M/S J.RANJEET JEWELLERS, CHENNAI V. DCIT, CORPORATE CIRCLE3, CHENNAI

ITA 98/CHNY/2023

AI Insights

The case involves M/s. J. Ranjeet Jewellers, who appealed against the order of the Commissioner of Income Tax (Appeals)-18, Chennai, which confirmed an addition of Rs.2,92,729 to their income for the assessment year 2019-20. This addition was based on a stock deficit of 81.067 kgs of silver articles and anklets, valued at Rs.29,80,955, discovered during a survey under section 133A of the Income Tax Act, 1961. The Assessing Officer estimated the unaccounted sales and applied a gross profit rate of 9.82%, leading to the addition. The CIT(A) and the Tribunal both upheld this addition, rejecting the assessee's post-survey explanations as inadequate.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127460 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 28-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 29-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

आयकर अपील य अ धकरण, ‘सी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद&य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I. T. A. No. 9 8/ Ch n y/ 2 02 3 ( नधा रणवष / A s s e s sm e nt Yea r : 2 0 1 9- 2 0 ) M/s. J. Ranjeet Jewellers 64, 1 st floor, NSC Bose Road, Sowcarpet, Chennai-600 079. V s The Deputy Commissioner of Income Tax, Central Circle-3(4), Chennai. P AN: A A HFJ 8 1 9 5 J (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. Kathir, Advocate यथ क ओरसे/Respondent by : Mr. P.Sajit Kumar, JCIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 29.03.2023 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 31.03.2023 आदेश / O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of order passed by the Commissioner of Income Tax (Appeals)-18, Chennai dated 14.12.2022. The assessment was completed by the DCIT., Central Circle-3(4), Chennai for relevant assessment year 2019-20 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 26.09.2021. 2. The only issue in this appeal of the assessee is as regards to order of the CIT(A) estimating profit and making addition of Rs.2,92,729/-. 2 ITA No. 98/Chny/2023 3. We have heard rival contentions and gone through facts and circumstances of the case. We noted that the assessee is engaged in wholesale business of silver articles and anklets. A survey u/s.133A was carried out in the business premises of the assessee and during the course of survey deficit stock of 81.067 kgs of silver articles and anklets valued at Rs.29,80,955/- was found. The Assessing Officer considering into stock deficit found during the course of survey estimated deficit to unaccounted sales and estimated gross profit rate at 9.82%, as declared by the assessee in his regular business. Accordingly, addition of Rs.2,92,729/-, being profit on deficit stock of Rs.29,80,955 was added. 4. The CIT(A) also confirmed action of the Assessing Officer and noted that explanation given by the assessee that there are two challans of sales of silver to two persons viz., J.Ranjeetmal Challani and Akshay Chhallani are an afterthought and perverted invoices to post-survey. Even, the assessee could not provide any details during the course of survey that sale has been effected, hence, he confirmed 3 ITA No. 98/Chny/2023 action of the Assessing Officer in assessing profit rate on unaccounted sale of Rs.2,92,729/-. 5. We have also gone through facts in entirety and arguments of both sides and we find no infirmity in the orders of lower authorities and hence, we confirm the addition made by the Assessing Officer and appeal of the assessee is dismissed. 6. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on 31 st March, 2023 Sd/- Sd/- ( जी. मंज ु नाथ ) ( महावीर संह ) ( G.Manjunatha ) ( Mahavir Singh ) लेखा सद%य / Accountant Member उपा य / Vice-President चे(नई/Chennai, )दनांक/Date: 31.03.2023 DS आदेश क त+ल,प अ-े,षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु .त (अपील)/CIT(A) 4. आयकर आय ु .त/CIT 5. ,वभागीय त न2ध/DR 6. गाड फाईल/GF.