MANGI LAL SHARMA,SIKAR vs. DCIT, SIKAR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR Jh HkkxpUn] ys[kk lnL; ds le{k BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER vk;dj vihy la-@ITA No. 661/JP/2016 fu/kZkj.k o"kZ@Assessment Year : 2010-11 cuke Shri Mangi Lal Sharma The DCIT Vs. Prop. M/s. Jai Mata Di Energy System Circle- Sikar Laxmangarh , Sikar Sikar LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AZQPS 2615 E vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by: Shri S.R. Sharma & Shri Rajni Kant Bhatra, CA jktLo dh vksj ls@ Revenue by :Smt. Poonam Rai, DCIT- DR lquokbZ dh rkjh[k@ Date of Hearing : 08/02/2017 ?kks"k.kk dh rkjh[k@ Date of Pronouncement : 09/02/2017 vkns'k@ ORDER PER BHAGCHAND, AM The assessee has filed an appeal against the order of the ld. CIT(A)-35, New Delhi (Camp Office at Jaipur) dated 18-03-2016 for the assessment year 2010-11 raising therein grounds of appeal as under:- ‘’1. That on the facts and in the circumstances of the case the ld. CIT(A) is wrong, unjust and has erred in confirming action of the Assessing Officer in:- (i) rejection of books of account of the appellant by the Assessing Officer u/s 145(3) of the I.T. Act, 1961 and

2 ITA No. 661/JP/2016 Shri Mangi Lal Sharma vs. DCIT , Circle- Sikar (ii) application of net profit rate of 11% on declared contract receipts of Rs. 4,51,07,789/- as against declared net profit rate of 7.32% resulting in confirmation of trading addition of Rs. 6,43,793/-.’’

2.1 During the course of hearing of the appeal of the assessee, the ld.

ld. AR of the assessee prayed for restoration of the appeal to the AO

with following submissions as narrated in the written submission.

‘’….In this connection, assessee submits that on receipt of every notice from AO, he deputed his accountant alongwith all books of account with bills vouchers etc. to attend the proceedings before the AO. They always reported to assessee that proceedings before AO was attended and books of accounts, bills & vouchers etc. were produced. In fact counsel of assessee had written and filed a letter to AO on 18-03-2013 that he produced books of accounts etc. on 29-10-2012 before him which also ld. AO refuted in assessment order. The assessee only submits that invoking of Section 145(3) by AO has caused injustice to him though he never had deliberately avoided any notice and remained in bonafide belief that Accountant and counsel engaged by him are attending proceedings before the AO appropriately. The assessee thus prays your honour that if deem fit and in the interest of justice the case may be sent to AO and assessee sincerely assures to fully cooperate and attend the proceedings before AO appropriately.’’

2.2 It is noted from the assessment order that the AO invoked the

provisions of Section 145(3) of the Act and estimated the net profit rate at

11% which works out to Rs. 49,61,857/-(total contract receipts of Rs.

4,51,07,789/-) out of which the assessee had declared net profit of Rs.

3 ITA No. 661/JP/2016 Shri Mangi Lal Sharma vs. DCIT , Circle- Sikar 33,18,064/-. Therefore, a sum of Rs. 16,43,793/- is added by the AO to

the total income of the assessee. In first appeal, the ld. CIT(A) at para 5.7

of his order has confirmed the action of the AO.

2.3 During the course of hearing, the ld. DR relied on the order of

authorities below.

2.4 I have heard the rival contentions and perused the materials

available on record. It is not imperative to discuss the case of the assessee

regarding invoking the provisions of Section 145(3) of the Act and

confirming the addition of Rs. 16,43,793/- which has been elaborately

discussed by the lower authorities. The issue in question is that the

assessee could not contest the case before the AO on the belief that his

accountant and counsel are appearing before the AO and producing all

the bills, vouchers and relevant records as desired by the AO but it was

not done so. Keeping in view of the prayer of the assessee (supra), it will

be in the interest of equity and justice to restore the appeal of the

assessee to the file of the AO to decide it afresh by providing reasonable

opportunity of being heard to the assessee. The assessee is also directed to

submit all the relevant records concerning the case before the AO and

cooperate in the assessment proceedings. Thus the appeal of the assessee

is allowed for statistical purposes.

4 ITA No. 661/JP/2016 Shri Mangi Lal Sharma vs. DCIT , Circle- Sikar 3.0 In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 09-02-2017.

Sd/- ¼HkkxpUn½ (Bhagchand) ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 09 /02/ 2017 *Mishra आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू vihykFkhZ@The Appellant- Shri Mangi Lal Sharma, Sikar 1. 2. izR;FkhZ@ The Respondent- The DCIT, Circle- Sikar vk;dj vk;qDr¼vihy½@ CIT(A). 3. 4. vk;dj vk;qDr@ CIT, विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZ QkbZy@ Guard File (ITA No. 661/JP/2016) 6. vkns'kkuqlkj@ By order, सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत