Maa Transport Agency, Asansol V. D.C.I.T.,Circle-2, Asansol

ITA 2064/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6177 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 04-02-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 05-09-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Keywords: Business income; Initiation of penalty proceedings
• Section: 271(1)(c); 142(1); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOLKATA BEFORE: SHRI P.M. JAGTAP, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A NO. 2064/KOL/2019 (ASSESSMENT YEAR: 2012-13) MAA TRANSPORT AGENCY APPELLANT [PAN: AAKFN 9822 A] VS DCIT, CIRCLE 2, ASANSOL RESPONDENT FOR THE ASSESSEE : NONE FOR THE REVENUE : SMT. RANU BISWAS, ADDL. CIT DATE OF HEARING : 04.02.2020 DATE OF PRONOUNCEMENT : 06.02.2020 ORDER PER S.S. VISWANETHRA RAVI, JM THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 25.06.2019 PASSED BY THE LD. CIT(A) ASANSOL FOR A.Y. 2012-13. 2. WE FIND NO REPRESENTATION ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION FILED SEEKING ADJOURNMENT. THE ASSESSEE CALLED ABSENT AND SAID EX-PARTE. THEREFORE, WE PROCEED TO HEAR THE LD. DR AND TO PASS ORDER ON THE MATERIALS AVAILABLE ON RECORD. 3. GROUND NOS. 2 & 3 RAISED BY THE ASSESSEE CHALLENGING THE ACTION OF CIT(A) IN CONFIRMING THE ORDER OF AO IN ADOPTING PROFIT RATE OF 8% ON TURNOVER. 4. THE BRIEF FACTS OF THE CASE ARE THAT THAT THE ASSESSEE IS AFIRM AND ENGAGED IN TRANSPORT BUSINESS. THE ASSESSEE FILED RETURN OF INCOME THROUGH ONLINE DECLARING A TOTAL INCOME OF RS. 12,00,000/-. UNDER COMPULSORY SCRUTINY, THE AO ISSUED NOTICES U/S 143(2) AND 142(1) OF THE ACT. THE ASSESSING OFFICER EXAMINED THE RELEVANT DOCUMENTS AND 2 I.T.A NO.2064/KOL/2019 MAA TRANSPORT AGENCY DETERMINED THE TOTAL INCOME AT RS. 22,01,721/- BY ESTIMATING PROFIT @ 8% ON TURNOVER, BESIDES ADDITION ON ACCOUNT OF INCOME FROM TRUCK BUSINESS AND INTEREST ON INCOME TAX REFUND VIDE HIS ORDER DATED 31.03.2015 U/S 144/154 OF THE ACT. THE LD. CIT(A), IN FIRST APPELLATE PROCEEDINGS CONFIRMED THE ORDER OF AO VIDE HIS ORDER DATED 25.06.2019. 5. ON PERUSAL OF THE RECORD WE NOTE THAT THE AO ESTIMATED THE PROFIT ON TURNOVER @ 8%, BUT IN THE EARLIER YEARS, THIS TRIBUNAL RESTRICTED THE SAME AT 6% VIDE ORDER DATED 26.06.2019 PASSED BY SMC BENCH ON ASSESSEES OWN CASE IN ITA NO. 2091/KOL/2019 FOR A.Y. 2013-14. ON PERUSAL OF THE SAME, WE FIND ON SIMILAR IDENTICAL FACTS THE TRIBUNAL RESTRICTED THE GROSS- PROFIT @ 6% BY PLACING RELIANCE ON THE ORDER OF TRIBUNAL ASSESSEES OWN CASE FOR A.Y. 2008-09. THEREFORE, WE ADOPT THE SAME RATE OF PROFIT OF 6% FOR THE YEAR UNDER CONSIDERATION AND DIRECT THE AO TO GIVE EFFECT. THUS, GROUND NO. 2 & 3 RAISED BY THE ASSESSEE ARE PARTLY ALLOWED. 6. GROUND NO. 4 RAISED BY THE ASSESSEE IS RELATING TO ADDITION MADE ON ACCOUNT OF INCOME FROM TRUCK TO AN EXTENT OF RS. 1,20,000/-. IN OUR OPINION, THIS ADDITION IS NOT MAINTAINABLE IN VIEW OF THE FACT THAT THE AO ADOPTED PERCENTAGE METHOD IN DETERMINING THE GROSS-PROFIT ON THE BASIS OF GROSS BUSINESS RECEIPT. WHEN THERE IS PROFIT ESTIMATED AND ADMITTEDLY THE INCOME FROM TRUCK IS PART OF THE BUSINESS RECEIPT AND NO ADDITION SEPARATELY IS WARRANTED. THUS ADDITION MADE ON ACCOUNT OF INCOME FROM TRUCK IS NOT MAINTAINABLE AND ACCORDINGLY, IT IS DELETED. 7. GROUND NO. 5 RAISED BY THE ASSESSEE CHALLENGING THE ACTION OF LD. CIT(A) IN CONFIRMING THE ADDITION MADE ON ACCOUNT OF INTEREST ON INCOME TAX REFUND TO AN EXTENT OF RS. 26,190/-. ON PERUSAL OF THE RECORD, WE FIND INTEREST EARNED FROM INCOME TAX REFUND IS NOT BUSINESS RECEIPT, WHETHER IT IS NOT PART AND PARCEL OF THE TURNOVER, IT HAS TO BE DEALT SEPARATELY. THUS ADDITION MADE ON ACCOUNT OF INTEREST ON INCOME TAX REFUND IS SUSTAINED. THUS GROUND NO. 5 RAISED BY THE ASSESSEE IS DISMISSED. 3 I.T.A NO.2064/KOL/2019 MAA TRANSPORT AGENCY 8. GROUND NO. 6 IS PRE-MATURE CONCERNING INITIATION OF PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT AND ACCORDINGLY GROUND NO. 6 IS DISMISSED. 9. GROUND NO. 7 IS GENERAL IN NATURE REQUIRES NO ADJUDICATION. 10. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06.02.2020. SD/- SD/- [P.M JAGTAP] [S.S. VISWANETHRA RAVI] VICE-PRESIDENT JUDICIAL MEMBER DATED: 06/02/2020 BISWAJIT, SR.PS COPY OF ORDER FORWARDED TO: 1. MAA TRANSPORT AGENCY, C/O. KANCHAN SADHU (ADVOCATE), VIVEKANANDA PARK, P.O. RAMKRISHNAMISSION, DIST. PASCHIM BURDWAN 713305. 2. DCIT, CIRCLE 2, ASANSOL. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR ITAT, KOLKATA