Santosh Kumar Dutta, Nadia V. I.T.O.,Ward-41(4), Kolkata

ITA 1500/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1192 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 20-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: D K SAHA
• Section: 148

Judgement Text

ITA NO. 1500/KOL/2019 ASSESSMENT YEAR: 2012-2013 SANTOSH KUMAR DUTTA 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 1500/KOL/2019 ASSESSMENT YEAR: 2012-2013 SANTOSH KUMAR DUTTA,..................... ..................APPELLANT PROP. OF M/S. BUROMA FILLING STATION, VILL. HARINATHPUR, P.O. KALIGANJ, NADIA-741150 [PAN: AGVPD9588P] -VS.- INCOME TAX OFFICER,................................ ......................................RESPONDENT WARD-41(4), NADIA, APPEARANCES BY: SHRI D.K. SAHA, FCA, FOR THE APPELLANT SHRI DHRUBAJYOTI ROY, JCIT, SR. D.R., FOR THE RESPO NDEN T DATE OF CONCLUDING THE HEARING : NOVEMBER 14, 2019 DATE OF PRONOUNCING THE ORDER : DECEMBER 18, 2019 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-12, KOLKATA DA TED 01.03.2019 AND THE ISSUES RAISED THEREIN RELATE TO THE ADDITIONS M ADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(APPEALS) ON AC COUNT OF THE ALLEGED UNACCOUNTED TRANSACTIONS IN THE FORM OF PROFIT EARN ED BY THE ASSESSEE ON SUCH TRANSACTIONS AND THE CAPITAL INVESTED THEREIN. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO IS CARRYING ON THE BUSINESS AS A PETROL AND DIESEL RETAILER AND TA NK OPERATOR. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION W AS FILED BY HIM ON 07.10.2012 DECLARING TOTAL INCOME OF RS.3,55,404/-. IN THE SAID RETURN, ITA NO. 1500/KOL/2019 ASSESSMENT YEAR: 2012-2013 SANTOSH KUMAR DUTTA 2 PURCHASES MADE FROM BHARAT PETROLEUM CORPORATION LI MITED WERE SHOWN BY THE ASSESSEE AT RS.6,30,23,984/-. AS PER THE INF ORMATION RECEIVED BY THE ASSESSING OFFICER, THE ASSESSEE, HOWEVER, HAD A CTUALLY MADE TOTAL PURCHASES OF RS.7,76,88,466/- FROM BHARAT PETROLEUM CORPORATION LIMITED DURING THE YEAR UNDER CONSIDERATION. ON THE BASIS OF THE SAID INFORMATION, THE ASSESSMENT IN THE CASE OF THE ASSE SSEE WAS REOPENED BY THE ASSESSING OFFICER AND A NOTICE UNDER SECTION 14 8 WAS ISSUED BY HIM AFTER RECORDING THE REASONS. IN RESPONSE TO THE SAI D NOTICE, THE RETURN OF INCOME WAS FILED BY THE ASSESSEE ON 18.03.2015 DECL ARING THE SAME TOTAL INCOME OF RS.3,55,404/- AS DISCLOSED IN THE RETURN OF INCOME ORIGINALLY FILED ON 07.10.2012. ALONG WITH THE SAID RETURN, PR OFIT & LOSS ACCOUNT WAS FILED BY THE ASSESSEE SHOWING THE PURCHASES AT RS.7 ,76,88,466/- AND SALES AT RS.7,85,72,550/- AS AGAINST THE PURCHASES OF RS. 6,30,23,984/- AND SALES OF RS.6,39,08,068/- SHOWN IN THE PROFIT & LOSS ACCO UNT FILED ALONG WITH THE RETURN OF INCOME ORIGINALLY FILED. DURING THE COURS E OF ASSESSMENT PROCEEDINGS, IT WAS SUBMITTED ON BEHALF OF THE ASSE SESE THAT THERE WAS A CLERICAL MISTAKE IN UNDERSTATING THE PURCHASES AND SALES IN THE PROFIT & LOSS ACCOUNT FILED ALONG WITH THE RETURN OF INCOME ORIGINALLY FILED AND SINCE SUCH UNDER-STATEMENT WAS EQUAL IN CASE OF PUR CHASES AS WELL AS SALES, THE GROSS PROFIT AS WELL AS NET PROFIT REMAI NED THE SAME. THIS EXPLANATION OF THE ASSESSEE WAS NOT FOUND ACCEPTABL E BY THE ASSESSING OFFICER IN THE ABSENCE OF ANY DOCUMENTARY EVIDENCE OR QUANTITATIVE ANALYSIS FURNISHED BY THE ASSESSEE TO SUPPORT AND S UBSTANTIATE THE SAME. HE ACCORDINGLY TREATED THE UNDER-STATEMENT OF PURCH ASES AMOUNTING TO RS.1,46,64,482/- AS UNDISCLOSED PURCHASES AND BY AP PLYING THE GROSS PROFIT RATE DECLARED BY THE ASSESSEE, THE PROFIT FR OM THE CORRESPONDING UNDISCLOSED SALES WAS WORKED OUT BY HIM AT RS.1,80, 960/-. HE ALSO WORKED OUT THE INVESTMENT REQUIRED TO BE MADE BY TH E ASSESSEE IN CAPITAL FOR CARRYING OUT THE TRANSACTIONS OF UNACCOUNTED PU RCHASES AND SALES AT RS.5,86,680/- ON PROPORTIONATE BASIS AND ADDED THE SAID AMOUNT AS WELL AS THE AMOUNT OF PROFIT OF RS.1,80,966/- EARNED BY THE ASSESSEE FROM THE ITA NO. 1500/KOL/2019 ASSESSMENT YEAR: 2012-2013 SANTOSH KUMAR DUTTA 3 UNDISCLOSED TRANSACTIONS OF PURCHASES AND SALES TO THE TOTAL INCOME OF THE ASSESSEE. 3. THE ADDITION MADE BY THE ASSESSING OFFICER ON AC COUNT OF PROFIT FROM UNACCOUNTED TRANSACTIONS OF PURCHASES AND SALE S AS WELL AS THE CAPITAL ALLEGEDLY INVESTED IN SUCH TRANSACTIONS WAS CHALLENGED BY THE ASSESSEE IN THE APPEAL FILED BEFORE THE LD. CIT(APP EALS) AND SINCE THE SUBMISSION MADE BY THE ASSESSEE IN SUPPORT OF HIS C ASE ON THE ISSUE WAS NOT FOUND ACCEPTABLE BY HIM, THE LD. CIT(APPEALS) C ONFIRMED THE SAID ADDITION MADE BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APP EALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS CONTENDED THAT EVEN THOUGH THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF PROFIT ALLEGEDLY EARNED BY THE ASSESSEE FROM THE UNACCOUNTED TRANSAC TIONS OF PURCHASES AND SALES CAN BE TAKEN AS JUSTIFIED, THE ADDITION M ADE ON ACCOUNT OF THE CAPITAL ALLEGEDLY INVESTED BY THE ASSESSEE IN SUCH UNACCOUNTED TRANSACTIONS IS NOT SUSTAINABLE. HE HAS CONTENDED T HAT NO ADDITIONAL INVESTMENT IN CAPITAL WAS REQUIRED TO BE MADE BY TH E ASSESSEE FOR THE UNACCOUNTED TRANSACTIONS AS THE INFRASTRUCTURE REQU IRED FOR THE PURPOSE OF CARRYING OUT SUCH TRANSACTIONS WAS VERY MUCH AVA ILABLE WITH THE ASSESSEE. I AM UNABLE TO ACCEPT THIS CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. AS RIGHTLY CONTENDED BY THE LD. D.R., THE UNACCOUNTED TRANSACTIONS OF PURCHASES AND SALES ADMITTEDLY MADE BY THE ASSESSEE REQUIRED INVESTMENT IN THE FORM OF WORKING CAPITAL AND SINCE THE REQUIREMENT OF SUCH CAPITAL WAS WORKED OUT BY THE A SSESSING OFFICER ON PROPORTIONATE BASIS, THE ADDITION MADE ON ACCOUNT O F SUCH CAPITAL DESERVES TO BE SUSTAINED BEING FAIR AND REASONABLE. I, THEREFORE, FIND NO INFIRMITY IN THE IMPUGNED ORDER OF THE LD. CIT(APPE ALS) CONFIRMING THE ITA NO. 1500/KOL/2019 ASSESSMENT YEAR: 2012-2013 SANTOSH KUMAR DUTTA 4 ADDITION MADE BY THE ASSESSING OFFICER ON THIS ISSU E AND UPHOLDING THE SAME, I DISMISS THIS APPEAL FILED BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 18, 2019. SD/- (P.M. JAGTAP) VICE-PR ESIDENT) KOLKATA, THE 18 TH DAY OF DECEMBER, 2019 COPIES TO : (1) SANTOSH KUMAR DUTTA, PROP. OF M/S. BUROMA FILLING STATION, VILL. HARINATHPUR, P.O. KALIGANJ, NADIA-741150 (2) INCOME TAX OFFICER, WARD-41(4), NADIA (3) COMMISSIONER OF INCOME TAX (APPEALS)-12, K OLKATA; (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.