Sri Gour Sarkar, Nadia V. I.T.O Wd - 4,Nadia, Nadia

ITA 323/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91975 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 15-02-2013
• Court: TRIBUNAL
• Department Lawyers: SANJAY SR DR
• Keywords: Business income
• Section: 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA [BEFORE HON BLE SHRI B.P.JAIN, AM] I.T.A NO.323 /KOL/2013 ASSESSMENT YEAR: 2006 - 07 SHRI GOUR SARKAR, VS. I.T.O., WARD - 4 , NADIA NADIA (APPELLANT) ( RESPONDENT) (PAN: AKMPS 2378 F) FOR THE APPELLANT : NONE FOR THE RESPONDENT : SHRI SANJAY, SR.DR, ADDL. C.I.T. DATE OF HEARING : 01.06 .2015. DATE OF PRONOUNCEMENT: 01.06 .2015. ORDER PER SHRI B.P.JAIN, AM : THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF L D.CIT(A) - XX XV I , KOLKATA DATED 18.12.2012 FOR ASSESSMENT YEAR 2006 - 07. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE APPEAL ORDER OF THE LD. C.I.T.(APPEALS) - XXXVI, KOLKAT A WAS NOT FAIR AND PROPER AND ON THE OTHER HAND IT WAS MADE CONTRARY TO LAW, SOUND AND ADEQUATE PRINCIPLES. 2. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LD. CIT(APPEALS) WAS NOT AT ALL JUSTIFIED IN CONFIRMING THE ADDITION OF RS.2,00,000.0 0 & HE SHOULD HAVE CONSIDERED THE WRITTEN SUBMISSION OF THE APPELLANT AND THE REASONS ADDUCED IN CONFIRMING THE ADDITION OF RS.2,00,000.00 ARE NOT AT ALL CONVINCING. 3. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. I.T.O. WAS WRONG IN ADDING BACK THE SUM OF RS.2,00,000.00 U/S 68 OF THE I.T.ACT, WHEN THE BOOKS OF ACCOUNT WERE REJECTED U/S 145(3) & THE BUSINESS INCOME WAS ESTIMATED @8% OF THE TURNOVER. 4. FOR THAT BOTH THE LD. C.I.T.(APPEALS) AND THE LD. I.T.O. ERRED BOTH IN POINTS OF LA W AND ON FACTS. 5. FOR THAT THE HUMBLE APPELLANT CRAVES LEAVE TO TAKE ADDITIONAL GROUNDS & AMEND GROUNDS AT THE TIME OF HEARING. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE AO MADE ADDITION OF RS.2,00,000/ - U/S 68 OF THE ACT ON ACCOUNT OF SUNDRY CREDIT ORS S INCE NOTICE U/S 133(6) OF THE ACT FOR VERIFICATION OF GENUINENESS OF TRUE CREDITORS RETURNED BACK. AO ALSO INVOKED THE PROVISIONS OF SECTION 145(3) OF THE ACT AND ESTIMATED THE INCOME FROM WORKS CONTRACT ITA NO . 323/KOL/2013 SHRI GOUR SARKAR A.YR. 2006 - 07 2 AT 8% OF THE CONTRACT WORK IN ADDITION TO THE U NEXPLAINED CASH CREDIT OF RS.2,00,000/ - MENTIONED HEREIN ABOVE. 3.1. THE LD. CIT(A) CONFIRMED THE ACTION OF AO WITH REGARD TO THE ADDITION U/S 68 OF THE ACT TO THE EXTENT OF RS.2,00,000/ - U/S 68 OF THE ACT AND RESTRICTED THE NET PROFIT RATE AT 6% INSTEA D OF 8% APPLIED BY THE AO. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE. AFTER HEARING THE LD. DR AND PERUSING THE MATERIALS AVAILABLE ON RECORD, I FIND THAT THE LD. CIT(A) HAVING INVOKED THE PROVISION OF SECTION 145(3) OF THE ACT HAS TAKEN CARE OF ALL THE ITEMS OF THE TRADING ACCOUNT WHICH INCLUDES THE PURCHASES I.E. THE SUNDRY CREDITORS AS WELL AND THEREFORE NO FURTHER ADDITION ON ACCOUNT OF SUNDRY CREDITORS OF RS.2,00,000/ - CAN BE MADE WHICH IN FACT IS AGAINST THE LAW. IN THE CIRCUMSTANCES AND FACTS OF THE CASE THE ADD ITION SUSTAINED BY THE LD. CIT(A) AT RS.2,00,000/ - IS DIRECTED TO BE DELETED. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDE R PRONOUNCED IN THE OPEN COURT ON 01.06 .2015. SD/ - [ B.P.JAIN ] ACCOUNTANT MEMBER DATE: 01.06 .2015. R.G.( .P.S.) C OPY OF THE ORDER FORWARDED TO: 1 . SHRI GOUR SARKAR, C/O P.S.GUPTA, (ADVOCATE), 100 BANK LANE, HATERPARA, KRISHNAGAR, DIST. NADIA. 2 I.T.O., WARD - 4, NADIA. 3 . CIT(A) - XX XV I , , KOLKATA 4. CIT - KOLKA TA. 5. CIT - DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES ITA NO . 323/KOL/2013 SHRI GOUR SARKAR A.YR. 2006 - 07 3