M/s Master International, Agra v. ITO, Agra

ITA 347/AGR/2009 | 2005-2006
Pronouncement Date: 09-03-2011 | Result: Dismissed

Appeal Details

RSA Number 34720314 RSA 2009
Assessee PAN AACFM0682Q
Bench Agra
Appeal Number ITA 347/AGR/2009
Duration Of Justice 1 year(s) 6 month(s) 8 day(s)
Appellant M/s Master International, Agra
Respondent ITO, Agra
Appeal Type Income Tax Appeal
Pronouncement Date 09-03-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 09-03-2011
Date Of Final Hearing 09-03-2011
Next Hearing Date 09-03-2011
Assessment Year 2005-2006
Appeal Filed On 31-08-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH AGRA BEFORE SHRI P.K. BANSAL ACCOUNTANT MEMBER AND SHRI H.S. SIDHU JUDICIAL MEMBER ITA NO.347/AGR/2009 ASST. YEAR: 2005-06 M/S. MASTER INTERNATIONAL VS. INCOME TAX OFFICER 1(2) SHOE MARKET AGRA. HING KI MANDI AGRA. (PAN : AACFM 0682 Q). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUBHASH AGARWAL ADVOCATE RESPONDENT BY : SHRI A.K. SHARMA KUMAR JR. D.R. ORDER PER BENCH : THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST T HE ORDER DATED 29.06.2009 PASSED BY THE CIT(A)-I. 2. THE ASSESSEE IS A PARTNERSHIP FIRM FILED ITS RET URN OF INCOME SHOWING TOTAL INCOME OF ` 83 698/- ON 31.10.2005 ALONG WITH COPY OF AUDIT REP ORT DATED 29.10.2005 AS REQUIRED UNDER THE PROVISIONS OF SECTION 44AB OF THE INCOME TAX ACT 1 961 (THE ACT HEREINAFTER). THE ASSESSING OFFICER PROCESSED THE SAME UNDER SECTION 143(1) OF THE ACT AND ISSUED NOTICE UNDER SECTION 142(1) WITH QUESTIONNAIRE REQUIRING INTER-ALIA TO P RODUCE PURCHASE AND SALE VOUCHERS AND VOUCHERS OF EXPENDITURE CLAIMED AND DEBITED IN PROF IT & LOSS ACCOUNT AND DIRECTED THE ASSESSEE TO APPEAR BEFORE HIM ON 29.10.2007. IN RESPONSE TO THE SAME NEITHER THE ASSESSEE NOR HIS LD. AUTHORISED REPRESENTATIVE (A.R.) APPEARED AND THE A SSESSING OFFICER ADJOURNED THE CASE FOR 06.11.2007. SHRI POORAN CHAND AGARWAL ATTENDED THE PROCEEDINGS AND FILED A WRITTEN REPLY 2 STATING THEREIN THAT THERE IS SOME DECLINE IN GROSS PROFIT (G.P.) RATE IN THE YEAR IN QUESTION AND IT WAS BECAUSE OF THE SALES HAVE GONE UP BY ` 20 00 000/- AND THE NET PROFIT (N.P.) IS MORE THAN THE PROFIT OF EARLIER TWO YEARS. THE ASSESSING OFF ICER ASKED THE ASSESSEE TO PRODUCE PARA-WISE REPLY TO THE QUESTIONNAIRE ISSUED ON 19.10.2007 AND THE CASE WAS ADJOURNED TO 15.11.2007. ON 15.11.2007 THE ASSESSEES COUNSEL ATTENDED AND HE WAS AGAIN ASKED TO SUBMIT MONTH-WISE PURCHASES MADE DETAILS OF SALARY AND EVIDENCE OF E XPENSES SUCH AS STATIONERY ADVERTISEMENT GENERAL AND TRAVELLING ETC. AND ASKED HIM TO PRODUC E ALL VOUCHERS AND BANK ACCOUNT MAINTAINED AND ADJOURNED THE CASE FOR 23.11.2007. ON 23.11.20 07 THE ASSESSEES COUNSEL ATTENDED AND IT WAS ASKED FROM HIM TO SUBMIT THE CONFIRMATION FROM SUNDRY CREDITORS EXCEEDING ` 20 000/- WITH DETAILS OF PURCHA ACCOUNT AND EVIDENCES TO THIS EFF ECT AND THE MATTER WAS POSTED FOR HEARING ON 28.11.2007. ON THE DATE WRITTEN REPLY DATED 28.11 .2007 WAS FILED WITH EVIDENCE AS TO PURCHA ACCOUNT BUT NO DESCRIPTIVE DETAILS WITH COMPLETE N AME AND ADDRESS OF KARIGARS WERE FILED. THE ASSESSING OFFICER OBSERVED THAT TOTAL SALE IN THE Y EAR IN QUESTION EFFECTED AT ` 83 25 622/- AS AGAINST TOTAL PURCHASE OF ` 65 51 923/- MADE IN THE YEAR WITH OPENING STOCK OF ` 78 943/-. AS PER COPY OF AUDITED BALANCE SHEET DATED 29.10.2005 THE TOTAL SUNDRY CREDITORS HAVE BEEN SHOWN AT ` 77 91 058/- OF THEM ` 70 42 800/- REPRESENTED AS PURCHA ACCOUNT. AS TO VERACITY OF PURCHA ACCOUNT THE ASSESSEE HAS PRODUCED KHARID WAHI WITHO UT NAMES AND ADDRESSES OF THE KARIGARS FROM WHOM THE SHOES WERE CLAIMED TO HAVE BEEN PURCH ASED ON PURCHA BASIS AND ALSO SHOWN HIS INABILITY TO FURNISH THEIR FULL ADDRESSES. THE ASS ESSING OFFICER ALSO OBSERVED IN THE ASSESSMENT ORDER THAT WHEN THE ASSESSEE WAS ASKED TO PRODUCE T HEM IN PERSON THE ASSESSEE HAS EXPRESSED HIS INABILITY TO PRODUCE THEM AND ALSO HE WAS UNABL E TO GET THE KHARID WAHI VERIFIED AS TO WHEN THE PAYMENT OF PURCHA WAS MADE. THE ASSESSING OFFI CER ISSUED A SHOW CAUSE TO THE ASSESSEE AS TO WHY THE SAME PURCHA ACCOUNT MAY NOT BE DISALLOWE D IN ABSENCE OF ITS VERIFICATION AND THE CASE WAS FINALLY ADJOURNED TO 30.11.2007. AFTER CONSIDE RING THE REPLY FILED BY THE ASSESSEE ALONG WITH 3 OTHER DOCUMENTARY EVIDENCES THE ASSESSING OFFICER COMPLETED THE ASSESSMENT ON 20.12.2007 UNDER SECTION 143(3) OF THE ACT BY MAKING ADDITIONS INCLUDING THE ADDITION IN DISPUTE. AGGRIEVED BY THE SAME THE ASSESSEE FILED APPEAL BE FORE THE LD. FIRST APPELLATE AUTHORITY WHO VIDE ORDER DATED 29.06.2009 PARTLY ALLOWED THE APPE AL OF THE ASSESSEE BY GIVING RELIEF OF ` 4 22 735/- ON ACCOUNT OF PURCHA ACCOUNT AND SUSTAIN ED THE ADDITION OF ` 10 000/- OUT OF ` 42 520/- ON ACCOUNT OF EXPENSES. HENCE SUSTAINED T HE ADDITION OF ` 1 23 257/- VIDE IMPUGNED ORDER DATED 29.06.2009. AGGRIEVED BY THE SAME THE ASSESSEE HAS FILED THE PRESENT APPEAL. 3. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE LD. FIRST APPELLATE AUTHORITY IS NOT JUSTIFIED IN MAINTAINING THE ADDIT ION OF ` 1 23 257./- ON THE GROUND OF G.P. RATE. HE FURTHER STATED THAT THE ASSESSING OFFICER DID NO T DISTURB AND MADE ANY ADDITION ON G.P. RATE BASIS AND LD. CIT(A) HAS WRONGLY ADOPTED THE SAME W HICH IS NOT ARISING FROM THE ASSESSMENT ORDER. HE ALSO ARGUED THAT ALL VOUCHERS ARE VERIFI ABLE BECAUSE ALL SALES ARE ON CREDIT BASIS AND PURCHASES ARE SUPPORTED BY KHARID WAHI WHICH CONTAI N ALL THE DETAILS INCLUDING NAMES OF AND ADDRESSES OF KARIGARS OF SHOE PURCHASED WHICH HAS N OT BEEN DOUBTED BY THE ASSESSING OFFICER HE REQUESTED THAT THE ADDITION OF ` 1 23 257/- MAY BE DELETED. NO OTHER ARGUMENT HAS B EEN ADVANCED BY THE LD. COUNSEL FOR THE ASSESSEE. ON T HE CONTRARY THE LD. D.R. RELIED UPON THE ORDER PASSED BY THE LD. FIRST APPELLATE AUTHORITY. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT RECORDS AVAILABLE WITH US. WE ARE OF THE CONSIDERED OPINION THAT THE LD. FIRST AP PELLATE AUTHORITY MADE THE ADHOC ADDITION UPHOLDING THE ACTION OF THE ASSESSING OFFICER TAKEN UNDER THE PROVISIONS OF SECTION 143(3) OF THE ACT. THE ASSESSING OFFICER HAS MADE ADDITION OF ` 5 45 992/- BEING AVERAGE ONE MONTH PURCHASES AS UNDISCLOSED INVESTMENT OF TOTAL PURCHA SES OF ` 65 51 923/- FOR 12 MONTHS BUT THE LD. 4 FIRST APPELLATE AUTHORITY AFTER CONSIDERING THE ARG UMENT OF THE LD. COUNSEL FOR THE ASSESSEE AND KEEPING IN VIEW THE FACTS THAT THE PURCHASES ARE NO T VERIFIABLE AND ON THE BASIS OF TRADING RESULT FURNISHED BY THE ASSESSEE FOR THE EARLIER YEARS AND APPLIED 10% G.P. RATE WHICH WORKS OUT TO ` 8 32 562/-. SINCE THE ASSESSEE HAS OFFERED G.P. OF ` 7 09 305/- FOR TAX THEREFORE THE LD. FIRST APPELLATE AUTHORITY HAS SUSTAINED THE ADDITION TO T HE EXTENT OF ` 1 23 257/- AND THE ASSESSEE GETS RELIEF FROM THE LD. FIRST APPELLATE AUTHORITY AMOUN TING TO ` 4 22 735/-. IN OUR CONSIDERED OPINION SUFFICIENT RELIEF HAS BEEN GIVEN BY THE LD . FIRST APPELLATE AUTHORITY ON THE BASIS OF ARGUMENTS ADVANCED BY THE LD. COUNSELS FOR THE ASSE SSEE AND EVIDENCES PRODUCED BY THE ASSESSEE BEFORE HIM. THEREFORE WE ARE OF THE CONSIDERED OP INION THAT NO INTERFERENCE IS CALLED FOR IN THE WELL REASONED ORDER PASSED BY THE LD. FIRST APPELLA TE AUTHORITY. WE UPHOLD THE IMPUGNED ORDER PASSED BY THE LD. FIRST APPELLATE AUTHORITY BY DISM ISSING THE APPEAL FILED BY THE ASSESSEE. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISS ED. (ORDER PRONOUNCED IN THE OPEN COURT ON 09.03.2011) . SD/- SD/- (P.K. BANSAL) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: AGRA DATE: 9 TH MARCH 2011 PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR ITAT AGRA BENCH AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL AGRA TRUE COPY