ACIT, CC-XXIII, Kolkata V. Shri Alamgir Molla, Kolkata

ITA 2007/KOL/2009

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87661 (ITAT-KOLKATA)
• Duration Of Justice: 5 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2015
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 26-11-2009
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA
• Assessee Lawyers: N O N E
• Section: 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOLKATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI SHAMIM YAHYA , AM ] I .T.A NO S . 2006 & 2007 /KOL/20 0 9 ASSESSMENT YEAR S : 200 5 - 0 6 & 2006 - 07 ASSISTANT COMMISSIONER OF INCOME - TAX, VS. SHRI ALAMGIR MOLLA CENTRAL CIRCLE - XXIII, KOLKATA. (PAN: AJJPM8661M) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 2 9 . 01 .201 5 DATE OF PRONOUNCEMENT: 03 . 0 2 .201 5 FOR THE APPELLANT: SHRI VARINDER MEHTA , CIT, DR FOR THE RESPONDENT: N O N E / ORDER PER SHRI MAHAVIR SINGH, JM : BOTH T H E S E APPEAL S BY REVENUE ARE ARISING OUT OF COMMON ORDER OF CIT (A) , CENTRAL - I II , KOLKATA IN APPEAL NO. 327 & 328 /CC - XXIII/CIT(A)/C - III/08 - 09 DATED 0 4 . 0 9 .20 0 9 . ASSESSMENT S W ERE FRAMED BY A CIT, CC - XX I II , KOLKATA U/S. 153C/144 OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR S 200 5 - 0 6 & 2006 - 07 VIDE HIS SEPARATE ORDER S DATED 3 1 . 1 2 .20 08 . 2. THE ONLY COMMON ISSUE IN TH E S E TWO APPEAL S OF REVENUE IS AGAINST THE ORDER OF CIT(A) RESTRICTING THE DISALLOWANCE OF GROSS SALES/GROSS RECEIPTS (NOT PURCHASES AS MENTIONED IN THE GROUND RAISED BY REVENUE) AT 20% AS AGAINST 100% DISALLOWED BY AO. 3. WE HAVE HEARD LD. SR. DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY S TATED FACTS ARE THAT IN BOTH THE AYS. 2005 - 06 & 2006 - 07 THE AO ADOPTED THE GROSS RECEIPT/SALES AT RS.14,09,465/ - AND RS.24,02,500/ - RESPECTIVELY AS INCOME OF THE ASSESSEE. FOR THIS, AO NOTED THAT THE ASSESSEE IS UNABLE TO PRODUCE SALE RECEIPTS AND PURCHASE VOUCHERS FOR HIS GARMENT TRADE AND HENCE, HE DISALLOWED THE E NTIRE GROSS SALES/G ROSS RECEIPTS. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO RESTRICTED THE DISALLOWANCE OF GROSS RECEIPTS/SALES AT 20% AS AGAINST THE DISALLOWANCE MADE BY AO AT 100% FOR THE REASON THAT ASSESSEE S GROSS PROFIT IS RANGING BETW EEN 64.36% AND 65% IN AY 2005 - 06 AND @ 65% IN AY 2006 - 07. ACCORDING TO CIT(A), THE ENTIRE SALE/RECEIPT CANNOT BE THE INCOME OF THE ASSESSEE. AGGRIEVED REVENUE CAME IN APPEAL BEFORE US. 4. WE FIND THAT THE AO HAS ADDED BACK THE ENTIRE SALE/RECEIPTS OUT OF WHICH ASSESSEE HAS ALREADY DECLARED PROFIT @ 64.36% TO 65% IN AY 2005 - 06 AND @ 65% IN AY 2006 - 07. WE 2 I TA NO. 200 6 & 2007 /K/200 9 SHRI ALAMGIR MOLLA AY. 2005 - 0 6 & 2006 - 07 FIND THAT THE ASSESSEE HAS ALREADY DECLARED A VERY HIGH GROSS PROFIT ON THE TOTAL TURNOVER AND THERE IS NO SCOPE FOR MAKING FURTHER DISALLOWANCE EVEN T HOUGH THE ASSESSEE HAS NOT PRODUCED BOOKS OF ACCOUNT OR SALE VOUCHERS OR BILLS. IN TERM OF THE ABOVE, WE CONFIRM THE ORDER OF CIT(A) IN BOTH THE YEARS RESTRICTING THE DISALLOWANCE AT 20% ON SALES/RECEIPTS. BOTH THE APPEALS OF REVENUE ARE DISMISSED. 5 . I N THE RESULT, APPEAL S OF REVENUE ARE DISMISSED . 6 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 03.02.2015 SD/ - SD/ - ( SHAMIM YAHYA ) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 03RD FEBRUARY , 201 5 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . A PPELLANT ACIT, CC - XXIII, KOLKATA. 2 RESPONDENT SHRI ALAMGIR MOLLA, 2 NO. BACHARPARA ROAD, NETAJI NAGAR, P/S. THAKURPUKUR, L.P. NO.180/14/9/1, KOL - 63. 3 . THE CIT(A), KOLKATA 4. 5. CIT KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .