KALIMATA STORES, Kolkata V. I.T.O Wd - 38(1),kolkata., Kolkata

ITA 1907/KOL/2012

• Counselvise Citation: 190723514 RSA 2012
• Duration Of Justice: 1 year(s) 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-08-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 27-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAVID N CHOWNGTH U CIT SR D
• Assessee Lawyers: K M ROY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: K OLKATA [BEFORE SHRI P.K.BANSAL, HONBLE A.M. ] I.T.A. NO.1907/KOL/2012 : ASSESSMENT YEAR : 2009-10 KALIMATA STORES, KOLKATA -VS- ITO, WAR D-38(1), KOLKATA PAN : AAFFK 5410P ( APPELLANT ) ( RESPONDENT ) DATE OF CONCLUDING THE HEARING : 01.08.2014 DATE OF PRONOUNCING THE ORDER : 26.08.2014 APPEARANCES :FOR THE APPELLANT: SHRI K.M.R OY, FCA :FOR THE RESPONDENT : SHRI DAVID N. CHOWNGTH U, ADDL.CIT, SR.DR O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)- XXIV, KOLKATA DATED 19.10.2012 FOR THE ASSESSMENT Y EAR 2009-10. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES T O THE ADDITION MADE ON ACCOUNT OF THE SHORTAGE OF STOCK TREATED BY THE AO AND THE VALUE OF SUCH STOCK TO BE UNDISCLOSED SALE. THE AO NOTED THAT DURING THE C OURSE OF SURVEY OPERATION AT THE BUSINESS PREMISES OF THE ASSESSEE, THE PHYSICAL STOCK WAS 272 QUINTALS, WHILE IN THE BOOKS OF THE ASSESSEE, IT WAS 430 QUINTALS AND 68 QUINTALS OF GOODS WERE DISPATCHED VIDE ROAD CHALLAN DATED 27.01.2009. THUS , THE DIFFERENCE OF 90 QUINTALS WAS TAKEN BY THE AO TO BE THE SALES MADE OUTSIDE TH E BOOKS OF ACCOUNTS AND THEREFORE, HE, APPLYING THE SELLING PRICE @ RS.2932 .69 ON 28.01.2009, MADE THE ADDITION OF RS.2,63,942.10. WHEN THE MATTER WENT BE FORE THE CIT(A), HE CONFIRMED THE ADDITION. 3. WE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CON SIDERED THE SAME. IN OUR OPINION, THE AO CANNOT MAKE THE ADDITION IN RESPECT OF FULL VALUE OF THE UNDISCLOSED SALE. THE ADDITION CAN BE MADE ONLY IN RESPECT OF PROFIT AS THE STOCK WAS DULY RECORDED IN THE BOOKS OF ACCOUNTS OF THE A SSESSEE. OUR AFORESAID VIEW IS 2 I.T.A. NO.1907 /KOL/2012 KALIMATA S TORES A.Y. 2009-10 DULY SUPPORTED BY THE DECISION OF HONBLE GUJARAT H IGH COURT IN THE CASE OF CIT- VS- PRESIDENT INDUSTRIES 258 ITR 654 IN WHICH IT WA S HELD THAT IN THE CASE OF THE UNDISCLOSED SALES, ADDITION CANNOT BE MADE ON ENTIR E SALE PROCEEDS. ONLY THE PROFIT ELEMENT IN SALE PROCEEDS CAN BE TAXED. NO CONTRARY DECISION WAS BROUGHT TO OUR KNOWLEDGE. WE ACCORDINGLY SET ASIDE THE ORDER OF TH E CIT(A) AND DIRECT THE AO TO MAKE THE ADDITION OF THE GROSS PROFIT AS HAS BEEN D ERIVED BY THE ASSESSEE DURING THE YEAR IN RESPECT OF THE SAID UNDISCLOSED SALE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. THIS ORDER IS PRONOUNCED IN THE COURT ON 26 AUGUST, 2014. SD/- (P.K.BANSAL) ACCOUNTANT MEMBER DATED : 26 AUGUST, 2014 COPY OF THE ORDER FORWARDED TO: 1. KALIMATA STORES, 36, M.D. ROAD, KOLKATA 700 006 2. ITO, WARD-38(1), KOLKATA 3. THE CIT(A), KOLKATA 4. CIT, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, ASSTT. REGISTRAR , ITAT, KOLKATA TALUKDAR(SR.P.S.) 3 I.T.A. NO.1907 /KOL/2012 KALIMATA S TORES A.Y. 2009-10