VIJAY INDUSTRIES, Alwar V. ITO, Alwar

MA 28/JPR/2017

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5784 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 17-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gross profit estimation; Rejection of books of accounts

Judgement Text

A` VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL ; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI KUL BHARAT, AM M.A. NO. 28/JP/2017 (ARISING OUT IF ITA NO. 112/JP/2016) FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12. M/S. VIJAY INDUSTRIES, C/O M/S. K.L. DATTA & CO., CHARTERED ACCOUNTANTS, CLOCK TOWER, ALWAR. CUKE VS. THE ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE-1, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAFV 7282 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT CORRIGENDUM IT IS BROUGHT TO OUR NOTICE VIDE APPLICATION DATED 20.06.2017 MADE BY THE ASSESSEE STATING THAT IN PARA 7.1 OF THE ORDER DATE D 07.06.2017 IN MA NO. 28/JP/2017 ARISING OUT OF ITA NO. 112/JP/2016 THIS TRIBUNAL HAS HELD AS UNDER :- 7.1. IT IS NOTICED THAT IN THE YEAR UNDER CONSIDE RATION, THE LD. CIT (A) HAS SUSTAINED THE TRADING ADDITION OF RS. 1 LAKHS O UT OF TRADING ADDITION OF RS. 2 LAKHS. SINCE IN THE AY 2009-10, WE HAVE SU STAINED THE FINDING OF LD. CIT (A), FOLLOWING OUR DECISION IN ITA NO. 1 99/JP/2013 GROUND NO. 1 OF THE ASSESSEES APPEAL IN ITA NO. 112/JP/20 16 IS DISMISSED. FROM THE ABOVE IT IS CLEAR THAT THE TRIBUNAL AFFIRM ED THE VIEW OF LD. CIT (A) IN ASSESSEES OWN CASE PERTAINING TO ASSESSMENT YEAR 2 009-10. IN THE A.Y. 2009-10 LD. CIT (A) HAD DELETED THE ADDITION BY OBSERVING AS UN DER IN PARA 4.3 OF HIS ORDER :- 4.3. I HAVE CONSIDERED THE ASSESSMENT ORDER AS WE LL AS SUBMISSIONS MADE BY THE APPELLANT. THE AO HAS RELIED ON THE REA SONS AND FACTS GIVEN IN THE ASSESSMENT ORDER FOR AY 2007-08 AND AY 2008-09 TO REJECT THE BOOKS OF ACCOUNTS U/S 145(3) OF THE ACT. FURTHER, THE AO HAS MADE A TRADING ADDITION OF RS. 5 LACS CONSIDERING T HE PAST HISTORY OF THE CASE. I FIND THAT THE REJECTION OF BOOKS OF ACC OUNTS U/S 145(3) OF THE ACT HAS NOT BEEN UPHELD BY MY LD. PREDECESSOR F OR AY 2007-08 AND 2 MA NO. 28/JP/2017 M/S. VIJAY INDUSTRIES, ALWAR. AY 2008-09 VIDE ORDER DATED 11.07.2011 AND 26.08.20 11 RESPECTIVELY. FURTHER, THE TRADING ADDITION OF RS. 15 LACS IN AY 2007-08 AND OF RS. 5 LACS IN AY 2008-09 HAS BEEN DELETED. I FIND THAT THE HONBLE ITAT IN APPEAL ITA NO. 731/ JP/2007 FOR AY 2003-04 HAS HELD THAT THE AO WAS NOT JUSTIFIED I N INVOKING THE SECTION 145(3) OF THE ACT AND NO ADDITION ON THIS A CCOUNT WAS CALLED FOR AFTER CONSIDERING THE EXPLANATION OF THE ASSESS EE REGARDING LOWER GROSS PROFITS, NON-MAINTENANCE OF QUALITY-WISE STOC K REGISTER, REGISTER FOR DRIAGE LOSS, CONSUMPTION OF COAL AND WOOD ETC. THE APPELLANT HAS MAINTAINED BOOKS OF ACCOUNTS SUPPORTED BY PURCHASE, SALE BILLS, EXPENSE VOUCHERS, QUANTITATIVE DETAILS AND INVENTOR Y OF OPENING AND CLOSING STOCK IN WHICH NO DEFECT HAS BEEN POINTED O UT BY THE AO. FOLLOWING THE PAST HISTORY OF THE CASE AND THE ORDE RS OF AUTHORITIES NOT UPHOLDING THE REJECTION OF BOOKS OF ACCOUNTS IN APP ELLANTS OWN CASE, AS DISCUSSED ABOVE, THE REJECTION OF BOOKS OF ACCOU NTS BY INVOKING THE SECTION 145(3) IS HELD TO BE NOT JUSTIFIED. ACCORDI NGLY, THE TRADING ADDITION OF RS. 5 LACS, MADE ON LUMP SUM BASIS, IS FOUND TO BE WITHOUT JUSTIFICATION AND IS DELETED. THIS GROUND IS ALLOWE D. THEREFORE, IN VIEW OF THE ABOVE, WHILE TYPING THE O RDER, MISTAKENLY THE WORD DISMISSED HAS BEEN TYPED IN THE LAST LINE OF PARA 7.1 AT PA GE 4 OF THE ORDER DATED 07.06.2017. AFTER GOING THROUGH THE ORDER, WE CORRE CT THE ERROR AS UNDER :- THE WORD DISMISSED AS APPEARING IN LAST LINE OF PARA 7.1 AT PAGE 4 IS BEING RECTIFIED AND BE READ AS ALLOWED. 2. EXCEPT THE ABOVE CHANGE IN PARA 7.1 AT PAGE 4, T HERE IS NO OTHER CHANGE IN THE ABOVE ORDER. SD/- SD/- HKKXPUN ( DQY HKKJR ) ( BHAGCHAND ) ( KUL BHARAT ) 10.08.2017 YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 10/08/2017. DAS/ 3 MA NO. 28/JP/2017 M/S. VIJAY INDUSTRIES, ALWAR. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S. VIJAY INDUSTRIES, ALWAR. 2. THE RESPONDENT- THE ACIT, CIRCLE-1, ALWAR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE ( M.A. 28/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 MA NO. 28/JP/2017 M/S. VIJAY INDUSTRIES, ALWAR.