Nantu Ghosh , 24 Parganas (north) V. I.T.O.,Ward-50(1), Kolkata

ITA 1878/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4250 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-01-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 09-08-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: SUJIT SEKHARESWAR ROY
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT (KZ)] I.T.A. NO. 1878/KOL/2019 ASSESSMENT YEAR: 2014-15 NANTU GHOSH..........................................................................................APPELLANT NILGIRI APARTMENT, SOROJINI PALLY, P.O. NABAPALLY, (N) 24 PARGANAS 700 126. [PAN: AAMPG 8221 H] VS ITO, WARD 50(1), KOLKATA................................RESPONDENT KOLKATA. APPEARANCES BY: SHRI SUJIT SEKHARESWAR ROY, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, JCIT, SR. DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JANUARY 16, 2020 DATE OF PRONOUNCING THE ORDER : FEBRUARY 28, 2020 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 15, KOLKATA DATED 10.06.2019 PASSED EX-PARTE WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUAL WHO FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 29.09.2015 DECLARING A TOTAL INCOME OF RS. 8,51,940/-. IN THE ASSESSMENT COMPLETED U/S 143(3) VIDE AN ORDER DATED 22.12.2017, THE BOOKS OF ACCOUNT OF THE ASSESSEE WERE REJECTED BY THE AO AFTER HAVING NOTICED A LARGE NUMBER OF DISCREPANCIES THEREIN AND THE INCOME OF THE ASSESSEE WAS DETERMINED ON ESTIMATED BASIS AT RS. 25,02,418/- BY APPLYING A NET PROFIT RATE OF 8% ON THE TURNOVER OF RS. 3,12,80,227/-. 3. AGAINST THE ORDER PASSED BY THE AO U/S 143(3) OF THE ACT, AN APPEAL WAS PREFERRED BY THE LD. CIT(A) AND SINCE THERE WAS NO 2 I.T.A. NO. 1878/KOL/2019 ASSESSMENT YEAR: 2014-15 NANTU GHOSH COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 10.06.2019 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ALTHOUGH THE LEARNED COUNSEL FOR THE ASSESSEE HAS NOT RAISED ANY MATERIAL CONTENTION TO CHALLENGE THE ACTION OF THE ASSESSING OFFICER TO REJECT THE BOOKS OF ACCOUNT OF THE ASSESSEE, HE HAS CONTENDED THAT THE NET PROFIT RATE OF 8% APPLIED BY THE AO TO ESTIMATE THE BUSINESS INCOME OF THE ASSESSEE IS ON THE HIGHER SIDE. HE HAS CONTENDED THAT WHILE APPLYING THE NET PROFIT RATE OF 8%, THE AO DID NOT CONSIDER THE PAST HISTORY OF THE ASSESSEES CASE AND EVEN DID NOT CITE ANY COMPARABLE CASE. AS RIGHTLY POINTED OUT BY THE LD. DR IN THIS REGARD, THERE WAS NO SATISFACTORY COMPLIANCE ON THE PART OF THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS OR EVEN DURING THE COURSE OF APPELLATE PROCEEDINGS AND IN THE ABSENCE OF ANY EXPLANATION OFFERED BY THE ASSESSEE IN THE MATTER OF PROPER ESTIMATION OF NET PROFIT RATE, THE AO DID NOT GET ANY OPPORTUNITY TO MAKE A COMPARATIVE ANALYSIS. KEEPING IN VIEW THESE SUBMISSIONS MADE BY THE LD. REPRESENTATIVE OF BOTH THESE SIDES, I CONSIDER IT FAIR AND PROPER AND IN THE INTEREST OF JUSTICE TO RESTORE THE MATTER TO THE FILE OF THE AO WITH THE DIRECTION TO ESTIMATE THE INCOME OF THE ASSESSEE BY APPLYING FAIR AND REASONABLE NET PROFIT RATE, AFTER TAKING INTO CONSIDERATION THE PAST HISTORY OF ASSESSEES CASE AS WELL AS THE NET PROFIT DECLARED IN THE COMPARABLE 3 I.T.A. NO. 1878/KOL/2019 ASSESSMENT YEAR: 2014-15 NANTU GHOSH CASES. AS UNDERTAKEN BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE ASSESSING OFFICER AND SHALL EXTEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENABLE THE AO TO COMPLETE THE ASSESSMENT AFRESH EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2020. SD/- (P.M. JAGTAP) VICE PRESIDENT DATED: 28/02/2020 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. NANTU GHOSH, NILGIRI APARTMENT, SOROJINI PALLY, P.O. NABAPALLY, (N) 24 PARGANAS 700 126. 2. ITO, WARD 50(1), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA