Kishan Lal Dalmia, Bankura V. ITO,Ward-3(1), Bankura, Bankura

ITA 905/KOL/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0434 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 29-08-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘ए’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी ͬगरȣश अĒवाल, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Shri Girish Agrawal, Accountant Member I.T.A. No.905/Kol/2023 Assessment Year: 2018-19 Kishan Lal Dalmia.........................................................................Appellant Jhantipahari, Bankura, Saluni, Bankura-722101. [PAN: ADJPD1554E] vs. ITO, Ward-3(1), Bankura................................................................ Respondent Appearances by: Shri Amit Agarwal, AR, appeared on behalf of the appellant. Shri B. K. Singh, JCIT-Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : October 30, 2023 Date of pronouncing the order : October 30, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 04.08.2023 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The assessee in this appeal has agitated against the confirmation of addition of Rs.45,18,208/- made by the Assessing Officer by assuming undisclosed income of the assessee on account of suppressed profits. 3. The brief facts of the case are that the assessee has been engaged in milling and trading in vanaspati and edible oil under the name and style of Sree Ghanshyam Industries. A survey was conducted in the business premises of the assessee on 23.03.2018. The reason of survey I.T.A. No.905/Kol/2023 Assessment Year: 2018-19 Kishan Lal Dalmia 2 was that the assessee has increased his sale gradually, but the profit ratio against the said sale comes gradual decreased. During the survey action, the statement of the assessee was recorded on 23.03.2018. The Question no.6 and reply thereof of the assessee is reproduced as under: “Q6. Do you want to add or alter anything stated above? Ans. Yes, in order to buy peace of mind I want to offer an additional advance tax of Rs.17,00,000/- in favour of Sri Krishna Lal Dalmia, prop- Shree Ghanshyam Industries, for increase in estimated income during the financial year 2017-18.” During the assessment proceedings, the Assessing Officer noted that the assessee for the year under consideration has shown gross turnover of Rs.5,92,33,435/- and gross profit/turnover ratio was 4.21% and net profit/turnover ratio was 2.53%. This was on higher side than the earlier years. However, the Assessing Officer noted that in reply to Question no.6, the assessee had offered additional advance tax of Rs.17,00,000/-. The Assessing Officer noted that since the survey was carried out towards end of the financial year so the assessee would have rightly estimated his tax liability for assessment year 2018-19 at Rs.18,50,000/- and that is why he had offered to pay additional advance tax of Rs.17,00,000/-. The Assessing Officer, thereafter, calculated the net profit on estimation basis taking the tax liability at Rs.18,50,000/- and assessed the income of the assessee at Rs.61,00,000/- and made the impugned addition of Rs.45,18,208/-. 4. The ld. CIT(A) in an ex parte order confirmed the addition so made by the Assessing Officer. 5. We have heard the rival contentions and gone through the record. We find that there is no basis for the Assessing Officer to make the impugned addition. The Assessing Officer has not pointed out any defect or infirmity in the accounts of the assessee nor the Assessing I.T.A. No.905/Kol/2023 Assessment Year: 2018-19 Kishan Lal Dalmia 3 Officer could point out any suppressed sales or profits. Merely, because the assessee had offered to pay additional advance tax during the survey action, which was subject to adjustment as per the accounts/return of income, that itself is no ground to make the impugned additions. The impugned additions made by the Assessing Officer have no basis at all and the same are ordered to be deleted. 6. In the result, the appeal of the assessee stand allowed. Kolkata, the 30 th October, 2023. Sd/- Sd/- [ͬगरȣश अĒवाल /Girish Agrawal] [संजय गग[ /Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 30.10.2023. RS Copy of the order forwarded to: 1. Kishan Lal Dalmia 2. ITO, Ward-3(1), Bankura 3.CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches