Commissioner of Income Tax-I, Jaipur (Raj.) v. Royal Jewellers - 2017-LL-0821-27

Citation	2017-LL-0821-27
Appellant Name	Commissioner of Income Tax-I, Jaipur (Raj.)
Respondent Name	Royal Jewellers
Court	HIGH COURT OF RAJASTHAN
Relevant Act	Income-tax
Date of Order	21/08/2017
Judgment	View Judgment
Keyword Tags	undisclosed income • unaccounted sales • undisclosed sales • return of income • profit rate
Bot Summary:	By way of this appeal the appellant has assailed the judgment and order of the Tribunal whereby the Tribunal has dismissed the appeal of the department for statistical purposes. Despite the same being voluntarily surrendered and further enhanced by the assessee, for which no retraction was ever filed and simply placing reliance upon the return of income filed by the assessee. Ii) Whether the Tribunal was justified in deleting the addition on account of unaccounted sales of Rs. 5,43,25,448/- which was found during survey and was not covered in surrender made by the assessee and no purchases bills of the same were found during survey 3. Taking into consideration the observations made by the CIT(A) which was confirmed by the Tribunal by holding as under:- After considering the orders of the AO and ld. CIT(A) has held that only gross profit can be assessed on the undisclosed sales and not the entire sale amount. The appeal in case of Jitendra Kumar Agarwal was decided in ITA No. 639/JP/2010 and others by order dated 30.12.2010. CIT(A) in our considered view is in line with the order of Tribunal decided in the case of Jitendra Kumar Agarwal which is a group case of assessee.

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 30 / 2012 Commissioner Of Income Tax-I , New Central Revenue Building, Statue Circle, Jaipur (Raj.) Appellant Versus M/s. Royal Jewellers, 1756, Telipara, Chaura Rasta, SMS Highway, Jaipur. Respondent For Appellant(s) : Mr. Anuroop Singhi with Mr. Aditya Vijay For Respondent(s) : Mr. Harish Agarwal for Mr. N.L. Agarwal HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE INDERJEET SINGH Order 21/08/2017 1. By way of this appeal appellant has assailed judgment and order of Tribunal whereby Tribunal has dismissed appeal of department for statistical purposes. 2. This Court while admitting matter has framed following question of law:- i) Whether Tribunal was justified in deleting addition of undisclosed income of Rs. 2,13,64,485./- despite same being voluntarily surrendered and further enhanced by assessee, for which no retraction was ever filed and simply placing reliance upon return of income filed by assessee.? ii) Whether Tribunal was justified in (2 of 2) deleting addition on account of unaccounted sales of Rs. 5,43,25,448/- which was found during survey and was not covered in surrender made by assessee and no purchases bills of same were found during survey? 3. We have heard counsel for both sides. 4. Taking into consideration observations made by CIT(A) which was confirmed by Tribunal by holding as under:- After considering orders of AO and ld. CIT(A) we find no infirmity in finding of ld. CIT(A). ld. CIT(A) has held that only gross profit can be assessed on undisclosed sales and not entire sale amount. This issue was involved in case of Jitendra Kumar Agarwal also and Tribunal has taken view that on unaccounted sales profit rate can be taxed and not unaccounted sales. appeal in case of Jitendra Kumar Agarwal was decided in ITA No. 639/JP/2010 and others by order dated 30.12.2010. finding of ld. CIT(A) in our considered view is in line with order of Tribunal decided in case of Jitendra Kumar Agarwal which is group case of assessee. Therefore, without into detail further, we confirm finding of ld. CIT(A) which remained uncontroverted also. 5. In our considered opinion, in view of concurrent finding, issue is required to be answered in favour of assessee against department. 6. appeal stands dismissed. (INDERJEET SINGH),J. (K.S. JHAVERI),J. A.Sharma/89 Commissioner of Income Tax-I, Jaipur (Raj.) v. Royal Jeweller

Metadata

Judgment