R. Gopal Impex Private Limited Vs D/ACIT (ITAT Delhi)
Reopening of Assessment Upheld – Tribunal Confirms Validity of 147 Action- GP Rate Reduced to 4% on Non-Demonetisation Deposits – Tribunal Grants Partial Relief
Assessee, a wholesale dry fruit trader, filed return declaring ₹5.88 lakhs. Case was reopened u/s 147 based on cash deposits of ₹1.34 crores during demonetisation. AO assessed income at ₹3.17 crores, adding ₹1.34 crores u/s 69A for SBN deposits & estimating 8% profit on other cash deposits of ₹22.77 crores. CIT(A) held demonetisation deposits to be sales but directed AO to estimate profit on them, while confirming 8% GP on non-demonetisation deposits.
Before Tribunal, Assessee challenged reopening & additions, while Revenue challenged CIT(A)’s direction treating demonetisation deposits as sales. Tribunal upheld reopening, noting no examination of deposits in original processing u/s 143(1). Grounds against reopening were dismissed.
On demonetisation deposits of ₹1.34 crores, Tribunal observed that Assessee failed to produce sales bills, stock register or day-to-day cash book to prove source. It remanded issue back to AO for fresh verification, partly allowing grounds of both Assessee & Revenue.
On non-demonetisation deposits of ₹22.77 crores, Tribunal noted absence of stock records & held rejection of books u/s 145(3) was justified. However, applying fairness, it reduced GP rate from 8% to 4% on such turnover.
