TMI Blog2013 (7) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ITAT on 13.02.2009. However, the said order dated 13.02.2009 was recalled by the ITAT on 25.05.2009 while allowing an application [MA No. 24/JP/2009] moved on behalf of the assessee, stating the grievance against denial of adequate opportunity of hearing. The said order dated 25.05.2009 was sought to be questioned by the revenue in this Court in D. B. Income Tax Appeal No. 407/2011. The said appeal, was, however, dismissed as infructuous by this Court on 06.08.2012, essentially for the reason that since after recalling its earlier order, the ITAT had decided the main appeal [ITA No.1473/JP/2008] by the impugned order dated 20.11.2009, which has been challenged in the instant appeal. In this appeal, the revenue has suggested the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1.20 crore, resulting into the trading addition of ₹ 1,91,439/-. The AO further found that during the year under consideration, marriage of two daughters of the assessee were solemnized but the assessee failed to furnish complete details as regards various expenditures on engagement/ring and marriage ceremonies. The AO deduced that the assessee had incurred more than the declared expenditure on the ceremonies and, while putting an estimate of ₹ 14,79,591/- on expenditure and considering the gifts received by the daughters at ₹ 1,74,500/-, made an addition of ₹ 13,05,091/- on account of unexplained and undisclosed expenditure. After making certain more additions, the assessment was completed on the total in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support of estimate of expenditure made by her. From time to time in various communication to assessing officer it were clearly explained by assessee also which were ignored by the assessing officer while estimating these expenditures. I have gone through the copies of letter dated 17.9.2007, 26.11.2007 and 27.12.2007 in which detailed explanation for expenditure incurred on various heads and sources thereof were explained to the assessing officer. During the course of appellate proceedings on the basis of statement given by Sh. Neeraj and Pushpa Agarwal to the A.O. and by Sh. Dheeraj Kumar and Preetai Agarwal before the A.O. such expenditure on marriage of Pushpa Agarwal are worked out at ₹ 3,25,000/- and on the marriage of Preeti A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not survive and the same is hereby deleted at ₹ 13,05.091/-. In further appeal by the revenue [ITA No.1473/JP/2008], the ITAT in its impugned order dated 20.11.2009 has affirmed the observations and findings of the CIT(A) and has held justified the deletion ordered by the CIT(A). As regards trading additions, the ITAT has observed as under:- We have heard the rival contentions and perused the facts of the case. The assessee is not maintaining the stock register on day to day basis and therefore, the results declared by the assessee cannot be relied upon and accurate income cannot be deduced therefrom. Therefore, the Id. CIT (A) has rightly confirmed the application of section 145 (3) of the Act. As regards the estimation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars. In statement both the daughters stated that the parents have spent only upto the amount given by way of gifts and gold ornaments and remaining amounts were spent by each of the daughters from their own funds. The source of expenses is verifiable from their bank statements/return as explained above. In view of above, the ld CIT (A) has rightly deleted the addition and we uphold his order by dismissing the ground No. 2 of the Revenue. Seeking to question the order so passed by the ITAT, it is contended on behalf of the appellant-revenue that the assessee had not properly explained and justified the book-profit; and the AO has made the addition in trading result after giving proper opportunity to the assessee. It is submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefor. On the other hand, admittedly, the G.P. shown in the preceding year [Asstt. Yr. 2004-05] by the assessee had been 7.01%. Before that, for the Asstt. Yr. 2003-04, G.P. had been 6.98%. In an overall analysis, G.P. shown in the present year at 7.43% was reasonably higher than the previous years, and could not have been dubbed as fanciful or palpably baseless. When the CIT(A) has deleted the addition in the trading result on relevant considerations and further, when ITAT has concurred with the CIT(A), we find nothing of a substantial question of law in this regard. Similarly, the matter of addition of ₹ 13,05,091/- on the alleged unexplained expenditure relating to engagement and marriage ceremonies of the two daughters of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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