Kishore Kumar Ray, Jeypore V. ITO, Jeypore

ITA 266/CTK/2013

• Counselvise Citation: 26622114 RSA 2013
• Duration Of Justice: 1 year(s) 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 29-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RABIN CHOUDHURI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH , CUTTACK BEFORE S/SHRI P.K.BANSAL (AM) AND D.T.GARASIA (JM) I.T.A. NO. 266/CTK/2013 ASSESSMENT YEAR: 2009-2010 KISHORE KUMAR ROY, PROP. M/S. MARUTI GAS, MADALA STREET, JEYPORE PA NO.AEIOR 8994 Q VS ITO, WARD - II, JEYPORE. APPELLANT RESPONDENT FOR THE APPELLANT: NONE FOR THE RESPONDENT: SHRI RABIN CHOUDHURI DATE OF HEARING: 05/02/2015 DATE OF PRONOUNCEMENT: 3 / 3 /2015 ORDER PER P.K.BANSAL, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST ORDER DATED 18.1.2013 OF LD CIT(A), BERHAMPUR FOR THE ASSESSMENT YEAR 2009-2010. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE WHEN THE MATTER WAS CALLED ON FOR HEARING. THEREFORE, WE PROCEED TO DECIDE THE APPEAL EXPARTE AFTER HEARING LD D.R. AND ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES T O THE ESTIMATION OF PROFIT BY THE AO AND REDUCTION BY LD CIT(A) TO 4%. 3. WE NOTED, IN THIS CASE, THAT THE ASSESSEE HAS NO T ADMITTEDLY PRODUCED BOOKS OF ACCOUNT, BILLS AND VOUCHERS BEFORE THE ASSESSING OFFICER. T HE ONLY COURSE OF ACTION BEFORE THE AO AFTER REJECTING BOOKS OF ACCOUNT REMAINED TO ESTIMATE THE PROFIT ON THE BASIS OF MATERIALS AVAILABLE BEFORE HIM. THE ASSESSEE IS ENGAGED IN DISTRIBUTIO N OF L.P. GAS AS AUTHORIZED AGENT OF BHARAT PETROLEUM CORPORATION LTD. THE ASSESSEE HAS SHOW N GROSS PROFIT AT 6.7%. THE AO ESTIMATED THE PROFIT @ 5% ON GROSS RECEIPT OF RS.2,10,73,266 /-, WHEN THE ASSESSEE COULD NOT PRODUCE 2 I.T.A. NO. 266/CTK/2013 ASSESSMENT YEAR: 2009-2010 THE BOOKS OF ACCOUNT. WHEN THE MATTER WENT IN APP EAL BEFORE LD CIT(A), LD CIT(A) REDUCED THE ESTIMATED PROFIT @ 4%, SINCE THE ASSESSEE HAS DISC LOSED THE NET PROFIT @ 1.58%. IN OUR OPINION, THIS IS A FACT THAT DURING THE YEAR, THE A O NOTED THAT THE ASSESSEE WAS HAVING SUNDRY CREDITOR AT RS.1,68,984/- AND SECURED LOAN TO THE T UNE OF RS.4,27,584/- BUT THE ASSESSEE DID NOT PROVE THE SAME. WE ALSO NOTED THAT THE ASSESSEE D ID NOT FILE THE TAX AUDIT REPORT EVEN THOUGH THE ASSESSEES TURNOVER IS MORE THAN RS.40 LAKHS. S INCE THE ASSESSEE WAS ENGAGED IN THE BUSINESS WHICH IS A GOVERNMENT CONTROL AND WHICH IS A CONTROLLED ITEM, THEREFORE, IN OUR OPINION, THE ESTIMATION OF PROFIT @ 4% IS LITTLE HI GHER SIDE. WE, THEREFORE, FEEL IT APPROPRIATE THAT THE PROFIT BE ESTIMATED @ 2.75%. THE COMMON D ISPUTE IS THAT THE REVENUE HAS NOT BROUGHT OUT ANY MATERIAL OR EVIDENCE WHAT WAS THE N ET PROFIT ACCEPTED BY THE REVENUE IN THE PRECEDING YEAR. NO DOUBT ONCE THE BOOKS OF ACCOUNT ARE REJECTED, THE ESTIMATION HAS TO BE BASED ON THE BASIS OF MATERIALS AVAILABLE ON RECORD . THEREFORE, IN OUR OPINION, THE AO WAS DUTY BOUND TO BRING THE MATERIAL WHATEVER AVAILABLE ON H IS RECORD. WE, THEREFORE, SET ASIDE THE ORDER OF LD CIT(A) AND REDUCE THE ESTIMATION OF PRO FIT @ 2.75%. 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN PURSUANCE WITH RULE 34(4) BY P UTTING THE COPY OF THE SAME ON NOTICE BOARD ON 3/3/2015 SD/- SD/- (D.T.GARASIA) (P.K.BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, PANAJI 3 / 3 /2015 B.K.PARIDA, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT: KISHORE KUMAR ROY, PROP. M/S. MARUTI GAS, MADALA STREET, JEYPORE 2. THE RESPONDENT: ITO, WARD-II, JEYPORE 3. THE CIT, BERHAMPUR 4. THE CIT(A), BERHAMPUR 5. DR, CUTTACK BENCH 6. GUARD FILE. TRUE COPY// BY ORDER ASST. REGISTRAR, ITAT, CUTTACK 3 I.T.A. NO. 266/CTK/2013 ASSESSMENT YEAR: 2009-2010