PRADEEP KUMAR DAS,BALASORE V. INCOME TAX OFFICER,WARD-1, BALASORE

ITA 300/CTK/2025

AI Insights

The case involves an appeal by Pradeep Kumar Das, a contractor with BPCL, against the order of the Addl/JCIT(A), Aurangabad, for the assessment year 2016-2017. The primary contention was regarding the alleged suppression of turnover from 15 hired lorries, which the Assessing Officer estimated and added as income based on a gross profit percentage. The assessee argued that all turnover was disclosed and provided detailed reconciliations and evidence to support this claim. The Tribunal examined the reconciliations and evidence presented, concluding that the assessee had indeed disclosed all receipts from the contract, leading to the deletion of the estimated addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717328 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 14-05-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: NANAK FOGLA

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.300/CTK/2025 (नििाारण वर्ा / Assessment Year : 2016-2017) Pradeep Kumar Das, Nuasahi, Balia, Balasore, Odisha-756001 Vs ITO, Ward-1, Balasore PAN No. : ADLPD 3159 R (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Nanak Fogla, CA राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/08/2025 घोषणा की तारीख/Date of Pronouncement : 11/08/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 26.03.2025 passed by ld. Add/JCIT(A), Aurangabad, for the assessment year 2016-2017. 2. It was submitted by the ld. AR that the assessee is a contractor, who is holding the transportation contract in respect of BPCL. It was submitted by the ld. AR that during the impugned assessment year the assessee had contracted for transportation with 19 lorries. It was the submission that 4 lorries belonged to the assessee and 15 lorries have been taken on hire. It was the submission that the lorries hired by the assessee have been extracted by the Assessing Officer at pages 6 & 7 of the order. It was the Printed from counselvise.com ITA No.300/CTK/2025 2 submission that the assessee has disclosed Rs.7,59,763/- as the net profit. It was the submission that the Assessing Officer had determined the total receipts of the assessee from the contract at Rs.2,45,50,534/- and as the assessee had only shown the gross receipt/turnover of Rs.64,08,123/- in his return of income, the differential receipt of Rs.1,81,42,411/-, which represented the turnover in respect of 15 lorries as the suppressed turnover of the assessee and had estimated the income from the said suppression at 11.86% being the percentage of gross profit shown by the assessee in its return and had made the addition. It was the submission that the reconciliation of the turnover as disclosed by the assessee and as arrived at by the Assessing Officer at pages 3 & 4 of the assessment order, reads as follows :- Printed from counselvise.com ITA No.300/CTK/2025 3 3. It was the submission that the differential amount of Rs.1,81,42,395/- was the expenses towards the tanker & lorries. It was the submission that this was shown in the reconciliation at para 8 of the said reconciliation. It was submitted that the ledger copy was produced before the Assessing Officer and copy of the same is enclosed at page 145 of the paper book, which reads as follows :- Printed from counselvise.com ITA No.300/CTK/2025 4 4 It was the submission that as the assessee has disclosed the entire turnover as has been received by the assessee from the contract with BPCL, no estimated addition is called for in respect of alleged suppressed turnover, insofar as there is no suppression of turnover. 5. In reply, ld. Sr. DR vehemently supported the order of the ld.AO & ld. CIT(A). It was the submission that the details of 15 lorries and their owners were not provided. It was the submission that the notice has been issued to Printed from counselvise.com ITA No.300/CTK/2025 5 the owners of the 15 lorries and they have not appeared before the Assessing Officer. 6. In rejoinder, the ld. AR drew our attention to page 8 of the Assessing Officer’s order wherein the Assessing Officer has categorically recognized that the evidences have been filed by the 15 lorry owners for attach of their tanker and lorries. 7. We have considered the rival submissions. A perusal of the reconciliation statement filed by the assessee which are placed at pages 3 & 4 of the paper book, which has also been extracted above, clearly shows that the differential amount of Rs.1,81,42,395/- were on account of deduction for shortages and payments made through bank account of the assessee which has been routed through the assessee and also payment through Fleet Card and payments for other expenses. A perusal of page 145 of the paper book which has been extracted above, these details were very much available before the Assessing Officer also. As the assessee has provided the reconciliation of the said differential amount of Rs.1,81,42,411/- before the Assessing Officer and before us as has been extracted above, we find no error which attracts for an estimated addition of the differential amount of Rs.1,81,42,411/- as suppressed turnover on which net profit estimation is called for. Consequently, the addition as made by the Assessing Officer and as confirmed by the ld.CIT(A) stands deleted. Printed from counselvise.com ITA No.300/CTK/2025 6 8. In the result, appeal of the assessed is allowed. Order dictated and pronounced in the open court on 11/08/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 11/08/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "