SANTOSHKUMAR RAMNATH GUPTA,,KOLHAPUR vs. INCOME-TAX OFFICER, WARD - 1,, ICHALKARANJI

आदेश / ORDER PER R.S.SYAL, VP :

These two appeals filed by the assessee are directed against the common order of CIT(A)-2, Kolhapur passed on 08-03-2018 in relation to the assessment years 2013-14 & 2014-15. Since a common issue is raised in both the appeals, we are, therefore, proceedings to dispose them off by this consolidated order for the sake of convenience.

2 ITA Nos.988 & 989/PUN/2018 Santoshkumar R. Gupta

para no.5 of the assessment order, are that the assessee 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 during the

course of assessment proceedings that the assessee deposited a sum

of Rs.65.44 lakh in his bank accounts maintained with SBI and

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 for

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 hired

vehicles and the withdrawals represented the amounts given to the

truck owners. Not convinced, the AO applied 8% net profit rate on

such receipts of deposits and resultantly made an addition of

Rs.6,86,527/-. The ld. CIT(A) sustained the addition.

3 ITA Nos.988 & 989/PUN/2018 Santoshkumar R. Gupta

The facts for the A.Y. 2014-15 are mutatis mutandis similar 3.

to those of the A.Y. 2013-14. For this year, again the assessee

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.

material on record. The ld. AR submitted that in so far as the

assessee’s own transport business was concerned, he declared

income @ 8% or little more than that which got accepted at the end

of Assessing Officer at the same level. In so far as the other cash

deposits in the bank accounts for both the years are concerned, 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 small

percentage of commission was kept by the assessee before handing

over the amounts to the truck owners. The ld. AR relied on certain

additional evidence to substantiate the claim. As this evidence was

admittedly not filed before the authorities below, we are of the

considered opinion that the ends of justice would meet adequately

4 ITA Nos.988 & 989/PUN/2018 Santoshkumar R. Gupta

if the impugned order is set aside and the matter is restored 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.

purposes.

Order pronounced in the Open Court on 29th April, 2019.

Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 29th April, 2019 सतीश आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. 3. The CIT(A)-2, Kolhapur 4. The Pr.CIT-2, Kolhapur िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे 5. “SMC” / DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. / True copy // 6.

आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

ITA Nos.988 & 989/PUN/2018 Santoshkumar R. Gupta

Date 1. Draft dictated on 29-04-2019 Sr.PS 2. Draft placed before author 29-04-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/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.

*