Hari Prasad Hela, Kolkata V. ITO, Ward 25(1), Kolkata, Kolkata

ITA 554/KOL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1179 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 22-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KALYAN NATH

Judgement Text

ITA NO.553&554/KOL/2017-SHRI HARI PRASAD HELA A.Y. 2011-12 & 2012-13 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC K OLKATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM] ITA NO.553&554/KOL/2017 ASSESSMENT YEARS : 2011-12 & 2012-13 SHRI HARI PRASAD HELA -VERSUS- I.T.O., WARD- 25(1) KOLKATA KOLKATA (PAN: ABZPH 2718 N) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: NONE FOR THE RESPONDENT: SHRI KALYAN NATH, ADDL.CIT(DR) DATE OF HEARING : 29.09.2017. DATE OF PRONOUNCEMENT : 31.10.2017. ORDER PER J.SUDHAKAR REDDY, AM: THESE ARE APPEALS FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-(A)-7, KOLKATA RELATIN G TO A.Y. 2011-12. 2. THE ASSESSEE IS AN INDIVIDUAL AND EARNS COMMI SSION INCOME FROM RELATED ASSOCIATE COMPANIES FOR PROCURING CUSTOMERS AND FOR COLLECTI NG MONEY FOR CUSTOMER, FOR SALE OF PLOTS. HE FILED RETURN OF INCOME FOR A.Y.2011-12 AN D 2012-13 AND CLAIMED EXPENDITURE OF RS.10,57,628/- FOR A.Y.2011-12 AND R S.10,57,628 FOR A.Y.2012-13. THE AO DISALLOWED THE SAME ON THE GROUND THAT NO EV IDENCE IN SUPPORT OF THIS CLAIM WAS FURNISHED AND ALSO THERE IS NO DIRECT NEXUS BET WEEN THE EXPENDITURE INCURRED AND THE INCOME EARNED. THE ASSESSEE HAD OFFERED THE INC OME UNDER THE HEAD OTHER SOURCES AND CLAIMED DEDUCTION U/S 57 OF THE INCOM E TAX ACT, 1961 (ACT). 3. ON APPEAL THE FIRST APPELLATE AUTHORITY CON FIRMED THE DISALLOWANCE AND DISMISSED THE APPEALS. 4. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFOR E ME. NONE APPEARED ON BEHALF THE ASSESSEE. UNDER THE CIRCUMSTANCES I DISPOSE OFF THE CASE EX-PARTE QUA THE ASSESSEE, ON MERITS AFTER HEARING THE LD. DR. ITA NO.553&554/KOL/2017-SHRI HARI PRASAD HELA A.Y. 2011-12 & 2012-13 2 5. ON HEARING THE LD. DR, IN MY VIEW THE COMMISSIO N INCOME IS ASSESSABLE UNDER THE HEAD INCOME FROM BUSINESS AND NOT UNDER OTHER SOU RCES . THE ASSESSEE WOULD HAVE DEFINITELY, INCURRED EXPENSES FOR EARNING THIS INC OME. THE AO RECORDS AT PARA-3 OF HIS ORDER THAT THE ASSESSEE PRODUCED DOCUMENTS IN RELAT ION TO EXPENSES INCURRED TO EARN INCOME. THE ASSESSEE HAS DECLARED NET PROFIT @29% F OR A.Y.2011-12 AND 25% FOR A.Y.2012-13. THE AO ASSESSED THE SAME @ 78.74% FOR A.Y.2011-12 AND 64.76% FOR A.Y.2012-13 6. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANC ES OF THE CASE, AND AS THE ASSESSEE COULD NOT SUBSTANTIATE THE EXPENDITURE IN QUESTION I AM OF THE VIEW THAT INTEREST OF JUSTICE WOULD BE MET IF INCOME FOR BOTH THE ASSESSM ENT YEARS BE ASSESSED @ 40% OF THE GROSS RECEIPTS. 7. IN THE RESULT BOTH THE APPEALS OF THE ASSES SEE ARE ALLOWED IN PART. O RDER PRONOUNCED IN THE COURT ON 31.10.2017. SD/- [ J.SUDHAKAR REDDY ] ACCOUNTANT MEMBER DATED :.31.10.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.SHRI HARI PRASAD HELA, 12/6/B, VIVEKANANDA PARK, (NEAR SONALI PARK STILALA MANDIR, BANSDRONI, KOLKATA-700070. 2. I.T.O., WARD-25(1), KOLKATA 3. C.I.T.(A)-7, KOLKATA 4.C.I.T-9, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O, ITAT KOLKATA BENCHES ITA NO.553&554/KOL/2017-SHRI HARI PRASAD HELA A.Y. 2011-12 & 2012-13 3