Jaydeep Omprakash Thakur, Vapi v. The ACIT.,Cent.Circle1-(2),, Surat

ITA 123/AHD/2008 | 2003-2004
Pronouncement Date: 21-05-2010 | Result: Partly Allowed

Appeal Details

RSA Number 12320514 RSA 2008
Assessee PAN AOOPS1660J
Bench Ahmedabad
Appeal Number ITA 123/AHD/2008
Duration Of Justice 2 year(s) 4 month(s) 14 day(s)
Appellant Jaydeep Omprakash Thakur, Vapi
Respondent The ACIT.,Cent.Circle1-(2),, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted D
Tribunal Order Date 21-05-2010
Date Of Final Hearing 18-05-2010
Next Hearing Date 18-05-2010
Assessment Year 2003-2004
Appeal Filed On 07-01-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AT SURAT CAMP AHMEDABAD BEFORE SHRI T.K. SHARMA JUDICIAL MEMBER AND SHRI D. C. AGRAWAL ACCOUNTANT MEMBER ITA NO.123/AHD/2008 ASSESSMENT YEAR: 2003-04 DATE OF HEARING:18.5.10 DRAFTED:19.5.10 SHRI JAYDEEP OMPRAKASH THAKUR NR. BHOLEBABA AHRAM CHHARWADA ROAD VAPI PAN NO.AOOPS1660J V/S . ACIT CENTRAL CIRCLE-2 SURAT (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI S.N.L AGARWAL AR RESPONDENT BY:- SHRI SANJEEV KASHYA SR-DR O R D E R PER D.C.AGRAWAL ACCOUNTANT MEMBER:- THIS AN APPEAL FILED BY THE ASSESSEE AGAINST THE O RDER OF CIT(APPEALS) DATED 06-09-2007 RAISING FOLLOWING GROUNDS:- 1. BECAUSE LD. COMMISSIONER OF INCOME-TAX(APPEALS ) ERRED IN LAW AND ON FACTS IN UPHOLDING THE VALIDITY OF JURISDICT ION OF ACIT CENTRAL CIRCLE-2 SURAT TO PASS THE IMPUGNED ASSESSMENT ORD ER. 1.1 BECAUSE THE CASE OF THE APPELLANT WAS TRANSFERRED IN CONTRAVENTION TO PROVISIONS OF SECTION 127 OF THE A CT. 1.2 BECAUSE IN ANY CASE LD. AO WAS REQUIRED TO REFER T HE MATTER TO CHIEF COMMISSIONER OF INCOME-TAX FOR DETERMINATION OF CORRECT JURISDICTION. 2. BECAUSE LD. CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING DOUBLE ADDITION MADE BY LD. AO BY ESTIMATING G.P AND AGAIN BY MAKING DISALLOWANCE FROM EXPENSES. WITHOUT PREJUDICE TO TH E ABOVE. ITA NO.123/AHD/2008 A.Y. 2003-04 SH. JAYDEEP O THAKUR V. ACIT CC-2 SRT PAGE 2 3. BECAUSE LD. CIT(A) ERRED IN LAW AND ON FACTS I N CONFIRMING AN ADDITION OF RS.24 752/- INCURRED ON ACCOUNT OF BUSI NESS PROMOTION EXPENSES. 4.BECAUSE LD. CIT(A) ERRED IN LAW AND ON FACTS IN UPHOLDING THE ACTION OF LD. AO TO MAKE ESTIMATED DISALLOWANCE OF RS.1 50 000/- FROM GENERAL EXPENSES MERELY BECAUSE THE SAME HAVE SHO WN AN INCREASE COMPARED TO LAST YEAR. 5. BECAUSE LD. CIT(A) ERRED IN LAW AND ON FACTS IN UPHOLDING THE ESTIMATED G.P. ADDITION OF RS.98 351/- ON PRESUMED UNACCOUNTED TURNOVER MADE BY LD. AO WITHOUT BRINGING ON RECORD AN IOTA OF EVIDENCE THAT THERE IS ANY UNACCOUNTED TURNOVER. 2. LD. AR FOR THE ASSESSEE DID NOT PRESS GROUND NO.1 HENCE THE SAME IS DISMISSED AS NOT PRESSED. GROUND NO.2 AND 3 RELATE TO GROSS PROFIT ADDITION OF RS.24 752/- WHEREAS GROUND NO.4 RELATES TO DISALLOW ANCE OF GENERAL EXPENSES AT RS.1.50 LAKHS AND THE LAST GROUND RELAT ES TO GP ADDITION AT RS.98 351/-. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS E NGAGED IN THE BUSINESS OF TRADING OF ONION & POTATO AND COMMISSION AGENT. 4. WE HAVE CONSIDERED THE RIVAL CONTENTIONS OF THE PARTIES. LD. AR FOR THE ASSESSEE SUBMITTED THAT ASSESSING OFFICER HAS MADE THE ADDITION OF RS.95 351/- COVERED IN GROUND NO.5 BY ADDING ENTIRE UNDISCLOSED SALE OF RS.90 564/- AND GP ADDITION THEREON AT RS.7788/-. A S PER DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME-TAX(A) V. PRESIDENT INDUSTRIES (2002) 258 ITR 654 (GUJ) IF THERE IS NO FINDING THA T INVESTMENT WAS MADE FROM SOURCES OUTSIDE THE BOOK I N PURCHASE OF GOODS SOLD THEN ADDITION CANNOT BE MADE OF ENTIRE SALE PR OCEEDS AND ONLY ADDITION WHICH COULD BE MADE WOULD BE OF PROFITS IN THOSE SA LES. ACCORDINGLY LD. AR SUBMITTED THE ADDITION WHICH COULD BE MADE WOULD BE OF RS.7 788/- AND NOT OF RS.90 563/-BEING UNACCOUNTED SALES. FURTHER LD. A R SUBMITTED THE SUM OF RS.1.50 LAKH AS REFLECTED IN THE GROUND NO.4 IS ALSO A GP ADDITION THOUGH OUT ITA NO.123/AHD/2008 A.Y. 2003-04 SH. JAYDEEP O THAKUR V. ACIT CC-2 SRT PAGE 3 OF GENERAL EXPENSES. THE SUM OF RS.24 752/- IS ALS O A GP ADDITION. THUS TOTAL GP ADDITION MADE BY THE ASSESSING OFFICER COM ES TO RS.1.50 LAKHS + RS.24 752/- + RS.7 788/- = RS.1 82 540/-. WITH ALL THE ADDITIONS GP OF THE ASSESSEE IS COMES TO 4.69% AS AGAINST 2.21% SHOWN B Y HIM. 5. LD. SR-DR ON THE OTHER SUPPORTED THE ORDERS OF A UTHO0ITY BELOW. 6. AFTER CONSIDERING THE RIVAL CONTENTIONS OF THE P ARTIES AND LOOKING INTO THE FACTS THAT ADDITION SO PROPOSED BY THE AO ARE VERY HIGH WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE ADDITION TO 2.5% OF THE TURNOVER. ADDITION TO THAT EXTENT IS SUSTAINED. ASSESSEES WOULD GET CONS EQUENTIAL RELIEF. 7 IN THE RESULT APPEAL FILED BY THE ASSESSEE IS PART LY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 21/05/2010 SD/- SD/- (T.K.SHARMA) (D. C.AGRAWAL) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD DATED : 21/05/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-II AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD