Kranti Lal Verma, New Delhi v. ITO, Rohtak

ITA 6012/DEL/2010 | 2007-2008
Pronouncement Date: 20-09-2011 | Result: Partly Allowed

Appeal Details

RSA Number 601220114 RSA 2010
Assessee PAN AAHPV4610L
Bench Delhi
Appeal Number ITA 6012/DEL/2010
Duration Of Justice 8 month(s) 21 day(s)
Appellant Kranti Lal Verma, New Delhi
Respondent ITO, Rohtak
Appeal Type Income Tax Appeal
Pronouncement Date 20-09-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted I
Tribunal Order Date 20-09-2011
Date Of Final Hearing 20-09-2011
Next Hearing Date 20-09-2011
Assessment Year 2007-2008
Appeal Filed On 30-12-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH I : NEW DELHI) SMT. DIVA SINGH JUDICIAL MEMBER AND BEFORE SHRI B.C. MEENA ACCOUNTANT MEMBER ITA NO.6012/DEL./2010 (ASSESSMENT YEAR : 2007-08) SHRI KHARATI LAL VERMA VS. ITO WARD I A 5 PANCHSHEEL GARDEN ROHTAK. NAVEEN SHAHDARA DELHI-110 032. (PAN : AAHPV4610L) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJEEV CHAWLA ADVOCATE REVENUE BY : DR. B.R.R. KUMAR SENIOR DR ORDER PER B.C. MEENA ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORDE R OF CIT (APPEALS) ROHTAK DATED 18.10.2010 FOR THE ASSESSMENT YEAR 200 7-08. THE GROUNDS OF APPEAL READ AS UNDER :- 1. LD. CIT (A) HAS GROSSLY ERRED IN LAW AND FACT B Y ARBITRARILY ASSUMING THAT APPELLANT DEALT IN GREY M ARKET AND ARRIVING AT ADDITIONAL TURNOVER OF RS.1260000 WITHO UT ANY RELIABLE EVIDENCE. 2. LD. CIT (A) HAS GROSSLY ERRED IN LAW AND FACT BY CALCULATING NET PROFIT OVER AND ABOVE THE DECLARED INCOME AT THE RATE OF 10% WHICH IS HIGHLY ARBITRARY AND EXCES SIVE ON FICTITIOUS TURNOVER OF RS.1260000 ONLY ON BASIS OF SURMISES AND CONJECTURE. WHERE AS APPELLANT HAD DECLARED HIS IN COME U/S 44AF. ITA NO.6012/DEL./2010 2 3. LD. CIT (A) HAS GROSSLY ERRED IN LAW AND FACT BY MAKING AN ADDITION OF RS.1260000 FROM UNDISCLOSED SOURCES. 4. APPELLANT CRAVES LEAVE TO ADD /ALTER ANY OTHER G ROUNDS AT THE TIME OF HEARING. 2. THE ASSESSEE IS DOING THE BUSINESS OF PURCHASE A ND SALE OF BOOKS AND ALSO HAVING RENTAL INCOME FROM PROPERTY LOCATED AT DELHI AND ROHTAK. A BANK ACCOUNT WAS MAINTAINED WITH THE UNION BANK OF INDIA . AN OVERDRAFT ACCOUNT WAS ALSO MAINTAINED WITH THE STANDARD CHARTERED BAN K. THE TRANSACTIONS IN THE STANDARD CHARTERED BANK ARE IN CASH. THE ASSES SEE IS NOT MAINTAINING BOOKS OF ACCOUNT. THE AO MADE AN ADDITION BY HOLDI NG THAT THE ASSESSEE HAS NOT DISCLOSED INCOME FROM ALL THE TRANSACTIONS AND ESTIMATED ADDITIONAL TURNOVER OF RS.12 60 000/- IN RESPECT OF THE TRANSA CTIONS RECORDED IN THE STANDARD CHARTERED BANK OD ACCOUNT. ON THIS TURNOV ER THE INCOME WAS ESTIMATED @ OF 20% OF THIS TOTAL TURNOVER AND ADDED RS.2 52 000/- TO THE INCOME OF THE ASSESSEE. 3. THE ASSESSEE FILED THE APPEAL WITH THE CIT (A). THE CIT (A) REDUCED THE PROFIT RATE AND ESTIMATED THE PROFIT ON THE UND ISCLOSED TURNOVER @ 10%. HE ALSO DIRECTED TO ALLOW THE DEDUCTION FOR THE INT EREST OF RS.21 393/-. THUS CIT (A) GRANTED PART RELIEF. 4. NOW THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ESTIMATING OF THE ADDITIONAL TURNOVER OF RS.12 60 000/- AND ALSO BY C ALCULATING THE NET PROFIT @ 10%. 5. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE AND WE HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALSO CONSIDE RED THE NATURE OF TRADE AND PROFIT MARGINS IN THIS TRADE. THE ESTIMATE OF TURNO VER IS BASED ON THE CASH TRANSACTIONS RECORDED IN THE OD ACCOUNT WITH STANDA RD CHARTERED BANK. HENCE WE FIND NO MERITS IN ASSESSEES PLEA. WE UP HOLD THE ESTIMATE OF ITA NO.6012/DEL./2010 3 TURNOVER. NOW ON THE ISSUE OF ESTIMATING PROFIT O N THIS TURNOVER WE ARE OF THE VIEW THAT CIT (A)S ESTIMATE IS LITTLE BIT ON H IGHER SIDE. THEREFORE CONSIDERING THE TOTALITY OF FACTS AND CIRCUMSTANCES WE DIRECT TO ESTIMATE THE PROFIT ON THE ADDITIONAL TURNOVER WHICH HAS BEEN WO RKED AT RS.12 60 000/- @ 8%. WE WOULD ALSO LIKE TO MENTION THAT FOR ESTIMAT ING THE PROFIT @ 8% THE LEARNED AR HAS ALSO CONSENTED. WE ORDER ACCORDINGL Y. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 20 TH DAY OF SEPTEMBER 2011 AFTER CONCLUSION OF THE HEARING. SD/- SD/- (DIVA SINGH) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 20 TH DAY OF SEPTEMBER 2011 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A) ROHTAK. 5.CIT(ITAT) NEW DELHI. AR ITAT NEW DELHI.