Late Shiv Narayan Sharma Through L/H Joginder Sharma. , Kolkata V. ITO,Ward56(1), Kolkata

ITA 180/KOL/2023

AI Insights

The case involves an appeal by Late Shiv Narayan Sharma, through his legal heir Joginder Sharma, against the order of the National Faceless Appeal Centre (CIT(A)) which confirmed the addition of Rs. 23,08,833/- to the assessee's income for the assessment year 2011-12. The addition was initially made by the assessing officer based on sample data, which the assessee contested, explaining the variability in freight charges due to factors like non-availability of trucks. The Tribunal noted that the assessing officer did not analyze the complete data provided by the assessee and made the addition based on the instructions from his superior, which was deemed inappropriate.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128120 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-10-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 15-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay
• Section: 250

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘एसएमसी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी ͬगरȣश अĒवाल, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T.A. No.180/Kol/2023 Assessment Year: 2011-12 Late Shiv Narayan Sharma Through L/H Joginder Sharma.............Appellant 134/1, Mahatma Gandhi Road, Burrabazar, W.B-700007. [PAN: AKZPS9230E] vs. ITO, Ward-56(1), Kolkata.................................................................... Respondent Appearances by: None appeared on behalf of the appellant. Shri Ajoy Robin Singh, JCIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : October 17, 2023 Date of pronouncing the order : October 17, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 21.12.2022 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The appeal is time barred by 12 days. A separate application for condonation of delay has been filed. Considering the submissions made in the said application and shortness of the delay period, the delay in filing the present appeal is hereby condoned. 3. The sole issue raised by the assessee in this appeal is relating to the addition made of Rs.23,08,833/- on account of lower net profit shown by the assessee. I.T.A. No.180/Kol/2023 Assessment Year: 2011-12 Late Shiv Narayan Sharma Through L/H Joginder Sharma 2 4. The brief facts of the case are that the assessee is engaged in the business of transporter. The assessee filed his return of income declaring net profit of Rs 6,07,627/-. During the assessment proceedings, the assessing officer picked up certain sample bills/data of different days/months and calculated the gross profit of the assessee at enhanced amount of Rs.80,82,035/-. On being asked to explain, the assessee explained that the actual gross profit of the assessee cannot be calculated by picking up sample data. That on certain days, the freight would be high due to non-availability of the trucks and on certain days, the freight would be low. That the assessee has furnished the entire data. However, the assessing officer did not agree with the aforesaid contention of the assessee and made the impugned addition by calculating the net profit of the assessee on the basis of sample data. He, in this respect, observed that since there was no address of the parties who made the payment, therefore, the physical verification could not be done and further that he has been directed by his senior i.e learned JCIT, Range 56, Kolkata, that the explanation of the assessee was not to be accepted. He enhanced the gross profit of the assessee and made the impugned addition of Rs 23,08,833/-. The ld. CIT(A) confirmed the addition so made by the A.O. 5. We have heard the rival contentions of the parties. In this case, the addition has been made by the AO by just picking the sample data of receipts of certain days. However, the assessee had furnished the entire data of the year. The assessee has also explained that on certain days, the freight was charged at higher rate because of the non- availability of the trucks in the market and on certain days, the freight charged was low. The assessing officer, however, made the addition just on the directions of his superior without analyzing the entire data I.T.A. No.180/Kol/2023 Assessment Year: 2011-12 Late Shiv Narayan Sharma Through L/H Joginder Sharma 3 furnished by the assessee and without pointing out any defects in the same. In view of this, the impugned addition made/ confirmed by the lower authorities is not sustainable and the same is according ordered to be deleted. 6. In the result, appeal of the assessee is hereby allowed. Kolkata, the 17 th October, 2023. Sd/- Sd/- [ͬगरȣश अĒवाल /Girish Agrawal] [संजय गग[ /Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 17.10.2023. RS Copy of the order forwarded to: 1. Late Shiv Narayan Sharma Through L/H Joginder Sharma 2. ITO, Ward-56(1), Kolkata 3.CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches