M/s. Fashion Studio, Agartala V. Income Tax Officer, Ward-1, Agartala

ITA 368/GTY/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8683 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 20-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI E-COURTAT KOLKATA BEFORE SHRI S.S, GODARA, JM & DR. A.L. SAINI, AM ITA NO.368/GAU/2018 ASSESSMENT YEAR:2015-16 M/S. FASHION STUDIO AKHAURA ROAD, TRIPURA, AGARTALA-799001. / V/S . ITO, WARD-1, AGARTALA [ PAN NO.AADFF1071F ] /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI D. K. BISWAL, ADVOCATE /BY RESPONDENT SHRI T. HUMAR, JCIT, SR. DR /DATE OF HEARING 22-06-2020 /DATE OF PRONOUNCEMENT 22-06-2020 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-16 ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS), SHILLONGS ORDER DATED 10.10.2018 PASSED IN CASE NO.CIT(A)/SHG/10061/2017-18 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION ADDING AN AMOUNT OF RS.1,87,910/- ALLEGEDLY REPRESENTING EXCESS STOCK FOUND DURING THE COURSE OF SURVEY. LEARNED COUNSEL IS FAIR ENOUGH IN NOT PRESSING THE EXCESS STOCK ADDITION IN PRINCIPLE. HIS ONLY CASE IS THAT AS PER HONBLE CALCUTTA HIGH COURTS DECISION IN PCIT VS. SUBARNA RICE MILLS (2018) 257 TAXMAN 509 (CAL.)(HC) ONLY THE PROFIT ELEMENT NEEDS TO BE ADDED THAN THE ENTIRE EXCESS STOCK. WE THEREFORE DECLINE THE REVENUES VEHEMENT CONTENTIONS SUPPORTING THE IMPUGNED ADDITION IN ENTIRETY AND DIRECT THE ITA NO.368/GAU/2018 M/S. FASHION STUDIO ASSESSMENT YEAR:2015-16 PAGE 2 ASSESSING OFFICER TO ADD A LUMPSUM AMOUNT OF RS.40,000/- AS PROFIT ELEMENT IN THE IMPUGNED EXCESS STOCK WITHOUT TREATING THE SAME AS PRECEDENT IN ANY OTHER ASSESSMENT YEAR. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. 3. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 22/06/2020. SD/- SD/- (A. L. SAINI) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER KOLKATA; DATE: 22/06/2020 RS / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S. FASHION STUDIO 2. /RESPONDENT- ITO, WARD-1, AGARTALA 3. / CONCERNED CIT GUWAHATI 4. - / CIT (A) 5. , / DR, ITAT, GUWAHATI 6. [ / GUARD FILE. BY ORDER/ , SR. PRIVATE SECRETARY /DDO/H.O.O, ITAT, GAUHATI BENCH