M/s. Maa Chinnamasta Traders, Paschim Burdwan V. ITO, Ward - 2(2), ASANSOL, Asansol

ITA 1123/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2929 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 24-05-2018
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER) I.T.A. NO. 1123/KOL/2018 ASSESSMENT YEAR: 2011-12 M/S. MAA CHINNAMASTA TRADERS........................................................... APPELLANT [PAN : AANFM 8539 K] VS. INCOME TAX OFFICER, WARD-2(2), ASANSOL............................................................................... RESPONDENT I.T.A. NO. 1115/KOL/2018 ASSESSMENT YEAR: 2011-12 INCOME TAX OFFICER, WARD-2(2), ASANSOL....................................................................................APPELLANT VS. M/S. MAA CHINNAMASTA TRADERS....................................................... RESPONDENT [PAN : AANFM 8539 K] APPEARANCES BY: SHRI U. DASGUPTA, FCA, APPEARED ON BEHALF OF THE ASSESSEE. SHRI GAUTAM KR. MONDAL, ADD.CIT, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : AUGUST 13 TH , 2019 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 4 TH , 2019 ORDER PER J. SUDHAKAR REDDY, AM :- THESE ARE CROSS APPEALS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-ASANSOL [CIT(A) FOR SHORT] DATED 13.02.2018 FOR ASSESSMENT YEAR (AY FOR SHORT)-2011-12. 2. THE REVENUES APPEAL IS DISMISSED AS WITHDRAWN, AS THE TAX EFFECT IS BELOW 50 LAKHS. 3. COMING TO THE ASSESSEES APPEAL, THERE IS A DELAY OF 26 DAYS IN FILING OF THE ASSESSEES APPEAL. WE HAVE PERUSED THE CONDONATION PETITION ALONG WITH THE AFFIDAVIT FILED, EXPLAINING THE REASONS FOR THE DELAY. WE ARE CONVINCED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FROM FILING OF THE APPEAL WITHIN TIME. HENCE WE CONDONE THE DELAY AND ADMIT THE APPEAL. 2 I.T.A. NO. 1123 & 1115/KOL/2018 ASSESSMENT YEAR: 2011-12 M/S. MAA CHINNAMASTA TRADERS 4. AFTER HEARING RIVAL CONTENTIONS, WE FIND THAT THE ASSESSEE IS A CIVIL CONTRACTOR FIRM AND HAS FILED ITS RETURN OF INCOME DECLARING INCOME OF RS. 3,71,746/- ON 23/12/2011. THE ASSESSING OFFICER (AO FOR SHORT) PASSED AN ORDER U/S 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT) DETERMINING THE TOTAL INCOME AT RS. 19,46,430/-, AFTER REJECTION OF BOOKS OF ACCOUNT. THE LD. CIT(A) HAS ALSO NOT BASED HIS ORDER ON ANY BOOKS OF ACCOUNT. WE HAVE EXAMINED BOTH ORDERS OF THE AO AS WELL AS THE LD. CIT(A). BOTH THE AUTHORITIES HAVE PASSED ORDERS ESTIMATING THE INCOME OF THE ASSESSEE. 4. BEFORE US ALSO THE ASSESSEE HAS NOT ARGUED THAT REJECTION OF BOOKS WAS WRONG. UNDER THESE CIRCUMSTANCES, WE ARE OF THE OPINION THAT ENDS OF JUSTICE WOULD BE MADE, IF THE PROFIT OF THE ASSESSEE IS ESTIMATED AT 10% OF THE GROSS TURNOVER OF RS. 1,67,64,529/-, KEEPING IN VIEW THE PERCENTAGE OF PROFITS ASSESSED IN THE CASE OF THE COMPANY, FROM THE ASSESSMENT YEAR 2008-09 TO THE ASSESSMENT YEAR 2010-11, A CHART OF WHICH FILED BEFORE US. AS WE HAVE UPHELD THE REJECTION OF BOOKS AND ESTIMATED THE PROFIT AS A PERCENTAGE OF TURNOVER, ALL THE DISALLOWANCE ADDITIONS IN QUESTION WHICH ARE BASED ON THE REJECTION OF BOOKS OF ACCOUNT ARE HEREBY DELETED. THUS, GROUND NOS. 1, 2, 3 AND 4 OF THE ASSESSEES APPEAL ARE ALLOWED. 5. THE AO IS DIRECTED TO ESTIMATE GROSS PROFIT AT 10% OF THE TURNOVER AND TO ALLOW FROM SUCH NET PROFIT, INTEREST PAYABLE ON PARTNERS CAPITAL ACCOUNT AND ALSO ALLOW REMUNERATION PAYABLE TO PARTNERS. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART. KOLKATA, THE SEPTEMBER 4 TH , 2019. SD/- SD/- [S.S. VISWANETHRA RAVI] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 04.09.2019 BIDHAN 3 I.T.A. NO. 1123 & 1115/KOL/2018 ASSESSMENT YEAR: 2011-12 M/S. MAA CHINNAMASTA TRADERS COPY OF THE ORDER FORWARDED TO: 1. M/S. MAA CHINNAMASTA TRADERS, VILL. + POST. ALDIH, TINTALLAH, KULTI, DIST. PASCHIM BURDWAN-713 343. 2. INCOME TAX OFFICER, WARD-2(2), ASANSOL. 3. CIT(A)-ASANSOL. (SENT THROUGH MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES