Hazi Md. Umar, Kolkata V. ITO, Ward - 38(1), Kolkata, Kolkata

ITA 1233/KOL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59598 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2012
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 23-09-2011
• Court: TRIBUNAL
• Department Lawyers: S K ROY LD
• Assessee Lawyers: JITENDRA KAUSHIK LD
• Keywords: Corroborative evidences
• Section: 143(3)

Judgement Text

, A , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- A CALCUTTA () BEFORE , SHRI N.VIJAYKUMARAN, JUDICIAL MEMBER. /AND .'#., $% SHRI C.D.RAO, ACCOUNTANT MEMBER & / ITA NO. 1233/KOL/2011 '( )*/ ASSESSMENT YEAR: 2006-07 HAZI MD. UMAR PAN:AAAPU 7774R INCOME-TAX OFFICER WARD 38(1), KOLKATA (,- / APPELLANT ) - - - VERSUS - . (/0,-/ RESPONDENT ) ,- 1 2 $/ FOR THE APPELLANT: / SHRI JITENDRA KAUSHIK, LD.AR /0,- 1 2 $/ FOR THE RESPONDENT: / SHRI S.K.ROY, LD.DR 3 1 #% /DATE OF HEARING : 06-02-2012 4) 1 #% /DATE OF PRONOUNCEMENT: 14-02-2012 $5 / ORDER , , , , , , ,, , SHRI N. VIJAYA KUMARAN, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS FOR THE ASSESSMENT YEAR 2006-07. IT IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (AP PEALS) XXIV, KOLKATA DATED 15-07- 2011. 2. GROUND OF APPEAL IS AS UNDER:- FOR THAT ON THE FACTS AND CIRCUMSTANCES OF THE CAS E THE LD.COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CO NFIRMING THE ADDITION ON ESTIMATE BASIS OF A SUM OF RS.1213264/- UNDER THE HEAD INCOME FROM BUSINESS. 3. FACTS RELEVANT ARE THAT DURING THE ASSESSMENT P ROCEEDINGS U/S. 143(3) THE ASSESSING OFFICER NOTED THAT THE ASSESSEE FAILED TO PRODUCE T HE DOCUMENT AS CALLED FOR VIDE NOTE SHEET DATED 28-11-2008. HOWEVER, THE ASSESSEE ADMITTED T HAT THE TOTAL BUSINESS OF THE ASSESSEE BASICALLY PURCHASES AND SALES WERE MADE BY CASH. H OWEVER, THE ASSESSEE FAILED TO PRODUCE THE ITA NO.1233/KOL/2011-A_NVK 2 REQUISITE DETAILS AND SUPPORTING EVIDENCES NECESSAR Y VERIFICATION AT THE LEVEL OF THE ASSESSING OFFICER COULD NOT BE COMPLETED THE SALE PROCEEDS OF THE ASSESEE WERE NOT ROUTED THROUGH BANK AND NO PROPER BOOKS OF ACCOUNT WERE PRODUCED. HENCE, THE ASSESSING OFFICER WAS OF THE VIEW THAT THERE WAS INFLATION OF PURCHASE AND EXPEN SES. IN THE ABSENCE OF PROPER BOOKS, THE ASSESSING OFFICER ESTIMATED THE INCOME AT 10% OF TH E GROSS TURNOVER [ I.E RS. 2,09,12,690/- ]AND BROUGHT IT AS INCOME OF THE ASSESSEE UNDER THE HEAD UNDISCLOSED INCOME OF THE ASSESSESSEE. 3. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME-TA X (APPEALS) FOUND THAT THE DISALLOWANCE TO BE 7.5% [IE. RS. 15,68,452/-] OF GR OSS TURNOVER BY WHICH THE DISALLOWANCE IS RESTRICTED TO RS.12,13,624/-. 4. BEING NOT SATISFIED, THE ASSESSEE FURTHER IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD INCLUDING THE PRECEDENCE CAREFULLY. THE ASSESSEE I S AN INDIVIDUAL AGED 71 YEARS. HE HAS PROCURED COWS AND BUFFALOES FROM AGRICULTURISTS LOC ATED IN NORTHERN PART OF BIHAR, PROCUREMENT OF CATTLE FEED, BICHALI, CATTLE FEED MEDICINES, FRE IGHT INWARD, MANPOWER FOR WASHING AND FEEDING BUFFALOES AND COWS AND TAKING OUT MILK FROM SUCH BU FFALOES. HENCE, THE ASSESSEES CONTENTION IS THAT THE ADOPTION OF 7.5% GROSS PROFIT OF THE TU RNOVER AS CALCULATED BY THE ASSESSING OFFICER IS UNJUSTIFIED AND MUCH HIGHER SIDE. FURTHER, THE ASSESSEE RELIED ON EARLIER ASSESSMENT YEARS 2004-05 TO 2006-07 WITH GROSS PROFIT AND NET PROFI T RATIO CORRESPONDINGLY, WHICH IS AS FOLLOW:- ASSESSMENT YR. TURNOVER G.P (RS.) N.P(RS) G.P RATIO N.P RATIO 2004-05 19081148 518814 186267 2.719% 0.976% 2005-06 23929930 398810 202718 1.66% 0.847% 2006-07 20912690 753888 354828 3.604% 1.696% 5.1 ON THE OTHER HAND, THE LEARNED DR RELIED ON TH E ORDERS OF THE AUTHORITIES BELOW. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE V IEW THAT THE RESTRICTION OF DISALLOWANCE HAS TO BE MADE @5% OF THE GROSS TURNOVER TO MEET THE ENDS OF JUSTICE. THEREFORE, WE RESTRICT THE SAME @5% OF THE GROSS TURNOVER OF RS.2,09,12,690/- AND T HE ASSESSING OFFICER TOOK OVER THE DISALLOWANCE @5% ON THE ADMITTED GROSS TURNOVER. ITA NO.1233/KOL/2011-A_NVK 3 6. IN THE RESULT, ASSESSEES APPEAL IS PARTLY AL LOWED. 6 $5 %$ 7 8 69 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 14 -02-2012 SD/- SD/- ( .'#., $% , ,, , ( C.D.RAO, ACCOUNTANT MEMBER) ( , ) ( N.VIJAYKUMARAN, JUDICIAL MEMBER ) DATED: 14-02-2012 *PP SR.PS/ $5 1 /'' :$)/ COPY OF THE ORDER FORWARDED TO: 1. ,- /APPELLANT- HAZI MD. UMAR C/O SRI R.P SHARMA, ADV OCATE, 19-D, MUKTARAM BABU STREET, KOL-7. 2 /0,- / RESPONDENT : I.T.O W 38(1)), PODDAR COURT, 18 RAB INDRA SARANI, KOL-1. 3. '5/ CIT, 4. '5 ()/ CIT(A), 5. @'8 /'/ DR, KOLKATA BENCHES, KOLKATA [0 /'/ TRUE COPY] $5/ BY ORDER, 6 /ASSTT REGISTRAR