ITO, Wd. 1(4),, Parbhani v. Shri Narendra K. Sankhala, Parbhani

ITA 601/PUN/2011 | 2006-2007
Pronouncement Date: 30-07-2012 | Result: Dismissed

Appeal Details

RSA Number 60124514 RSA 2011
Bench Pune
Appeal Number ITA 601/PUN/2011
Duration Of Justice 1 year(s) 2 month(s) 20 day(s)
Appellant ITO, Wd. 1(4),, Parbhani
Respondent Shri Narendra K. Sankhala, Parbhani
Appeal Type Income Tax Appeal
Pronouncement Date 30-07-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 30-07-2012
Date Of Final Hearing 27-07-2012
Next Hearing Date 27-07-2012
Assessment Year 2006-2007
Appeal Filed On 10-05-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI G.S.PANNU ACCOUNTANT MEMBER. ITA.NO.601/PN/2011 (ASSTT. YEAR : 2006-07) ITO WARD-1(4) PARBHANI. .. APPELLANT VS. SHRI NARENDRA K.SANKHALA SHIVAJI CHOK PARBHANI. .. RESPONDENT AND CO.NO.27/PN/2011 (ASSTT. YEAR : 2006-07) SHRI NARENDRA K.SANKHALA SHIVAJI CHOK PARBHANI. .. APPELLANT VS. ITO WARD-1(4) PARBHANI. .. RESPONDENT RESPONDENT BY : MS.ANN KAPTHUAMA APPELLANT BY : SHRI SUNIL GANOO DATE OF HEARING : 27.07.2012 DATE OF PRONOUNCEMENT : 30.07.2012 ORDER PER SHAILENDRA KUMAR YADAV JM : THIS APPEAL OF REVENUE AND CROSS OBJECTIONS ARE AR ISING FROM THE SAME ORDER SO THEY ARE BEING DISPOSED OFF BY A COMMON ORDER FOR THE SAKE OF CONVENIENCE. IN ITA.NO.601/PN/2011 THE REVENUE HAS RAISED FOLL OWING GROUNDS: 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE HON 'BLE CIT(A) AURANGABAD HAS ERRED IN DELETING THE ADDIT ION OF RS.18 26 000/-. 2. ON THE FACT AND CIRCUMSTANCES OF THE CASE THE HON' BLE CIT(A) AURANGABAD ERRED IN DELETING THE ADDITION OF RS.18 26 000/- RELYING MERELY ON ASSESSEES SAY THAT THE STOCK OF RS.19 25 484/- WAS SOLD WITHOUT ANY CORROBORATIVE E VIDENCE OF SALE BILLS. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE HON' BLE CIT(A) AURANGABAD ERRED IN UPHOLDING THE ASSESSEES EXPLA NATION OF DEPOSIT OF CASH OF RS.18 26 000/- IN BANK WITHOUT P RODUCTION OF ANY DOCUMENTARY EVIDENCE TO SUBSTANTIATE HIS CLA IM. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS ENG AGED IN THE BUSINESS OF STATIONERY TRADING. THE APPELLANT HAS FILED RETURN OF INCOME IN RESPONSE TO NOTICE U/S.148 ON 04.12.2009 DECLARING INCOME OF RS.98 510/-. THE ASSESSING OFFICER MADE ADDITION OF RS.18 26 000 WHICH WAS DELETED BY THE CIT(A) AFTER CALLING REMAND REPORT. THE SAME HAS BEEN OPPOSED BEFORE US ON BEH ALF OF THE REVENUE. ON THE OTHER HAND THE LD. AUTHORISED REP RESENTATIVE OF THE ASSESSEE SUPPORTED THE ORDER OF THE CIT(A). 3. WE FIND THAT THE ASSESSING OFFICER MADE ADDITION OF RS.18 26 000/-. THE STAND OF THE ASSESSING OFFICER OBSERVED THAT CLOSING STOCK AS ON 31.03.2005 WAS ONLY RS.1 73 437 /- AND HENCE SAME COULD NOT BE SOLD AT RS.19 25 484/- IN F.Y. 20 05-06 I.E. THE YEAR UNDER APPEAL WAS NOT CORRECT. WHILE ARRIVING AT THE CLOSING STOCK ON THE BASIS OF PURCHASE AND SALE FIGURES APP EARING IN THE SALES TAX RETURNS OF THE ASSESSEE THE ASSESSING OF FICER HAS NOT CONSIDERED OPENING STOCK AND GROSS PROFIT WHICH ARE REQUIRED TO BE CONSIDERED FOR ARRIVING AT CLOSING STOCK. THE ASSE SSING OFFICER HAS MERELY REDUCED THE SALE FIGURE FROM PURCHASE AND TH E DIFFERENCE HAS BEEN CONSIDERED AS CLOSING STOCK. AS PER TRADING A CCOUNT AND SALES TAX RETURNS FILED BY THE ASSESSEE ON THE RECORD OF THE ASSESSING OFFICER CLOSING STOCK AS ON 31.03.2005 IS ARRIVED AT AS UNDER: 3 A.Y. OPENING STOCK RS. PURCHASES RS. G.P.RS. SALES RS. CLOSING STOCK RS. 2004 - 05 12 32 323/ - 9 55 466/ - 1 40 665/ - 8 45 480/ - 14 82 974/ - 2005 - 06 14 82 974/ - 9 88 865/ - 1 66 765/ - 9 25 414/ - 17 13 190/ - 2006 - 07 17 13 190/ - NIL 2 12 294/ - 19 25 484/ - NIL 4. IN VIEW OF THE ABOVE THE STAND OF THE ASSESSEE THAT HE HAS SOLD OPENING STOCK AS ON 01.04.2005 AMOUNTING TO RS.17 1 3 190 DURING F.Y. 2005-06 RELEVANT TO A.Y. 2006-07 FOR RS.19 25 484/- AND SALE PROCEEDS WERE DEPOSITED IN BANK ACCOUNT FROM TIME T O TIME WAS FOUND TO BE REASONABLE AND HENCE ACCEPTED. THE STA ND OF THE ASSESSING OFFICER THAT ASSESSEE HAS NOT SUBMITTED T HE DETAILS OF PERSONS TO WHOM GOODS WERE CLAIMED TO SOLD WAS NOT ACCEPTED AS THE ASSESSEE HAS NOT MAINTAINED REGULAR BOOKS OF AC COUNTS. THE ASSESSEE HAS PREPARED TRADING AND PROFIT AND LOSS A CCOUNT AND BALANCE SHEET ON THE BASIS OF NOTINGS AND HAS OFFER ED THE TAX NET PROFIT AT 5% U/S.44AF. THE OBJECTION OF THE ASSESS ING OFFICER THAT ASSESSEE HAS DEPOSITED CASH IN BANK ACCOUNT AND THE REAFTER ON THE SAME DAY OR ON NEXT DAY HAS ISSUED CHEQUE TO M/S.AM BILWADE BROTHERS WAS ALSO NOT FOUND CORRECT BY THE CIT(A) A S THE ASSESSEE HAS TAKEN LOAN FROM THE SAID PARTY ON INTEREST FOR REPAYING LOAN TO THE BANK AND THEREFORE AFTER DEPOSITING THE SALE PR OCEEDS THE ASSESSEE HAS REFUNDED THE LOAN TO THE EXTENT POSSIB LE BY ISSUING CHEQUES TO THE SAID PARTY FOR REDUCING INTEREST PAY MENT. THE DEPOSIT OF RS.18 26 000/- IN SANGLI URBAN CO-OPERAT IVE BANK DURING THE YEAR UNDER CONSIDERATION WAS RIGHTLY FOU ND TO BE OUT OF THE SALE PROCEEDS OF STOCK OF STATIONERY AS ON 01.0 4.2005 AND THE DEPOSITS OF THE SAME STOOD EXPLAINED. IN VIEW OF T HE ABOVE CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS.18 26 000/- ON ACCOUNT OF ALLEGED UNEXPLAINED CASH DEPOSIT IN SANGLI URBAN CO-OPERATIVE BANK WE UPHOLD THE SAME. THE CROSS OBJECTIONS WH EREIN APPLICANT HAS SUPPORTED THE DELETION OF THE ADDITIO N OF RS.18 26 000/- GOES ACADEMIC AFTER UPHOLDING THE OR DER OF THE CIT(A) WHO HAS DELETED THE ADDITION IN QUESTION. S O SAME IS DISMISSED BEING ACADEMIC. 4 5. AS A RESULT THE APPEAL OF THE REVENUE AS WELL A S THE CROSS OBJECTIONS ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 30 TH DAY OF JULY 2012. SD/- SD/- ( G.S.PANNU ) ( SHAILENDRA KUMAR YAD AV ) ACCOUNTANT MEMBER JUDICIAL MEMBER GSPS PUNE DATED THE 30 TH JULY 2012 COPY OF THE ORDER IS FORWARDED TO: 1. THE ASSESSEE 2. THE ITO WARD-1(4) PARBHANI. 3. THE CIT(A) AURANGABAD. 4. THE CIT AURANGABAD. 5. THE DR A BENCH PUNE. 6. GUARD FILE. //TRUE COPY// BY ORDER SR.PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE.