INCOME TAX OFFICER, WARD-2-2, Jaipur V. KINUBABA JEWELLERY (INDIA) PVT. LTD., Jaipur

MA 80/JPR/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0820 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 25-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MAHALA
• Assessee Lawyers: RAJEEV SOGANI C A DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM M.A. NO. 80/JP/2018 ( ARISING OUT OF VK;DJ VIHY LA-@ ITA NO. 561/JP/2013) FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09. THE INCOME TAX OFFICER, WARD 2(2), JAIPUR. CUKE VS. M/S. KINUBABA JEWELLERY (INDIA)(P) LTD., 41, K. TOWER, MAHAVEER MARG, C-SCHEME, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAACI 4305 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI A.K. MAHALA (JCIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI RAJEEV SOGANI (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 05.10.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 05/10/2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : BY WAY OF THIS MISCELLANEOUS APPLICATION, THE REVEN UE IS SEEKING RECTIFICATION OF THE MISTAKE IN THE ORDER OF THE TRIBUNAL DATED 2 6.12.2017. THE MAIN GRIEVANCE OF THE REVENUE HAS BEEN STATED IN THE MISCELLANEOUS AP PLICATION AS UNDER :- IN THE ORDER OF HONBLE ITAT DATED 26.12.2017 SOM E DISCREPANCY HAS CREPT IN . AS PER THE DIRECTIONS OF THE HONBLE IT AT, IF THE AVERAGE GP OF LAST THREE YEARS I.E. 38.93% (A.Y. 2007-08 45.47 %, A.Y. 2006-07 42.16%, A.Y. 2005-06 29.16%) IS APPLIED, THE TAXABL E INCOME OF THE ASSESSEE WILL FALL BELOW THE RETURNED INCOME OF THE ASSESSEE AS THE ASSESSEE HAS ALREADY DECLARED GP RATE 49.30% DURING THE YEAR UNDER CONSIDERATION. THUS THE IMPACT OF GIVING EFFECT TO THE HONBLE ITAT DIRECTIONS MEANS TAKING THIS YEARS GROSS PROFIT @ 38.93% AS AGAINST THE DECLARED GROSS PROFIT RATE OF 49.30%. THIS MEAN S AS AGAINST THE 2 MA NO. 80/JP/2018 M/S. KINUBABA JEWELLERY (INDIA)(P) LTD., JAIPUR. RETURNED INCOME OF RS. 2,58,59,870/- ON APPEAL EFFE CT U/S 254 THE INCOME WILL BE RS. 2,58,02,157/- I.E. RS. 57,713/- LESS THAN RETURNED INCOME (NOT ASSESSED INCOME). THUS THE LD. D/R HAS SUBMITTED THAT IF THE DIRECTIO NS OF THE TRIBUNAL ARE GIVEN EFFECT, THE TOTAL INCOME OF THE ASSESSEE WOULD BE LESS THAN THE RETURNED INCOME AND, THEREFORE, THERE IS A MISTAKE IN THE IMPUGNED ORDER . 2. ON THE OTHER HAND, THE LD. A/R OF THE ASSESSEE H AS SUBMITTED THAT THE DIRECTIONS GIVEN BY THE TRIBUNAL WOULD NOT REDUCE T HE TOTAL INCOME BELOW THE RETURNED INCOME AND, THEREFORE, IT IS NOT A MISTAKE IN THE IMPUGNED ORDER. 3. HAVING CONSIDERED THE RIVAL SUBMISSIONS, WE FIND THAT THE ONLY GRIEVANCE OF THE REVENUE THAT THE TRIBUNAL HAS DIRECTED THE AO T O ADOPT THE AVERAGE GP DECLARED BY THE ASSESSEE IN THE PAST THREE YEARS AS A BASIS FOR ESTIMATION OF INCOME FOR THE YEAR UNDER CONSIDERATION. HOWEVER, THE GP DECLARED BY THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION IS MORE THAN THE AVERAGE GP DEC LARED IN THE PAST AND CONSEQUENTLY THE REVENUE APPREHENDS THAT THE OUT-CO ME OF GIVING EFFECT ORDER WILL REDUCE THE TOTAL INCOME BELOW THE RETURNED INCOME. HOWEVER, WE FIND THAT OUR FINDING IS ONLY ON PRINCIPLE BASIS AND IF THE AVERA GE GP OF THE EARLIER YEAR IS LESS THAN GP DECLARED BY THE ASSESSEE THEN DESPITE REJECTION OF BOOKS OF ACCOUNT BY THE AO AND ESTIMATION OF INCOME BASED ON THE AVERAGE GP OF PAST HISTORY, THERE WOULD BE NO ADDITION IN THE DECLARED INCOME. ACCORDINGLY TH E RETURNED INCOME WOULD NOT BE AFFECTED EVEN BY GIVING THE EFFECT TO THE TRIBUNAL S ORDER AND WE CLARIFY THE SAME ACCORDINGLY. IN ANY CASE, THE RETURNED INCOME WILL NOT BE REDUCED DUE TO THE GIVING EFFECT ORDER PASSED. 3 MA NO. 80/JP/2018 M/S. KINUBABA JEWELLERY (INDIA)(P) LTD., JAIPUR. 4. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y THE REVENUE IS DISPOSED OFF IN ABOVE TERMS. ORDER IS PRONOUNCED IN THE OPEN COURT ON 05/10/2 018. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 05/10/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO WARD 2(2), JAIPUR. 2. THE RESPONDENT M/S. KINUBABA JEWELLERY (INDIA) PVT. LTD., JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (MA NO. 80/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 MA NO. 80/JP/2018 M/S. KINUBABA JEWELLERY (INDIA)(P) LTD., JAIPUR.