Jaiswal Plastic Tubes Ltd, Howrah V. ACIT, Circle, Balasore, Balasore

ITA 178/CTK/2022

AI Insights

The case involves Jaiswal Plastic Tubes Ltd., which appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-2018. The primary contention was the estimation of income by the Assessing Officer (AO) at 1.5% of turnover, after rejecting the books of accounts, whereas the assessee had disclosed a net profit (NP) of 0.48%. The assessee argued that the estimation was excessive, especially since the business had ceased operations, preventing the production of comparative NP figures. The Senior Departmental Representative (Sr. DR) contended that the assessee failed to substantiate its return, and thus the additions made by the AO and confirmed by the CIT(A) should be upheld. The ITAT, considering the cessation of business and the disclosed NP, decided to fix the NP at 0.75%.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127116 (ITAT-CUTTACK)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 12-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 24-11-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अऩीऱीय अधधकरण, “एस.एम.सी” न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अऩीऱ सं/ITA No.178/C TK/2022 (ननधाारण वषा / Asses s m ent Year :2017-2 018) Jaiswal Plastic Tubes Ltd. 65, Grand Trunk Road, North Salkia, Howrah (W.B) Vs ACIT, Circle Balasore PAN No. : AAACJ 4383 Q (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri P.K.Mishra, Advocate राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR स ु नवाई की तारीख / Date of Hearing : 13/04/2023 घोषणा की तारीख/Date of Pronouncement : 13/04/2023 आदेश / O R D E R This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 29.09.2022, passed in DIN & Order No.ITBA/NFAC/S/250/2022- 23/1046111724(1), for the assessment year 2017-2018. 2. It was submitted by the ld. AR that the assessee is in the business of manufacturing of PVC Pipes. It was the submission that the business of the assessee has been closed and consequently the assessee had not been able to represent before the AO or the ld. CIT(A). It was the submission that the assessee had disclosed an NP of 0.48% in the relevant assessment year and the AO had after rejection of the books of accounts of the assessee estimated the income of the assessee at 1.5% of the turnover. It was the prayer that the estimation adopted by the AO is on the higher side and the same may be reduced. It was the submission ITA No.178/CTK/22 2 that the comparative NP could not be produced because the business of the assessee had been stopped. 3. In reply, the ld. Sr.DR submitted that it is the duty of the assessee to substantiate its return. The assessee having failed to substantiate his return had produced the details before the lower authorities. The addition as made by the AO and as confirmed by the CIT(A) is liable to be upheld. 4. I have considered the rival submissions. Admittedly, the business of the assessee has been stopped and no purpose would be served by restoring the issue to the file of the AO for readjudication. It is also an admitted fact that the comparative NP of the assessee cannot be considered because the business of the assessee has stopped. In these circumstances, considering the fact that the business of the assessee has stopped and considering the fact that the assessee has disclosed NP of 0.48% for the relevant assessment year, I am of the view that the NP of the assessee should be fixed at 0.75% and I do so. 5. In the result, appeal of the assessee is partly allowed. Order dictated and pronounced in the open court on 13/04/2023. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 13/04/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : 1. अऩीऱाथी / The Appellant- Jaiswal Plastic Tubes Ltd. 65, Grand Trunk Road, North Salkia, Howrah (W.B) 2. प्रत्यथी / The Respondent- ACIT, Circle Balasore 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), ITA No.178/CTK/22 3 आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 4. आयकर आय ु क्त / CIT 5. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यावऩत प्रयत //True Copy//