Sri PRAKASH DAS., Siliguri V. I.T.O. Wd - 3(1),Slg., Siliguri

ITA 1832/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83015 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2014
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 10-12-2012
• Court: TRIBUNAL
• Department Lawyers: A S MONDAL ACIT

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , . . . . ! ! ! ! /AND ' #!' ' #!' ' #!' ' #!' , ) [BEFORE SHRI P. K. BANSAL, AM & SHRI MAHAVIR SINGH, JM] !$ / I.T.A NO.1832/KOL/2012 #% &'/ ASSESSMENT YEAR: 2009-10 SHRI PRAKASH DAS VS. INCOME-TAX OFFICER, WD-3(1 ), SILIGURI (PAN:ADUPD7207K) ()* /APPELLANT ) (+,)*/ RESPONDENT ) DATE OF HEARING: 23.07.2014 DATE OF PRONOUNCEMENT: 01.08.2014 FOR THE APPELLANT: SHRI SUBHAS AGARWAL, ADVOCATE FOR THE RESPONDENT: SHRI A. S. MONDAL, ACIT, SR. DR / ORDER PER SHRI MAHAVIR SINGH, JM : THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), SILIGURI IN APPEAL NO. 140/CIT(A)/SLG/11-12 DATED 14.09.2012. ASSESSMENT WAS FRAMED BY ITO, WARD-3(1), SILIGURI U/S.143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2009-10 VIDE HIS ORDER DATED 28.12.2011. 2. THE FIRST ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION OF RS.5,75,064/- BEING UNACCOUNTED RECEIPT S OF CONTRACT. FOR THIS, ASSESSEE HAS RAISED FOLLOWING GROUND NOS. 1 AND 2: 1. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.5,75,064 /- MADE BY THE AO ON ACCOUNT OF ALLEGED UNDISCLOSED RECEIPTS. 2. WITHOUT PREJUDICE TO GROUND NO.1, THE LD. CIT(A ) OUGHT TO HAVE ESTIMATED PROFIT ON THE ALLEGED UNDISCLOSED RECEIPT BY APPLYING APPROPRIATE RATIO ON THE SAID RECEIPT. 3. BRIEFLY STATED FACTS ARE THAT THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTICED FROM THE TDS RETURN I.E. 26AS DETAILS THAT THE GROS S RECEIPT FROM THE NORTH EAST FRONTIER RAILWAY, NJP DIVISION WAS RS.19,97,130/- AND AS AGA INST THE SAME ASSESSEE HAS DISCLOSED THE RECEIPTS AT RS.16,20,050/-. THE ASSESSEES COUNSEL WAS REQUESTED TO EXPLAIN THE DIFFERENCE OF RS.3,77,080/-. AS THE ASSESSEES COUNSEL COULD NOT EXPLAIN, THE SAME WAS ADDED TO THE RETURNED INCOME OF THE ASSESSEE. SIMILARLY, THE AO NOTED FR OM 26AS DETAILS THAT THE ASSESSEE HAS RECEIVED A SUM OF RS.1,97,984/- AS CONTRACTUAL RECE IPT FROM CENTRAL GOVERNMENT, SR. DAO, EASTERN RAILWAY, SEALDAH, KOLKATA WHICH IS ALSO NO T ACCOUNTED FOR. AS THE ASSESSEE COULD NOT EXPLAIN BOTH THE UNACCOUNTED RECEIPTS, THE SAME WAS ADDED BY THE AO AND HENCE, THE TOTAL ADDITION WAS MADE AT RS.5,75,064/-. AGGRIEVED, ASS ESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONFIRMED THE ACTION OF AO BY OBSERVING AS UND ER: I HAVE CAREFULLY CONSIDERED THE SUBMISSION OF THE ASSESSEE IN THE GROUND OF APPEAL AND ALSO PERUSED THE ASSESSMENT ORDER. AS PER FORM 26AS THE GROSS CONTRACTUAL RECEIPTS OF THE ASSESSEE DURING THE FINANCIAL YEAR 2008-09 WAS RS.65,07,332/- EXCLUDING INTEREST OF 2 ITA NO.1832/K/2012 PRAKASH DAS, AY 2009-10 RS. 11,166/- CREDITED BY INDIAN OVERSES BANK. AS PE R THE AUDITED ACCOUNTS OF THE ASSESSEE FOR THE YEAR ENDED 31.03.2009 TOTAL WORK D ONE IN CONSTRUCTION AND ELECTRICAL WORKS WAS RS.70,24,834/-. IN COURSE OF APPELLATE PR OCEEDINGS, THE LD AR FAILED TO SHOW THAT THE CONTRACTUAL RECEIPTS OF RS.3,77,080/- AND RS. 1,97,984/-, AS REFLECTED IN FORM 26AS, WERE PART OF TOTAL WORK DONE TO THE TUNE OF R S.70,24,834/- AS SHOWN IN THE PROFIT & 1OSS ACCOUNT FOR THE YEAR ENDED 31.03.2009. THE LD AR ALSO FAILED TO SHOW THAT THE CONTRACTUAL RECEIPTS OF RS.3,77,080/- AND RS.1,97,9 84/- ARE DISCLOSED IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE. I AGREE WITH THE LD AO TH AT AS THE EXPENSES HAVE ALREADY BEEN BOOKED BY THE ASSESSEE IN HIS ACCOUNTS THE CONTRACT UAL RECEIPTS OF RS.3,77,080/- AND RS.1,97,984/- TOTALTING RS.5,75,064/- ARE TO BE TRE ATED AS UNDISCLOSED RECEIPTS. THE ACTION OF THE LD AO OF ADDITION OF RS.5,75,064/- ON ACCOUNT OF UNDISCLOSED RECEIPTS IS JUSTIFIED AND THEREFORE CONFIRMED.. AGGRIEVED, ASSESSEE CAME IN APPEAL BEFORE US. 5. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THESE TWO RECEIPTS AS NOTED BY THE AO FROM FORM 26AS ARE PART OF GROSS UNACCOUNTED RECEIPT I.E. A SUM OF RS.3,77,080/- AND RS.1,97,984/- TOTALLING TO RS.5,75,064/- AND BOTH ARE UNDISCLOSED. THE ASSESSEES COUNSEL B EFORE US FAIRLY ADMITTED THAT THESE ARE UNDISCLOSED BUT HE STATED THAT THIS BEING CONTRACTU AL RECEIPTS ONLY PROFIT ELEMENT IS TO BE ADDED. ON QUERY FROM THE BENCH, THE LD. SR. DR STATED THAT A REASONABLE PROFIT CAN BE ESTIMATED. IN SUCH CIRCUMSTANCES, WE ARE OF THE VIEW THAT LET A N ET PROFIT @ 10% ON THESE UNDISCLOSED RECEIPTS BE ESTIMATED AND THE ADDITION ACCORDINGLY BE MADE. WE DIRECT THE AO ACCORDINGLY. THIS ISSUE OF ASSESSEES APPEAL IS PARTLY ALLOWED. 6. GROUND NOS. 3, 4 AND 5 OF ASSESSEES APPEAL ARE NOT PRESSED. HENCE, THE SAME ARE DISMISSED AS NOT PRESSED. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED. 8. ORDER PRONOUNCED IN OPEN COURT ON 01.08.2014. SD/- SD/- , . .. . , ' #!' ' #!' ' #!' ' #!' , (P. K. BANSAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 ST AUGUST, 2014 -. #/0 #1 JD.(SR.P.S.) 2 +##3 43&5- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT SHRI PRAKASH DAS, C/O M/S. PRAKASH ENTE RPRISES, NABAGRAM, BEHIND WINNERS CLUB, P.O. BHAKTINAGAR, SI LIGURI, PIN-734405 2 +,)* / RESPONDENT ITO, WARD-3(1), SILIGURI. 3 . # ( )/ THE CIT(A), SILIGURI 4. 5. # / CIT SILIGURI 3:#; +# / DR, KOLKATA BENCHES, KOLKATA ,3 +#/ TRUE COPY,