Santoshkumar Ramnath Gupta, Kolhapur V. Income-tax Officer, Ward - 1, Ichalkaranji

ITA 989/PUN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7095 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 01-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: THIS CONSOLIDATED
• Keywords: Additional evidence; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NOS.988 & 989/PUN/2018 / ASSESSMENT YEARS : 2013-14 & 2014-15 SANTOSHKUMAR RAMNATH GUPTA, OPP.KHAVERE ESTATE, KOLHAPUR STEEL, AT POST. NAGAONPHATA, TAL. HATKANGALE, DIST. KOLHAPUR PAN : AJEPG2246D VS. ITO, WARD-1, ICHALKARANJI (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECTED AG AINST THE COMMON ORDER OF CIT(A)-2, KOLHAPUR PASSED ON 08-0 3-2018 IN RELATION TO THE ASSESSMENT YEARS 2013-14 & 2014-15. SINCE A COMMON ISSUE IS RAISED IN BOTH THE APPEALS, WE ARE, THEREFO RE, PROCEEDINGS TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER F OR THE SAKE OF CONVENIENCE. APPELLANT BY SHRI M.K. KULKARNI RESPONDENT BY SHRI RAJESH GAWALI DATE OF HEARING 29-04-2019 DATE OF PRONOUNCEMENT 29-04-2019 ITA NOS.988 & 989/PUN/2018 SANTOSHKUMAR R. GUPTA 2 2. BRIEFLY STATED, THE FACTS FOR THE A.Y. 2013-14, AS RECO RDED IN PARA NO.5 OF THE ASSESSMENT ORDER, ARE THAT THE ASSESSE E IS ENGAGED IN THE BUSINESS OF TRANSPORTATION AGENCY. TURNOVER OF RS.27,90,056/- WAS SHOWN. THE ASSESSING OFFICER (AO) HELD THAT SINCE THE GROSS PROFIT DECLARED BY THE ASSESSEE AT RS.2,24 ,068/-, BEING 8.03%, WAS MORE THAN 8% DECLARED IN THE PRECEDING YEAR, NO FURTHER ADDITION WAS WARRANTED. HE, HOWEVER, FOUND DURIN G THE COURSE OF ASSESSMENT PROCEEDINGS THAT THE ASSESSEE DEPO SITED A SUM OF RS.65.44 LAKH IN HIS BANK ACCOUNTS MAINTAINED WITH SBI AN D IDBI BANK LTD. ON BEING CALLED UPON TO EXPLAIN THE NATURE OF DEPOSITS MADE IN THE BANKS AND WITHDRAWAL OF CASH BY ATM CARD, THE ASSESSEE SUBMITTED THAT HE WAS HIRING TRUCKS AND LORRIES F OR GOODS TRANSPORTATION AS `AGENT ONLY ON COMMISSION BASIS. THE AMOUNT OF CASH DEPOSITED IN THE BANKS WAS STATED TO BE THE AMOUNT OF TRANSPORTATION CHARGES RECEIVED FROM CERTAIN PARTIES FOR WHOM THE ASSESSEE CARRIED OUT TRANSPORTATION WORK THROUGH THE H IRED VEHICLES AND THE WITHDRAWALS REPRESENTED THE AMOUNTS GIVEN TO THE TRUCK OWNERS. NOT CONVINCED, THE AO APPLIED 8% NET PROFIT R ATE ON SUCH RECEIPTS OF DEPOSITS AND RESULTANTLY MADE AN ADDITION OF RS.6,86,527/-. THE LD. CIT(A) SUSTAINED THE ADDITION. ITA NOS.988 & 989/PUN/2018 SANTOSHKUMAR R. GUPTA 3 3. THE FACTS FOR THE A.Y. 2014-15 ARE MUTATIS MUTANDIS SIMILAR TO THOSE OF THE A.Y. 2013-14. FOR THIS YEAR, AGAIN THE ASS ESSEE DECLARED NET PROFIT RATE OF 8% ON HIS OWN TURNOVER. THE AO CONSIDERED THE AMOUNT OF CASH DEPOSITS IN HIS BANK AND WITHDRAWALS. HE AGAIN APPLIED 8% ON SUCH AMOUNTS AS WELL FOR MAKING THE ADDITION. THE LD. CIT(A) SUSTAINED THE ADDITION. 4. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELE VANT MATERIAL ON RECORD. THE LD. AR SUBMITTED THAT IN SO FAR AS TH E ASSESSEES OWN TRANSPORT BUSINESS WAS CONCERNED, HE DE CLARED INCOME @ 8% OR LITTLE MORE THAN THAT WHICH GOT ACCEPTED AT THE E ND OF ASSESSING OFFICER AT THE SAME LEVEL. IN SO FAR AS THE OTHER CASH DEPOSITS IN THE BANK ACCOUNTS FOR BOTH THE YEARS ARE CONCE RNED, IT WAS SUBMITTED THAT THE ASSESSEE ALSO WORKED ON HIRED TRUCKS /LORRIES. THE AMOUNTS DEPOSITED IN THE BANK ACCOUNTS REPRESENTED TRANSPORTATION RECEIPTS AGAINST HIRED VEHICLES AND MERELY A SM ALL PERCENTAGE OF COMMISSION WAS KEPT BY THE ASSESSEE BEFOR E HANDING OVER THE AMOUNTS TO THE TRUCK OWNERS. THE LD. AR RELIED O N CERTAIN ADDITIONAL EVIDENCE TO SUBSTANTIATE THE CLAIM. AS THIS EVIDENCE W AS ADMITTEDLY NOT FILED BEFORE THE AUTHORITIES BELOW, WE ARE OF THE CONSIDERED OPINION THAT THE ENDS OF JUSTICE WOULD MEET ADEQUATE LY ITA NOS.988 & 989/PUN/2018 SANTOSHKUMAR R. GUPTA 4 IF THE IMPUGNED ORDER IS SET ASIDE AND THE MATTER IS RESTO RED TO THE FILE OF AO. WE ORDER ACCORDINGLY AND DIRECT HIM TO FRAME THE ASSESSMENT AFRESH AS PER LAW AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING. 5. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH APRIL, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 29 TH APRIL, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-2, KOLHAPUR 4. 5. THE PR.CIT-2, KOLHAPUR , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. / TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRE TARY , / ITAT, PUNE ITA NOS.988 & 989/PUN/2018 SANTOSHKUMAR R. GUPTA 5 DATE 1. DRAFT DICTATED ON 29-04-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 29-04-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *