This case involves the appellant, Sanjeev Kumar, New Delhi, contesting the application of GP rate due to non-production of books of account during the assessment proceedings for the assessment year 2013-14. The case was filed on February 22, 2019, and the final tribunal order was pronounced on August 17, 2023.
The proceedings were conducted at the Income Tax Appellate Tribunal (ITAT), Delhi ‘G’ Bench, before Sh. N. K. Billaiya, Accountant Member, and Sh. Yogesh Kumar US, Judicial Member. This judgment addresses the issues surrounding the application of GP rate due to non-production of books of account.
Sanjeev Kumar
48, J K Apartments, Paschim Vihar, New Delhi-110063
PAN: BNQPK3461D
Income Tax Officer, Ward-41(3), New Delhi
The appellant was represented by Sh. Dinesh Mohan Sinha, Advocate. The respondent was represented by Sh. Anuj Garg, Sr. DR.
The appeals filed by the assessee were directed against the orders passed by the Commissioner of Income Tax (Appeals)-14, New Delhi, dated December 19, 2018, and December 20, 2018, for the assessment years 2013-14 and 2014-15, respectively. The appeals were heard and pronounced on August 17, 2023.
The common grievance in all the appeals relates to the application of GP rate due to non-production of books of account during the assessment proceedings. The appellant argued that the books of account could not be produced because they were submitted to the DVAT department, and the premises were sealed by the DVAT and Enforcement Department, Delhi. The appellant provided a copy of the public notice for the sealing of premises as evidence.
During the hearing, the appellant’s counsel argued that the assessee was prevented by reasonable and sufficient cause from producing the books of account during the assessment and appellate proceedings. The counsel requested that the case be restored to the files of the Assessing Officer (AO) for examination of the books of account and fresh decision.
The respondent’s representative contended that sufficient opportunity had been provided to the assessee to produce the books of account.
The tribunal observed that the assessee was prevented by reasonable and sufficient cause from producing the books of account during the assessment proceedings. The tribunal cited a similar case involving Suruchi Jindal, where the tribunal had restored the appeal to the AO for examination of the books of account.
Based on the facts and the legal precedents, the tribunal restored the matter back to the AO with the direction to examine the books of account and decide the issue afresh after affording a reasonable and sufficient opportunity of being heard to the assessee. The tribunal directed the assessee to produce the books of account for verification.
The tribunal allowed the appeal for statistical purposes, emphasizing the importance of following proper procedures and providing sufficient opportunities for verification of books of account.
Order pronounced in the open court on August 17, 2023.
Sd/-
(N. K. Billaiya)
Accountant Member
Sd/-
(Yogesh Kumar US)
Judicial Member
Dated: August 17, 2023
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi
Dates:
1. Date of dictation: August 17, 2023
2. Date on which the typed draft is placed before the dictating Member: August 17, 2023
3. Date on which the typed draft is placed before the other Member: August 17, 2023
4. Date on which the approved draft comes to the Sr. PS/PS: August 17, 2023
5. Date on which the fair order is placed before the Dictating Member for pronouncement: August 17, 2023
6. Date on which the fair order comes back to the Sr. PS/PS: August 17, 2023
7. Date on which the final order is uploaded on the website of ITAT: August 17, 2023
8. Date on which the file goes to the Bench Clerk: August 17, 2023
9. Date on which the file goes to the Head Clerk: August 17, 2023
10. Date on which the file goes to the Assistant Registrar for signature on the order: August 17, 2023
11. Date of dispatch of the Order: August 17, 2023
Sanjeev Kumar vs. ITO, Ward-41(3), New Delhi – GP Rate Application for Assessment Year 2013-14
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