Purna Chandra Pal Chowdhury, Burdwan V. ITO, WD-2(2), BURDWAN, Burdwan

ITA 1020/KOL/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3184 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 16-07-2015
• Court: TRIBUNAL

Judgement Text

I.T.A. NO. 1020/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 1020/KOL/ 2015 ASSESSMENT YEAR: 2010-2011 PURNA CHANDRA PAL CHOWDHURY,....................... .................APPELLANT CHOULPATTY, KATWA, BURDWAN-713 130 [PAN : AFOPP 0532 K] -VS.- INCOME TAX OFFICER,................................ ............................RESPONDENT WARD-2(2), BURDWAN, AAYAKAR BHAWAN, COURT COMPOUND, BUFDWAN-713 101 APPEARANCES BY: SHRI SOUMITRA CHOUDHURY, ADVOCATE, FOR THE ASSESSEE SHRI PRABAL CHOUDHURY, JCIT, SR. D.R., FOR THE DEPA RTMENT DATE OF CONCLUDING THE HEARING : JANUARY 07, 2016 DATE OF PRONOUNCING THE ORDER : FEBRUARY 10, 2016 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 17.03.2015 FOR THE ASSESSMENT YEAR 2010-11 AND THE SOLITARY ISSUE ARISING OUT OF THE SAME RELATES TO THE TRADING ADDITION MADE BY THE AS SESSING OFFICER BY ESTIMATING THE INCOME OF THE ASSESSEE BY APPLYING A HIGHER NET PROFIT RATE, WHICH IS PARTLY SUSTAINED BY THE LD. CIT(APPE ALS). 2. AS NOTED, AT THE OUTSET, THERE IS A DELAY OF 47 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TRIBUNAL. IN THIS REGARD, THE ASSESSEE HAS FILED AN APPLICATION SEEKING CONDONATI ON OF THE SAID DELAY AND KEEPING IN VIEW THE REASONS GIVEN THEREIN, WHIC H ARE DULY SUPPORTED BY AN AFFIDAVIT FILED BY THE ASSESSEE, I AM SATISFI ED THAT THERE WAS A SUFFICIENT CAUSE, WHICH PREVENTED THE ASSESSEE FROM FILING HIS APPEAL BEFORE THE TRIBUNAL IN TIME. I, THEREFORE, CONDONE THE SAID DELAY AND PROCEED TO DISPOSE OF THE APPEAL OF THE ASSESSEE ON MERIT. I.T.A. NO. 1020/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 2 OF 3 3. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO IS ENGAGED IN THE BUSINESS OF TRADING OF RICE. THE RETURN OF INCO ME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY HIM ON 24.09.2010 DECLAR ING TOTAL INCOME OF RS.4,33,208/-. DURING THE COURSE OF ASSESSMENT PROC EEDINGS, THE ASSESSEE COULD NOT PRODUCE THE BOOKS OF ACCOUNT AND OTHER RE LEVANT DOCUMENTARY EVIDENCE FOR THE VERIFICATION OF THE ASSESSING OFFI CER. IT WAS ALSO NOTED BY THE ASSESSING OFFICER THAT THE GROSS PROFIT DECLARE D BY THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION WAS LOWER AT 2.5% THAN THE GROSS PROFIT RATE OF 3.37% DECLARED BY THE ASSESSEE IN THE IMMEDIATEL Y PRECEDING YEAR. HE, THEREFORE, PROCEEDED TO ESTIMATE THE INCOME OF THE ASSESSEE BY APPLYING GROSS PROFIT RATE OF 3.3%, WHICH RESULTED IN A TRAD ING ADDITION OF RS.4,87,030/-. ON APPEAL, THE LD. CIT(APPEALS) FOUN D IT MORE APPROPRIATE TO ESTIMATE THE INCOME OF THE ASSESSEE BY APPLYING THE NET PROFIT RATE. ACCORDINGLY, HE APPLIED THE NET PROFIT RATE OF 1.21 % AS DECLARED BY THE ASSESSEE IN THE IMMEDIATELY PRECEDING YEAR AS AGAIN ST THE NET PROFIT RATE OF 0.87% DECLARED BY THE ASSESSEE AND RESTRICTED TH E TRADING ADDITION MADE BY THE ASSESSING OFFICER TO RS.3,07,924/- THER EBY GIVING A RELIEF OF RS.1,79,105/- TO THE ASSESSEE. STILL AGGRIEVED BY T HE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS POINTED O UT BY THE LD. COUNSEL FOR THE ASSESSEE, ONLY ONE OPPORTUNITY WAS EFFECTIV ELY GIVEN TO THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT AND OTHER RELEVANT DOCUMENTARY EVIDENCE. HE HAS ALSO POINTED OUT THAT A LETTER WAS FILED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER ON 18.12.2012 BRINGING IT TO HIS NOTICE THAT THE ASSESSEE WAS READY TO PRODUCE ALL THE BOOKS OF ACCOUNT REGULARLY MAINTAINED AT ANY TIME, AS MAY BE CONVENIENT TO THE ASSESSING OFFICER. BUT THE ASSESSING OFFICER DID NOT GIVE OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE SAME AND PASSED THE ASSESSMENT ORDER AF TER MORE THAN A MONTH ON 30.01.2013 ESTIMATING THE INCOME OF THE AS SESSEE BY APPLYING HIGHER PROFIT RATE FOR THE FAILURE OF THE ASSESSEE TO PRODUCE THE BOOKS OF I.T.A. NO. 1020/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 3 OF 3 ACCOUNT. HE HAS CONTENDED THAT THE ASSESSEE THUS HA S NOT BEEN GIVEN A PROPER AND SUFFICIENT OPPORTUNITY TO PRODUCE THE BO OKS OF ACCOUNT AND THE MATTER MAY, THEREFORE, BE SENT BACK TO THE ASSE SSING OFFICER FOR GIVING SUCH OPPORTUNITY. AFTER HAVING PERUSED THE RELEVANT MATERIAL RECORD, I FIND MERIT IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE AND SINCE THE LD. D.R. HAS ALSO NOT RAISED MATERIAL OBJECTION IN THIS REGARD, I SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) AN D RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTI ON TO MAKE THE ASSESSMENT AFRESH AFTER GIVING THE ASSESSEE PROPER AND SUFFICIENT OPPORTUNITY TO PRODUCE THE BOOKS OF ACCOUNT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 10, 2016. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 10 TH DAY OF FEBRUARY, 2016 COPIES TO : (1) PURNA CHANDRA PAL CHOWDHURY, CHOULPATTY, KATWA, BURDWAN-713 130 (2) INCOME TAX OFFICER, WARD-2(2), BURDWAN, AAYAKAR BHAWAN, COURT COMPOUND, BUFDWAN-713 101 (3) COMMISSIONER OF INCOME-TAX (APPEALS), BURDWAN, (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.