RAMCHARAN AGARWAL, Jaipur v. ITO, Jaipur

ITA 324/JPR/2013 | 2008-2009
Pronouncement Date: 10-07-2013 | Result: Allowed

Appeal Details

RSA Number 32423114 RSA 2013
Bench Jaipur
Appeal Number ITA 324/JPR/2013
Duration Of Justice 3 month(s) 16 day(s)
Appellant RAMCHARAN AGARWAL, Jaipur
Respondent ITO, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 10-07-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 10-07-2013
Date Of Final Hearing 10-07-2013
Next Hearing Date 10-07-2013
Assessment Year 2008-2009
Appeal Filed On 25-03-2013
Judgment Text
1 ITA 324-13 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR BEFORE SHRI B.R. JAIN ACCOUNTANT MEMBER ITA NO. 324/JP/2013 ASSTT. YEAR : 2008-09. SHRI RAM CHARAN AGARWAL VS. THE INCOME-TAX OFFIC ER AGARWAL BHAWAN STATION ROAD WARD 7(3) CHOMU DISTT. JAIPUR. JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C.M. BATWARA RESPONDENT BY : MS ANITA RITESH DATE OF HEARING : 10.07.2013. DATE OF PRONOUNCEMENT : 10.07.2013. ORDER PER B.R. JAIN A.M. THIS APPEAL BY ASSESSEE AGAINST THE ORDER DATED 28 .01.2013 OF LD. CIT (APPEALS)- III JAIPUR RAISES THE FOLLOWING GROUNDS :- 1. THAT THE IMPUGNED ORDER IS AGAINST LAW AND FACT S OF THE CASE. 2. THAT THE LEARNED CIT (APPEALS) ERRED IN PASSING THE IMPUGNED ORDER WITHOUT CONSIDERING THE EFFECTS TO ASSESS THE INCOM E IN PRESCRIBED HEADS OF INCOME UNDER THE INCOME TAX ACT 1962. 3. THAT THE LEARNED CIT (APPEALS) ERRED IN CONFIRMI NG THE ASSESSED BUSINESS INCOME OF THE ASSESSEE RS. 1 50 000/- AGAINST THE P ROVISIONS OF SECT. 44AF OF THE INCOME TAX ACT. 4. THAT THE LEARNED CIT (APPEALS) ERRED IN PASSING THE IMPUGNED ORDER WITHOUT CONSIDERING THE DOCUMENTS PRODUCED BEFORE T HE LEARNED CIT (APPEALS) AND THE INCOME TAX OFFICER. 2 5. THAT THE LEARNED CIT (APPEALS) ERRED IN CONFIRMI NG THE REMAND REPORT WITHOUT ANY EVIDENCE IN SUPPORT OF REASONINGS FOR D ISALLOWING THE DEPOSITS IN BANK. 6. THAT THE LEARNED CIT (APPEAL) ERRED IN DISALLOWI NG THE CLAIM OF CIT PREMIUM RS. 4338/- BY MENTIONING THE DATE OF CERTIF ICATE ISSUED 19.11.2010 WHILE THE DATE OF PREMIUM PAID WAS SHOWI NG 24.03.2008. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E RETURNED INCOME OF RS. 1 13 090/- ON 11.07.2008. THE INCOME FROM BUSINESS WAS DEDUCE D AT RS. 1 23 324/- AND A DEDUCTION OF RS. 10 238/- UNDER SECTION 80C OF THE ACT WAS CL AIMED AGAINST SUCH INCOME. THE ASSESSEE CLAIMED TO BE RUNNING A JUICE CENTRE IN TH E NAME OF M/S. GOVINDAM JUICE & ICE CENTRE. THE TOTAL BUSINESS RECEIPTS WERE SHOWN AT RS. 2 83 829/-. INTEREST RECEIPTS OF RS. 55 450/- WERE ALSO DECLARED IN THE PROFITS & LOSS A CCOUNT. THE ASSESSEE AFTER CLAIMING VARIOUS EXPENSES HAS DEDUCED THE NET PROFIT FROM BU SINESS AT RS. 1 23 324/- AS AFORESAID. SINCE THE ASSESSEE DID NOT MAINTAIN ANY BOOKS OF AC COUNT NOR LAID ANY DOCUMENTARY EVIDENCE BEFORE THE ASSESSING AUTHORITY THE ASSESS ING OFFICER THEREFORE FOR WANT OF VERIFICATION OF SALE OR CLAIM OF EXPENSES PROCEEDED TO ESTIMATE INCOME OF RS. 1 50 000/-. THAT APART ASSESSING OFFICER ON THE BASIS OF DOCUM ENT FURNISHED DURING THE COURSE OF ASSESSMENT PROCEEDINGS FOUND THAT THE ASSESSEE HAS MADE CASH DEPOSIT OF RS. 1 57 000/- IN HIS BANK ACCOUNT. AS NO EXPLANATION REGARDING SO URCE OF DEPOSIT IS GIVEN HE PROCEEDED TO MAKE ADDITION UNDER SECTION 68 OF THE ACT. THE ASSESSING OFFICER DISALLOWED THE CLAIM UNDER SECTION 80C OF THE ACT FOR WANT OF PROO F. 3. THE LD. CIT (A) ALLOWED DEDUCTION UNDER SECTION 80C OF THE ACT FOR RS. 4734/- BUT FOUND NO MERIT IN THE CLAIM OF ASSESSEE FOR DED UCTION OF RS. 4 338/- ON ACCOUNT OF LIC PREMIUM AS THE SAME WAS FOUND PAID ON 19.11.201 0. THAT APART IN APPEAL THE ASSESSEE COULD NOT PRODUCE ANY EVIDENCE TO SUBSTANT IATE THE ORIGINAL OR REVISED PROFIT & 3 LOSS ACCOUNT AND BALANCE SHEET. HE THEREFORE REFU SED TO ACCEPT THE REVISED CLAIM OF APPELLANT WITH RESPECT TO THE ESTIMATION OF INCOME AT RS. 1 50 000/-. THE LD. CIT (A) ALSO SUSTAINED ADDITION OF RS. 1 57 000/- UNDER SEC TION 68 OF THE ACT BUT ALLOWED TELESCOPING THEREOF AGAINST BUSINESS INCOME. 4. IN APPEAL ASSESSEES COUNSEL TOOK THE GROUND TH AT HE RETURNED INCOME UNDER SECTION 44AF OF THE ACT. THE ASSESSING OFFICER HO WEVER HAS DISREGARDED THE STATUTORY PROVISIONS AND PROCEEDED TO ASSESS ARBITRARILY AT A HIGHER INCOME OF RS. 1 50 000/- BESIDES ADDITION OF RS. 1 57 000/- AS CASH CREDIT. THE ASSESSEE HAD RAISED LOANS AND THE BORROWED SUMS WERE ADVANCED FOR EARNING INTEREST IN COME OF RS. 55 450/-. THIS INCOME WAS DULY DISCLOSED IN THE PROFIT & LOSS ACCOUNT FOR MING PART OF NET PROFIT OF RS. 1 23 324/- WHICH OUGHT TO HAVE BEEN ASSESSED AS INC OME FROM OTHER SOURCES. THERE IS NO JUSTIFICATION IN ESTIMATION OF INCOME AND MAKING FU RTHER ADDITION AS CASH CREDIT AFTER ALLOWING PROVISIONS OF SECTION 144 OF THE ACT. 5. ON THE OTHER HAND LD. D/R CONTENDS THAT THE ASS ESSEE HIMSELF HAS DISCLOSED THE INTEREST INCOME AS INCOME FROM BUSINESS BUT PRODUCE D NO ACCOUNTS BEFORE EITHER OF THE AUTHORITIES BELOW. HE HAS ALSO NOT LAID ANY DOCUMEN TARY EVIDENCE TO SUPPORT HIS CLAIM OF RAISING LOANS AND GIVING FURTHER ADVANCES RESULTING IN RECEIPT OF INTEREST INCOME. ASSESSEE HAS BEEN TAKING DIFFERENT PLEAS AT DIFFERE NT POINTS OF TIME BEFORE THE AUTHORITIES BELOW AND NOW BEFORE THE APPELLATE TRIBUNAL ALSO. THE RETURN FILED IS NOT A RETURN UNDER SECTION 44AF OF THE ACT. IT THEREFORE REQUIRES T O BE DISMISSED. 6. I HAVE HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECORD. THE ASSESSEE HAD LAID NO BASIS NOR PRODUCED ANY DOCUMENTARY EVIDENCE TO SUBS TANTIATE THE NET PROFIT WORKED OUT AT RS. 1 23 324/- OR EVEN FOR CLAIM OF DEDUCTION UNDER SECTION 80C OF THE ACT FOR RS.4 338/-. 4 THE ASSESSEE CLAIMED THAT HE WAS LIABLE TO BE ASSES SED UNDER SECTION 44AF OF THE ACT. THERE IS NO APPLICATION OF MIND BY THE AUTHORITIES BELOW TO THIS FACT OF THE MATTER. THE DOCUMENTS SUCH AS BALANCE SHEET AND PROFIT & LOSS A CCOUNT ARE CLAIMED TO HAVE BEEN REVISED BEFORE LD. CIT (A) BUT SUCH DOCUMENTS WERE NOT ADMITTED NOR ANY ENQUIRY THEREON HAS BEEN MADE BY THE ASSESSING AUTHORITY FO R ARRIVING AT A REASONABLE AND JUST CONCLUSION. I THEREFORE IN THE INTEREST OF SUBSTA NTIAL JUSTICE CONSIDER IT PROPER IN A CASE LIKE THIS WHERE ASSESSMENT HAS BEEN FRAMED UNDER SE CTION 144 OF THE ACT TO SET ASIDE THE ADDITIONS AND REMIT THE MATTER BACK TO THE ASSESSIN G AUTHORITY SO THAT COMPLETE ENQUIRY ON THE CLAIMS MADE BY THE ASSESSEE IS MADE AND DECI SION TAKEN AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE AND EFFECTIVE OPPORT UNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES ONLY AS ANNOUNCED IMMEDIATELY AFTER CONCLUSION OF HEARIN G ON 10.07.2013. SD/- ( B.R. JAIN ) ACCOUNTANT MEMBER JAIPUR DATED : 10/07/2013. D/- COPY FORWARDED TO :- SHRI RAM CHARAN AGARWAL CHOMU DISTT. JAIPUR. THE ITO WARD 7(3) JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 324/JP/2013) BY ORDER AR ITAT JAIPUR. 5