COMMISSIONER OF INCOME TAX Vs. MANISH AJMERA

JUDGEMENT

(1.) The appeals are barred by limitation having been filed with delay of 1138 days. The reason that is given in application seeking condonation of delay is that the Tribunal, Chandigarh decided the appeal on 14th March, 2005 [reported as Manish Ajmera v. Asstt., -- Ed.], but no intimation was given by the Departmental Representative to Jaipur office of Tribunal, Jaipur or concerned CIT, Chandigarh. As per the ITAT Rules, copy of the order is required to be sent to Departmental Representative, Tribunal and concerned CIT. No such copy was dispatched to either of them at Jaipur. But it appears to have been sent to their counterparts at Chandigarh, whereas the matter was transferred to Chandigarh Bench for certain other reasons, though it actually did not have any jurisdiction over the dispute. We are satisfied that Appellant was prevented by sufficient cause in not filing appeal within limitation.

(2.) These two Income Tax appeals have been filed under Section 260A of the IT Act, 1961 (for short 'the Act') against the common judgment passed by the learned Tribunal dt. 14th March, 2005. Though these appeals pertain to two (sic--three) different assessment years i.e., 1995-96, 1996-97 and 1997-98, by this common judgment, three appeals filed by the Assessee and two appeals filed by Revenue before the Tribunal have been decided together; while the appeals of the Assessees were allowed, the appeals filed by the Revenue were dismissed. It was held that the reopening of the assessment for the asst. yrs. 1995-96 and 1997-98 was not valid. Both the matters are therefore heard together and are being decided by this common judgment. For the purpose of deciding both the matters, we have taken the facts of the Appeal No. 522 of 2008 as basis.

(3.) The Assessee is engaged in lottery business through its proprietary concern M/s Manish Lottery Agencies, Jaipur. He filed return declaring income of Rs. 2,44,85,735, which was revised at Rs. 2,44,65,460. Initially income of the Assessee was assessed by AO under Section 143(3) at Rs. 2,46,12,260 on 23rd March, 1998. However, subsequently notice under Section 148 was issued on 22nd March, 2002 stating that (i) prize winning ticket amount reflected in the balance sheet on the current asset side not taken to the P&L a/c by the Assessee, (ii) valuation of closing stock at the end of the year was not claimed in the books of accounts, (iii) advance purchases and advance sales have not been taken to the P&L a/c. The order under Sections 143(3) and 148 was passed on 31st March, 2003 at Rs. 15,12,97,910.