ACIT, Salem v. Sri K.K.Rangasamy, Komarapalayam

ITA 1204/CHNY/2010 | 2001-2002
Pronouncement Date: 22-07-2011 | Result: Dismissed

Appeal Details

RSA Number 120421714 RSA 2010
Assessee PAN AACPR2298F
Bench Chennai
Appeal Number ITA 1204/CHNY/2010
Duration Of Justice 1 year(s) 1 day(s)
Appellant ACIT, Salem
Respondent Sri K.K.Rangasamy, Komarapalayam
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 22-07-2011
Date Of Final Hearing 06-07-2011
Next Hearing Date 06-07-2011
Assessment Year 2001-2002
Appeal Filed On 21-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B CHENNAI BEFORE SHRI HARI OM MARATHA J.M. AND SHRI N.S. SAINI AM .. I.T.A. NO. 1204 & 1205/MDS/2010 ASSESSMENT YEAR 2001-02 & 2002-03 THE ASSTT COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE SALEM VS. SHRI K.K. RANGASAMY PROP. M/S RAHUL RAJA TEXTILES NO. 18-A [NEW NO. 10] HIGH SCHOOL ROAD KOMARAPALAYAM NAMAKKAL DISTRICT PAN : AACPR 2298 F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. SRIDHAR DEPARTMENT BY : SHRI P.B. SEKHARAN CIT O R D E R PER BENCH :- BOTH THESE APPEALS FILED BY THE REVENUE ARE DIRECTE D AGAINST THE ORDER PASSED BY THE CIT(A) SALEM DATED 03.05.2 010 FOR ASSESSMENT YEARS 2001-02 AND 2002-03 RESPECTIVELY. PAGE 2 OF 4 ITA. NOS. 1204 & 1205/MDS/2010 2. IN ASSESSMENT YEARS 2001-02 AND 2002-03 THE SOL E GROUND OF APPEAL TAKEN BY THE REVENUE IS THAT THE LD. CIT(A) ERRED IN DELETING ADDITION OF RS. 11 73 338/- IN ASSESSMENT YEAR 20 01-02 AND RS. 57 25 666/- IN ASSESSMENT YEAR 2002-03 TOWARDS PEAK CASH SALES BY ACCEPTING THE WORKING OF THE ASSESSEE REGARDING PEA K CREDIT. 3. THE LD. CIT(A) HAS DECIDED THE ISSUE BY 8.12 TO END 4. THE LD. D.R. SUBMITTED THAT THE CLAIM OF THE ASS ESSEE FOR WORKING OUT PEAK CREDITS WAS ACCEPTED AS PER WORKIN G OF THE ASSESSEE AND THEREFORE THE LD. CIT(A) WAS NOT JUST IFIED IN DELETING THE ADDITION. 5. THE LD. D.R. SUPPORTED THE ORDER OF THE LD. CIT( A). 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE A SEARCH WAS CONDUCTED ON 10.11.2005 AT THE PREMISES PAGE 3 OF 4 ITA. NOS. 1204 & 1205/MDS/2010 OF THE ASSESSEE AND BOOKS OF ACCOUNT AND DOCUMENTS WERE SEIZED. THE ASSESSING OFFICER FOUND THAT HE ASSESSEE HAS BE EN RESORTING TO CASH SALES TO BOOST UP CASH AVAILABILITY. THE ASSE SSEE WAS ASKED TO CLARIFY THE POSITION AND THE ASSESSEE FILED WORKING SHOWING AGGREGATE SALES OF RS. 2.62 CRORES AND PEAK CREDIT OF RS. 2 0 25 000/- SPREAD OVER A PERIOD OF THREE YEARS VIZ. RS. 90 000/- IN ASSESSMENT YEAR 2000-01 RS. 10 25 000/- IN ASSESSMENT YEAR 2001-0 2 AND RS. . 9 10 2003-04. THE ASSESSING OFFICER ALSO OBSERVED THAT THE ASSESSEE HAS SHOWN THE HIGHEST FIGURE OF SALES OF RS. 1 55 45 000/- IN THE ASSESSMENT YEAR 2002-03. THE ASSESSING OFFICER WOR KED OUT THE PEAK WHICH SHOULD HAVE BEEN SHOWN BY THE ASSESSEE B Y TAKING ONLY THE SALES OF THE ASSESSEE AS AGAINST THE ASSESSEE S HOWING THE PEAK AFTER CONSIDERING THE PURCHASES ALSO AND THEREBY MA DE ADDITION OF RS. 11 73 338/- IN ASSESSMENT YEAR 2001-02 AND RS. 57 25 666/- IN ASSESSMENT YEAR 2002-03 ON ACCOUNT OF BOGUS CREDIT BY WAY OF CASH SALES. IN APPEAL THE LD. CIT(A) DELETED THE ADDIT ION HOLDING THAT THE ASSESSING OFFICER HAS TAKEN THE ENTIRE SALES AL ONE FOR ARRIVING AT PEAK WITHOUT CONSIDERING PURCHASES SHOWN BY ASSESSE E AND IT WAS NOT A CORRECT METHOD. THE LD. D.R. COULD NOT POINT OUT ANY SPECIFIC MISTAKE IN THE ABOVE FINDING OF THE LD. CIT(A). TH E LD. D.R. ALSO PAGE 4 OF 4 ITA. NOS. 1204 & 1205/MDS/2010 COULD NOT EXPLAIN BY BRINGING MATERIAL ON RECORD AS TO WHAT WAS THE MISTAKE IN THE ASSESSEES WORKING IN SHOWING PEAK S ALES AFTER TAKING INTO CONSIDERATION THE PURCHASES SHOWN BY THE ASSES SEE. IN OUR CONSIDERED OPINION THE INCOME OF THE ASSESSEE HAS T O BE ASSESSED TO TAX AND NOT THE RECEIPT REPRESENTED BY CASH SALES O F THE ASSESSEE. THEREFORE WE DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). IT IS CONFIRMED. THE GROUNDS OF APPEAL FOR BOTH THE YEARS UNDER CONSIDER ATION ARE DISMISSED. 7. IN THE RESULT THE APPEALS OF THE ASSESSEE ARE D ISMISSED. ORDER PRONOUNCED IN THE COURT ON 22ND JULY 2011. SD/- SD/- ((HARI OM MARATHA ) (N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI DATED THE 22 ND JULY 2011. VL COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE