Income Tax Appellate Tribunal - Jaipur
G.B.Impex, Jaipur vs Department Of Income Tax on 13 May, 2016
vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj
IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
Jh Vh-vkj-ehuk] ys[kk lnL; ,oa Jh yfyr dqekj] U;kf;d lnL; ds le{k
BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM
vk;dj vihy la-@ITA No. 429/JP/2015
fu/kZkj.k o"kZ@Assessment Year : 2010-11
Income Tax Officer, cuke M/s G.B. Impex,
Ward 6(2), Jaipur. Vs. B-172, Rajendra Marg, Bapu
Nagar, Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No. AAGFG 3052 L
vihykFkhZ@Appellant izR;FkhZ@Respondent
jktLo dh vksj ls@ Revenue by : Mrs. Neena Jeph (JCIT)
fu/kZkfjrh dh vksj ls@ Assessee by : Shri P.C. Parwal (CA)
lquokbZ dh rkjh[k@ Date of Hearing : 23/03/2016.
mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 13/05/2016.
vkns'k@ ORDER
PER T.R. MEENA, A.M.
This is an appeal filed by the revenue against the order dated 06/02/2015 passed by the learned C.I.T.(A)-2, Jaipur for A.Y. 2010-11. The effective ground of the appeal is as under:-
Ground in A.Y. 2010-11 "Whether on the facts and in the circumstances of the case and in law the ld CIT(A) has erred in directing to restrict trading addition to Rs. 7,85,442/- i.e. 15% of bogus purchases as against trading addition of Rs. 57,28,311/-2 ITA No. 429/JP/2015
ITO Vs M/s G.B. Impex made by the Assessing Officer by applying GP rate of 8.32% of total sales."
2. The revenue's ground of appeal is agasint restricting the trading addition to Rs. 7,85,442/- on bogus purchases as against the trading addition of Rs. 57,28,311/- on the basis of GP rate applied by the ld Assessing Officer @ 8.32% on total sale. The ld Assessing Officer observed that the assessment for the A.Y. was completed U/s 143(3) of the Income Tax Act, 1961 (in short the Act) on total income of Rs. 14,06,070 vide order dated 25/3/2013. While framing the assessment, trading addition of Rs. 13,50,711/- was made by taking the average gross profit rate for the last five years at 6.06%. While discussing the demand matter, on perusal of the assessment records, for A.Y. 2007-08, 2008-09, 2009-10 and 2010-11, it came to light that the average gross profit was not calculated correctly inasmuch as the trading additions made for A.Y. 2007-08, 2008-09 and 2009-10 were not taken into consideration while adopting the average of GP rate. Therefore, the Assessing Officer gave show cause notice U/s 154 of the Act. It was contended by the assessee before him that the appeals had been filed by the assessee against the addition made in preceding year are pending and therefore, the issue has not reached its finality and GP worked out is correct. It is also stated that this being a calculation mistake, 3 ITA No. 429/JP/2015 ITO Vs M/s G.B. Impex provisions of Section 154 are applicable to the facts of the case. Accordingly, he calculated GP rate @ 8.32% as against 6.06% worked out while framing the assessment. This calculation mistake is hereby rectified U/s 154 of the Act and addition on account of GP was made at Rs. 57,28,311/- as against Rs. 13,50,711/- was made in scrutiny assessment. 3 Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had allowed the appeal by observing that the ld Assessing Officer disallowed 25% on unverifiable purchases, which was worked out to Rs. 13,09,070/- by relying upon the decision of Hon'ble Gujarat High Court in the case of M/s Sanjay Oilcake Industries Vs CIT (2008) 10 DTR (Guj) 153 and the order of the ld CIT(A) in the case of assessee for A.Y. 2008-09. The ld Assessing Officer has also applied average GP rate of last 5 years, which was worked out at 6.06%, on the basis of the book results. Applying this GP rate has resulted in a trading addition of Rs. 13,50,711/-. Since the trading addition on the basis of the GP rate of the last five years was more than the disallowance of 25% out of unverifiable purchases. Therefore, the ld Assessing Officer made addition of Rs. 13,50,711/-.. The ld Assessing Officer U/s 154 has worked out GP rate on the basis of addition confirmed by the ld CIT(A) @ 8.32% as 4 ITA No. 429/JP/2015 ITO Vs M/s G.B. Impex against 6.06% worked out, in the order U/s 143(3). The Hon'ble ITAT, Jaipur Bench, Jaipur in ITA No. 241/JP/2012 order dated 22/10/2014 in the case of assessee for A.Y. 2008-09, disallowed 15% of the unverifiable purchases of Rs. 52,36,281/-, which resulted an addition of Rs. 7,85,442/-. Consequently, the trading made on the basis of average GP rate of last five years was not sustained. Since the trading addition on disallowance of 15% of unverifiable purchases had been sustained and trading addition on account of average GP rate of the last five years had not been sustained. Accordingly, he deleted the addition made U/s 54 of the Act.
4. Now the revenue is in appeal before us. The ld DR has vehemently supported the order of the Assessing Officer.
5. At the outset, the ld AR of the assessee has reiterated the arguments made before the ld CIT(A) and argued that the Hon'ble ITAT, Jaipur Bench, Jaipur had decided 15% of NP rate on unverifiable purchases, not average GP applied by the Assessing Officer. Therefore, he prayed to uphold the order of the ld CIT(A).
6. We have heard the rival contentions of both the parties and perused the material available on the record. The Coordinate Bench has decided this issue in the case of assessee by applying NP rate @ 15% on unverifiable 5 ITA No. 429/JP/2015 ITO Vs M/s G.B. Impex purchases and had not found applicable average GP rate applied by the ld Assessing Officer. Thus, we do not find any reason to intervene in the order of the ld CIT(A). Accordingly, we confirm the order of the ld CIT(A).
7. In the result, the revenue's appeal is dismissed.
Order pronounced in the open court on 13/05/2016.
Sd/- Sd/-
¼yfyr dqekj½ ¼Vh-vkj-ehuk½
(Laliet Kumar) (T.R. Meena)
U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Tk;iqj@Jaipur
fnukad@Dated:- 13th May, 2015
Ranjan*
vkns'k dh izfrfyfi vxzsf'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- The ITO, Ward 6(2), Jaipur.
2. izR;FkhZ@ The Respondent- M/s G.B. Impex, Jaipur.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr¼vihy½@The CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur
6. xkMZ QkbZy@ Guard File (ITA No. 429/JP/2015) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar