Vinita Ranka Jaipur v. Ito Ward 7 2 Jaipur Jaipur

Vk Dj Vihyh Vf Kdj K T Iqj U K Ihb T Iqj In The Income Tax Appellate Tribunal Jaipur Benches Smc Jaipur Jh Fot Ikwy Jko U Kf D Lnl Ds Le K Before Shri Vijay Pal Rao Judicial Member Vk Dj Vihy La Ita No 653 Jp 2017 Fu Kzkj K Ok Z Assessment Year 2011 12 Vinita Ranka 67 94 Sheopur Road Sanganer Jaipur Cuke Vs Income Tax Officer Ward 7 2 Jaipur Lfkk H Ys Kk La Thvkbzvkj La Pan Gir No Abupr 1716 R Vihykfkhz Appellant Izr Fkhz Respondent Fu Kzkfjrh Dh Vksj Ls Assessee By Shri Vimal Chopra C A Jktlo Dh Vksj Ls Revenue By Smt Punam Rai D Cit Lquokbz Dh Rkjh K Date Of Hearing 12 10 2017 Mn Kksk Kk Dh Rkjh K Date Of Pronouncement 11 12 2017 Vknsk Order Per Vijay Pal Rao J M This Appeal By The Assessee Is Directed Against Th E Order Dated 29 05 2017 Of Cit A Jaipur Arising From The Pena Lty Order Passed U S 271 A Of The Act For The Assessment Year 2011 12 T He Assessee Has Raised The Following Grounds 1 That The Order Is Bad In Law And On Facts 2 That The Addition Has Been Made Despite Of The F Acts That The Assessee Filed His Return Under Presumptive Scheme Due To Non Maintenance Of Accounts And Discontinuance Of Old F Irm And Paid Tax Accordingly Ita 653 Jp 17 Vinita Ranka Vs Ito 2 3 That During The Year The Additional Income Was O Ffered On Deeming Basis Hence Its Interpretation Should Not B E Dragged In Imposing A Penalty U S 271 A 4 That The Appellant Reserves The Right To Add Al Ter Amend Delete Any Grounds Of Appeal Before Or During The Course O F Appeal 2 The Assessee Filed Its Return Of Income And Dec Lared Income U S 44 Aad The Case Was Selected For Scrutiny Under C Ass And Consequently Assessment Order U S 143 3 Was Passed On 14 03 201 4 During The Course Of Assessment Proceedings The Ao Asked The A Ssessee To Produce The Books Of Accounts But The Assessee Could Not Pr Oduce The Same As The Assessee Does Not Maintained The Books Of Accounts During The Year Under Consideration The Ao Noted That The Assessee Made Transactions Of More Than Rs 4 Crores Including The Deposits In The Ban K Accounts And Outward Transactions From The Bank Account On Which The Ass Essee Earned Commission But Did Not Maintain The Books Of Accoun Ts The Assessment Order Was Completed On A Total Income Of Rs 5 58 4 10 As Against Total Income Declared By The Assessee Of Rs 1 88 040 The Ao Initiated The Penalty Proceedings U S 271 A As Well As 271 B For Fa Ilure Of Maintaining The Books Of Accounts And Getting The Accounts Audited Respectively The Ao Passed The Impugned Orders U S 271 A And Levy The Pe Nalty Of Rs 25 000 The Assessee Challenged The Action Of The Ao Befo Re The Ld Cit A But Could Not Succeed Ita 653 Jp 17 Vinita Ranka Vs Ito 3 3 Before The Tribunal The Ld Ar Of The Assessee Has Submitted That The Purpose Of Maintaining Books Of Account As R Equired U S 44 A Is To Enable The Assessing Officer To Compute The Income Of The Assessee In Accordance With The Provisions Of The Act The Asse Ssee Has Maintained The Books Of Accounts And Other Documents Which Ena Bled The Assessing Officer To Assess The Income Of The Assessee Based On The Revised Computation Sheet Filed By The Assessee And On The Basis Of The Entry Appearing In The Bank Statements There Is No Mater Ial Or Evidence On Record To Show That The Assessee Has Not Maintained The Books Of Accounts Due To Deliberate Action And Consequently The Ao Was Not Able To Computing The Income The Assessee Has Maintained S Uch Books Of Accounts And Documents Which Enable The Assessing O Fficer To Compute The Total Income Of The Assessee Hence The Requir Ements Of Section 44 A Has Been Complied With By The Assessee And There I S No Default On This Account The Ld Ar Has Thus Submitted That When Th E Assessee Itself Filed A Revised Computation Of Income On The Basis Of The Bank Account Transactions Which Has Been Accepted By The Ao The N The Books Of Accounts And Documents Maintained By The Assessee H As Enabled The Ao To Compute The Total Income Of The Assessee He Has Relied Upon The Decision Of Chandigarh Bench Of This Tribunal In Ca Se Of Acit Vs Agarawal Construction Co 291 Itr A T 226 He Has Also Relied Upon The Decision Ita 653 Jp 17 Vinita Ranka Vs Ito 4 Of Honble Supreme Court In Case Of Hindustan Steel Ltd Vs State Of Orissa 83 Itr 26 As Well As The Decision In Case O F K C Builders Vs Acit 265 Itr 562 The Ld Ar Has Pointed Out That The As Sessee Has Also Filed Cash Flow Statement For The Year Which Duly Matched With Bank Account Entries And On The Basis Of These Documents And Tur Nover Recorded In These Documents The Assessing Officer Has Computed The Total Income Thus The Assessee Has Satisfied Requirements Of Mai Ntaining The Books Of Accounts And Therefore The Penalty Cannot Be Impos Ed 4 On Other Hand The Ld Dr Has Submitted That The Assessee Is Providing Accommodation Entries Which Were Detected By The Assessing Officer From The Bank Account Of The Assessee Only When The Ao Has Detected This Fact The Assessee Admitted The Turno Ver Of More Than Rs 4 Crores Which Exceeds Limit As Provided U S 44 A Of The Act He Has Relied Upon The Orders Of The Authorities Below 5 I Have Considered The Rival Submissions As Well As Relevant Material On Record There Is No Dispute That During The Cour Se Of Assessment Proceedings The Ao Noted That The Bank Transaction S Including The Deposit In The Bank And Outward Transaction Are More Than R S 4 Crores The Assessee Then Filed Revised Computation Of Income A Nd Admitted The Turnover Of More Than Rs 4 Crores Which Shows That The Assessee Is Not Ita 653 Jp 17 Vinita Ranka Vs Ito 5 Falling In The Exclusion Of Provisions Of Maintaini Ng The Books Of Accounts As Per Provisions Of Section 44 Ad Of The Income Tax Act The Assessee Has Clearly Violated The Provisions Of Section 44 Aa Of The Act When The Turnover Of The Assessee Is Exceeding Minimum Limit Provided Under The Said Provisions Though The Total Income Of The Ass Essee Was Assessed By The Ao As Per The Transaction Recorded In The Bank Account However The Bank Account Of The Assessee Cannot Be Accepted Or Regarded As Books Of Accounts And Therefore The Bank Account Will Not S Ubstitute The Books Of Accounts To Be Maintained By The Assessee It Is A Clear Case Of Non Compliance Of The Provisions Of Section 44 Aa Of The Act Therefore In The Absence Of Bonafide Explanation The Penalty Levied U S 271 A Is Justified Accordingly In The Facts And Circumstances Of The Case I Do Not Find Any Error Or Illegality In The Orders Of The Authoritie S Below In The Result The Appeal Of The Assessee Is Dismi Ssed Order Pronounced In The Open Court On 11 12 2017 Sd Fot Iky Jko Vijay Pal Rao U Kf D Lnl Judicial Member Tk Iqj Jaipur Fnukad Dated 11 12 2017 Santosh Vknsk Dh Izfrfyfi Vxzsfkr Copy Of The Order Forwarded To Ita 653 Jp 17 Vinita Ranka Vs Ito 6 1 Vihykfkhz The Appellant Vinita Ranka 67 94 Sheopur Road Sanganer Jaipur 2 Izr Fkh The Respondent The Ito Ward 7 2 Jaipur 3 Vk Dj Vk Qdr Cit 4 Vk Dj Vk Qdrvihy The Cit A 5 Fohkkxh Izfrfuf K Vk Dj Vihyh Vf Kdj K T Iqj Dr Itat Jaipur 6 Xkmz Qkbzy Guard File Ita No 653 Jp 17 Vknskkuqlkj By Order Lgk D Iathdkj Asst Registrar