Madan Mohan Bhattacharjee, Hooghly V. A.C.I.T.,Circle-2, Burdwan

ITA 397/KOL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7767 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 15-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA (BEFORESHRI S.S. GODARA, HONBLE JUDICIAL MEMBER) I.T.A NO. 397/KOL/2019 ASSESSMENT YEAR: 2015-16 MADAN MOHAN BHATTACHARJEE....................................................APPELLANT C/O. S.N. GHOSH & ASSOCIATES, ADVOCATES SEBEN BROTHERS LODGE P.O. BUROSHIBTALA P.S. CHINSURAH DIST. HOOGHLY WEST BENGAL 712 105 [PAN : ADJPB 3686 P] VS. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE - 2, DURGAPUR................................................RESPONDENT APPEARANCES BY: SHRI SOMNATH GHOSH, ADVOCATE, APPEARED ON BEHALF OF THE ASSESSEE . SHRI NICHOLAS MURMU, ADDL.CIT, SR. D/R, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JULY 18 TH , 2019 DATE OF PRONOUNCING THE ORDER : JULY 24 TH , 2019 ORDER PER S.S. GODARA, JM :- 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-16 ARISES AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) - DURGAPUR PASSED IN APPEAL NO. 34/CIT(A)/DGP/2018-19, INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 1.1. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CANVASSED IN THE INSTANT APPEAL SEEKS TO CHALLENGE BOTH THE LOWER AUTHORITIES ACTION REJECTING HIS BOOKS OF ACCOUNTS THEREBY ESTIMATING PROFITS @ 8% ON GROSS RECEIPTS AMOUNT TO RS.1,27,48,763/- IN THE BUSINESS OF EXECUTIONS OF CIVIL WORKS UNDER CONTRACTUAL OBLIGATION. CASE FILE SUGGESTS THAT THE VERY ISSUE HAD ARISEN IN THE ASSESSMENT YEAR 2009-10 AS WELL INVOLVING THIS TAX PAYERS APPEAL IN ITA NO. 311/KOL/2015, FILED BEFORE THIS TRIBUNAL. THE LEARNED CO-ORDINATE BENCHS ORDER THEREIN FORMING PART OF THE RECORD REVEALS THAT IT PROCEEDED TO ESTIMATE THE ASSESSEES GROSS PROFIT @ 5.25% ONLY. HIS CASE THEREFORE IS THAT BOTH THE LEARNED 2 I.T.A NO. 397/KOL/2019 ASSESSMENT YEAR: 2015-16 MADAN MOHAN BHATTACHARJEE LOWER AUTHORITIES OUGHT TO HAVE ESTIMATED THE SAME FROM THE PROFIT RATE IN THE IMPUGNED ASSESSMENT YEAR AS WELL. 3. MR. MURMU INVITES MY ATTENTION TO THE CIT(A)S FINDINGS DECLINING THE VERY ARGUMENT ON THE GROUND THAT HE IMPUGNED ASSESSMENT YEAR HAS SEEN EXPANSION AND INCREASE IN ASSESSEES BUSINESS. I FIND NO MERIT IN THE INSTANT ARGUMENT AS MERE EXPANSION OR INCREASE IN TURNOVER CANNOT FORM THE SOLE CRITERIA FOR THE DEPARTMENTAL AUTHORITIES TO INCREASE ESTIMATED PROFIT RATE IN DIFFERENT ASSESSMENT YEARS. I ACCORDINGLY DIRECT THE LD. ASSESSING OFFICER TO COMPUTE THE ASSESSEES GROSS PROFIT @ 5.25% OF HIS BUSINESS TURNOVER RELATING TO RELEVANT PREVIOUS YEAR. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. 4. THIS APPEAL OF THE ASSESSEE IS PARTLY ALLOWED IN FOREGOING TERMS. KOLKATA, THE 24 TH DAY OF JULY, 2019. SD/- [S.S. GODARA] JUDICIAL MEMBER DATED : 24.07.2019 {SC SPS} 3 I.T.A NO. 397/KOL/2019 ASSESSMENT YEAR: 2015-16 MADAN MOHAN BHATTACHARJEE COPY OF THE ORDER FORWARDED TO: 1. MADAN MOHAN BHATTACHARJEE C/O. S.N. GHOSH & ASSOCIATES, ADVOCATES SEBEN BROTHERS LODGE P.O. BUROSHIBTALA P.S. CHINSURAH DIST. HOOGHLY WEST BENGAL 712 105 2. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE - 2, DURGAPUR 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES