D.Johnson Pattu, CHENNAI V. ITO Non Corporate Ward 7(2), CHENNAI

ITA 2615/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1476 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 11-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B. SAGADEVAN
• Assessee Lawyers: T.T. DURAIRAJ KANDIAR
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B ( SMC ) BENCH : CHENNAI . . . , , [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ] ./I.T.A. NO.2615/CHNY/2018 ! / ASSESSMENT YEAR : 2015-2016. D. JOHNSON PATTU NO.15, 6 TH STREET, ALAGAMMAL NAGAR, NERKUNDRAM, KOYAMBEDU, CHENNAI 600 107. [PAN ADNPH 7976N] VS. THE INCOME TAX OFFICER, NON CORPORATE WARD 7(2) CHENNAI 600 034. ( / APPELLANT) ( /RESPONDENT) '# $ % / APPELLANT BY : SHRI. T.T. DURAIRAJ KANDIAR, C.A &' '# $ % /RESPONDENT BY : SHRI. B. SAGADEVAN, IRS, JCIT. ( ) $ * /DATE OF HEARING : 11-06-2019 +,! $ * /DATE OF PRONOUNCEMENT : 13-06-2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-7 , CHENNAI (CIT(A) FOR SHORT) DATED 19.06.2018 FOR THE ASSES SMENT YEAR (AY) 2015-2016 . 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL : ITA NO. 2615/2018 :- 2 -: THE ORDER OF THE LD. CIT(A)-7 IN ITA NO.87/CIT(A) - 7/2017-18, DATED 19.06.2018, IS AGAINST THE FACTS O F THE CASE, LEGAL PRINCIPLES INVOLVED, WEIGHT OF EVIDENCE ON RECORD AND PRINCIPLES OF NATURAL JUSTICE. THE LD. CIT(A)-7, HAS GROSSLY ERRED IN PARTIALLY CONFIRMING THE ADDITION OF F4,12,243/- BY ESTIMATIN G PROFIT AT 4% ON COMMISSION SALES OF PLANTAIN (BEING THE DIFFERENCE OF CASH DEPOSITS MADE IN THE BANK ACCOUN T AND THE RETAILS SALES ADMITTED BY THE APPELLANT) WI THOUT CONSIDERING THE FACT OF THE CASE AND INFORMATION FURNISHED. THE APPELLANT MAY KINDLY BE PERMITTED TO ADDUCE ANY OTHER RELEVANT GROUNDS AT THE TIME OF HEARING OF TH IS APPEAL. THE APPELLANT HUMBLY PRAYS THAT HONBLE MEMBERS OF TRIBUNAL BE KIND ENOUGH TO CONSIDER THE FACTS AND CIRCUMSTANCES AND BE KIND ENOUGH TO DIRECT THE LEA RNED ASSESSING OFFICER TO DELETE THE ARBITRARY ADDITIONS AND RENDER JUSTICE. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL ENGAGED IN THE BUSIN ESS OF WHOLESALE TRADING IN BANANAS AT KOYAMBEDU MARKET. THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2015-2016 WAS FILED ON 10.09.2016 DISCLOSING TOTAL INCOME OF RS. 8,32,270/-. AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE INCOME TAX OFFICER, NON CORPORATE WARD 7(2), CHENNAI (HEREINAFTER REFE RRED AS ASSESSING OFFICER) VIDE ORDER DATED 20.12.2017 PASSED U/S. 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) AT TOTAL INCOME OF RS.21,44,660/- AFTER MAKING AN ADDITION OF F13,12 ,390/-. WHILE ITA NO. 2615/2018 :- 3 -: DOING SO, THE ASSESSING OFFICER TREATED CASH DEPOS ITS OF F4,67,99,356/- AS REDUCED BY THE SALES AMOUNT DISCL OSED OF F2,42,95,780/- AS SUPPRESSED SALES TURNOVER AND ES TIMATED PROFIT @8% THEREON. AFTER REDUCING COMMISSION ADMITTED AT F4,87,900/-, THE BALANCE AMOUNT OF F13,12,390/- WAS ADDED TO TH E TOTAL INCOME. 4. BEING AGGRIEVED BY THE ABOVE ADDITION, AN APPEAL WA S PREFERRED BEFORE LD. COMMISSIONER OF INCOME TAX (AP PEALS), CONTENDING THAT ADOPTING 8% ON ALLEGED SUPPRESSED TURNOVER IS ARBITRARY, AS THE AMOUNT OF PROFIT MADE IN THE LIN E OF BUSINESS IS ONLY 2%. CONSIDERING THE SUBMISSIONS MADE BY THE ASSESS EE, THE LD. CIT(A) DIRECTED THE ASSESSING OFFICER TO ESTIMATE THE PROFIT @4% OF THE SUPPRESSED SALES TURNOVER. 5. BEING AGGRIEVED, THE APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 6. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL ON RECORD. ASSESSEE IS IN COMPOSITE BUSINESS ONE CONSI STING BOTH TRADING AS WELL AS COMMISSION BUSINESS. ADOPTING 2% OF THE TOTAL TURNOVER IS OUR CONSIDERED OPINION COULD MEET THE ENDS OF JUSTI CE. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO ADOPT 2% OF TURNOV ER NET PROFIT AND COMPLETE THE ASSESSMENT. ITA NO. 2615/2018 :- 4 -: 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTL Y ALLOWED. ORDER PRONOUNCED ON 13TH DAY OF JUNE, 2019, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER - ) / CHENNAI . / DATED: 13TH JUNE, 2019 KV $ &*01 21!* / COPY TO: 1 . '# / APPELLANT 3. ( 3* () / CIT(A) 5. 16 &*7 / DR 2. &' '# / RESPONDENT 4. ( 3* / CIT 6. 8 9) / GF