SH. VINOD KUMAR GUPTA,ALWAR vs. PCIT(CENTRAL), JAIPUR, JAIPUR
Facts
During a survey action, excess stock of Rs. 15,21,176/- was found. The assessee surrendered this amount as income, which was then accepted by the Assessing Officer (AO) in the assessment. The Principal Commissioner of Income Tax (PCIT) initiated revision proceedings under Section 263, holding the AO's order erroneous and prejudicial to revenue because the AO did not invoke Section 115BBE and treated the income at normal slab rates.
Held
The Tribunal held that the PCIT's revision order was not justified. It reasoned that since the excess stock was identifiable and related to the assessee's regular business, it should be taxed as business income, and Section 115BBE is not applicable. The Tribunal noted that the assessee had incorporated the transaction in its books of account and offered it for tax, making the AO's assessment not erroneous.
Key Issues
Whether the PCIT was justified in invoking Section 263 of the Income Tax Act, holding the AO's order erroneous and prejudicial to revenue, when the excess stock was treated as business income taxed at normal rates and not under Section 115BBE.
Sections Cited
263, 143(3), 115BBE, 69, 133A, 143(2), 142(1), 127, 68
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
