Sri Ajit Prasad Dey, Bankura V. ITO, Ward - 3(1), Bankura, Bankura

ITA 2054/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1826 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 15-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: I JAMIR
• Assessee Lawyers: SOUMITRA CHOW DHURY
• Keywords: Corroborative evidences
• Section: 142(1); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI M.BALAGANESH, AM & HONBLE S HRI S.S.VISWANETHRA RAVI, JM] I.T.A NO. 2054/KOL/20 17 ASSESSMENT YEAR : 2012-1 3 SHRI AJIT PRASAD DEY -VS- ITO, WARD-3(1 ), BANKURA . [PAN: ADAPD 9381 J] (APPELLANT) (RESPOND ENT) FOR THE APPELLANT : SHRI SOUMITRA CHOW DHURY, ADVOCATE FOR THE RESPONDENT : SHRI I. JAMIR, ADDL. CI T DATE OF HEARING : 21.08.2018 DATE OF PRONOUNCEMENT : 05. 09.2018 ORDER PER M.BALAGANESH, AM 1. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-DURGAPUR [IN SHORT THE LD CIT(A )] IN APPEAL NO. 14/CIT(A)/DGP/2015-16 DATED 06.07.2017 PASSED BY T HE ITO, WARD-3(1), BANKURA [ IN SHORT THE LD AO] UNDER SECTION 144 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 16.03.2015 FOR THE ASSESSMENT YEAR 2012-13. 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL IS A S TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN CONFIRMING THE ACTION OF THE LD. AO IN ADOPTION OF NET PROFIT @ 8% WITHOUT CONSIDERING THE PAST HISTORY OF THE ASSESSEE, IN TH E FACTS AND CIRCUMSTANCES OF THE CASE. 2 ITA NO.2054/KOL/2017 AJIT PRASAD DEY A.YR. 2012-13 2 3. THE BRIEF FACTS OF THIS ISSUE IS THAT THE ASSESS EE IS AN INDIVIDUAL CARRYING ON BUSINESS OF WHOLESALE TRADE OF EGGS AND FISH. THE ASSESSEE F ILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2012-13 ON 18.07.2013 DECLARING TOT AL INCOME OF RS. 6,86,060/-. THE RETURN OF INCOME WAS FILED TOGETHER WITH THE TAX AU DIT REPORT DATED 18.09.2012. THE LD. AO OBSERVED THAT THE ASSESSEE DID NOT RESPOND TO TH E VARIOUS NOTICES ISSUED TO HIM IN THE ASSESSMENT PROCEEDINGS. THE BOOKS OF ACCOUNTS , THE DOCUMENTS AND OTHER PARTICULARS REQUISITIONED U/S 142(1) OF THE ACT WERE NOT FURNIS HED BY THE ASSESSEE. ACCORDINGLY, HE PROCEEDED TO REJECT THE BOOK RESULTS OF THE ASSESSE E AND PROCEEDED TO DETERMINE THE NET PROFIT AT 8% AND MADE ADDITION ACCORDINGLY. BEFORE THE LD. CIT(A), THE ASSESSEE PRAYED FOR ONE MORE OPPORTUNITY BEFORE THE LD. AO AND AGRE ED TO FURNISH THE BOOKS OF ACCOUNTS BEFORE THE LD. AO. ACCORDINGLY, THE LD. CIT(A) SOUG HT FOR REMAND REPORT FROM THE LD. AO. IN THE REMAND PROCEEDINGS, THE ASSESSEE PRODUCE D THE COMPUTERISED BOOKS OF ACCOUNTS WITHOUT ANY SUPPORTING EVIDENCES THEREON B EFORE THE LD. AO. BASED ON THIS, THE LD. CIT(A) UPHELD THE ACTION OF THE LD. AO IN ADOPT ION OF NET PROFIT AT 8% ON AN ESTIMATED BASIS. AGGRIEVED, THE ASSESSEE IS IN APPE AL BEFORE US. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS. THE LD. AR BEFORE US PLACED ON RECORD THE NET PROFIT PERCENTAGE OF THE ASSESSEE AS UNDER: HE PRAYED FOR ESTIMATING THE NET PROFIT RATE AT 2 T O 2.5% FOR THE YEAR UNDER CONSIDERATION. IN RESPONSE TO THIS, THE LD. DR VEHE MENTLY RELIED ON THE ORDERS OF THE LOWER AUTHORITIES BELOW. WE FIND THAT IT IS NOW WEL L SETTLED THAT THE REVENUE BEFORE 3 ITA NO.2054/KOL/2017 AJIT PRASAD DEY A.YR. 2012-13 3 RESORTING TO ESTIMATION OF NET PROFIT SHOULD FIRST CONSIDER THE PAST HISTORY OF THE ASSESSEE. WE FIND THAT THE PAST HISTORY OF THE ASSESSEE AS TA BULATED ABOVE SHOWS THAT THE ASSESSEES HIGHEST NET PROFIT IN IMMEDIATELY PRECEDING THREE F INANCIAL YEARS WAS 1.84%. WE FIND THAT THE AVERAGE OF THE NET PROFIT WORKS OUT TO 1.5 4%. THE ASSESSEE DURING THE YEAR HAD DISCLOSED THE NET PROFIT OF 0.76%. THE HONBLE MADH YA PRADESH HIGH COURT HAD ALSO HELD IN THE CASE OF BRAJLAL MANILAL & CO. VS. CIT R EPORTED IN 92 ITR 287 AND IN YET ANOTHER DECISION OF MADHYA PRADESH HIGH COURT INDOR E BENCH IN THE CASE OF MOORJI UDHAVJI VS. CIT REPORTED IN 145 ITR 575 HAD HELD TH AT EARLIER YEAR PROFIT PERCENTAGE SHOULD BE THE BASIS OR ADOPTION OF PROFIT PERCENTAG E IN THE YEAR UNDER APPEAL. IN VIEW OF PAST HISTORY OF THE ASSESSEE AS TABULATED SUPRA AND IN VIEW OF AFORESAID DECISIONS OF HONBLE MADHYA PRADESH HIGH COURT AND IN VIEW OF TH E CONCESSION GIVEN BY THE LD AR, WE HOLD THAT ADOPTION OF NET PROFIT PERCENTAGE AT 2 .50% FOR THE ASSESSMENT YEAR 2012-13 WOULD MEET THE ENDS OF JUSTICE AS INCOME FROM BUSIN ESS. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE PARTLY ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 05. 09.2018 SD/- SD/- [S.S. VISWANETHRA RAVI] [ M.BAL AGANESH ] JUDICIAL MEMBER ACCOUNTANT MEM BER DATED : 05.09.2018 SB, SR. PS 4 ITA NO.2054/KOL/2017 AJIT PRASAD DEY A.YR. 2012-13 4 COPY OF THE ORDER FORWARDED TO: 1. SHRI AJIT PRASAD DEY, PROP. M/S TRISHAKTI EGG TR ADERS, NATUNGANJ, BANKURA, DISTRICT- BANKURA-722101. 2. ITO, WARD-3(1), BANKURA, DISTRICT-BANKURA. 3..C.I.T.(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHE S