIATE PRECEDING YEAR. THE ASSESSEES BO OK RESULTS SHOULD HAVE BEEN ACCEPTED. 5. AT THE OUTSET, THE LD DR HAS VEHEMENTLY SUPPORTE D THE ORDERS OF THE AUTHORITIES BELOW. 6. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MA TERIAL AVAILABLE ON THE RECORD. THE ASSESSING OFFICER HAS CLAIMED THA T HE HAS IDENTIFIED THE VOUCHERS OF RS. 4,33,465/- OUT OF THE PURCHASE OF MATERIAL AND RS. 3,54,270/- OUT OF LABOUR CHARGES AS NON-GENUINE. HO WEVER, RECORDS SHOWN THAT THE ASSESSEE HAS NOT BEEN PROVIDED AN OPP ORTUNITY TO REVERT BACK OR TO EXPLAIN THE DEFECTS POINTED OUT BY THE A SSESSING OFFICER. ITA 975/JP/2015_ SURESH DEWAN HUF VS ACIT 4 THEREFORE, IN THE INTEREST OF JUSTICE AND EQUITY, I FIND IN APPROPRIATE TO RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFI CER TO DECIDE DE NOVO AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE WITH REGARD TO THE VOUCHERS IDENTIFIED OUT OF THE BUILDI NG MATERIAL PURCHASED AND LABOUR CHARGES PAID. ACCORDINGLY, THIS ISSUE IS RESTORE TO THE FILE OF THE ASSESSING OFFICER. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 23/12/2016. SD/- HKKXPAN (BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 23 RD DECEMBER, 2016 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SURESH DEWAN HUF, SIKAR. 2. IZR;FKHZ @ THE RESPONDENT- THE A.C.I.T., CIRCLE, SIKAR (RAJ). 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 975/JP/2015) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR