ALOK HALDIA, Jaipur v. ACIT, Jaipur

ITA 104/JPR/2016 | 2007-2008
Pronouncement Date: 28-09-2016 | Result: Dismissed

Appeal Details

RSA Number 10423114 RSA 2016
Bench Jaipur
Appeal Number ITA 104/JPR/2016
Duration Of Justice 7 month(s) 24 day(s)
Appellant ALOK HALDIA, Jaipur
Respondent ACIT, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2016
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted Not Allotted
Tribunal Order Date 28-09-2016
Assessment Year 2007-2008
Appeal Filed On 04-02-2016
Judgment Text
- VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES (SMC) JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 104/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 SHRI ALOK HALDIA PROP. M/S. RATNAKRITI 150 HALDIA HOUSE JOHRI BAZAR JAIPUR CUKE VS. THE ACIT CIRCLE- 1 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAEPH 11017 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI M.L. BORAD JKTLO DH VKSJ LS@ REVENUE BY:SHRI R.A. VERMA ADDL.CIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27/09/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 28 /09/2016 VKNS'K@ ORDER PER BHAGCHAND AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-1 JAIPUR FOR THE ASSESSMENT YEAR 2007-08. 2.1 THE ASSESSEE HAS FILED THE GROUNDS WHICH ARE C ONCISELY AS UNDER:- (I) THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION A S TO INITIATION OF REASSESSMENT PROCEEDINGS U/S 147 OF T HE ACT AND ISSUANCE OF NOTICE U/S 148 OF THE ACT BY THE AO. (II) THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLO WANCE TO THE TUNE OF RS. 18 36 368/- BEING 15% OF TOTAL PURC HASES OF RS. 1 22 42 451/- ITA NO. 104/2016 SHRI ALOK HALDIA VS. ACIT CIRCLE-1 JAIPUR 2 (III) THE LD. CIT(A) ERRED IN UPHOLDING THE ACTION OF THE AO AS TO REJECTION OF BOOKS OF ACCOUNT. 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE F ILED THE RETURN DECLARING INCOME OF RS. 17 98 610/- ON 29-10-2007 W HICH WAS PROCESSED U/S 143(1) OF THE ACT. THE AO OBSERVED THAT AS PER THE SEARCH AND SEIZURE OPERATION CONDUCTED OVER THE GROUP CONCERN OF SHRI PRAVEEN KUMAR JAIN BY THE INVESTIGATION WING MUMBAI THAT SHRI PRAVEEN KUMAR JAIN WAS INDULGED IN PROVIDING BOGUS BILLS TO THE NEEDY PERS ONS WITHOUT ACTUAL DELIVERY OF THE GODS .THE INVESTIGATION WING OF THE DEPARTMENT RECORDED THE STATEMENT OF SHRI PRAVEEN KUAMR JAIN WHO WAS RU NNING A BOGUS CONCERN IN THE NAME AND STYLE OF M/S. JPK TRADING ( I) PVT LTD. IN WHICH SHRI JAIN ACCEPTED THAT HIS BUSINESS CONCERNS ARE I NDULGED IN PROVIDING ACCOMMODATION ENTRIES TO NEEDY PARTIES ON COMMISSIO N BASIS. THE AO OBSERVED THAT THE MODUS OPERANDI OF SHRI JAIN WAS T O ISSUE SALES INVOICES AS PER THE REQUIREMENT OF THE PARTIES ON PRE-FIXED COMMISSION ON THE BILL AMOUNT. THE AO NOTED THAT THE ASSESSEE SHRI ALOK HA LDIYA PROP. M/S. RATNAKRITI IS ENGAGED IN THE BUSINESS OF TRADING OF GEMS. THE AO FURTHER NOTICED THAT THE ASSESSEE HAD SHOWN PURCHASES FROM M/S. JPK TRADING (I) PVT LTD.(SHRI PRAVEEN KUMAR JAIN COMPANY) AMOUNTIN G TO RS. 1 22 42 451/-. THE AO GOT THE INFORMATION FROM THE INVESTIGATION WING ITA NO. 104/2016 SHRI ALOK HALDIA VS. ACIT CIRCLE-1 JAIPUR 3 THAT THE PURCHASES MADE BY M/S. RATANKIRIT FROM M/S . JPK TRADING (I) PVT LTD. IS BOGUS AND IT IS IMPERATIVE TO EXAMINE THESE PURCHASES CLAIMED BY THE ASSESSEE IN ITS BOOKS OF ACCOUNT PERTAINING TO THE A.Y. 2007-08 SHOWING INCOME OF RS. 1 22 42 451/- WHICH HAD THERE FORE ESCAPED ASSESSMENT. THE AO OBSERVED THAT IT WAS A FAILURE O N THE PART OF THE ASSESSEE TO DISCLOSE FULLY AND TRULY ALL MATERIALS FACTS NECESSARY FOR THE ASSESSMENT. HENCE AFTER RECORDING THE REASONS FOR THE SAME THE AO ISSUED NOTICE ON 26-03-2014 U/S 148 OF THE ACT FOR REOPENING OF ASSESSMENT FOR WHICH THE LD. AR OF THE ASSESSEE FIL ED THE OBJECTION AS TO ISSUANCE OF NOTICE U/S 148 OF THE ACT. CONCLUSIVELY IN THE PRESENT CASE THE AO OBSERVED THAT THE ASSESSEE HAD CLAIMED PURCH ASES OF RS. 1 22 42 451/- FROM M/S. JPK TRADING (I) LTD. AND TH IS PARTY IS ONLY ISSUING BOGUS SALE INVOICES. IN VIEW OF THESE FACTS AND CIRCUMSTANCES OF THE CASE THE AO CONSIDERED THESE PURCHASES OF THE ASSESSEE FROM M/S. JPK TRADING (I) PVT LTD. AS BOGUS PURCHASES AND RE JECTED THE BOOKS OF ACCOUNT U/S 145(3) OF THE ACT BEING NOT MAINTENANCE OF BOOKS OF ACCOUNT AND LOOKING TO ALL POSSIBILITIES THE AO DISALLOWED 25% OF THE TOTAL PURCHASES OF RS. 1 22 42 451/- CLAIMED BY THE ASSE SSEE WHICH COMES TO RS. 30 60 613/- AND ADDED THE SAME TO THE TOTAL INC OME OF THE ASSESSEE. 2.2 BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTE R BEFORE THE LD. CIT(A) WHO HAS RESTRICTED THE DISALLOWANCE TO THE E XTENT OF 15% OF THE ITA NO. 104/2016 SHRI ALOK HALDIA VS. ACIT CIRCLE-1 JAIPUR 4 TOTAL PURCHASES IN VIEW OF THE DECISION OF ITAT JAI PUR BENCH IN THE CASES OF SHRI ANUJ KUMAR VARESHNEY VS. ITO & OTHERS. 2.3 DURING THE COURSE OF HEARING THE LD. AR OF THE OPPOSED THE DISALLOWANCE CONFIRMED BY THE LD. CIT(A) AND PRAYED FOR DELETION OF ADDITION MADE BY THE LOWER AUTHORITIES. 2.4 THE LD. DR RELIED ON THE ORDER OF THE LD. CIT(A ). 2.5 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF THE PRECIOUS AND SEMI PRECIOUS STONES. IT IS NOT IMPER ATIVE TO REPEAT THE FACTS OF THE CASE AS NARRATED BY THE LOWER AUTHORITIES. I N SHORT IT IS NOTICED THAT IT IS A CASE OF BOGUS PURCHASES WHEREIN THE ASSESSE E DID NOT MAINTAIN THE BOOKS OF ACCOUNT AND INCOME OF THE ASSESSEE WAS ESC APED FROM ASSESSMENT. IT IS NOTICED THAT IN SUCH TYPE OF UNV ERIFIABLE PURCHASES / BOGUS PURCHASES CASES THE COORDINATE BENCH IN THE CASE OF ANUJ KUMAR VARSHNEY VS. ITO (ITA NO. 187/JP/2012 ORDER DATED 2 2-10-2014) HAD CONFIRMED THE DISALLOWANCE TO THE EXTENT OF 15% . H ENCE I DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LD. C IT(A) WHO HAS RIGHTLY COMPLIED WITH THE DIRECTION OF THE COORDINATE BENCH (SUPRA) CONFIRMING 15% DISALLOWANCE ON THE UNVERIFIABLE PURCHASES. THU S THE APPEAL OF THE ASSESSEE IS DISMISSED. ITA NO. 104/2016 SHRI ALOK HALDIA VS. ACIT CIRCLE-1 JAIPUR 5 3.0 IN THE RESULT THE APPEAL OF THE ASSESSEE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 /0 9/2016 SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 28 /09/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI ALOK HALDIA JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT CIRCLE- 1 JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR ITAT JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 104/JP/2016 VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ @ ASSISTANT. REGISTRAR