Sh. Rakesh Bansal vs Income Tax Officer

Per Satbeer Singh Godara, Judicial Member:

This assessee’s appeal for Assessment Year 2009-10 arises against the CIT(A), Faridabad’s order dated 31.01.2019 in case No. 11192/2016-17, in proceedings u/s 144 of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties at length. Case file perused.

The assessee’s instant appeal appears to have raise d his three substantive grounds inter alia challenging both the learned lower authorities’ respective assessment findings dated 22.12.2011 and upheld in the lower appellate discussion that his G P estimation ought not to be estimated @5% in tr ading business along with disallowance of loss on house property of Rs.1,50,000/- Chapter-VI deductio n of Rs.75,889/-; respectively.

We not advert the first and foremost issue of GP estimation @5% resulting in the impugned additio n of Rs.50 ,74,755/- in the assessee’s hands. It is made clear that there is no dispute about the assessee’s business activity that he is engaged in trading as admitted in the assessment order itself. This is further coupled with the fact that bo th the learned lower authorities have estimate d his impugned GP @5% of the turno ver of Rs.10,89,72,148/- without even guided by the corresponding figures in the preceding and succeeding assessment years; as the case may be. We thus deem it appropriate in this factual backdrop that the assessee’s impugned GP estimation ought to be finalized at the rate of average of the corresponding figures in the pr eceding three assessment years whose details need to be verified by the learned asse ssing authority afresh. We order accor dingly subje ct to a rider that the assessee himself shall file all the relevant records of his preceding three assessment years GP rate, within three effective opportunitie s at his own risk and respo nsibility, in consequential proceedings.

Learned counsel does not press for the assessee’s second substantive ground of disallowance of loss on house property amounting to Rs.1,50,000/- has neither the same emanates from the asse ssment order nor the corresponding details have been filed. Re jected accordingly.

The assessee’s third substantive ground of Chapter-VI deduction of Rs.75,889/- is hereby restored to the learned Assessing Officer for afresh appropriate factual verification in prece ding terms.

No other ground or argument has been pressed.

This assessee’s appeal is partly allowed for statistical purposes.