Income Tax Appellate Tribunal - Jaipur
Suresh Dewan Huf, Sikar vs Acit, Sikar on 23 December, 2016
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IN THE INCOME TAX APPELLATE TRIBUNAL,
JAIPUR BENCHES (SMC), JAIPUR
Jh Hkkxpan] ys[kk lnL;] ds le{k
BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER
vk;dj vihy la-@ITA No. 975/JP/2015
fu/kZkj.k o"kZ@Assessment Year : 2009-10
Suresh Dewan HUF, cuke A.C.I.T.,
V&P, Patan, Tehsil- Neem Ka Vs. Circle,
Thana, distt.-Sikar (Raj). Sikar (Raj).
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAJHS 0378 E
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@ Assessee by : Shri Satish Gupta (CA).
jktLo dh vksj ls@ Revenue by : Shri Narendra Singh.
lquokbZ dh rkjh[k@ Date of Hearing : 22/12/2016
mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 23/12/2016
vkns'k@ ORDER
PER: BHAGCHAND, A.M. This is an appeal filed by the assessee against the order dated 01/09/2015 passed by the ld CIT(A)-III, Jaipur for the A.Y. 2009-10, wherein the assessee has raised sole ground of the appeal, which is against confirming the disallowance of Rs. 4,43,465/- on account of material purchased and of Rs. 3,54,270/- on account of labour expenses.
2. Brief facts of the case are that the assessee is engaged in the business of construction and supply work on contract. In the assessment 2 ITA 975/JP/2015_ Suresh Dewan HUF Vs ACIT proceedings the Assessing Officer found that the assessee has made expenditure of Rs. 2,87,65,697/- on account of building material and amount of expenditure of Rs. 94,97,814/- towards the labour charges. The Assessing Officer identified vouchers worth of Rs, 4,33,465/- from the building material expenditure and Rs. 3,54,270/- from the labour charges as non-genuine.
3. The ld. CIT(A) had confirmed the addition by holding that the Assessing Officer has specifically highlighted the defects in the books of account/vouchers, which the AR has been negate.
4. Before me, the ld AR of the assessee has submitted that the Assessing Officer has not mentioned anything specific vouchers/bills. He submitted that the Assessing Officer's allegation that the expenses was not fully vouched, is also not factually correct. The Assessing Officer's allegation in the bills and vouchers, quantity of purchases and rates were not prescribed is also not correct. The labour vouchers were not carrying any signature or thump impression of the labour is also incorrect. The assessee's net profit rate for the year under consideration was better than the earlier year. He vehemently submitted that the Assessing Officer has not given the list of vouchers, which he had identified and held to be non-genuine. The assessee was not given any detail in this regard. He 3 ITA 975/JP/2015_ Suresh Dewan HUF Vs ACIT submitted that the assessee is a sub-contractor and working in the remote areas of North East where the working conditions are not conducive to conduct the business. In assessee's own case, NP rate of 3.15% has been found reasonable in the assessment year 2006-07 by the Hon'ble ITAT, the copy of which is also filed before this Bench. He also submitted that the NP rate was @ 3.37%. He further submitted that the Assessing Officer's allegation that bills vouchers of Rs. 3,54,270/- of labour charges were not carrying out any signature/thumb impression of the payees is also not specifying which vouchers were not carrying signature or thumb impression. He submitted that NP rate was better than the immediate preceding year. The assessee's book results should have been accepted.
5. At the outset, the ld DR has vehemently supported the orders of the authorities below.
6. I have heard both the parties and perused the material available on the record. The Assessing Officer has claimed that he has identified the vouchers of Rs. 4,33,465/- out of the purchase of material and Rs. 3,54,270/- out of labour charges as non-genuine. However, records shown that the assessee has not been provided an opportunity to revert back or to explain the defects pointed out by the Assessing Officer.
4 ITA 975/JP/2015_ Suresh Dewan HUF Vs ACIT Therefore, in the interest of justice and equity, I find in appropriate to restore the issue to the file of the Assessing Officer to decide de novo after providing adequate opportunity of being heard to the assessee with regard to the vouchers identified out of the building material purchased and labour charges paid. Accordingly, this issue is restore to the file of the Assessing Officer.
7. In the result, the appeal of the assessee is allowed for statistical purposes only.
Order pronounced in the open court on 23/12/2016.
Sd/-
¼Hkkxpan½ (BHAGCHAND) ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 23rd December, 2016 *Ranjan vkns'k dh izfrfyfi vxzsf'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- Suresh Dewan HUF, Sikar.
2. izR;FkhZ@ The Respondent- The A.C.I.T., Circle, Sikar (Raj).
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. 975/JP/2015) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar