Ananda Lal Das, Hooghly V. I.T.O Wd - 1(1),Hooghly., Hooghly

ITA 1/KOL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78406 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2014
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 01-01-2013
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA PRASAD
• Keywords: Rejection of books of accounts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH A , KOLKATA [BEFORE HONBLE SRI MAHAVIR SINGH, JM & HONBLE S RI SHAMIM YAHYA, AM ] ITA NO.01/KOL/2013 ASSESSMENT YEAR : 2004-05 ( APPELLANT ) (RESPONDENT) ANANDA LAL DAS -VS- I.T.O., WARD-1(1), HOOGHLY HOOGHLY (PAN : ADAPD 0136 D) FOR THE APPELLANT SHRI SOMNATH GHOSH, ADVOCATE FOR THE RESPONDENT SHRI RAJENDRA PRASAD, JCIT, SR.(DR) DATE OF HEARING : 14.07.2014 DATE OF PRONOUNCEMENT : 14. 07.2014. ORDER PER SHRI SHAMIM YAHYA, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST ORDER OF LD. C.I.T.(A)- XXXVI, KOLKATA DATED 08.10.2012 AND PERTAINS TO AS SESSMENT YEAR 2004-05. 2. THE ISSUE RAISED IN THIS APPEAL IS THAT THE LD. CIT(A) ERRED IN UPHOLDING THE ADHOC ESTIMATED ADDITION OF RS.50,000/- TO THE TRAD ING RESULT MADE ON ACCOUNT OF FUTILE PREMISE FLUCTUATION OF GROSS PROFIT RATE BY THE L D. INCOME TAX OFFICER, WARD-1(1), HOOGHLY WITHOUT REJECTION OF BOOKS OF ACCOUNTS AND/ OR ADDUCING ANY ADVERSE EVIDENCE ON RECORD IN SUPPORT OF SUCH PURPORTED JUSTIFICATIO N IN THE ASSESSMENT ORDER FRAMED U/S 143(3)/147 OF THE INCOME TAX ACT, 1961 AND THE SPEC IOUS FINDINGS IN THAT RESPECT ARE AB INITIO VOID, ULTRA VIRES AND EX-FACIE NULL IN LA W. 3. IN THIS CASE THE ASSESSEE CARRIES ON A BUSINESS OF RETAIL TRADING OF CEMENT OF VARIOUS COMPANIES. THE AO NOTED THE FOLLOWING POSIT ION OF GROSS PROFIT RATE OF THE ASSESSEE IN THE CURRENT AND PRECEDING YEARS : ASSESSMENT YEAR SALE GROSS PROFIT G.P.RATE 2002-2003 36,81,535/- 1,13,467/- 3.08% ITA.NO.01/KOL/2013 ANANDA LAL DAS. A.YR.2004-05 2 2003-2004 53,24,521/- 1,30,214/- 2.45% 2004-2005 61,70,713/- 1,59,207/- 2.8% THE AO OPINED THAT THERE WAS TOO MUCH CHANGE AND UN JUSTIFIABLE FLUCTUATION. THE ASSESSEE SUBMITTED THAT ALL THE PURCHASES AND SALES ARE VOUCHED AND VERIFIABLE. HOWEVER, THE AO WAS NOT SATISFIED. AO PROCEEDED TO MAKE A ESTIMATED ADDITION OF RS.50,000/-. 4. UPON ASSESSEES APPEAL THE LD. CIT(A) CONFIRMED THE ADDITION. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT IN THIS CASE THE ASSESSEE HAS SUBMITTED ALL THE BOOKS, VOUC HERS AND OTHER REQUIREMENTS. NO DEFECT WHATSOEVER HAS BEEN POINTED OUT THEREIN. NEI THER THE BOOKS HAVE BEEN REJECTED. AO HAS NOTED SOME VARIATION IN THE GROSS PROFIT RAT IO WHICH, THOUGH MINOR, HAS BEEN TREATED BY THE AO AS HUGE FLUCTUATION. IN OUR CONSI DERED OPINION, VARIATION IS MARGINAL AND TRADING RESULTS CANNOT FOLLOW MATHEMATICAL PRE CISION OF THE PRECEDING YEAR. FURTHERMORE, IN ABSENCE OF ANY DEFECT POINTED OUT A DHOC ADDITION CAN ONLY BE BASED ON SURMISES AND GUESS WORK AND THE SAME IS NOT SUST AINABLE. IN THESE CIRCUMSTANCES WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AN D DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. 6. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE S TANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14.07.2014. SD/- SD/- [ MAHAVIR SINGH ] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 14.07.2014. R.G.(.P.S.) ITA.NO.01/KOL/2013 ANANDA LAL DAS. A.YR.2004-05 3 COPY OF THE ORDER FORWARDED TO: 1. ANANDA LAL DAS, C/O SHRI SOMNATH GHOSH, ADVOCATE, S EVEN BROTHERS LODGE, CHINSURAH,. DIST. HOOGHLY, PIN-712 105. 2 I.T.O., WARD-1(1), HOOGHLY. 3 . CIT(A)-XXXVI, KOLKATA 4. CIT - KOLKATA. 5. CIT-DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES