SHUBHAM,BHAGALPUR V. DCIT/ACIT, CENTRAL CIR-1, PATNA

ITA 214/PAT/2024

AI Insights

This case involves an appeal by M/s Subham against the order of the CIT(A), Patna-3, concerning the assessment year 2019-2020. The appeal was related to a survey conducted on the premises of the assessee, which revealed a variation in stock amounting to Rs.18,15,887. The Assessing Officer had adopted a GP rate of 35.13% on this variation, based on the GP rate disclosed by the assessee for the preceding assessment year (A.Y. 2018-2019). The CIT(A) confirmed this rate. However, the Tribunal, considering the GP rates of the previous four years and the rate for the impugned year, decided to apply a GP rate of 30% for the calculation of the shortage of stock.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714474 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2019-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KUMAR

Judgement Text

" आयकर अपीलीय अधिकरण, पटना न्यायपीठ, पटना IN THE INCOME TAX APPELLATE TRIBUNAL “SMC BENCH”, PATNA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER (THROUGH VIRTUAL HEARING AT KOLKATA) आयकर अपील सं/ITA No.214/PAT/2024 (नििाारण वर्ा / Assessment Year : 2019-2020) M/s SUBHAM, 1, DR Rajendra Prasad Road, Bhagalpur-812001 Vs DCIT/ACIT, Central Circle-1, Patna PAN No. :ACPFS 9294 M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : None राजस्व की ओर से /Revenue by : Shri Ashwani Kumar, Sr.DR सुनवाई की तारीख / Date of Hearing : 06/08/2025 घोषणा की तारीख/Date of Pronouncement : 06/08/2025 आदेश / O R D E R This is an appeal filed by the assessee against the order of the Id. CIT(A), Patna-3, dated 30.11.2023 for the assessment year 2019-2020. 2. None appeared on behalf of the assessee. Shri Ashwani Kumar, ld. Sr. DR appeared on behalf of the revenue. 3. It was submitted by the ld. Sr. DR that there was a survey on the premises of the assessee and in the course of survey variation in stock to an extent of Rs.18,15,887/- was found. It was the submission that the ld. Assessing Officer had adopted a GP rate @35.13% on the said variation. It was the submission that percentage of 35.13% was on the basis of GP rate disclosed by the assessee for the immediately preceding assessment year being A.Y.2018-2019. It was the submission that the ld. CIT(A) has also confirmed the same. It was the prayer that the order of the ld. CIT(A) and that of the ld. Assessing Officer should be upheld. Printed from counselvise.com ITA No.214/PAT/2024 2 4. I have considered the submission of the ld. Sr. DR and perused the orders of the lower authorities. A perusal of the facts of the present case clearly shows that the assessee was non-cooperative before the ld. CIT(A) even multiple opportunities having been given by the ld. CIT(A). A perusal of the order of the ld. CIT(A), more specifically at page 4, shows that the GP rate of the earlier four years being AY 2015-16, 2016-17, 2017-18 & 2018-19 were submitted before the ld. CIT(A). The average of the GP rate for all the earlier four years shows that the same comes to nearly 26%. For the impugned assessment year, the assessee has shown GP rate @28.34%. This being so, in the interest of justice, I am of the view that the GP rate of the assessee in respect of shortage of stock should be determined at 30%. The Assessing Officer is directed to redo the addition in respect of GP rate on the shortage of stock by applying GP rate @30%. 5. In the result, appeal of the assessee is partly allowed. Order dictated and pronounced in the open court on 06/08/2025. Sd/- (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER Kolkata; दिनाांक Dated 06/08/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, पटना /ITAT, Patna 1. Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पटना / DR, ITAT, Patna 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "