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TMI Blog2018 (6) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the same method of recording details of goods stored in its cold storage facility from which rental income has been shown wherein the assessee has made available before the tax authorities copies of fruit receipt books, fruit gate pass book, stock register of fruit in the remand proceedings before the AO also wherein no discrepancy has been found or brought to our notice, we thus find no merit in the appeal of the Revenue. CIT-A while arriving at a conclusion has specifically referred to the view taken by the assessing officer in the case of the assessee itself in the immediately subsequent year wherein on similar set of facts and circumstances the assessing officer has accepted similar method of maintaining books of records and accounts of the assessee. - Decided against revenue - ITA No. 1137/Chd/2016 - - - Dated:- 9-4-2018 - Ms. Diva Singh, Judicial Member And Ms. Annapurna Gupta, Accountant Member Assessee By :Shri Ashwani Kumar Revenue By :Smt. Chandrakanta ORDER Per Diva Singh, J.M. The present appeal has been by the revenue assailing the correctness of the order dated 26/08/2016 of CIT(A) 1 Ludhiana pertaining to 2011-12 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging to the assessee and the relief granted by the CIT(A) in these peculiar facts and circumstances it was submitted was contrary to the finding of the assessing officer which is challenged in the present proceedings. Inviting attention to the remand report extracted by the CIT-A in the facts of the present case specifically page 10 it was his submission that admittedly the identity neither by way of a postal address or the PAN details or any other identification could be demonstrated by the assessee. 3. The Ld. AR on the other hand submitted that he would heavily rely on the submissions made before the AO and the CIT(A) and the conclusion drawn by the CIT(A). Referring to the order it was submitted that the submissions advanced before the CIT(A) have been extracted in para 2.1 at pages 3 to 7 in the impugned order. Heavily relying on these submissions Ld. AR carrying us through these canvassed that the departmental ground be dismissed. Inviting attention to paragraph 2.2 of the impugned order it was his submission that the CIT-A has remanded these submissions to the assessing officer and the Remand Report has been extracted from pages 7 to 10. Carrying us th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of delivery of the goods, charges are received as per the gate pass by the staff. The said modus operandi in this line of business explained by the appellant, has not been challenged/contradicted or countered by the Assessing Officer as such in the remand report. The receipt from storage of rent of different items in the Profit Loss Account are shown as under:- By Storage Rent Karyana ₹ 15,96,412 By Storage Rent Fruit ₹ 21,98,861 By Storage Rent Vegetable ₹ 3,83,951 By Storage Rent Alu ₹ 16,46,625 Total Rent Receipts ₹ 58,25,849 Total receipt of ₹ 58,25,849/- has been shown from storage of various items, which has not been doubted by the Assessing Officer in the remand report. The net profit has been shown as ₹ 3,06,866/- based on the books of accounts in the shape of stock register for vegetables/sweets, stock register for food, stock register for Karyana, books for karyana gate pass, food gate pass book etc. besides regular books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence brought on record by the Assessing Officer during the assessment to show that the appellant is actually the owner of these goods. There is nothing recorded in the assessment to other parties and not to the appellant. The rental income has been duly accounted for in the books of accounts. Xerox Copies of fruit receipt books, fruit gate pass book, stock register of fruit was produced before the Assessing Officer during the remand proceedings as acknowledged in the remand report. No discrepancy was found in the books as such and nothing adverse in the said records was confronted to the appellant at the time of the assessment proceedings. Further, during the course of the appellate proceedings, the AR produced copies of incoming receipts and outgoing which were testchecked. It is not the case of the Assessing Officer that the rent received from the storage of different items is not accounted for in the books of accounts. According to the AR, it is not possible to know the complete postal address of the persons whose goods are stored and neither is the appellant is under any legal or other obligation to know the PAN no. of these persons since the goods were carried by the rehri-w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act that the books of accounts were lying impounded with the Assessing Officer, wherein no discrepancies were pointed out; the Assessing Officer was not justified in making the addition by holding that making the addition merely on the basis of the report of the investigation wing, without conducting any enquiry or bringing any adverse material, whatsoever, on record. Moreover, the books of accounts which if not found reliable ought to have been rejected before making the said addition which has not been done. In the face of the evidence/ books of accounts and other records maintained by the appellant alongwith supporting receipts in accordance with the trade practice and in the nature of business, the Assessing Officer should have brought some corroborative evidence on record rather than merely relying on the report of the investigation wing, in the face of the fact that no adverse material had been found during the course of the survey pointing to the fact that the appellant is engaged in trading of these items. No documentary evidence was found during the survey and no corroborative evidence was brought on record by the Assessing Officer to prove that the appellant had made inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the order itself by the CIT(A). We have also gone through the remand report of the assessing officer and note that the submissions advanced by the assessee have not been upset by the assessing officer. In the peculiar facts and circumstances of the present case we find in the absence of any evidence to the contrary no justification to take a contrary stand. We have seen from the record that the assessee has relied upon the modus operandi in the peculiar business of the assessee which is cold storage business wherein the CIT-A has considered, examined and concluded that at the time of storage of the goods at the premises of the assessee the details are entered in the respective registers with a Marka as suggested by the person who brings the items. The goods are delivered back to the said person on the receipt of the rent. The items stored in the cold storage it has been stated are carried to and from the cold storage in trollies; rehries and rickshaws. It has also been argued that the assessee in its specific nature of business is not legally required to satisfy himself about the identity of the owners of the items and insist upon propel identification. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following the same method of recording details of goods stored in its cold storage facility from which rental income has been shown wherein the assessee has made available before the tax authorities copies of fruit receipt books, fruit gate pass book, stock register of fruit in the remand proceedings before the AO also wherein no discrepancy has been found or brought to our notice, we thus find no merit in the appeal of the Revenue. We find that the CIT-A while arriving at a conclusion has specifically referred to the view taken by the assessing officer in the case of the assessee itself in the immediately subsequent year wherein on similar set of facts and circumstances the assessing officer has accepted similar method of maintaining books of records and accounts of the assessee. Accordingly in the absence of any evidence to the contrary to show that the apples did belong to the assessee in the peculiar facts and circumstances present case we find no good reason to vary the conclusion drawn. Being satisfied by the consistent explanation offered by the assessee we uphold the impugned order and dismiss the appeal of the revenue. 5. In the result appeal of the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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