Manindra Mandal, Nabrangpur V. ITO, Ward-1, Jeypore, Jeypore

ITA 487/CTK/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7590 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-10-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 12-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: P C SETHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N. S SAINI, ACCOUNTANT MEMBER ITA NO.487/CTK/2014 ASSESSMENT YEAR : 2010 - 2011 SRI MANINDRA MANDAL, RCM PICKUP CENTRE, GULIPATNA, UMMERKOTE - 764073 VS. ITO, WARD - 1, JEYPORE PAN/GIR NO. APTPN 5128 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.C.SETHI REVENUE BY : SHRI D.K.PRADHAN , DR DATE OF HEARING : 2 5 /10 / 2016 DATE OF PRONOUNCEMENT : 25 /10 / 2016 O R D E R THIS I S AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - BERHAMPUR , DATED 2.7.2014 , FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE SOLE GROUND OF APPEAL TAKEN BY THE ASSESSEE IN THIS APPEAL IS THAT THE LD CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER CONSIDERING THE DEPOSITS MADE IN THE BANK ACCOUNT OF THE ASSESSEE AS SALES AND ESTIMATING THE PROFIT @ 12% ON TOTAL DEPOSITS. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER RECEIVED INFORMATION THAT THE ASSESSEE HAS DEPOSITED RS.31,35,300/ - IN HIS SAVING 2 ITA NO.487/CTK/2014 ASSESSMENT YEAR :2010 - 2011 BANK ACCOUNT AT ICICI BANK, UMERKOTE. THE ASSESSING OFFICER CONDUCTED A LOCAL ENQUIRY THROUGH THE INSPECTOR OF INCOME TAX, WHO MET WITH A CASUAL RESPONSE FROM THE ASSESSEE. THEREFORE, THE ASSESSING OFFICER ESTIMATED THE INCOME FROM TOTAL DEPOSITS OF RS .32,15,242/ - IN THE BANK @ 12% BY CONSIDERING THE SAME AS SALES TURNOVER OF THE ASSESSEE FROM THE BUSINESS AND ESTIMATED THE INCOME AT RS.3,85,829/ - . 4. ON APPEAL, THE LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. THE ONLY SUBMISSION OF LD A. R. OF THE ASSESSEE IS THAT THE TURNOVER OF THE ASSESSEE IS RS.32,15,242/ - , WHICH IS BELOW RS.40 LAKHS, THEREFORE, AS PER PROVISIONS OF SECTION 44AF OF THE ACT, THE INCOME OF THE ASSESSEE SHOULD BE ESTIMATED @ 5%. 6. LD D.R. COULD NOT CONTROVERT THE SUBMISS ION OF LD A.R. OF THE ASSESSEE. 7. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS MADE DEPOSIT OF RS.31,35,300/ - IN HIS SB ACCOUNT WITH ICICI BANK. THE ASSESSING OFFICER CONDUCTED A LOCAL ENQUIRY THROUGH HIS INSPECTOR OF INCOME TAX, WHO REPORTED THAT THE ASSESSEE W AS NOT CARRYING ON BUSINESS SINCE LONG. THEREFORE, THE ASSESSING OFFICER ESTIMATED THE INCOME @ 12% OF THE DEPOSIT S IN THE BANK ACCOUNT OF RS.32,15,242/ - AND ESTIMATED INCOME AT RS.3,85,829/ - , WHICH WAS CONFIRMED IN APPEAL BY THE LD CIT(A). THE 3 ITA NO.487/CTK/2014 ASSESSMENT YEAR :2010 - 2011 SUBMISSIO N OF LD A.R. BEFORE ME IS THAT U/S.44AF OF THE ACT IN RETAIL TRADE, THE PROFIT HAS TO BE ESTIMATED @ 5% IF THE TURNOVER IS BELOW RS.40 LAKHS. LD D.R. HAS NOT CONTROVERTED THE SUBMISSION OF A.R. OF THE ASSESSEE. I, THEREFORE, FIND FORCE IN THE ARGUMENTS O F LD A.R. OF THE ASSESSEE AND, ACCORDINGLY , SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DIRECT THE ASSESSING OFFICER TO ASSESS THE INCOME OF THE ASSESSEE @ 5% ON TOTAL DEPOSITS OF RS.32,15,242/ - . THUS, THE GROUND OF APPEAL OF THE ASSESSEE IS PARTLY ALLO WED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 25 /10 /2016 IN THE PRESENCE OF PARTIES. S D / - ( N. S SAINI ) A CCOUNTANT MEMBER CUTTACK; DATED 25 /10 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : SRI MANINDRA MANDAL, RCM PICKUP CENTRE, GULIPATNA, UMMERKOTE - 764073 2. THE RESPONDENT. ITO, WARD - 1, JEYPORE 3. THE CIT(A) , BERHAMPUR 4. CIT , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//