DULICHAND HANUMAN PRASAD SHAH,JHARSUGUDA vs. ITO-WARD-2, JHARSUGUDA
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI ARUN KHODPIA
Per Bench : This is an appeal filed by the assessee against the order of the ld.CIT(A)-2, Bhubaneswar, dated 28.10.2022 passed in I.T.Appeal No.SBP/10267/2016-17, for the assessment year 2014-2015. 2. It was submitted by the ld. AR that the assessee had filed his return of income and the assessment came to be completed u/s.143(3) of the Act, wherein the AO has adopted 2% as GP as against 1.8% disclosed by the assessee. It was the submission that the AO has not rejected the books of accounts. It was submitted that before the ld. CIT(A) though the assessee has made his submission, however, the same was not considered. It was the submission that without rejecting assessee’s books of accounts the income of the assessee should not be estimated. He relied upon the decision of Hon’ble Juri ictional High Court of Orissa in 2 the case of Ramchandra Ramnivas Vs. State of Orissa, reported in [1970] 25 STC 501 (Orissa).
In reply, ld. Sr. DR submitted that the assessee as not disclosed the turnover of Rajgangpur Branch of the assessee. It was his submission that consequently the AO has estimated the assessee’s income. He placed reliance on the order of ld. CIT(A) at page 3. He vehemently supported the order of the ld. AO and ld. CIT(A).
We have considered the rival submissions. A perusal of the assessment order clearly shows that the AO has estimated the income of the assessee at 2% of the Rajgangpur Branch. Admittedly, the claim of the Sr. DR that the assessee has not disclosed the turnover of the Rajgangpur Branch does not find any mention in the assessment order or the order of the ld. CIT(A). A perusal of the assessment order also shows that the AO has mentioned that he has enquired the similar business of petrol pump and determined GP at 2%, however, the assessment order does not talk of any comparative case. A perusal of the assessment order also shows that the books of accounts of the assessee have not been rejected. This being so, we are of the view that the estimation of the income of the assessee as done by the AO without rejecting the books of accounts of the assessee is unsustainable and consequently the order of the ld. CIT(A) upholding the assessment done by the AO stands set aside and the AO is directed to adopt the GP rate as disclosed by the assessee.
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In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 20/02/2023. (अरुण खोड़पऩया) (जाजज माथन) (ARUN KHODPIA) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 20/02/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : अऩीऱाथी / The Appellant-
M/s Dulichand Hanuman Prasad Shah Jhanda Chowk, Jharsuguda प्रत्यथी / The Respondent-
ITO Ward-2, Jharsuguda आयकर आयुक्त(अऩीऱ) / The CIT(A), 3. आयकर आयुक्त / CIT 4. पवभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR,
ITAT, Cuttack गार्ज पाईऱ / Guard file. 6. सत्यापऩत प्रयत ////
आदेशानुसार/ BY ORDER,
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