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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
Before: SHRI R.C. SHARMA & SHRI SANDEEP GOSAIN
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR
BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER
ITA No. 13/Jodh/2019 (ASSESSMENT YEAR-2014-15
Narayan Lal Soni, Vs A.C.I.T., (Prop. Bhawani Jewellers), Circle-Pali. Inside Ganesh Gate, Raipur, Distt. Pali. (Appellant) (Respondent) PAN: BOHPS 5416 J
Assessee By Shri Ashok Kumar Jain (CA) Revenue By Shri Abhimanyu Singh Yadav JCIT-DR Date of hearing 18/03/2020 Date of 19/03/2020 Pronouncement
O R D E R PER: R.C. SHARMA, AM
This is an appeal filed by the assessee against the order
of the CIT(A)-1, Jodhpur dated 18/10/2018 for the A.Y. 2014-
15 in the matter of order passed u/s 143(3) of the Income-tax
Act, 1961 [hereinafter referred to as ‘the Act’, for short].
The grievance of the assessee relates to addition of Rs.
11,75,000/- on account of book debts.
2 ITA 13/Jodh/2019 Narayan Lal Soni Vs ACIT
Rival contentions have been heard and record perused. Facts in
brief are that the assessee is trading and has job work receipts from gold
smithery. The return of income for the A.Y. 2014-15 was filed by the
assessee on 24/09/2014 declaring total income at Rs. 32,56,810/-. IN the
case of assessee, survey U/s 133A of the Act was carried out on
06/02/2014, thus the case was picked up for scrutiny and notice U/s
143(2) was issued on 15/09/2015. While completing the assessment, The
A.O. made addition of Rs. 25,92,840/- on account of difference in books
vis a vis stock; addition of Rs. 11,75,000/- was made on account of book
debtors. The A.O. also treated the addition U/s 69 as charged tax u/s
115BBE of the Act.
By the impugned order the ld. CIT(A) has confirmed the addition
on account of book debts and deleted the addition on account of excess
stock. The assessee is in further appeal before the ITAT for the addition
made on account of book debtors.
It was contention of the ld AR of the assessee that the addition
was made only on the basis of statement of the assessee recorded
during the course of survey without considering and appreciating the
explanation offered by the assessee during the course of assessment
proceedings. It was also contention of the assessee that the addition was
3 ITA 13/Jodh/2019 Narayan Lal Soni Vs ACIT
made on the basis of loose slip of paper so found during the course of
survey which contained name of persons and total amount of Rs.
11,75,000/-. As per the ld AR, this is simply a sli0 and its correctness and
authenticity even for the purpose of amount mentioned therein have
been found to be unreliable having no evidentiary value. As per the ld
AR, it was a dumped document and no addition was warranted.
On the other hand, the ld DR has relied on the order of the ld.
CIT(A).
We have considered the rival contentions and carefully gone
through the orders of the authorities below and found that the loose
paper was found with regard to pending cash collection from those
customers from whom cash bills were issued on their assurance of making payment by evening of 03rd February as mentioned in the
explanation given to the A.O. However, the A.O. has added entire
amount of sales in assessee’s income which is not justified. As per our
considered view, only profit element should be brought to tax.
Accordingly, we direct the A.O. to tax only profit @ 5% on the alleged
amount which works out to be Rs. 58,550/-. This is a business profit
liable to tax at normal rate. We direct accordingly.
4 ITA 13/Jodh/2019 Narayan Lal Soni Vs ACIT
In the result, appeal of the assessee is allowed in part in terms
indicated hereinabove.
Order pronounced in the open court on 19th March, 2020.
Sd/- Sd/- (SANDEEP GOSAIN) (R.C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated : 19/03/2020 *Ranjan Copy to : 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR 6. Guard File (ITA No. 13/Jodh/2019)
Assistant Registrar Jodhpur Bench