Forum
Read and express views
× Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India

These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.

10-04-2019, Ram Gopal Soni, Section 145(3), 145, 44AB, Tribunal Jaipur

  • amit
  • amit's Avatar Topic Author
  • Offline
  • Administrator
  • Administrator
More
1 week 1 day ago #9123 by amit
Section - 145(3), 145, 44AB
Order Date - 10-04-2019
Favouring - Assessee
Court - Tribunal Jaipur
Appellant - Ram Gopal Soni
Respondent - ACIT
Justice - VIJAY PAL RAO, JM & VIKRAM SINGH YADAV, AM
Citation - 419Taxpundit158
Appeal No. - ITA No. 48/JP/2018
Asstt. Year - 2013-14

Order

PER : VIJAY PAL RAO, J.M.

This appeal by the assessee is directed against the order dated 02.11.2017 of the ld. CIT (A), Jaipur for the assessment year 2013-14.

The assessee has raised the following grounds:-

“1. On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in confirming the rejection of books of account made by ld. AO.

2. On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in confirming the trading addition of Rs. 40,86455/- made by ld. AO by estimating the gross profit by applying UP rate of 0.24% as against 0.11% declared by assessee on the declared turnover of the assessee.

3. The assessee prays for leave to add, to amend, to delete, or modify the all or any grounds of appeal on or before the hearing of appeal.”

2. Ground no. 1 is regarding rejection of books of accounts by invoking the provisions of Section 145(3) of the IT Act. The assessee is a trader of gold and silver bars/bullions. The assessee e filed his return of income 29.09.2013 declaring total income of Rs. 23,28,020/-. During the scrutiny assessment the AO observed that most of the sales were made in cash for which not proper record of the buyers have been maintained. Accordingly, the AO issued a show cause notice vide letter dated 29.01.2016 and asked the assessee to explain the declined GP rate during the year under consideration and further to furnish complete vouchers of expenses and in the absence of the same as to why the books of accounts should not be rejected by invoking the provisions of Section 145(3) of the Act. The assessee filed the reply and objected to the rejection of books of accounts. The AO did not accept the reply of the assessee and held that it is a fit case for invoking the provisions of Section 145(3) of the Act. Accordingly, the books of accounts of the assessee were rejected and income of the assessee was estimated on the basis of GP Rate 0.24% as against declared GP rate 0.11%. The assessee challenged the action of the AO before the ld. CIT(A) but could not succeed.

3. Before us, the ld. AR of the assessee has submitted that the assessee maintained complete books of account-cash book, ledger, journal, purchases and sales register. The assessee has also produced bank accounts and day to day stock register with supporting vouchers duly audited by the Auditor. All the purchases and sales are completely vouched and supported by day to day stock details which were produced from time to time during the course of assessment proceedings. The AO duly inspected and verified all these details on test check basis and no defect or discrepancy was pointed out. The opening stock, purchases and closing stock as declared by the assessee were accepted by the AO as correct. Therefore, the assessee produced all the relevant details and documents with complete books of accounts for the examination and verification of the AO. The assessee also explained the reasons for decline in GP rate due to near about 500% increased in the turnover during the year under consideration and further due to a very high variation in the price of gold and silver during the year. The AOwithout pointing out any specific defects in the books of accounts has rejected only on presumption and general objections. The ld. AR has further contended that books of accounts cannot be rejected on the ground of cash sales more so when the quantity of sales are available in stock register and value of the goods sold is verifiable from market quotation. The assessee has sold goods on credit and as well on cash, a complete record of the customers is maintained in respect of the goods were sold on credit basis but for the goods sold to customer on cash, there is no need to maintained the name, address and PAN number of the customers. This is practice is followed to avoid unnecessary labour as well as maintaining of record. Even otherwise as per Rules 114B of
the Income Tax Rules quoting of PAN in relation to sale or purchase of goods or services where the transaction amount is exceeding to Rs. 2,00,000/-. The assessee has not violated the said rules and therefore, this cannot be a reason for rejection of books of account. The ld. AR has further submitted that the AO has also given a reason for non verifiable expenses whereas the assessee has not debited any expenditure in the trading account except the purchases which were fully verifiable. Therefore, the reasons assigned by the AO for rejection of books of accounts are contrary to the record. The purchases made during the year are entered in the inward of the stock registered and

Click to view and download Full Free Judgement of Ram Gopal Soni vs. ACIT

Unable to display Google Map.




Please Log in or Create an account to join the conversation.

Time to create page: 0.091 seconds

If You Appreciate What We Do Here On TaxPundit, You Should Consider:

We are thankful for your never ending support.

Latest Analysis - High Courts

PCIT vs. OM PRAKASH JAKHOTIA & ANR.

PCIT vs. OM PRAKASH JAKHOTIA & ANR.

PCIT vs. OM PRAKASH JAKHOTIA & ANR. Read More
Kingfisher Capital CLO Ltd. vs. CIT

Kingfisher Capital CLO Ltd. vs. CIT

Kingfisher Capital CLO Ltd. vs. CIT Read More
Plymex Timber Pvt. Ltd. & Anr vs ITO

Plymex Timber Pvt. Ltd. & Anr vs ITO

Plymex Timber Pvt. Ltd. & Anr vs ITO Read More
NATIONAL PROJECTS CONSTRUCTION CORPORATION LIMITED (NPCC) vs. DCIT

NATIONAL PROJECTS CONSTRUCTION CORPORATION LIMITED (NPCC) vs. DCIT

NATIONAL PROJECTS CONSTRUCTION CORPORATION LIMITED (NPCC) vs. DCIT Read More
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34

Forum Features

Latest Case Laws
Latest Case Laws are instantly updated in the Forum into their respective section
Latest from CBDT
Latest Circulars, Notifications, Orders etc. from CBDT is updated in the Forum
Ask Experts
You can ask questions to the community
Support
Support queries are either replied via mail or in the Forum so that others can be benefited
Press Releases
Latest Press Notes and Press Releases are updated in the Forum
Connect with Members
You can connect with our community members by replying to their queries

Recommended Articles

 

SITE INFORMATION

All content herein is the copyright of Taxpundit. No images, text, or any other content may be, reproduced or redistributed without the express written consent of Taxpundit.

All Rights Reserved. All Content Copyright.

Newsletter

Subscribe to our newsletter and stay updated on the latest developments and special offers!

Create your own website as per ICAI guidelines. Plan starts at Rs. 15000/- with Free Premium Membership. Read more
Toggle Bar