Db Income Tax Appeal 500/2009 v. A.y.1997-98 And After That In

(1) DB INCOME TAX APPEAL 500/2009 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANBENCH AT JAIPUR JUDGMENT D.B. INCOME TAX APPEAL NO.500/2009 COMMISSIONER OF INCOME TAX, JAIPUR-II, JAIPURVs.SHRI GYAN CHAND AJMERA DATE: 19.04.2012 '-HONBLE MR. JUSTICE NARENDRA KUMAR JAINIHON'BLE MR. JUSTICE MAHESH BHAGWATI Mr. R.B. Mathur with Mr. Nikhil Simlote, for the appellant. **** Heard the learned counsel forappellant. The Assessing Officer vide itsassessment order dated 28.12.2007, invoked theprovisions of Section 145(3) of the Income TaxAct and made a trading addition ofRs.20,33,385/- to the returned income. Beingaggrieved with the same, an appeal waspreferred by the Assessee before theCommissioner of Income Tax(Appeals)-II, Jaipurwho reversed the findings of Assessing Officerand deleted the trading addition made in thereturned income, by discussing the matter indetail. The relevant para of the order ofCommissioner of Income Tax(Appeals) i.e. Para1.3 is reproduced as under:- “I have considered factsof the case and arguments taken by (2) DB INCOME TAX APPEAL 500/2009 Sh. Nuhal quite carefully. It is afact that no defect could bepointed out by the A.O. in theaudited books of the appellant.Further,whenlotterywisequantity details were submittedfor purchases, sales, sales returnand net sales in the assessmentproceedings vide letter dated19.12.2007 then in those detailsthe A.O. could not point out anydefect. Considering such factualposition the rejection of books ofaccounts by assessing officerafter invoking provisions of S.145(3) of I.T. Act cannot beapproved. Without prejudice tothis it is seen that the G.P.shown by the appellant was betteras compared to last year andHon'ble Rajasthan High Court inthe case of Kansara Bearing Pvt.Ltd. v/s ACIT 270 ITR 235 has heldthat the last year's profitdeclared by assessee is the bestguide for application of profitrate and when the G.P. shown inthe last year was better andassessing officer has not givenany comparable case for higherG.P. then his action to make thetradingadditioncannotbeapproved. Further, he has adoptedthe net profit rate by compellingthe net profit shown by the son ofappellant in A.Y.1996-97 and A.Y.1997-98 and after that in A.Y.2001-02 Hon'ble ITAT JaipurBench in the case of ManishAjmera has upheld the G.P. rateshown of 1.43%. Further, the A.O.could not point out that any ofthe expenditure debited in P&L A/cwas fictitious or inflated. Underthese circumstances making tradingaddition on the basis of netprofit instead of gross profitalso cannot be approved. With thisdiscussionthecorrespondingtrading addition as made by A.O.of Rs.20,33,385/- to the returnedincome is hereby deleted.” Thereafter, the Revenue preferred an appeal before the Income Tax Appellate (3) DB INCOME TAX APPEAL 500/2009 Tribunal Jaipur Bench 'A' Jaipur, which wasdismissed vide order dated 13.02.2009.Hence, the Revenue has preferred the presentappeal before this Court. From the assessment order, it isclear that the matter was decided on the basisof the case of Shri Manish Ajmera. During thecourse of arguments, the learned counsel forRevenue fairly and frankly admitted that theappeal preferred by the Revenue in the case ofShri Manish Ajmera, has been dismissed. The trading addition in the presentcase, while rejecting the books of accounts,is based on facts, therefore, in our view,questions involved in the present case arerelating to questions of facts and there isconcurrent finding of fact by the Commissionerof Income Tax(Appeals) as well as Income TaxAppellateTribunal,whichcannotbeinterferred with by this Court. An income taxappeal can be admitted only on substantialquestions of law, but in our view, nosubstantial question of law is involved in thepresent appeal. Hence, the appeal is dismissed inlimine. The trading addition in the presentcase, while rejecting the books of accounts,is based on facts, therefore, in our view,questions involved in the present case arerelating to questions of facts and there isconcurrent finding of fact by the Commissionerof Income Tax(Appeals) as well as Income TaxAppellateTribunal,whichcannotbeinterferred with by this Court. An income taxappeal can be admitted only on substantialquestions of law, but in our view, nosubstantial question of law is involved in thepresent appeal. Hence, the appeal is dismissed inlimine. (MAHESH BHAGWATI),J. (NARENDRA KUMAR JAIN-I),J. Certificate: All corrections made in the judgment/order have been incorporated in thejudgment/order being emailed. KAMLESH KUMARP.A.