Shri Sarfaraj Ahmed, Kolkata V. ITO, Ward - 28(2), Kolkata, Kolkata

ITA 1721/KOL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54604 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2011
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 02-09-2010
• Court: TRIBUNAL
• Department Lawyers: A S MONDAL
• Assessee Lawyers: SOUMITRA CHOW DHURY; TAPAN CHAKRABORTY

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE . . , ! '# '# '# '# /AND ' # , ! ) [BEFORE SHRI S. V. MEHROTRA, AM & SRI MAHAVIR SINGH , JM] #$ #$ #$ #$ / I.T.A NO. 1721/KOL/2010 %& ''( %& ''( %& ''( %& ''(/ // / ASSESSMENT YEAR: 2005-06 SHRI SARFARAJ AHMED VS. INCOME-TAX OFFICER, WD- 28(2), KOLKATA (PAN AGIPA 4097 K) (*+ /APPELLANT ) (,-*+/ RESPONDENT ) & #$ #$ #$ #$ / I.T.A NO. 1825/KOL/2010 %& ''( %& ''( %& ''( %& ''(/ // / ASSESSMENT YEAR: 2005-06 INCOME-TAX OFFICER, WD-28(2), KOLKATA VS. SHRI SAR FARAJ AHMED (*+ /APPELLANT ) (,-*+/ RESPONDENT ) DATE OF HEARING: 29.09.2011 DATE OF PRONOUNCEMENT: 21.10.2011 FOR THE ASSESSEE: S/SHRI TAPAN CHAKRABORTY & SOUM ITRA CHOWDHURY FOR THE REVENUE: SHRI A. S. MONDAL . / ORDER PER MAHAVIR SINGH, JM ( ' # ' # ' # ' #, , , , ! ! ! ! ) THESE APPEALS BY REVENUE AND ASSESSEE ARE ARISING O UT OF ORDER OF CIT(A)-XIV, KOLKATA IN APPEAL NO.608/CIT(A)-XIV/07-08 DATED 08.06.2010. ASSESSMENT WAS FRAMED BY ITO, WARD-28(2), KOLKATA U/S.144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2005-06 VIDE HIS ORDER DATED 28 .12.2007. 2. THE ONLY COMMON ISSUE IN THESE CROSS APPEAL IS A GAINST ORDER OF CIT(A) IN RESTRICTING ESTIMATION OF NET PROFIT @ 3% AS AGAINST ESTIMATION BY ASSESSING OFFICER AT 5%. REVENUE IS AGAINST REDUCTION IN GROSS PROFIT AND ALSO AGAINST DELETION OF ADDITION OF ENHANCED LIABILITIES REFLECTED IN THE BALANCE SHEET AS ON 31.3.2005 COMP ARING TO OUTSTANDING LIABILITIES AS ON 31.3.2004. ASSESSEE IS AGAINST SUSTAINING THE ESTI MATION OF NET PROFIT AT 3%. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE AS W ELL AS LD. SR. DR FAIRLY STATED THAT THE CIT(A) WITHOUT VERIFYING THE FACTS HAS RESTRICTED T HE NET PROFIT AT 3%. ONE MORE ARGUMENT BY 2 ITA 1721-1825/K/2010 SRI SARFARAJ AHMED . A.Y.05-0 6 REVENUE IS THAT CIT(A) RESTRICTED NET PROFIT AND AL SO DELETED ENHANCED LIABILITY WITHOUT VERIFYING THE AUTHENTICITY OF THE AUDITED ACCOUNTS AND ALSO V IOLATED RULE 46A OF I. T. RULES, 1962 (HEREINAFTER REFERRED TO AS THE RULES). BOTH LD. COUNSEL FOR THE ASSESSEE AND LD. SR. DR FAIRLY AGREED THAT BOTH THE ISSUES CAN BE REMITTED BACK TO THE FILE OF ASSESSING OFFICER FOR ADJUDICATION AFRESH AND ASSESSEE WILL ALSO BE PROVIDED OPPORTUNI TY OF BEING HEARD. WE IN THE INTEREST OF JUSTICE AND AS CONCEDED BY BOTH THE SIDES, SET ASID E BOTH THE ISSUES I.E. ESTIMATION OF NET PROFIT AND ALSO ADDITION OF ENHANCED LIABILITIES TO THE FI LE OF ASSESSING OFFICER. ASSESSING OFFICER IS DIRECTED TO VERIFY EVIDENCES, SUBMISSIONS AND DOCUM ENTS PRODUCED BY ASSESSEE AND AFTER VERIFICATION OF BOOKS OF ACCOUNT, DECIDE ACCORDING TO LAW. CROSS APPEAL ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEALS OF ASSESSEE AS WELL AS RE VENUE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN OPEN COURT ON 21.10.2011. SD/- SD/- . . , ! ' '' ' # # # # , ! (S. V. MEHROTRA) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( / / / /) )) ) DATED 21ST OCTOBER, 2011 '01 %23 4' JD.(SR.P.S.) . 5 ,6 76'8- COPY OF THE ORDER FORWARDED TO: 1 . *+ / APPELLANT SHRI SARFARAJ AHMED, PROP. OF G. K. COMMUNICATION, 122A, KARL MARX SARANI, KOLKATA-700 023. 2 ,-*+ / RESPONDENT- ITO, WARD-28(2), KOLKATA. . 3 . .% ( )/ THE CIT(A), KOLKATA 4. .% / CIT, KOLKATA 5 . '> ,% / DR, KOLKATA BENCHES, KOLKATA -6 ,/ TRUE COPY, .%?/ BY ORDER, #3 /ASSTT. REGISTRAR .