Brijwasi Jewellers, Delhi V. ACIT, Central Circle-14, New Delhi

MA 420/DEL/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3532 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-01-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 07-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Kul Bharat, Judicial Member Dr. B. R. R. Kumar, Accountant Member MA No. 418/Del/2023 (In ITA No.1027/Del/2021 : Asstt. Year: 2017-18) MA No. 420/Del/2023 (In ITA No.1950/Del/2021 : Asstt. Year: 2017-18) Brijwasi Jewellers, 1170, Kucha Mahajani, Chandni Chowk, New Delhi-110006 Vs ACIT, Central Circle-14, New Delhi-110006 (ASSESSEE) (RESPONDENT) PAN No. AAAFB2917R Assessee by : Sh. Ved Jain, Adv. & Ms. Supriya Mehta, CA Revenue by : Sh. Vivek Vardhan, Sr. DR Date of Hearing: 12.01.2024 Date of Pronouncement: 05.03.2024 ORDER Per Dr. B. R. R. Kumar, Accountant Member: Since, the issue involved in both the Miscellaneous Applications are similar, they were heard together and being adjudicated by a common order. 2. The Miscellaneous Application of the assessee in MA No. 418/Del/2023 is as under: “1. Your honors have passed an order dated 19.10.2023 in the above-said cross appeals filed by the assessee and the Revenue whereby the appeal of the assessee has been allowed and the appeal of the Revenue has been dismissed. 2 MA No 418 & 420/Del/2023 Brijwasi Jewellers 2. That the ITA No. 1027/Del/2021 was the assessee’s appeal in which the assessee has raised 8 grounds of appeal, quoted in para 3 on page 6 and 7 of the order. 3. That the ITA No.1950/Del/2021 was the appeal filed by the Revenue raising 5 grounds of appeal, stated in para 5 on page 8 and 9 of the order. 4. That in the assessee’s appeal ground no. 2 to 4 was with regard to addition of Rs. 1,00,00,000/- made by the AO on account of cash deposit in the bank account. 5. Further, ground no. 5 was regard to addition of Rs.16,06,500/- being the gross profit estimated at 7% of the transaction of sales made to M/s Faith Jewelers, sustained by the CIT(A). 6. That in the Revenue’s appeal ground no. (i) was with regards to the addition of Rs. 2,22,61,381/- made by the AO but restricted by the CIT(A) to 7%, applying the gross profit rate in respect of transactions of sale made to M/s Faith Jewellers. 7. Your Honours, after quoting the grounds of appeal of both the side have observed in para 6 on Page 9 of the order that the entire facts of the case and circumstances are similar to the case of M/s Neha Jewellers Pvt. Ltd decided by the coordinate bench in ITA No. 1026/Del/2021 (Assessee appeal) and ITA No. 1949/Del/2021 (Revenue Appeal) vide order dated 09.08.2023. 8. Further, in para 9 on Page 12 of the order your honours have referred to the facts in this case and has compared the same with facts of the Neha Jewellers Pvt. Ltd. (supra) in 3 MA No 418 & 420/Del/2023 Brijwasi Jewellers respect of the addition of Rs. 1 Cr. being the cash deposited during the year. 9. After comparing these facts, your honours have quoted the order passed by the ITAT in the case of Neha Jewellers Pvt. Ltd. in para 11 and the in para 12 has allowed the appeal of assessee. 10. That the facts with regard to the sale made by assessee to M/s Faith jewellers where the AO has made the addition of the entire sales of Rs. 2,22,61,318/- and the CIT(A) has restricted the addition to the gross profit estimated at 7% on Rs.2,22,61,318/- i.e. Rs. 16,06.500/- inadvertently have been omitted in the order passed by Your Honours, though the assessee’s grounds have been allowed and that of the Revenue have been dismissed.” 3. Heard the arguments of both the parties and perused the material available on record. 4. On verification it is noticed an inadvertent factual omission at para 12 has crept in the said order. Therefore the following para 12 is being inserted after para 11 and para 12 is being renumbered as para 13: “12. As regards addition of Rs.2,22,61,318/-, made by AO treating the entire sales amount made by the assessee to M/s. Faith Jewellers as assessee’s income, and CIT(A) restricting the addition to 7% of such sales, the action of the AO as well as CIT(A) - both are unsustainable. These sales were made in three parts as per the facts on records and against which payments had been received by the assessee through banking channels. Nothing 4 MA No 418 & 420/Del/2023 Brijwasi Jewellers adverse was found about these transactions in the survey carried out on the assessee firm on 22.12.2016. There was no discrepancy found in the physical stock, purchases and the books of account of the assessee. This fact has also been acknowledged by the CIT(A) in his order. The assessee has submitted all evidences which include copy of sales, stock register, trail of stock substantiating the purchase and sale of bullion to M/s. Faith Jewellers. Mr. Naval Kishore Goyal, the Proprietor of M/s. Faith Jewellers has stated in his statement repeatedly that he has made purchases of bullion from various people including banks like State Bank of India. This fact itself confirms that M/s. Faith Jewellers was engaged in the trading of bullion. The statement of Mr. Sanjay Kumar Bansal, relied upon by the AO, in fact confirms that he has also made actual sales of bullion to Faith Jewellers during the year 2012-13 and 2013-14. The statement of Mr. Mohit Bansal, on which heavy reliance has been placed by the AO and CIT(A), is without any corroboration and in fact contrary to facts and evidences on record. On going through the Assessment Order, it is evident that the net income of Rs. 69,55,330/- declared by the assessee on the basis of his books of accounts has been accepted which included the sales made to Faith Jewellers. Moreover it is a case of sales made by the assessee to M/s. Faith Jewellers which have been duly accounted for and profit has been declared. The purchases made for the same have also not been doubted. Thus there was no reason for adding such sales again as income. The assessee having included the sales amount in its receipts and having declared the income on such sales, there was no reason for the AO to further make the addition of such sales and for CIT(A) to sustain addition @ 7% of such sales as profit.” 5 MA No 418 & 420/Del/2023 Brijwasi Jewellers 5. In the result, the Miscellaneous Applications of the assessee are allowed. Order Pronounced in the Open Court on 05/03/2024. Sd/- Sd/- (Kul Bharat) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 05/03/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR