Saanvi Infrabuild (P) Ltd., Kolkata V. I.T.O.,Ward-5(1), Kolkata

ITA 1561/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8262 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 27-06-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 44AD; 143(3)

Judgement Text

ITA NO. 1561/KOL/2019 ASSESSMENT YEAR: 2015-2016 SAANVI INFRABUILD PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 1561/KOL/2019 ASSESSMENT YEAR: 2015-2016 SAANVI INFRABUILD PVT. LIMITED,.................... ...................................APPELLANT C/O. SUBASH AGARWAL & ASSOCIATES, ADVOCATES, SIDDHA GIBSON, SUITE 213, 2 ND FLOOR, KOLKATA-700069 [PAN: AASCS9589D] -VS.- INCOME TAX OFFICER,................................ ..........................................RESPONDEN T WARD-5(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 APPEARANCES BY: SHRI SUBASH AGARWAL, ADVOCATE, FOR THE APPELLANT SHRI JAYANTA KHANRA, JCIT, SR. D.R., FOR THE RESPON DEN T DATE OF CONCLUDING THE HEARING : JANUARY 02, 2020 DATE OF PRONOUNCING THE ORDER : JANUARY 23, 2020 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA DAT ED 02.05.2019 AND THE ONLY ISSUE ARISING OUT OF THE SAME RELATES TO T HE ADDITION OF RS.9,50,192/- MADE BY THE ASSESSING OFFICER AND CON FIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF THE ALLEGED UNDISCLOSED CONTRACT RECEIPTS BY THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF SHARE TRADING AND INVESTMENT. THE R ETURN OF INCOME FOR ITA NO. 1561/KOL/2019 ASSESSMENT YEAR: 2015-2016 SAANVI INFRABUILD PVT. LIMITED 2 THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 19. 08.2015 DECLARING TOTAL INCOME AT NIL. FROM THE RELEVANT ITS DETAILS, IT WAS FOUND BY THE ASSESSING OFFICER THAT THE ASSESESE HAD RECEIVED CO NTRACTUAL RECEIPTS OF RS.9,50,192/- DURING THE YEAR UNDER CONSIDERATION B UT THE SAME WERE NOT REFLECTED IN THE PROFIT & LOSS ACCOUNT OF THE ASSES SEE-COMPANY FILED ALONG WITH THE RETURN OF INCOME. IN THIS REGARD, IT WAS S UBMITTED ON BEHALF OF THE ASSESSEE BEFORE THE ASSESSING OFFICER DURING TH E COURSE OF ASSESSMENT PROCEEDINGS THAT THE PROFIT OF RS.76,015/- BEING 8% OF THE SAID CONTRACTUAL RECEIPTS MAY BE BROUGHT TO TAX IN ITS H ANDS AS PER THE PROVISIONS OF SECTION 44AD. THIS STAND OF THE ASSES SEE WAS NOT FOUND ACCEPTABLE BY THE ASSESSING OFFICER. ACCORDING TO H IM, SECTION 44AD HAD NO APPLICATION IN THE CASE OF A COMPANY. HE ACCORDI NGLY ADDED THE ENTIRE UNDISCLOSED CONTRACT RECEIPTS OF RS.9,50,192/- TO T HE TOTAL INCOME OF THE ASSESSEE IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 22.12.2017. ON APPEAL, THE LD. CIT(APPEALS) C ONFIRMED THE SAID ADDITION MADE BY THE ASSESSING OFFICER. AGGRIEVED B Y THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS RIGHTLY S UBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THE IMPUGNED AMOUNT OF RS .9,50,192/- ADDED TO THE TOTAL INCOME OF THE ASSESSEE REPRESENTED SERVIC E CHARGES LEVIED ON ONE PARTY VIZ. KERP RESOURCES PVT. LIMITED AS IS EV IDENT FROM THE COPY OF THE RELEVANT BILL PLACED AT PAGE NO. 7 OF THE PAPER BOOK AND SINCE THE SAID AMOUNT REPRESENTED GROSS RECEIPTS AGAINST WHICH CER TAIN EXPENSES OUGHT TO HAVE BEEN INCURRED BY THE ASSESSEE-COMPANY, THER E IS NO JUSTIFICATION TO TREAT THE ENTIRE AMOUNT REPRESENTING GROSS RECEI PTS AS THE INCOME OF THE ASSESSEE. WHAT CAN BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE IS ONLY THE NET PROFIT EARNED BY THE ASSESSEE-COMPANY FROM THE SAID RECEIPTS AND IN THE ABSENCE OF ANY RECORD MAINTAINED BY THE ASSESSEE REGARDING THE EXPENSES INCURRED, SUCH PROFIT CAN BE ESTIMATED AT SOME REASONABLE AMOUNT. HAVING REGARD TO ALL THE FACTS AND CIRCUMST ANCES OF THE CASE, I AM ITA NO. 1561/KOL/2019 ASSESSMENT YEAR: 2015-2016 SAANVI INFRABUILD PVT. LIMITED 3 OF THE VIEW THAT IT WOULD BE FAIR AND REASONABLE TO ESTIMATE THE NET PROFIT OF ASSESSEE-COMPANY FROM THIS UNDISCLOSED SERVICE C HARGES AT 20% OF RS.9,50,192/-. I ACCORDINGLY MODIFY THE IMPUGNED OR DER OF THE LD. CIT(APPEALS) AND RESTRICT THE ADDITION OF RS.9,50,1 92/- TO RS.1,90,000/-. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 23, 2 020. SD/- (P.M. JAGTAP) VICE-PR ESIDENT) KOLKATA, THE 23 RD DAY OF JANUARY, 2020 COPIES TO : (1) SAANVI INFRABUILD PVT. LIMITED, C/O. SUBASH AGARWAL & ASSOCIATES, ADVOCATES, SIDDHA GIBSON, SUITE 213, 2 ND FLOOR, KOLKATA-700069 (2) INCOME TAX OFFICER, WARD-5(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-2, KO LKATA; (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.