Ram Sevak Shaw, Hooghly V. ACIT, CIR-2, DGP, Burdwan

ITA 452/KOL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1242 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 21-04-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA CIT LD
• Assessee Lawyers: SOMNATH GHOSH LD
• Keywords: Unexplained expenditure
• Section: 40A(3)

Judgement Text

1 ITA NOS. 452 & 787/KOL/2015 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA BEFORE: SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUD ICIAL MEMBER I.T.A NO. 452/KOL/2015 A.Y: 2010-11 RAM SEVAK SHAW VS. A.C.I.T, CIR-2, DURGAPUR PAN ALAPS0042F [APPELLANT] [RESPONDENT] I.T.A NO. 787/KOL/2015 A.Y: 2010-11 D.C.I.T, CIR-2, DURGAPUR VS. RAM SEVAK SHAW [APPELLANT] [RESPONDENT] FOR THE APPELLANT/ASSESSEE : SHRI SOMNATH GHOSH , ADVOCATE, LD.AR FOR THE RESPONDENT : SHRI S. DASGUPTA, ADDL.CIT , LD.DR DATE OF HEARING : 04-01-2018 DATE OF PRONOUNCEMENT : 23-03-2018 ORDER SHRI S.S.VISWANETHRA RAVI, JM: THE CROSS APPEALS BY THE ASSESSEE AND REVENUE ARE D IRECTED AGAINST THE COMMON ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS), DURGAPUR DT. 30-03-2015 FOR THE A.Y 201 0-11. 2. SINCE THE ISSUES INVOLVED IN BOTH THE APPEALS OF ASSESSEE AND REVENUE ARE COMMON AND INTER-LINKED WITH EACH OTHER , THEY WERE HEARD TOGETHER AND DISPOSED OF BY THIS CONSOLIDATED ORDER WITH THE CONSENT OF BOTH THE PARTIES FOR THE SAKE OF CONVENI ENCE. 3. FIRST, WE TAKE UP THE APPEAL IN ITA NO. 452/KOL/ 2015 FOR THE A.Y 2010-11- BY THE ASSESSEE. ITA NO. 452/KOL/2015 A.Y 2010-11 4. AT THE TIME OF HEARING BEFORE US THE LD.AR SUBMI TS THAT THE ISSUE INVOLVED IN THE APPEAL OF ASSESSEE IS COVERED BY THE ORDER DT. 2 ITA NOS. 452 & 787/KOL/2015 26-12-2013 OF THE CO-ORDINATE BENCH, ITAT, KOLKATA, C, BENCH, IN ASSESSEES OWN CASE FOR THE A.Y 2008-09, ITA NO. 16 46/K/2011, COPY OF THE SAME IS ON RECORD AND REFERRED TO PARA 6 OF THE SAID ORDER AND ARGUED THAT THE PROFIT MAY BE ESTIMATED AT 8% IN TE RMS OF THE ABOVE SAID ORDER FOR THE A.Y UNDER CONSIDERATION. 5. ON THE OTHER HAND, THE LD.DR RELIED ON THE ORDER S OF THE AO & CIT-A. 6. HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD AND DETAILED PAPER BOOK AS FILED BY THE ASSESSEE BEFORE US. WE FIND THAT THE ASSESSEE DECLARED HIS TOTAL INCOME OF RS.23,59, 390/- AND THE AO AFTER SCRUTINY DETERMINED THE TOTAL INCOME OF ASSES SEE AT RS.93,54,960/- BY MAKING THE FOLLOWING ADDITIONS OF RS.69,95,571/- :- U/S. 40A(3) RS.14,12,742/- UNDER UNEXPLAINED EXPENDITURE TOWARDS FABRICATION CHARGES RS.4,52,0 00/- U/S. 40(A)(IA) RS.2,08,400/- UNEXPLAINED EXPENDITURE TOWARDS SUPERVISION & TESTING CHARGES RS.12,54,040/- LATE PAYMENT OF SERVICE TAX RS. 4,27,569/- WAGES RS.32,40,820/- RS.69,95,571/- 7. WE FURTHER FIND THAT THE TRIBUNAL IN ITS ORDER D T. 26-12-2013 IN ASSESSEES OWN CASE SUPRA ESTIMATED THE PROFIT @ 8% ON CONTRACTUAL RECEIPTS. THE CIT-A PLACED HIS RELIANCE ON THE SAI D ORDER DT. 26-12- 2013 IN ASSESSEES OWN CASE AS DECIDED BY THE TRIBU NAL AND ESTIMATED THE PROFIT AT 10%. THEREFORE, FOLLOWING T HE SAID ORDER OF THE TRIBUNAL, WE DIRECT THE AO TO ESTIMATE THE PROFIT A T 8% OF GROSS CONTRACTUAL RECEIPTS AS DECLARED BY THE ASSESSEE IN ITS P & L ACCOUNT OF RS. 4,16,75,079/-. THEREFORE, THE GROUNDS RAISE D BY THE ASSESSEE IN THE APPEAL ARE PARTLY ALLOWED. 8. THE APPEAL OF ASSESSEE IN ITA NO. 452/KOL/2015 F OR THE A.Y 2010-11 IS PARTLY ALLOWED. 9. NOW, WE SHALL TAKE UP THE APPEAL-ITA NO. 787/KOL /2015 FOR THE A.Y 2010-11- BY THE REVENUE. 3 ITA NOS. 452 & 787/KOL/2015 ITA NO. 787/KOL/2015 FOR THE A.Y 2010-11-BY THE RE VENUE 10. WE FIND THAT THE FACTS AND ISSUE INVOLVED IN TH E APPEAL OF REVENUE ARE IDENTICAL AND SIMILAR WITH THE APPEAL O F ASSESSEE-ITA NO. 452/KOL/2015, WHICH WE HAVE ALREADY DISPOSED BY EST IMATING THE PROFIT @ 8% OF GROSS CONTRACTUAL RECEIPTS, WHICH AL READY ESTIMATED THE TRIBUNAL VIDE ITS SAID ORDER DT. 26-12-2013 IN ASSESSEES OWN CASE AND THE CIT-A ALSO FOLLOWING THE SAME ESTIMATE D THE PROFIT AT 10%. KEEPING IN VIEW OF THE ORDER DT. 26-12-2013, W E DIRECT THE AO TO ESTIMATE THE SAME AT 8%. THE GROUNDS RAISED BY THE REVENUE IN THE APPEAL ARE LIABLE TO BE DISMISSED. 11. THE APPEAL OF REVENUE IN ITA NO. 787/KOL/2015 FOR THE A.Y 2010- 11 IS DISMISSED. 12. IN THE RESULT, THE APPEAL OF ASSESSEE-ITA NO. 4 52/KOL/2015 FOR THE A.Y 2010-11 IS ALLOWED IN PART AND THAT OF REVE NUES APPEAL-ITA NO. 787/KOL/2015 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23-03- 2018 SD/- SD/- J. SUDHAKAR REDDY S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23 -03-2018 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/ASSESSEE: SHRI RAM SEVAK SHAWC/O S.N GHOS H & ASSOCIATES, ADVOCATES,SEBEN BROTHERS, LODGE, P.O BUROSHIBTALA, P.S CHINSURAH, DIST-HOOGHLY-712105. 2 RESPONDENT /DEPARTMENT: THE ACIT/DCIT-CIR-2, AAYKAR BHAWAN, DURGAPUR, AAYKAR BITHI, P.O CITY CENTRE, P.S DURGAPUR, DIST B URDWAN-713216. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR.PS,H.O.O ,ITAT, KOL 4 ITA NOS. 452 & 787/KOL/2015