DCIT, Jaipur v. GEM INDIA EXPORT, Jaipur

ITA 283/JPR/2011 | 2003-2004
Pronouncement Date: 28-07-2011 | Result: Dismissed

Appeal Details

RSA Number 28323114 RSA 2011
Bench Jaipur
Appeal Number ITA 283/JPR/2011
Duration Of Justice 3 month(s) 28 day(s)
Appellant DCIT, Jaipur
Respondent GEM INDIA EXPORT, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 28-07-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 28-07-2011
Assessment Year 2003-2004
Appeal Filed On 31-03-2011
Judgment Text
1 ITA 283(2)-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 283 & 284/JP/2011 ASSTT. YEAR : 2003-04 & 2004-05. THE DCIT CIRCLE-2 VS. M/S. GEM INDIA EXPORT JAIPUR. 4780 KGB KA RASTA JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : SHRI G.G. MUNDRA ORDER DATE OF ORDER : 28/07/2011. PER BENCH : THE DEPARTMENT IS OBJECTING IN DELETING THE PENALT Y OF RS. 6 45 058/- AND RS. 5 80 385/- LEVIED BY AO UNDER SECTION 271(1)(C) FOR ASSESSMENT YEARS 2003-04 AND 2004- 05 RESPECTIVELY. 2. ON ACCOUNT OF UNVERIFIABLE PURCHASE THE TRADING ADDITIONS OF RS. 34 12 657/- AND RS. 21 63 184/- WERE MADE BY THE AO FOR ASSESSMENT YEARS 2003-04 AND 04-05 RESPECTIVELY. NOTICE UNDER SECTION 271(1)(C) WAS AL SO ISSUED. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE THE AO WAS NOT SATISFI ED AS IN HIS VIEW THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS TO CONCEAL THE INC OME THEREFORE HE LEVIED THE IMPUGNED ADDITION FOR BOTH THE YEARS. IT WAS CONTENDED BEFO RE LD. CIT (A) THAT THE ADDITION WAS MADE BY INVOKING PROVISIONS OF SECTION 145(3) AND T HE AO APPLIED 31% AND 26% GROSS PROFIT RATE AS AGAINST 27.47% AND 23.22% DECLARED BY THE ASSESSEE FOR ASSESSMENT YEARS 2 2003-04 AND 2004-05 RESPECTIVELY. IN SECOND APPEAL GROSS PROFIT RATE OF 31% WAS REDUCED TO 28% AND GROSS PROFIT RATE OF 26% WAS RED UCED TO 24% RESPECTIVELY. IT WAS SUBMITTED THAT ASSESSEE HAS NOT CONCEALED ANY FACTS OR PARTICULARS AS COMPLETE DETAILS OF UNVERIFIABLE PURCHASES I.E. PURCHASE VOUCHERS PAYM ENT PROOF WERE FILED. THE NAME AND ADDRESS OF THE PARTIES SHOWING THEIR PAN NUMBER WAS FILED. THEREFORE THIS IS NOT A CASE OF FURNISHING INACCURATE PARTICULARS. THE LD. CIT (A) AFTER CONSIDERING THE SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD FOUND THAT THE TRADING ADDITION HAS BEEN REDUCED TO 28% AND 24% FOR BOTH THE YEARS RESPECTIVELY. NOTHIN G HAS BEEN BROUGHT ON RECORD THAT WHICH INACCURATE PARTICULARS FURNISHED BY THE ASSES SEE. ALL THE DETAILS IN RESPECT TO PURCHASES WERE FILED AND TRADING ADDITION MADE ON E STIMATE BASIS DOES NOT ATTRACT PENALTY PROCEEDINGS THEREFORE HE CANCELLED THE LEVY OF PE NALTY FOR BOTH THE YEARS. 3. NOW THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL FOR BOTH THE YEARS. 4. THE LD. D/R PLACED RELIANCE ON THE ORDER OF A.O. 5. ON THE OTHER HAND LD. COUNSEL OF THE ASSESSEE P LACED RELIANCE ON THE ORDER OF LD. CIT (A). FURTHER BRIEF NOTE IN THE SHAPE OF WRITT EN SUBMISSIONS WAS ALSO FILED. 6. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. C IT (A) AND SUBMISSIONS WE FIND THAT THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT (A). ADDITION SUSTAINED IS ONLY ON ACCOUNT OF ENHANCING THE GROSS PROFIT AGAINST GROSS PROFIT RATE DECLARED BY THE ASSESSEE. IT\ MEANS THE ADDITION HAS BEEN SUSTAINED ON ESTIMATION BASIS. ALL THE DETAILS RELATING TO THE PURCHASES WERE FILED. THEREFORE WE ARE OF THE VIE W THAT LD. CIT (A) WAS JUSTIFIED IN CANCELING THE LEVY OF PENALTY. SIMILAR VIEW HAS BE EN EXPRESSED IN THE CASE OF PURNIMA DEVI GUPTA 3 SOT 753 AND IN CASE OF AVON CRANES P. LTD. 1 SOT 607. THEREFORE IN VIEW OF THESE FACTS AND CIRCUMSTANCES AND IN VIEW OF THE REASONING GIVEN BY LD. CIT (A) 3 WHICH REMAINED UNCONTROVERTED WE CONFIRM THE CANC ELLATION OF PENALTY FOR BOTH THE YEARS. 7. IN THE RESULT APPEALS OF THE DEPARTMENT ARE DIS MISSED. 8. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 28. 7.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR D/- COPY FORWARDED TO :- THE DCIT CIRCLE-2 JAIPUR. M/S. GEM INDIA EXPORT JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 283(2)/JP/2011) BY ORDER AR ITAT JAIPUR.