M/s. Surendra Salt Traders, Asansol V. DCIT, Circle - 1, Asansol, Asansol

CO 124/KOL/2010

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 6879 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 18 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 11-01-2012
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 02-08-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 24-08-2010
• Court: TRIBUNAL
• Department Lawyers: A S MONDAL
• Assessee Lawyers: U DASGUPTA

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $%& $%& $%& $%& ' ' ' ' / ITA NO . 1492/KOL/2010 () *+/ ASSESSMENT YEAR : 2007-08 (-. / APPELLANT ) D.C.I.T., CIRCLE-1, ASANSOL. - ( - - VERSUS - . (01-./ RESPONDENT ) M/S.SURENDRA SALT TRADERS, ASANSOL (PAN: AANFS 8809 E) 2 %& 2 %& 2 %& 2 %& /C.O. NO.124/KOL/2010 ' ' ' ' / A/O ITA NO.1492/KOL/2010 () *+/ ASSESSMENT YEAR : 2007-08 (-. / APPELLANT ) M/S.SURENDRA SALT TRADERS., ASANSOL (PAN: AANFS 8809 E) - ( - - VERSUS - . (01-./ RESPONDENT ) D.C.I.T., CIRCLE-1, ASANSOL -. 3 4 '/ FOR THE DEPARTMENT: SHRI A.S.MONDAL 01-. 3 4 '/ FOR THE ASSESSEE : SHRI U.DASGUPTA 5(6 3 !# /DATE OF HEARING : 11.01.2012. 7* 3 !# /DATE OF PRONOUNCEMENT : 11.01.2012. '8 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THE ABOVE TWO APPEALS ONE FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE AGAINST ORDERS DATED 21.05.201 0 OF THE CIT(A)-ASANSOL PERTAINING TO A.YR. 2007-08. 2 2. IN THESE CROSS APPEALS THE ISSUE INVOLVED IS ON LY THE ESTIMATION OF GROSS PROFIT ON ACCOUNT OF ONE WHOLESALE TRADING OF SALT AND THE SECOND ONE IS ON ACCOUNT OF HANDLING CHARGES. 3. AS REGARDING THE WHOLESALE BUSINESS TRADING OF SALT THE AO HAS REJECTED THE BOOKS OF ACCOUNT AND ESTIMATED THE NET PROFIT AT 6% BY MAINLY OBSERVING THAT I) THE HUGE CLAIM MADE AGAINST CARRIAGE INWARD, TRUCK FREIGHT, COLLIE CARTAGE, CARRIAGE OUTWARD ETC. REMAINS UNVERIFIABLE. II) NO VERIFICATION OF CREDITORS WITH BOOKS COULD B E MADE/NO REPLY FROM THE ASSESSEE WAS RECEIVED AS FAR DISCREPANCIES POINTED OUT AS DI SCUSSED IN COL.VII OF PAGE 4/FREQUENT CHANGING OF LIST OF CREDITORS BY THE ASS ESSEE ETC. (III) THE DEFICIENCY NOTES PUT/THE PRACTICE OF LEAV ING THE REMARKS COLUMN BLANK BY THE AUDITOR OVER COLUMN NO.17(H) AND 27(A) (IV ) SOURCES OF REPAYMENT OF LOAN/ADVANCES CLAIMED COULD NOT BE VERIFIED AS DISCUSSED IN COLUMN NO.V OF PAGE.4. 3.1. AND SIMILARLY HE ESTIMATED THE NET PROFIT FROM HANDLING CHARGES AT 18% OF THE TOTAL HANDLING CHARGES BY OBSERVING AS UNDER :- I) NON FURNISHING ANY CONVINCING DOCUMENTS AS REQU ISITIONED AND DISCUSSED IN COLUMN II(A), II(B), II(C), II(D) & II(E) IN PAGE N O.3 OF THIS ORDER. II) NON FURNISHING OF ANY EXPLANATION WITH SUPPORTI NG EVIDENCES REGARDING REFLECTION OF A MAJOR EXPENSES AS CURRENT LIABILITY IN CONTRAS T TO EARLIER YEARS. III) THE DEFICIENCY NOTES PUT/THE PRACTICE OF LEAVI NG THE REMARKS COLUMN BLANK BY THE AUDITOR OVER COLUMN NO.17(H) AND 27(A) IV) NON FURNISHING OF LOGICAL EXPLANATION/RECONCILI ATION BEHIND CAPITALIZATION OF THE ENTIRE REFUND AMOUNT ALONG WITH INTEREST IN THE RES PECTIVE CAPITAL ACCOUNTS OF PARTNERS PARTICULARLY UNDER THE CIRCUMSTANCES WHERE TDS WAS SHOWN IN THE ASSET SIDE IN THE ACCOUNTS OF PRECEDING YEAR AND CONSIDERING THE TOTA LITY OF CIRCUMSTANCES WITH ALL ITS PRACTICAL ASPECT. 3.2. ON APPEAL THE LD. CIT(A) HAS REDUCED THE NET P ROFIT ON ACCOUNT OF SALE OF SALT TO 5% IN PLACE OF 6% AND AS REGARDING HANDLING CHARGES HE ESTIMATED THE NET PROFIT AT 8% AS AGAINST 18%. 3.3. AGGRIEVED BY THIS BOTH THE REVENUE AS WELL AS ASSESSEE ARE IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING THE LD. DR APPEARING ON B EHALF OF THE REVENUE HAS SUPPORTED THE ORDERS OF AO. 3 5. ON THE OTHER HAND, THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE THOUGH ACCEPTED THE REJECTION OF BOOKS OF ACCOUNT HIS CONT ENTION WAS THAT THE ESTIMATION SUSTAINED BY THE LD. CIT(A) IS ON THE HIGHER SIDE. THEREFORE HE REQUESTED TO REDUCE THE RATE OF NET PROFIT IN THE CASE OF SALT FROM 5% TO 4 % AND IN RESPECT OF HANDLING CHARGES FROM 8% TO 5%. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIALS AVAILABLE ON RECORD, KEEPING IN VIEW OF THE FACT TH AT THE LD. CIT(A) AFTER ANALYZING THE PAST SIX YEARS OF TRADING RESULTS OF ASSESSEE HAS C OME TO THE CONCLUSION THAT 5% OF THE NET PROFIT ON WHOLESALE SALT BUSINESS WILL MEET THE ENDS OF JUSTICE. 6.1. SIMILARLY HE HAS ESTIMATED 8% OF THE NET PROFI T IN THE CASE OF HANDLING CHARGES. KEEPING IN VIEW OF THE FACT THAT ASSESSEE WAS NOT A T ALL COOPERATIVE IN THE ASSESSMENT PROCEEDINGS BY SUBMITTING THE RELEVANT DOCUMENTS RE QUIRED BY AO. IT IS FURTHER OBSERVED THAT THE LD. COUNSEL FOR ASSESSEE COULD NO T BRING ANY MATERIAL ON RECORD TO REDUCE THE RATE OF NET PROFIT ADOPTED BY THE LD. CI T(A). THEREFORE WE FIND NO INFIRMITY IN THE ORDERS OF LD. CIT(A) TO BE INTERFERED WITH. HENCE WE CONFIRM THE SAME AND ALLOW THE APPEAL OF THE REVENUE. 7. IN RESPECT OF CROSS OBJECTION RAISED BY ASSESSEE WE ARE OF THE VIEW THAT SINCE WE HAVE DISMISSED THE APPEAL OF THE REVENUE THE CRO SS OBJECTION OF ASSESSEE BECOMES INFRACTUOUS. THE CROSS OBJECTION OF ASSESSEE IS ALS O DISMISSED. 8. IN THE RESULT THE APPEAL OF THE REVENUE AS WELL AS THE CROSS OBJECTION ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11.01.2012. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 11.01.2012. R.G.(.P.S.) 4 '8 3 0% 9'%*:- COPY OF THE ORDER FORWARDED TO: 1. M/S.SURENDRA SALT TRADERS, 33, MASJID BARI LANE, P. O.ASANSOL, DIST.BURDWAN PIN:713301. 2 THE D.C.I.T., CIRCLE-1, ASANSOL. 3. THE CIT, 4. THE CIT(A)-ASANSOL. 5. DR, KOLKATA BENCHES, KOLKATA 1% 0/ TRUE COPY, '8(5/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES