Sri Alit Kumar Sarkar, Siliguri V. ITO, WD-1(1), SILIGURI, Siliguri

ITA 1220/KOL/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3407 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 18-09-2015
• Court: TRIBUNAL
• Department Lawyers: MD GHAYAS UDDIN
• Assessee Lawyers: S M SURANA
• Keywords: Peak credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA [BEFORE SHRI MAHAVIR SINGH, JM] I.T.A NO.1220/KOL/2015 ASSESSMENT YEAR: 2011-12 SHRI ALIT KUMAR SARKAR VS. INCOME-TAX OFFICER, WD-1(1), SILIGURI (PAN: AIWPS9731Q) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 29.12.2015 DATE OF PRONOUNCEMENT: 20.01.2016 FOR THE APPELLANT: SHRI S. M. SURANA, ADVOCATE FOR THE RESPONDENT: MD. GHAYAS UDDIN, JCIT, SR. DR ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), SILIGURI VIDE APPEAL NO. 05/CIT(A)/SLG/2014-15 DATED 15.07.2015. ASSESSMENT WAS FRAMED BY ITO, WD. 1(1), SILIGURI U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTE R REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2011-12 VIDE HIS ORDER DATED 13.03.2014. 2. THE ONLY INTER CONNECTED ISSUE IN THIS APPEAL O F ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION OF GROSS PROFIT @ 2.92% AND ALSO PEAK BALANCE OF DEPOSITS IN UNDISCLOSED BANK ACCOUNT AT RS.2,72,078/-. 3. I HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THERE IS UNDISCLOSED BANK ACCOUNT BY THE ASSESSEE IN AXIS BANK ACCOUNT NO. 035010100240352. IN THIS BANK ACCOUNT THERE ARE TO TAL CASH DEPOSITS OF RS.35,45,217/-. THE AO TREATED THE BANK DEPOSITS AS SALE PROCEEDS IN REGUL AR BUSINESS AND APPLIED NET PROFIT @ 2.92% AND ALSO MADE ADDITION OF PEAK BALANCE AT RS.3,82,4 61/-. THE CIT(A) UPHELD THE ADDITION OF APPLICATION OF NET PROFIT RATE AT 2.92% AS AGAINST THE DISCLOSED PROFIT RATE OF ASSESSEE AT 1.07% BUT ALLOWED SET OFF OF THIS NET PROFIT AGAINST THE ADDITION OF PEAK CREDIT OF RS.3,82,461/- AND RESTRICTED PEAK ADDITION OF RS.2,72,078/- BY OBSERV ING IN PARA 6 AS UNDER: 6. WHILE GOING THROUGH THE STATEMENT OF THE UNDIS CLOSED BANK STATEMENT, AO FOUND THE PEAK BALANCE AT RS.3,82,461/- AS ON 26.08.2010. GIVING CREDIT OF THE OPENING BALANCE OF RS.1,10,383/-, THE AO ADDED THE BALANCE OF RS.2,72,078/- AS UNDISC LOSED CAPITAL EMPLOYED. THE APPELLANT COULD NOT ESTABLISH ANY CONTRA ENTRY BETWEEN HIS DISCLOSE D AND UNDISCLOSED BUSINESS. IT IS WELL SETTLED LAW AND PRACTICE THAT THE PEAK CREDIT OF AN UNDISCL OSED BUSINESS IS TO BE ADDED AS UNDISCLOSED INCOME. IN THIS CASE, AO WAS FAIR ENOUGH IN ADDING THE PEAK CREDIT NOT OF OPENING BALANCE. THIS ADDITION OF RS.2,72,078/- IS ALSO UPHELD. 2 ITA NO.1220/KOL/2015 ALIT KUMAR SARKAR., AY 2011-12 2 4. I FIND FROM THE ABOVE FACTS AND CIRCUMSTANCES AN D ARGUMENTS OF BOTH THE SIDES THAT THE CIT(A) AND AO HAS RIGHTLY ESTIMATED THE PEAK CREDIT AND ALSO TREATED THE BANK DEPOSITS AS SALES AND APPLIED PROFIT RATE AT 2.92%. I FIND THAT THE CIT(A) HAS RIGHTLY ALLOWED CREDIT FOR NET PROFIT AS OPENING BALANCE OF RS.1,10,383/- AND REDUCED THE PEAK ADDITION OF RS.3,82,461/- TO RS.2,72,078/-. I FIND NO INFIRMITY IN THE ORDER OF CIT(A) AND HENCE, THE SAME IS UPHELD. APPEAL OF ASSESSEE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.01.2016. SD/- (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 20TH JANUARY, 2016 JD. SR. P.S COPY OF THE ORDER FORWARDED TO: 1. APPELLANT SHRI ALIT KUMAR SARKAR, J. N. SARKAR & CO., T/14, BIDHAN MARKET, SILIGURI- 734001 2. RESPONDENT ITO, WD-1(1), SILIGURI. 3. CIT(A) , 4. CIT , 5. DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .