Friends Engineers Co - Operative Society Ltd, Birbhum V. A.C.I.T Cir - Suri,Birbhum, Birbhum

ITA 796/KOL/2013

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3306 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 12-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DUTTA
• Assessee Lawyers: T P KAR

Judgement Text

I.T.A. NO. 796/KOL./2013 ASSESSMENT YEAR: 2006-2007 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 796/KOL/ 2013 ASSESSMENT YEAR: 2006-2007 FRIENDS ENGINEERS COOPERATIVE SOCIETY LIMITED,,.... .................APPELLANT HIGH ROAD MORE, NEAR AGRICULTURE FARM, P.O. MOLLARPUR, DISTRICT-BIRBHUM [PAN : AABFF 0046 J] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX,.............. ..................RESPONDENT CIRCLE-SURI, AAYAKAR BHAWAN, LALKUTHIPARA, P.O. SURI, DISTRICT- BIRBHUM-731 101 APPEARANCES BY: SHRI T.P. KAR, FCA, FOR THE ASSESSEE SHRI S. DUTTA, JCIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : JANUARY 14, 2016 DATE OF PRONOUNCING THE ORDER : JANUARY 15, 2016 O R D E R PER SHRI P.M. JAGTAP :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS), DURGAPUR DATED 10.01.2013 FOR THE ASSESSMENT YEAR 2006-07, WHEREBY HE CONFIRM ED THE TRADING ADDITION MADE BY THE ASSESSING OFFICER BY APPLYING THE HIGHER NET PROFIT RATE OF 5%. 2. THE ASSESSEE IN THE PRESENT CASE IS A COOPERATIV E SOCIETY COMPRISING OF A FEW UNEMPLOYED ENGINEERS. IT IS ENG AGED MAINLY IN EXECUTING GOVERNMENT CONTRACT. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 31.03.2007 DECLARI NG TOTAL INCOME OF I.T.A. NO. 796/KOL./2013 ASSESSMENT YEAR: 2006-2007 PAGE 2 OF 4 RS.46,610/-. DURING THE COURSE OF ASSESSMENT PROCEE DINGS, THERE WAS NO FULL COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY THE ASSESSING OFFICER. ALTHOUGH THE ASSESSEE FURNISHED CERTAIN DETAILS AND DOCUMENTS, THE BOOKS OF ACCOUNT COULD NOT BE PRODUC ED BY IT FOR THE VERIFICATION OF THE ASSESSING OFFICER. EVEN SOME OF THE DETAILS REQUIRED BY THE ASSESSING OFFICER COULD NOT BE FURNISHED BY THE ASSESSEE. THE ASSESSING OFFICER, THEREFORE, PROCEEDED TO ESTIMATE THE INCOME OF THE ASSESSEE BY APPLYING A NET PROFIT RATE OF 5% BY REL YING ON THE CBDT GUIDELINES AND COMPLETED THE ASSESSMENT ON A TOTAL INCOME OF RS.5,83,404/- VIDE AN ORDER DATED 26.12.2008 PASSED UNDER SECTION 143(3). 3. ON APPEAL, THE LD. CIT(APPEALS) UPHELD THE ORDER OF THE ASSESSING OFFICER ESTIMATING THE INCOME OF THE ASSESSEE BY AP PLYING A NET PROFIT RATE OF 5% OBSERVING THAT IN THE ABSENCE OF BOOKS OF ACC OUNT PRODUCED BY THE ASSESSEE, THE ASSESSING OFFICER WAS LEFT WITH NO OP TION BUT TO DETERMINE THE INCOME OF THE ASSESSEE ON ESTIMATED BASIS. AGGR IEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED TH IS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THE CASE OF THE ASSESSEE WAS NOT PROP ERLY REPRESENTED EITHER BEFORE THE ASSESSING OFFICER DURING THE COURSE OF A SSESSMENT PROCEEDINGS OR BEFORE THE LD. CIT(APPEALS) DURING THE COURSE OF APPELLATE PROCEEDINGS. HE HAS SUBMITTED THAT REGULAR BOOKS OF ACCOUNT ARE MAINTAINED BY THE ASSESSEE AND THE SAID BOOKS OF AC COUNT DULY AUDITED COULD NOT BE PRODUCED BEFORE THE ASSESSING OFFICER FOR VERIFICATION, AS THE MATTER WAS NOT PROPERLY REPRESENTED ON BEHALF OF TH E ASSESSEE BEFORE THE ASSESSING OFFICER. HE HAS URGED THAT ONE MORE OPPOR TUNITY MAY, THEREFORE, BE GIVEN TO THE ASSESSEE TO PRODUCE THE BOOKS OF ACCOUNT BEFORE THE ASSESSING OFFICER FOR VERIFICATION AND HAS UNDE RTAKEN THAT IF SUCH OPPORTUNITY IS GIVEN, THE ASSESSEE SHALL PRODUCE TH E BOOKS OF ACCOUNT I.T.A. NO. 796/KOL./2013 ASSESSMENT YEAR: 2006-2007 PAGE 3 OF 4 ALONG WITH ALL THE SUPPORTING DOCUMENTS FOR VERIFIC ATION BEFORE THE ASSESSING OFFICER WITHOUT ANY FURTHER DELAY. ALTHOU GH THE LD. D.R. HAS RAISED OBJECTION FOR GIVING SUCH AN OPPORTUNITY TO THE ASSESSEE ON THE GROUND THAT SUFFICIENT OPPORTUNITY WAS ALREADY GIVE N BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS , WE ARE OF THE VIEW THAT IT WOULD BE FAIR AND PROPER AND IN THE INTERES T OF JUSTICE TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE BOO KS OF ACCOUNT FOR VERIFICATION BEFORE THE ASSESSING OFFICER IN THE LI GHT OF ALL THE FACTS OF THE CASE INCLUDING ESPECIALLY THE FACT THAT THE BOOKS O F ACCOUNT OF THE ASSESSEE ARE DULY AUDITED AND REPORT OF THE AUDIT W AS ALREADY FURNISHED BY THE ASSESSEE ALONG WITH THE RETURN OF INCOME AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESSEE. IN THAT VIEW OF THE MATTE R, WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO FRAME THE ASSESSMENT AFRESH AFTER GIVING THE ASSESSEE ONE MORE OPPORTUNITY TO P RODUCE THE BOOKS OF ACCOUNT AND OTHER DOCUMENTS FOR VERIFICATION. AS UN DERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL NOT SE EK ANY ADJOURNMENT AND EXTEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENA BLE THE ASSESSING OFFICER TO COMPLETE THE ASSESSMENT AFRESH EXPEDITIO USLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 15, 2016. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 15 TH DAY OF JANUARY, 2016 COPIES TO : (1) FRIENDS ENGINEERS COOPERATIVE SOCIETY LIMITED, HIGH ROAD MORE, NEAR AGRICULTURE FARM, P.O. MOLLARPUR, DISTRICT-BIRBHUM (2) ASSISTANT COMMISSIONER OF INCOME TAX, I.T.A. NO. 796/KOL./2013 ASSESSMENT YEAR: 2006-2007 PAGE 4 OF 4 CIRCLE-SURI, AAYAKAR BHAWAN, LALKUTHIPARA, P.O. SURI, DISTRICT- BIRBHUM-731 101 (3) COMMISSIONER OF INCOME-TAX (APPEALS), DURGAPUR (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.