SHRI RAHUL BHARGAVA , JAIPUR v. INCOME TAX OFFICER, WARD-4-5, JAIPUR

ITA 1095/JPR/2019 | 2015-2016
Pronouncement Date: 27-11-2019 | Result: Partly Allowed

Our System has flagged this appeal as eligible for Vivad Se Vishwas Scheme. If you are party to this appeal, get on a Free Consultation Call with our team of Legal Experts who shall guide you as to how you can save huge Interest and Penalty in VSV Scheme.


Apply Now
        
Try VSV Calculator

Appeal Details

RSA Number 109523114 RSA 2019
Assessee PAN ACAPB2679L
Bench Jaipur
Appeal Number ITA 1095/JPR/2019
Duration Of Justice 2 month(s) 16 day(s)
Appellant SHRI RAHUL BHARGAVA , JAIPUR
Respondent INCOME TAX OFFICER, WARD-4-5, JAIPUR
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2019
Appeal Filed By Assessee
Tags rahul
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 27-11-2019
Last Hearing Date 18-11-2019
First Hearing Date 18-11-2019
Assessment Year 2015-2016
Appeal Filed On 11-09-2019
Judgment Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; O A JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO JM & SHRI VIKRAM SINGH YADAV AM VK;DJ VIHY LA- @ ITA NO. 1095/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2015-16. SHRI RAHUL BHARGAVA C/O SHAH SURENDRA & ASSOCIATES CHARTERED ACCOUNTANTS 208 ANUKAMPA II M.I. ROAD JAIPUR. CUKE VS. THE INCOME TAX OFFICER WARD 4(2) JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. ACAPB 2679 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SURENDRA SHAH (CA) JKTLO DH VKSJ LS@ REVENUE BY : NONE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 26/11/2019. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 27 /11/2019. VKNS'K@ ORDER PER VIJAY PAL RAO J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 22 ND JULY 2019 OF LD. CIT (A)-2 JAIPUR FOR THE ASSESSMENT YE AR 2015-16. 2. THIS APPEAL IS ROLL-OVER MATTER FROM YESTERDAY I .E. 25.11.2019 AND WAS DIRECTED TO BE TOP ON THE BOARD FOR TODAY I.E. 26.1 1.2019. AT THE TIME OF 1 ST CALL OF THE MATTER NOBODY HAS APPEARED ON BEHALF OF THE DEP ARTMENT ACCORDINGLY THE MATTER WAS PASSED OVER AWAITING THE LD. D/R. THIS MATTER WAS AGAIN CALLED FOR HEARING AT 01.40 PM JUST BEFORE THE BENCH WAS TO RI SE. STILL NOBODY APPEARED ON BEHALF OF THE DEPARTMENT AND ACCORDINGLY WE PROPOSE D TO HEAR AND DISPOSE OFF THIS 2 ITA NO. 1095/JP/2019 SHRI RAHUL BHARGAVA JAIPUR. APPEAL EX PARTE. SHRI B.K. GUPTA LD. CIT D/R POIN TED OUT THAT THE LD. SENIOR D/R WHO IS REPRESENTING IN THIS MATTER IS BUSY IN SOME MATTERS FIXED FOR CLARIFICATION BY THE SINGLE MEMBER. HOWEVER IN THE ABSENCE OF ANY SUCH REQUEST IN WRITING AS WELL AS ANY ROSTER OF SINGLE MEMBER BENCH DURING THIS WE EK WE DO NOT ACCEPT THIS EXPLANATION OF THE LD. CIT D/R. EVEN OTHERWISE THE MATTERS FOR CLARIFICATION ARE GENERALLY FIXED ON FRIDAY OR AFTER LUNCH AT 2.30 PM TO AVOID CLASH WITH THE PARALLEL FUNCTIONING OF THE REGULAR BENCH. ACCORDINGLY IN THE FACTS AND CIRCUMSTANCES WHEN THE MATTER WAS ALREADY KEPT ON TOP OF THE BOARD FOR TODAY I.E. 26.11.2019 AND A ROLL- OVER MATTER THE CASE IS TAKEN UP FOR HEARING AND A DJUDICATION EX PARTE. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT (A) IS WRONG UNJUST AND HAS ERRED IN LAW BY SO LELY RELYING ON FORM 26AS AND IN HOLDING THAT THE RECEIPTS AGGRE GATING TO RS. 853920/- FROM FOLLOWING PARTIES APPEARING IN FO RM 26AS OF THE APPELLANT PERTAINS TO THE APPELLANT AND SUSTAIN ING AN ADDITION OF RS. 8 53 920/- MADE BY LD. AO TO THE TO TAL INCOME. NAME OF COMPANY AMOUNT CREDITED TDS ABLY SOFT PVT LTD 54000.00 540.00 ANUKRATI BUILDERS & DEVELOPERS 19763.00 395.00 HARIRAM SABU PUBLIC SCHOOL 73066.00 1311.00 ENTERTAINMENT NETWORK INDIA LTD 106164.00 1062.00 INDIAN OIL CORP. LTD. 45597.00 912.00 JYOTI NURSING HOME PVT LTD. 162670.00 3253.00 K D FABRICS PVT LTD 76387.00 764.00 RAJVANSHI & ASSOCIATES 50000.00 500.00 SAURER TEXTILE SOLUATIONS PVT. LTD. 190102.00 3401.00 TAB INDIA GRANITES PVT. LTD 76171.00 1147.00 TOTAL : 853920.00 13285.00 3 ITA NO. 1095/JP/2019 SHRI RAHUL BHARGAVA JAIPUR. 2. WITHOUT PREJUDICE TO GROUND NO. 1 THAT ON THE F ACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT (A) IS WRONG UNJUST AND HAS ERRED IN LAW IN NOT APPLYING THE NET PROFIT RAT E OF 8% ON THE ABOVE RECEIPTS OF RS. 853920/-. 3. THAT THE APPELLANT CRAVES THE RIGHT TO ADD DELE TE AMEND OR ABANDON THE GROUND OF THIS APPEAL AT THE TIME OR BE FORE THE ACTUAL HEARING OF THE CASE. GROUND NO. 1 IS REGARDING THE ADDITION MADE BY THE AO ON ACCOUNT OF DISCREPANCY IN THE TURNOVER AS DECLARED BY THE A SSESSEE IN THE BOOKS OF ACCOUNTS AND IN FORM NO. 26AS AS WELL AS SHOWN IN T HE LEDGER ACCOUNT IN THE BOOKS OF ASIAN PAINTS LIMITED. 3. THE LD. A/R OF THE ASSESSEE HAS SUBMITTED THAT I N FORM NO. 26AS SOME AMOUNTS DO NOT PERTAIN TO THE ASSESSEE AS THE ASSES SEE HAS NEITHER RECEIVED THOSE AMOUNTS NOR ANY INVOICE WAS RAISED BY THE ASSESSEE. FURTHER HE HAS POINTED OUT THAT AN IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBU NAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2013-14 VIDE ORDER DATED 29 TH OCTOBER 2019 IN ITA NO. 884/JP/2018 WHEREBY THE TRIBUNAL HAS SET ASIDE THIS ISSUE TO THE RECORD OF THE AO FOR PROPER VERIFICATION OF THE FACTS AND ADJUDICATI ON. THUS THE LD. A/R HAS PLEADED THAT THE ISSUE MAY BE SET ASIDE TO THE RECORD OF TH E AO FOR VERIFICATION OF THESE FACTS OF WRONG ENTRIES IN THE FORM 26AS NOT PERTAINING TO THE ASSESSEE. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD. A/ R AND CAREFULLY PERUSED THE RELEVANT RECORD. AT THE OUTSET WE NOTE THAT THIS TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2013-14 VIDE ORDER DATED 29.10. 2019 IN ITA NO. 884/JP/2018 HAS CONSIDERED THIS ISSUE IN PARA 5 AS UNDER :- 4 ITA NO. 1095/JP/2019 SHRI RAHUL BHARGAVA JAIPUR. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD. WHILE MAKING THE ADDITION ON A CCOUNT OF UNDISCLOSED TURNOVER THE AO CONSIDERED THE ENTRIES IN FORM 26AS. THE ASSESSEE HAS SUBMITTED THAT AS MANY AS 12 ENTRI ES SHOWN IN THE FORM 26AS DO NOT PERTAIN TO THE ASSESSEE AS THE ASS ESSEE HAS NOT DONE ANY TRANSACTION WITH THESE PARTIES AND ALSO NO T RECEIVED ANY AMOUNT FROM THESE PARTIES. THE DETAILS OF THESE ENT RIES ARE AS UNDER :- SL.NO. NAME GROSS AMOUNT TDS (I) SHAKUNTLAM COLONISERS PVT LTD 51856.00 520.00 (II) ITC LIMITED 76800.00 768.00 (III) SIDBI 40737.00 815.00 (IV) WEDIG TECH SOLUTIONS PVT LTD 9200.00 92.00 (V) BENZOCHEM INDUSTRIES 66555.00 1332.00 (VI) RAJ RAJESHWARI BUILDRS 199000.00 3980.00 (VII) IMKEMEX INDIA PVT LTD 222000.00 2220.00 (VIII) RAHUL SEHGAL 115000.00 1150.00 (IX) SBI 82142.00 1642.00 (X) BANARSI DAS AUTOMOBILES LTD 46100.00 4610.00 (XI) DC MODEL SR SECONDARY SCHOOL 34501.00 346.00 (XII) MANISH BHALLA 94000.00 940.00 TOTAL 1037891.00 14266.00 THUS THE ADDITION MADE BY THE AO BY TAKING THE SHOR T DECLARATION OF TURNOVER TO THE EXTENT OF THIS AMOUNT IS CLAIMED AS UNJUSTIFIED AS THESE ARE NOT THE TRANSACTIONS OF THE ASSESSEE. THE ASSE SSEE HAS POINTED OUT THAT SOME OF THE TRANSACTIONS AS RECORDED IN TH E 26AS ARE ALSO IN RESPECT OF SOME OTHER RECEIPTS AND NOT FORMING THE PART OF THE TURNOVER. HOWEVER THE AO HAS NOT CONSIDERED THESE ENTRIES WHICH DO NOT CONSTITUTE THE TURNOVER OF THE ASSESSEE. ACCOR DINGLY IN THE FACTS AND CIRCUMSTANCES OF THE CASE WHEN THE ASSESSEE HAS SPECIFICALLY POINTED OUT THE TRANSACTIONS WHICH FOUND IN THE FOR M 26AS BUT NOT ENTERED INTO OR CARRIED OUT BY THE ASSESSEE NOR ANY AMOUNT WAS RECEIVED FROM THESE PARTIES ON ACCOUNT OF SUCH TRAN SACTIONS THEN THE MATTER REQUIRES TO BE PROPERLY VERIFIED WHETHER THE SE ENTRIES IN THE FORM 26AS ARE REPRESENTING THE TURNOVER OF THE ASSE SSEE OR NOT. 5 ITA NO. 1095/JP/2019 SHRI RAHUL BHARGAVA JAIPUR. FURTHER THE ASSESSEE HAS ALSO FILED BEFORE THE AO A RECONCILIATION STATEMENT WHEREIN CERTAIN ENTRIES ARE REVERSED BUT THE AO HAS NOT VERIFIED THIS FACT WHETHER CERTAIN ENTRIES ARE REVE RSED BY THE ASSESSEE AND THEREFORE CANNOT BE CONSIDERED AS PART OF THE TURNOVER FOR THE YEAR UNDER CONSIDERATION. ACCORDINGLY THIS ISSUE IS SET ASIDE TO THE RECORD OF THE AO FOR PROPER VERIFICATION OF THESE F ACTS REGARDING THE ENTRIES IN FORM 26AS NOT PERTAINING TO THE ASSESSEE AND CONSEQUENTLY DO NOT CONSTITUTE THE TURNOVER FOR THE YEAR AND SEC ONDLY IN THE RECONCILIATION STATEMENT THE ASSESSEE HAS SHOWN VAR IOUS ENTRIES AS REVERSED AND THEREFORE DO NOT FORM PART OF THE TU RNOVER FOR THE YEAR. NEEDLESS TO SAY THE AO SHOULD AFFORD AN APPROPRIAT E OPPORTUNITY OF HEARING BEFORE PASSING FRESH ORDER ON THIS ISSUE. ACCORDINGLY TO MAINTAIN THE RULE OF CONSISTENCY TH IS ISSUE ARISING FROM IDENTICAL SET OF FACTS IS SET ASIDE TO THE RECORD OF THE AO FOR P ROPER VERIFICATION OF THE FACTS REGARDING THE TRANSACTIONS AS APPEARING IN FORM 26A S BELONGING TO THE ASSESSEE OR NOT AND CONSEQUENTLY DECIDE THE ISSUE OF UNACCOUNTE D TURNOVER. FURTHER THE ASSESSEE HAS ALSO CLAIMED THAT AS PER THE RECONCILI ATION STATEMENT CERTAIN ENTRIES HAVE BEEN REVERSED AND THEREFORE DO NOT FORM PART OF THE TURNOVER FOR THE YEAR. HENCE THE AO SHALL VERIFY THIS ASPECT PROPERLY AND AFTER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE DECIDE THIS ISSUE AFRESH. GROUND NO. 2 IS REGARDING ADDITION MADE BY THE AO O F THE ENTIRE AMOUNT OF DIFFERENCE BETWEEN THE TURNOVER DECLARED BY THE ASSESSEE AND THE ENTRIES FOUND IN FORM 26AS INSTEAD OF APPLYING A REASONABLE NET PROFIT RATE AT 8%. 6 ITA NO. 1095/JP/2019 SHRI RAHUL BHARGAVA JAIPUR. 5. THE LD. A/R OF THE ASSESSEE HAS SUBMITTED THAT F OR THE A.Y 2013-14 THE AO HAS MADE THE ADDITION BY APPLYING NET PROFIT RATE O F 8% ON THE DIFFERENTIAL AMOUNT WHEREAS FOR THE YEAR UNDER CONSIDERATION THE AO HAS ADDED THE ENTIRE AMOUNT OF DIFFERENCE. THUS HE HAS SUBMITTED THAT EVEN IF A SU M IS FOUND TO BE CONSIDERED AS UNACCOUNTED TURNOVER OF THE ASSESSEE ONLY PROFIT E LEMENT CAN BE ADDED TO THE INCOME OF THE ASSESSEE AND NOT THE ENTIRE TURNOVER. 6. HAVING CONSIDERED THE SUBMISSIONS OF THE LD. A/R AND PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW WE FIND THAT THE LD. CIT (A) HAS ALREADY ALLOWED THE RELIEF TO THE ASSESSEE BY ACCEPTING THIS PLEA THAT ONLY NET P ROFIT RATE OF 8% ON THE DIFFERENTIAL RECEIPT SHALL BE ADDED TO THE INCOME. THE RELEVANT PART OF THE FINDING OF THE LD. CIT (A) IN PARA 2.3.3 IS AS UNDER :- 2.3.3. ON PERUSAL OF OVERALL FACTS ORDER OF A.Y. 2013-14 I FIND THAT IN THAT YEAR ALSO THERE ARE RECEIPTS FROM PAR TIES WHICH ASSESSEE CLAIMED AS NOT RELATED TO HIM. IN TH IS YEAR ALSO SOME RECEIPTS DO NOT RELATE TO HIM ACCORDING T O HIM. THIS FACT CANNOT BE ACCEPTED AS ASSESSEE DID NOT BR ING ANY EVIDENCE TO PROVE THAT THE SAME DOES NOT RELATE TO HIM. ACCORDINGLY ADDITION OF RS. 8 53 920/- IN REL ATION TO CREDIT FROM VARIOUS PARTIES IS CONFIRMED. BUT IN RE SPECT OF CREDIT OF RS. 14 06 819/- REPRESENTING REIMBURSEME NT OF EXPENSES AUTHORIZED REPRESENTATIVE ALTERNATE ARGUM ENT THAT NET PROFIT RATE OF 8% SHOULD BE APPLIED TO TH E SAME IS ACCEPTABLE. ASSESSING OFFICER IS DIRECTED TO APP LY NET PROFIT RATE OF 8% ON RECEIPTS OF RS. 14 06 819/- WH ICH WORKS OUT TO RS. 1 12 545/-. APPELLANT GETS RESULT ANT RELIEF. THESE GROUNDS OF APPEAL ARE PARTLY ALLOWED. 7 ITA NO. 1095/JP/2019 SHRI RAHUL BHARGAVA JAIPUR. ACCORDINGLY IN VIEW OF THE RELIEF GRANTED BY THE L D. CIT (A) THE GROUND NO. 2 OF THE ASSESSEES APPEAL IS NOT MAINTAINABLE AND LIABLE TO BE DISMISSED. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27/11/2019 . 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 TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27/11/2019. DAS/ VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT-SHRI RAHUL BHARGAVA JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT-THE INCOME TAX OFFICER WARD 4(2) J AIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR ITAT JAIPUR 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 1095/JP/2019} VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ@ ASST. REGISTRAR