M/s. Electronics Components Industries, Howrah V. JCIT, Range-48, Kolkata, Kolkata

ITA 2046/KOL/2014

• Counselvise Citation: 204623514 RSA 2014
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 10-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K L KANAK
• Assessee Lawyers: SUNIL SURANA F

Judgement Text

I .T.A. NO . 204 6 / KOL ./201 4 ASSESSMENT YEAR: 20 10 - 20 11 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 20 4 6 / KOL / 20 1 4 ASSESSMENT YEAR : 20 10 - 20 11 M/S. ELECTRONICS COMPONENTS INDUSTRIES,.. .... ........... .. .APP ELL ANT 261/76/77, G.T. ROAD(NORTH), SALKIA, HOWRAH - 711 106 [ PAN : A AA FE 7756 P ] - VS. - JOINT COMMISSIONER OF INCOME TAX, ................. ... . RESPONDENT RANGE - 48 , KOLKATA , 3, GOVERNMENT PLACE(WEST), KOLKATA - 700 001 APPEARANCES BY: SHRI SUNIL SURANA, F.C.A. , FOR THE A SSESSEE S HRI K.L. KANAK , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : FEBRUARY 2 5 , 2 01 5 DATE OF PRONOUNCING THE ORDER : FEBRUARY 2 5 , 201 5 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORDE R OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - X XX , KOLKATA IN APPEAL NO. 87 / CIT(A) - X XX/JCIT,R - 48/2012 - 13 D ATED 0 5 . 0 8 .201 4 FOR THE ASSESSMENT YEAR 20 10 - 11 . 2 . SHRI SUNIL SURANA, F.C.A., REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI K.L. KANAK, JCIT, SR. D .R. REPRESENTED ON BEHALF OF THE REVENUE. 3 . AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. A .R. THAT THE ASSESSEE IS IN THE BUSINESS OF ELECTRONIC GOODS AND SPARE PARTS. IT WAS THE SUBMISSION THAT THE ASSESSING OFFICER HAD ESTIMATED THE ASSESSEE S G ROSS PROFIT BY REJECTING THE ASSESSEE S BOOKS OF ACCOUNTS. IT WAS THE SUBMISSION THAT THE NET PROFIT OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR WAS I .T.A. NO . 204 6 / KOL ./201 4 ASSESSMENT YEAR: 20 10 - 20 11 PAGE 2 OF 3 HIGHER THAN THE EARLIER YEAR ALSO. IT WAS THE SUBMISSION THAT THE BOOKS HAVE NOT BEEN REJECTED . THE ES TIMATION OF THE ASSESSEE COULD NOT BE DONE. IT WAS THE SUBMISSION THAT THE ORDER OF THE LD. CIT(APPEALS) CONFIRMING THE ESTIMATION MAY BE REVERSED. 4. IN REPLY, LD. SR. D.R. VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND LD. CIT(APPEALS). 5 . LD. A.R. ALSO PLACED RELIANCE UPON THE DECISION OF THE DIVISION BENCH OF THIS TRIBUNAL IN THE CASE OF SRK TEA PROCESSING INDUSTRIES IN ITA NO. 1685/KOL/2009 DATED 11.03.2011, WHEREIN IT HAS BEEN HELD AS FOLLOWS: - IN THE ABSENCE OF THIS FINDING AND IN TH E ABSENCE OF REJECTION OF BOOKS OF ACCOUNT, WE ARE UNABLE TO ACCEPT THAT THE ASSESSING OFFICER HAS RIGHTLY ESTIMATED THE GROSS PROFIT. ACCORDINGLY, WE ARE OF THE VIEW THAT THE LOWER AUTHORITIES HAVE ERRED IN APPLYING GROSS PROFIT RATE ON THE BASIS OF EARLI ER YEARS WITHOUT REJECTING BOOKS OF ACCOUNT. WE ALLOW THE CLAIM OF THE ASSESSEE AND THIS ISSUE OF ASSESSEE S APPEAL IS ALLOWED . 6 . I HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ISSUE IN THIS APPEAL IS SQUARELY COVERED BY THE DECISION OF THE DIVISION BENCH OF THIS TRIBUNAL IN THE CASE OF SRK TEA PROCESSING INDUSTRIES REFERRED TO SUPRA AND AS IT IS NOTICED THAT THE ASSESSING O FFICER HAS NOT REJECTED THE ASSESSEE S BOOKS OF ACCOUNT, THE ESTIMATION OF THE ASSESSEE S GROSS PROFIT IS NOT PE RMISSIBLE. IN THESE CIRCUMSTANCES, THE ADDITION MADE BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LD. CIT(APPEALS) BY ESTIMATING THE ASSESSEE S GROSS PROFIT STANDS DELETED. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUN CED IN THE OPEN COURT ON 2 5 TH FEBRUARY , 201 5 . SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 2 5 TH D AY OF FEBRUARY , 201 5 I .T.A. NO . 204 6 / KOL ./201 4 ASSESSMENT YEAR: 20 10 - 20 11 PAGE 3 OF 3 COPIES TO : (1) M/S. ELECTRONICS COMPONENTS INDUSTRIES, 261/76/77, G.T. ROA D(NORTH), SALKIA, HOWRAH - 711 106 (2) JOINT COMMISSIONER OF INCOME TAX, RANGE - 48, KOLKATA, 3, GOVERNMENT PLACE(WEST), KOLKATA - 700 001 (3) COMMISSIONER OF INCOME - T AX (APPEALS) (4) COMMISSIONER OF INCOME T AX ( 5 ) THE DEPARTMENTAL REPRESENTA TIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA B ENCHES, KOLKATA LAHA/SR. P.S .