UMESH KUMAR JAISWAL,KUSHINAGAR V. INCOME TAX OFFICER, WARD - 2(4), KUSHINAGAR

MA 3/VNS/2023

AI Insights

The case involves Umesh Kumar Jaiswal, the proprietor of Ramgya Prasad and Sons, who filed a Miscellaneous Application against the order of the Income Tax Appellate Tribunal concerning the assessment year 2017-18. The primary contention was the non-consideration of two specific grounds in the original Tribunal order, which pertained to contra entries between bank accounts and the inclusion of VAT in the turnover. The Tribunal had previously set aside the matter regarding the computation of turnover based on inter-transfer of funds between the assessee's bank accounts but had omitted to address the issue of VAT inclusion in turnover. The Tribunal's recent decision rectified this oversight, directing the Assessing Officer to also examine the exclusion of VAT in the turnover calculation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26037 (ITAT-VARANASI)
• Duration Of Justice: 1 year(s) 10 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 01-02-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA MEENA
• Assessee Lawyers: ASHISH BANSAL
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, VARANASI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER MA No. 3/VNS/2023 (Arising out of ITA No. 27/VNS/2021) (Assessment Year :2017-18) Umesh Kumar Jaiswal Prop. Ramgya Prasad and Sons, Jataha Road, Padrauna, Kushinagar, Uttar Pradesh Vs. Income Tax Officer Ward – 2(4), Kushinagar PAN/GIR No. ACDPJ3729Q (Appellant) .. (Respondent) Assessee by Shri. Ashish Bansal, Advocate Revenue by Smt. Kavita Meena, Sr. DR Date of Hearing 13/09/2024 Date of Pronouncement 02/12/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid Miscellaneous Application has been filed by the assessee against order of the Tribunal dated 07/06/2022 passed in ITA No.27/VNS/2021. 2. One of the main contention which has been raised is that assessee has raised two specific grounds being ground Nos. 2 & 3 reads as under which has not been considered by the Tribunal. Firstly: contra entries for sums aggregating to Rs.2,17,o6,ooo/- (between the bank accounts maintained by the assessee); and MA No.3/VNS/2023 Umesh Kumar Jaiswal 2 secondly: the inclusion of VAT amount of Rs. 51,11,1867- realized on sales made during the year. 3. After going through the material and facts on records and the order of the Tribunal, it is seen that the assessee had challenged the order of the ld. CIT(A) who has confirmed the addition of Rs.4,07,517/- made by the ld. AO, has erroneously computing the turnover of the business at Rs.18,97,16,297/- as against the disclosed turnover of Rs.16,36,88,219/- which was challenged due to following reasons:- 2. BECAUSE the computation of turnover of Rs.l8,97,16,297/- (as against the disclosed turnover of Rs.16,36,88,219/-) by the Id. Assessing Officer [as also confirm by the CIT(A)] on the basis of overall credits of bank accounts are wholly erroneous as the said credits included inter-transfer of funds ofRs.2,17,06,000/-from one bank account to another; Particulars Amount (Rs.) Overall credits in PNB account 0374002101016687 3,02,58,552 Overall credits in PNB account 0374008700009059 7,89,66,268 Overall credits in HDFC account 19068620000324 8,04,91,477 Total (A) 18,97,16,297 Less: Infra account transfer (from PNB account 9059 to 6687) 2,03,55,000 Intra account transfer (from PNB account 6687 to 9059) 13,51,000 Total (B) 2,17,06,000 Net credit in bank accounts (A-B) 16,80,10,297 MA No.3/VNS/2023 Umesh Kumar Jaiswal 3 3. BECAUSE the credits of Rs.18,97,16,2971- as appearing in the bank account of the appellant also includes VAT realized on sales ofRs.51,11,186/-which does not constitute turnover of the appellant for the year under consideration. 4. It is for this assessee has taken the specific ground, ground Nos. 2 & 3 before the Tribunal. The Tribunal had set aside the matter to the ld. AO with the following directions:- ”9. As evident from the impugned order of the CIT(A), it has confirmed the order of the Assessing Officer for any details of purchase bills, sales bills and vouchers. The CIT(A) has turned down the details of inter account transactions as reflected from bank account statement of the assessee on the ground that these are not complete records. It appears that the CIT(A) has even not looked into the details submitted by the assessee as the assessee has not made a compilation of the contra entries with the reference of date of each and every entry. Therefore, in the facts and circumstances of the case, when prima facie there are entries of inter transfers in the three bank1 accounts of the assessee, then the entire credit in the bank accounts cannot be treated as the turnover of the assessee. Hence, in the facts and circumstances of the case and in the interest of justice, the matter is set aside to the record of the Assessing Officer for fresh adjudication of the issue after verification and proper enquiry of inter transfer entries in the three bank accounts of the assessee. Needless to say, the assessee be given an appropriate opportunity of hearing before passing the fresh order.\" 5. sIt is seen that the Tribunal while setting aside the matter to the ld. AO has omitted to set aside the mater on the second issue i.e. excluding the value of VAT covered in the turn over which was erroneously computed by the ld. AO. Since it is a small mistake therefore, the direction of the Tribunal is modified that ld. AO should also examine the exclusion of value of VAT covered in the turnover or not? Thus, the MA No.3/VNS/2023 Umesh Kumar Jaiswal 4 Miscellaneous Application filed by the assessee is allowed in the aforesaid manner. 6. In the result, Miscellaneous Application filed by the assessee is allowed in the aforesaid manner. Order pronounced on 02/12/2024. Sd/- (AMIT SHUKLA) JUDICIAL MEMBER Varanasi; Dated 02/12/2024 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt.Registrar) ITAT, Varanasi 1. The Appellant 2. The Respondent. 3. The CIT(A), Varanasi. 4. CIT 5. DR, ITAT, Varanasi 6. Guard file. //True Copy// "