Subrata Dey, Burdwan v. ITO, Ward 1(3), Burdwan, Burdwan

ITA 450/KOL/2017 | 2013-2014
Pronouncement Date: 30-11-2017 | Result: Allowed

Appeal Details

RSA Number 45023514 RSA 2017
Assessee PAN ACTPD5143J
Bench Kolkata
Appeal Number ITA 450/KOL/2017
Duration Of Justice 8 month(s) 23 day(s)
Appellant Subrata Dey, Burdwan
Respondent ITO, Ward 1(3), Burdwan, Burdwan
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 30-11-2017
Assessment Year 2013-2014
Appeal Filed On 07-03-2017
Judgment Text
1 ITA NO. 450/KOL/2017 ASSESSMENT YEAR: 2013-2014 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH KOLKATA BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER I.T.A. NO. 450/KOL./2017 ASSESSMENT YEAR: 2013-2014 SUBRATA DEY ....................................... .....................................APPELLANT NANDARAMBATI P.O. SUREKALNA BURDWAN-713 408 [PAN: ACTPD 5143 J] -VS.- INCOME TAX OFFICER ................................ ............................RESPONDENT WARD-1(3) BURDWAN AAYAKAR BHAWAN COURT COMPOUND BURDWAN-713 101 APPEARANCES BY: SHRI SOUMITRA CHOUDHURY ADVOCATE FOR THE ASSESSEE SHRI SATYAJIT MONDAL ADDL. CIT D.R. FOR THE DEPA RTMENT DATE OF CONCLUDING THE HEARING : NOVEMBER 30 2017 DATE OF PRONOUNCING THE ORDER : NOVEMBER 30 2017 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) BURDWAN DATED 30.12.2016. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L WHO IS ENGAGED IN THE BUSINESS OF WHOLESALE TRADING OF POTATOES. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY HIM ON 04 .10.2013 DECLARING TOTAL INCOME OF RS.2 33 720/-. IN THE SAID RETURN GROSS SALES FROM THE BUSINESS OF WHOLESALE TRADING OF POTATOES WERE SHOW N BY THE ASSESSEE AT RS.96 03 835/- AND AFTER CLAIMING DEDUCTION ON ACCO UNT OF PURCHASES AND OTHER EXPENSES GROSS PROFIT AND NET PROFIT WAS DEC LARED AT 10% AND 3.50% RESPECTIVELY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS FOUND BY THE ASSESSING OFFICER THAT THE ASSESSEE HA S MAINTAINED TWO CURRENT ACCOUNTS WITH STATE BANK OF INDIA AND HDFC BANK WHICH WERE NOT DISCLOSED IN THE BOOKS OF ACCOUNT. HE ALSO NOTI CED THAT HIS BUSINESS TRANSACTIONS WERE CARRIED OUT BY THE ASSESSEE THROU GH THE SAID TWO 2 ITA NO. 450/KOL/2017 ASSESSMENT YEAR: 2013-2014 CURRENT ACCOUNTS. THE ASSESSEE THEREFORE WAS CALL ED UPON BY THE ASSESSING OFFICER TO EXPLAIN THE TRANSACTIONS REFLE CTED IN HIS UNDISCLOSED CURRENT ACCOUNTS. THE ASSESSEE HOWEVER DID NOT CO MPLY WITH THIS REQUIREMENT OF THE ASSESSING OFFICER. THE ASSESSING OFFICER THEREFORE PROCEEDED TO COMPLETE THE ASSESSMENT TO THE BEST OF HIS JUDGMENT UNDER SECTION 144 OF THE ACT. IN THE ASSESSMENT SO COMPLE TED VIDE AN ORDER DATED 29.03.2016 THE CREDITS APPEARING IN THE TWO UNDISCLOSED BANK ACCOUNTS OF THE ASSESSEE AGGREGATING TO RS.3 87 03 903/- WERE TREATED BY THE ASSESSING OFFICER AS UNDISCLOSED TURNOVER OF TH E ASSESSEES BUSINESS OF WHOLESALE TRADING OF POTATOES AND INCOME FROM TH E SAME ESTIMATED BY APPLYING THE GROSS PROFIT RATE OF 10% AMOUNTING TO RS.38 70 790/- WAS ADDED BY HIM TO THE TOTAL INCOME OF THE ASSESSEE. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFIC ER UNDER SECTION 144 AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) AND SINCE THE SUBMISSION MADE BY THE ASSESSEE IN SU PPORT OF HIS CASE ON THE ISSUE INVOLVED IN HIS CASE RELATING TO THE ADDI TION OF RS.38 70 390/- MADE BY THE ASSESSING OFFICER WAS NOT FOUND ACCEPTA BLE THE LD. CIT(APPEALS) CONFIRMED THE SAID ADDITION MADE BY TH E ASSESSING OFFICER AND DISMISSED THE APPEAL OF THE ASSESSEE. 4. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS) THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL ON THE FO LLOWING GROUNDS:- 1. WHETHER ON THE FACE OF ADMITTED FACTS IN ASSES SMENT THAT RECORDED BUSINESS TRANSACTIONS OF RS.96 03 835/- IS A PART OF BUSINESS TRANSACTIONS CARRIED OUT THROUGH CURRENT A CCOUNTS MAINTAINED WITH STATE BANK OF INDIA AND HDFC BANK WAS IT APPROPRIATE FOR THE COMMISSIONER OF INCOME - TAX TO CONFIRM THAT SUM TOTAL OF BUSINESS TRANSACTIONS IN SUCH CURRENT ACCOUNTS OF RS.3 87 03 903/- IS EXCLUSIVE OF RECORDED BUSINESS TRANSACTIONS OF RS.96 03 835/-. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE WAS IT APPROPRIATE FOR THE COMMISSIONER OF INCOME - TAX TO CONFIRM ADOPTION OF NET PROFIT AT 10 PERCENT ON UNRECORDED SALES AS 3 ITA NO. 450/KOL/2017 ASSESSMENT YEAR: 2013-2014 AGAINST ADOPTION OF NET PROFIT AT 3.50 PERCENT ON R ECORDED SALES IN ASSESSMENT. 5. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS SUBMITTED THAT OUT OF TOTAL TURNOVER OF RS.3 87 03 903/- AS REFLECTED IN THE UNDISCLOSED CURRENT ACCOUNTS THE ASSESSEE HAD ALREADY DISCLOSED HIS TURNOVER TO THE EXTENT OF RS.96 03 835/- IN THE RET URN OF INCOME AND HAD ALSO DECLARED NET PROFIT THEREON AT 3.50%. HE HAS S UBMITTED THAT THE ASSESSEE HOWEVER COULD NOT PROPERLY EXPLAIN AND E STABLISH HIS CASE ON THE ISSUE AS THE ORDER OF ASSESSMENT WAS COMPLETED BY THE ASSESSING OFFICER EX PARTE UNDER SECTION 144 TO THE BEST OF HIS JUDGMENT. HE HAS CONTENDED THAT THE ASSESSEE IS IN A POSITION TO SUP PORT AND SUBSTANTIATE HIS CASE ON THIS ISSUE BY PRODUCING THE RELEVANT BO OKS OF ACCOUNT AND OTHER EVIDENCE AND URGED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE BY SENDING THE MATTER BACK TO THE ASSESSIN G OFFICER. HE HAS ALSO CONTENDED THAT THE GROSS PROFIT RATE OF 10% APPLIED BY THE ASSESSING OFFICER TO ESTIMATE THE INCOME OF THE ASSESSEE FROM THE UNDISCLOSED TURNOVER IS EXCESSIVE AND UNREASONABLE AND HE MAY B E DIRECTED TO APPLY THE NET PROFIT RATE OF 3.50% DECLARED BY THE ASSESS EE. ALTHOUGH THE LD. D.R. HAS STRONGLY OPPOSED THE CONTENTIONS RAISED BY THE LD. COUNSEL FOR THE ASSESSEE SEEKING REMAND OF THE MATTER TO THE AS SESSING OFFICER BY SUBMITTING THAT SUFFICIENT OPPORTUNITY HAS ALREADY BEEN OFFERED TO THE ASSESSEE BY THE ASSESSING OFFICER AS WELL AS BY THE LD. CIT(APPEALS) I AM OF THE VIEW THAT ONE MORE OPPORTUNITY CAN JUSTIFIAB LY BE GIVEN TO THE ASSESEE IN THE INTEREST OF JUSTICE TO PUT FORTH HIS CASE BEFORE THE ASSESSING OFFICER KEEPING IN VIEW THAT THE ASSESSMENT WAS COM PLETED BY THE ASSESSING OFFICER EX PARTE UNDER SECTION 144 TO THE BEST OF HIS JUDGMENT AND THE ASSESSEE THUS DID NOT GET ANY EFFECTIVE OPP ORTUNITY TO PUT FORTH HIS CASE ON THE ISSUE UNDER CONSIDERATION. I THERE FORE SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) AND R ESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO MAKE THE ASSESSMENT AFRESH AFTER GIVING PROPER AND SUFFICIENT OPPORTUNI TY OF BEING HEARD TO THE ASSESSEE. 4 ITA NO. 450/KOL/2017 ASSESSMENT YEAR: 2013-2014 6. AS REGARDS THE RATE OF PROFIT TO BE APPLIED FOR ESTIMATION OF THE INCOME OF THE ASSESSEE FROM THE UNDISCLOSED TURNOVE R I KEEP THIS ISSUE OPEN TO THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH AFTER TAKING INTO CONSIDERATION ALL THE RELEVANT FACTS OF THE CA SE AS WELL AS THE SUBMISSIONS OF THE ASSESSEE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DAY OF NOVEMBER 2017. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA THE 30 TH DAY OF NOVEMBER 2017 COPIES TO : (1) SHRI SUBRATA DEY NANDARAMBATI P.O. SUREKALNA BURDWAN-713 408 2) INCOME TAX OFFICER WARD-1(3) BURDWAN AAYAKAR BHAWAN COURT COMPOUND BURDWAN-713 101 (3) CIT(APPEALS) BURDWAN (4) CIT- BURDWAN (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/DDO INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES KOLKATA LAHA/SR. P.S.