THE DY,CIT CENT CIR .2, V. M/S. JAYBHARAT LUMBAR PVT LTD,

ITSSA 239/AHD/2002

• Counselvise Citation: [2012] 124 COUNSELVISE.COM (IT) 7750 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 03-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-01-2012
• Assessment Year: misc
• Appeal Filed On: 10-09-2002
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KARTASINGH
• Keywords: Document seized; Documents seized

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, A BENCH . .. . . .. . , !'# !'# !'# !'#, , , , $ $ $ $ . .. . . .. .% % % % , , , , &' % &' % &' % &' % & # & # & # & # BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND B.R. BASKARAN, ACCOUNTANT MEMBER) IT(SS)A NO.239/AHD/2002 [BLOCK ASSTT.YEAR : 1990-91 TO 1999-2000 & UPTO 2. 12.1999] ACIT, CENT.CIR.2 SURAT. /VS. M/S.JAY BHARAT LUMBERS PVT. LTD., HARIHAR, NR.BUS STAND KADODARA CHAR RASTA PALSANA, SURAT. ( (( ()* )* )* )* / APPELLANT) ( (( (+,)* +,)* +,)* +,)* / RESPONDENT) % - . &/ REVENUE BY : SHRI KARTASINGH 01 - . &/ ASSESSEE BY : NONE 2 - 13'/ DATE OF HEARING : 16 TH JANUARY, 2012 456 - 13'/ DATE OF PRONOUNCEMENT : 03-02-2012 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL OF THE REVENUE FOR BLOCK PERIOD 1990-91 TO 1999-2000 (UPTO 2.12.19 99) IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, AHMEDABAD. 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. THE APPLICATION OF THE ASSESSEE FOR ADJOURNMENT OF THE APPEAL WAS DISMISSED BY THE BENCH. ACCORDINGLY, THE REVENUES APPEAL IS BEING DECIDED EX PARTE QUA THE ASSESSEE-RESPONDENT ON MERIT AFTER HEARING THE LEARNED DR. 3. THE GROUND NO.1 OF THE REVENUES APPEAL READS AS UNDER: IT(SS)A NO.239/AHD/2002 -2- 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITIONS OF RS.12,82,337/- ON ACCOUNT OF SHORTAGE OF STOCK RS.45,000/- ON ACCOUNT OF UNEXPLAINED ENTRY ON PAGE NO.1 OF ANNEXURE A-10 OF THE SEIZED DOCUMENTS AND RS.10,21, 611 ON ACCOUNT OF THE TOTAL OF THE ENTRIES ON THE CREDIT S IDE OF CASH BOOK AS PER ANNEXURE A/1/5 OF THE SEIZED DOCUMENTS. 4. THE LEARNED DR HAS RELIED ON THE ORDER OF THE AO . HE REFERRED TO RELEVANT PORTIONS OF THE ASSESSMENT ORDER IN SUPPOR T OF THE CASE OF THE REVENUE. HE SUBMITTED THAT THE ASSESSEE HAS MADE U NACCOUNTED SALES, AND THEREFORE, THE INVESTMENT THEREIN APART FROM PR OFIT ELEMENT HAS TO BE ADDED TO THE GP AS INCOME IN THE HANDS OF THE ASSES SEE. 5. WE HAVE CONSIDERED SUBMISSIONS OF THE LEARNED DR AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THERE WAS A SHORTAGE OF STOCK FOUND AT THE TIME OF SEARCH AT THE PREMISE S OF THE ASSESSEE. THE ENTIRE DIFFERENCE IN THE FIGURE OF STOCK WAS ADDED AS INCOME IN THE HANDS OF THE ASSESSEE BY THE AO. THE CIT(A) IN APPEAL HAS APPLIED THE GP ON THE SHORTAGE OF STOCK AND SUSTAINED THE ADDITION TO THAT EXTENT. HE OBSERVED THAT THE AO HAS MADE ADDITION STRAIGHTWAY WITHOUT VERIFYING THE CONTENTIONS OF THE ASSESSEE. THE STOCK OF RS.5,67, 570/- BELONGING TO THE SISTER CONCERN WAS NOT BELONGING TO THE ASSESSEE. THE BALANCE ADDITION WAS HOWEVER DELETED. THERE BEING NO MISTAKE IN THE ORDER OF THE CIT(A) WE CONFIRM HIS ORDER ON THIS ISSUE IN RESPECT OF DE LETION OF THE ADDITION OF RS.12,82,337/- 6. REGARDING OTHER ISSUE OF RS.45,000/- ADDED BY TH E AO ON ACCOUNT OF UNEXPLAINED ENTRY THE LEARNED DR RELIED ON THE O RDER OF THE AO. 7. AFTER HEARING THE LEARNED DR, WE FIND THAT THE C IT(A) HAS PASSED A WELL REASONED ORDER. WE FIND THAT THE AO HAS TOTAL ED UP BOTH THE FIGURES IT(SS)A NO.239/AHD/2002 -3- AND MADE ADDITION OF RS.1,45,000/- ON ACCOUNT OF UN EXPLAINED ENTRIES. THE CIT(A) HAS CORRECTLY SUSTAINED THE ADDITION OF RS.1,00,000/- AND DELETED THE BALANCE ADDITION OF RS.45,000/- AND TH EREFORE WE FIND NO MISTAKE IN THE ORDER OF THE CIT(A) ON THIS ISSUE, W HICH WE CONFIRM AND THE GROUND OF THE APPEAL NO.1 OF THE REVENUE IS DIS MISSED. 8. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( . .. . . .. .% % % % /B.R. BASKARAN) &' % /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) ! !! !'# '# '# '# /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD