SH. RAJEEV JAIN,ALWAR vs. PCIT(CENTRAL), JAIPUR, JAIPUR
Facts
During a survey, an excess stock of Rs. 15,21,176 was found. The assessee surrendered this amount as income. The Assessing Officer (AO) completed the assessment accepting the declared income. The Principal Commissioner (PCIT) initiated revision proceedings under Section 263 of the Income Tax Act, holding that the AO had not properly applied the provisions of the Act, specifically regarding the taxability of the surrendered income and the rate of taxation.
Held
The Tribunal noted that the assessee had declared the excess stock as income, and the AO had accepted this. The PCIT's view that the AO failed to apply proper provisions was contested by the assessee, who argued that the income was business income and Section 115BBE was not applicable. The Tribunal, after considering the facts and case laws, held that the PCIT's order was erroneous and prejudicial to the interest of the revenue.
Key Issues
Whether the PCIT was justified in invoking revision proceedings under Section 263 of the Income Tax Act when the AO had considered the surrendered income and passed the assessment order, and whether the surrendered income should be taxed as business income or under Section 115BBE.
Sections Cited
263, 143(3), 133A, 139, 142(1), 68, 115BBE, 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES, “A” JAIPUR
Before: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 644/JP/2024
per provision of section 68 of the Act and the accordingly provision
of section 115BBE is applicable. Since, that aspect of the matter
has not been considered while assessing the income of the
assessee and even the question no quoted in the order being 21 is
also not correct income is disclosed based on the question no. 19.
All these aspects suggest the order of assessment has been
passed in a mechanical manner without appreciating the facts and
explanation offered with that of the record is not verified we confirm
the view of the ld. PCIT. Based on these observation ground no. 2
raised by the assessee is dismissed. Ground no. 1 and 3 being
general and no specific grievance or arguments raised same are
not adjudicated and for ground no. 4 there is no submission or
contention raised by the assessee and since the appeal of the
17 ITA Nos. 644 & 661/JP/2024 Sh. Rajeev Jain vs. DCIT assessee is dismissed the ground has no merit and same is
dismissed.
In terms of these observations, the appeal of the assessee in
ITA no. 644/JP/2024 stands dismissed.
The fact of the case in ITA No. 661/JP/2024 is similar to the
case in ITA No. 644/JP/2024 and we have heard both the parties
and persuaded the materials available on record. The bench has
noticed that the issues raised by the assessee in this appeal No.
661/JP/2024 is equally similar on set of facts and grounds.
Therefore, it is not imperative to repeat the facts and various
grounds raised by both the parties. Hence, the bench feels that the
decision taken by us in ITA No. 644/JP/2024 in the case of Shri
Rajeev Jain for the Assessment Year 2018-19 shall apply mutatis
mutandis in the case of Shri Vinod Kumar Gupta in ITA No.
661/JP/2024 for the Assessment Year 2018-19.
A copy of this common order be placed in the respective file
of each appellant records.
18 ITA Nos. 644 & 661/JP/2024 Sh. Rajeev Jain vs. DCIT In the result, both appeals of the assessee stands dismissed. Order pronounced in the open court on 29/08/2024.
Sd/- Sd/- ¼ jkBkSM deys’k t;arHkkbZ ½ ¼ lanhi xkslkbZ ½ (Sandeep Gosain) (Rathod Kamlesh Jayantbhai) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 29/08/2024 *Ganesh Kumar, Sr. PS आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- Shri Rajeev Jain, Alwar Shri Vinod Kumar Gupta, Alwar 2. izR;FkhZ@ The Respondent- PCIT (Central), Jaipur 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA Nos. 644 & 661/JP/2024} vkns'kkuqlkj@ By order, सहायक पंजीकार@Aेेज. त्महपेजतंत
