Addl.CIT, Gwalior v. M/s Bhagwat Prasad Sharma, Gwalior

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.78/AGR/2009 ASST. YEAR: 2005-06 ADDL. COMMISSIONER OF INCOME-TAX VS. M/S BHAGWAT PRASAD SHARMA RANGE-II GWALIOR. 185 GAYATRI VIHAR THATIPUR GWALIOR. (PAN : AAFFB 6203 R). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINOD KUMAR JR. D.R. RESPONDENT BY : SHRI RAJENDRA SHARMA ADVOCATE ORDER PER P.K. BANSAL A.M.: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A) DATED 20.11.2008. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES T O THE TELESCOPING OF THE INCOME AS SURRENDERED BY THE ASSESSEE AGAINST THE ADDITION MA DE BY THE ASSESSING OFFICER. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING O FFICER MADE VARIOUS ADDITIONS IN THE INCOME OF THE ASSESSEE AMOUNTING TO ` 15 38 140/-. THE ASSESSEE HAS ALREADY SURRENDERED A SUM OF ` 15 00 000/- AS ITS INCOME TO BUY PEACE AND AVOID TH E PENALTY UNDER SECTION 271(1)(C) AND ACCORDINGLY FILED THE REVISED RETURN BEFORE THE ASS ESSING OFFICER. THE ASSESSING OFFICER MADE THE ADDITION OF ALL THE INCOME AGAINST WHICH THE AS SESSEE HAS SURRENDERED A SUM OF ` 15 00 000/-. 2 THE ADDITION MADE BY THE ASSESSING OFFICER WAS TO T HE TUNE OF ` 15 38 140/-. WHEN THE MATTER WENT FOR THE CIT(A) THE CIT(A) DELETED THE ADDITI ON OF ` 15 38 140/- DETAILED AS UNDER :- SUPPRESSED CLOSING STOCK ` 1 73 608/- CONTRACT RECEIPTS ` 8 73 595/- ` 4 03 246/- ADDITIONS U/S 68 OF THE I.T. ACT ` 78 300/- DISALLOWANCE OF LOSS ON SALE OF TRUCK ` 9 391/- ---------------- ` `` ` 15 38 140/- ---------------- 4. THE LD. D.R. BEFORE US RELIED ON THE ORDER OF TH E ASSESSING OFFICER WHILE THE LD. A.R. VEHEMENTLY CONTENDED THAT WHEN THE ASSESSEE HAS ALR EADY SURRENDERED A SUM OF ` 15 00 000/- ON ACCOUNT OF WHICH VARIOUS ADDITIONS HAVE BEEN MADE B Y THE ASSESSING OFFICER AMOUNTING TO ` 15 38 140/- THE ASSESSEE COULD HAVE BEEN ALLOWED T ELESCOPING OF THE SAID SUM. LD. D.R. IN THE REJOINDER POINTED OUT THAT THE CIT(A) SHOULD HAVE RESTRICTED THE TELESCOPING ONLY TO ` 15 00 000/- BUT HE DELETED THE WHOLE OF THE ADDITIO N AMOUNTING TO ` 15 38 140/-. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS AND PERUSED THE MATERIAL ON RECORD. IN OUR OPINION THE ASSESSEE IS ENTITLED FOR THE TE LESCOPING OF SUM OF ` 15 00 000/-. THE ASSESSEE SURRENDERED THE SAID SUM THROUGH A LETTER DATED 28. 12.2007 AND ACCORDINGLY FILED REVISED RETURN. THE SURRENDER HAS BEEN MADE BY THE ASSESSEE IN RESP ECT OF VARIOUS BILLS AND VOUCHERS WHICH ARE NOT COMPLETE FOR THE POSSIBLE LEAKAGE OF THE INCOME . THE SAID SUM IN OUR OPINION WAS DULY AVAILABLE TO THE ASSESSEE AND THE ASSESSING OFFICER IN OUR OPINION WAS NOT CORRECT IN NOT ALLOWING THE TELESCOPING OF THE SUM OF ` 15 00 000/- WHEN THE ASSESSEE HAS ALREADY SURRENDER ED 3 THE SUM. WE ACCORDINGLY DO NOT FIND ANY ILLEGALITY OR INFIRMITY IN THE ORDER OF THE CIT(A) SO FAR IT RELATES TO THE TELESCOPING OF THE SUM OF ` 15 00 000/- IS CONCERNED BUT THE ADDITION MADE BY THE ASSESSING OFFICER OVER AND ABOVE ` 15 00 000/- IN OUR OPINION CANNOT BE DELETED AND TO THAT EXTENT WE SUSTAIN THE ORDER OF THE ASSESSING OFFICE R. THUS THE ADDITION TO THE EXTENT OF ` 38 140./- STANDS CONFIRMED. 6. IN THE RESULT APPEAL OF THE REVENUE IS PARTLY A LLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 14.01.2011) . SD/- SD/- (H.S. SIDHU) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: AGRA DATE: 14 TH JANUARY 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