Dushmanta Giri, Medinipur, Paschim Medinipur v. A.C.I.T., Cir-2, Medinipur,

ITA 1048/KOL/2009 | 2005-2006
Pronouncement Date: 30-09-2010

Appeal Details

RSA Number 104823514 RSA 2009
Assessee PAN ADNPG4883B
Bench Kolkata
Appeal Number ITA 1048/KOL/2009
Duration Of Justice 1 year(s) 3 month(s) 13 day(s)
Appellant Dushmanta Giri, Medinipur, Paschim Medinipur
Respondent A.C.I.T., Cir-2, Medinipur,
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2010
Appeal Filed By Assessee
Bench Allotted B
Tribunal Order Date 30-09-2010
Assessment Year 2005-2006
Appeal Filed On 16-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA () BEFORE . . . . . . . . ! '# '# '# '# /AND . .. . . .. . $ ! ) [BEFORE HONBLE SRI D. K. TYAGI JM & HONBLE SRI C . D. RAO AM] #% #% #% #% / I.T.A NO. 1048 /KOL/2009 &'( )* &'( )* &'( )* &'( )*/ // / ASSESSMENT YEAR : 2005-06 DUSHMANTA GIRI MEDINIPUR -VS- ASSISTANT COMMISS IONER OF INCOME-TAX (PA NO.ADNPG 4883 B) CIRCLE-2 MEDINIPUR. ( - / APPELLANT ) (. -/ RESPONDENT ) FOR THE APPELLANT : SRI MIRAJ D. SAHA FOR THE RESPONDENT SRI P. C. NAYAK / / ORDER PER D. K. TYAGI JM ( . . . . . . . . ! ) THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAI NST THE ORDER OF THE LD. CIT(A) KOLKATA DATED 20.03.2009 FOR ASSESSMENT YEA R 2005-06 ON THE GROUND OF CONFIRMING THE DISALLOWANCES MADE BY THE ASSESSING OFFICER UNDER VARIOUS HEADS. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AS SESSEE FILED RETURN OF INCOME DECLARING INCOME OF RS.16 80 230/-. THE ASSESSING O FFICER COMPLETED THE ASSESSMENT DETERMINING INCOME AT RS.22 80 040/- MAKING ESTIMAT ED DISALLOWANCES ON ACCOUNT OF VARIOUS EXPENSES CLAIMED UNDER VARIOUS HEADS AS THE ASSESEE DID NOT MAINTAIN SATISFACTORY EVIDENCE IN SUPPORT OF THE EXPENSES CL AIMED. IN APPEAL THE LD. CIT(A) DELETED THE ADDITIONS IN RESPECT OF PRINTING & STAT IONERY AND TRAVELLING & CONVEYANCE TOTALING TO RS.41 108/- AND CONFIRMED THE ADDITIONS IN RESPECT OF CARRIAGE INWARDS RS.1 37 875/- WAGES & LABOUR CHARGES RS.9 32 235/- SITE EXPENSES RS.65 794/- OFFICE EXPENSES RS.31 115/- LABOUR EXPENSES RS.54 658 AND SALARY RS.2 70 720/-. AGGRIEVED BY THE SAID ORDER THE ASSESSEE IS NOW IN APPEAL BE FORE US. 3. AT THE TIME OF HEARING BEFORE US THE LD. COUNSE L FOR THE ASSESSEE SUBMITTED THAT NET PROFIT SHOWN BY THE ASSESSEE AT THE TIME OF FIL ING OF RETURN WAS 2.07% BUT AFTER THE ADDITION SUSTAINED BY THE LD. CIT(A) WHICH COMES TO 6.70% WHICH IS HIGHER THAN THE NET PROFIT OF 4.78% SHOWN BY THE ASSESSEE DURING TH E IMMEDIATELY PREVIOUS YEAR. HE FURTHER SUBMITTED THAT NET PROFIT SHOWN BY THE ASSE SSEE AT 2.07% WAS BECAUSE OF 2 EXCEPTIONAL EXPENSES INCURRED BY THE ASSESSEE DURIN G THIS YEAR ON MACHINERY BURNT BY MAOIST MILITANTS OF RS.11 50 173/-. IF THESE EXPEN SES WERE NOT INCURRED BY THE ASSESEE THE ASSESSEES NET PROFIT WOULD HAVE COME TO 5.64% I.E. HIGHER THAN THE NET PROFIT SHOWN BY THE ASSESSEE DURING THE IMMEDIATE PREVIOUS YEAR. HE THEREFORE PRAYED THAT THE RETURNED INCOME SHOWN BY THE ASSESEE MAY KINDLY BE ACCEPTED. 4. LD. DR ON THE OTHER HAND RELIED ON THE ORDER O F THE LD. CIT(A). 5. AFTER HEARING THE RIVAL SUBMISSIONS AND CAREFUL LY PERUSING THE MATERIAL AVAILABLE ON RECORD WE FIND THAT THE LD. CIT(A) HAS SUSTAINE D THE ADDITION MADE BY THE ASSESSING OFFICER AFTER MAKING COMPARISON OF THE EXPENSES INC URRED BY THE ASSESSEE DURING THE IMMEDIATE PRECEDING YEAR AND THE YEAR UNDER CONSID ERATION AND FOUND THAT THE EXPENSES WERE ABNORMALLY HIGH THIS YEAR AND NO SATISFACTORY EXPLANATION IN THIS REGARD WAS GIVEN BY THE ASSESSEE. HOWEVER HE DELETED THE DISALLOWAN CES MADE ON ACCOUNT OF PRINTING & STATIONERY AND TRAVELLING AND CONVEYANCE BY OBSERVI NG THAT THE PERCENTAGE OF EXPENDITURE IS LESS THAN COMPARED TO THE IMMEDIATEL Y PRECEDING ASSESSMENT YEAR. IF WE TAKE INTO CONSIDERATION THE SUBMISSIONS MADE BY THE LD. COUNSEL FOR THE ASSESSEE IN OUR CONSIDERED OPINION THE SUSTENANCE OF THE DISALLOWA NCES ON ACCOUNT OF CARRIAGE INWARD WAGES AND LABOUR CHARGES SITE EXPENSES OFFICE EXP ENSES LABOUR EXPENSES AND SALARY IS ON HIGHER SIDE AS THE ASSESSING OFFICER HAS HIMSELF HAS ACCEPTED THAT THE TURNOVER FOR THIS ASSESSMENT YEAR IS INCREASED BY 334.78% WHEN C OMPARED TO THE PREVIOUS YEAR TURNOVER AND SINCE THE LD. CIT(A) HAS HIMSELF OBSER VED THAT THE PERCENTAGE OF EXPENDITURE ON ACCOUNT OF PRINTING AND STATIONERY A ND TRAVELLING AND CONVEYANCE ARE LESS WHEN COMPARED TO THE PREVIOUS YEAR IN OUR CONSIDER ED OPINION THIS REQUIRES FRESH ADJUDICATION BY THE LD. CIT(A) IN VIEW OF THE SUBMI SSIONS MADE BY THE LD. COUNSEL FOR THE ASSESSEE. THEREFORE WE SET ASIDE THE ISSUE TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES . 7. ORDER IS PRONOUNCED IN THE OPEN COURT ON 30.9.10 SD/- SD/- . . $ ! . . ! (C. D. RAO) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER ( $ $ $ $) )) ) DATED :30TH SEPTEMBER 2010 01 &'23 &4 JD.(SR.P.S.) 3 / 5 .&& 6)7- COPY OF THE ORDER FORWARDED TO: 1 . - / APPELLANT SRI DUSHMANTA GIRI AT BACHURDOBA PO JHARGRAM DIST. PASCHIM MEDINIPUR PIN-721 507. 2 . - / RESPONDENT ACIT CIRCLE-2 MEDINIPUR . 3 . &/' / THE CIT 4 . &/' ( )/ THE CIT(A) KOLKATA 5 . >& .&' / DR KOLKATA BENCHES KOLKATA .&/ TRUE COPY /'?/ BY ORDER @ #3 / DEPUTY REGISTRAR .