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Facts
The assessee, a fish dealer, filed an appeal against an order for assessment year 2017-2018. The Assessing Officer had estimated the assessee's income at 8% of the total turnover due to cash deposits, but the assessee contended the income from fish trading was 5% commission. The appeal was time-barred by 170 days.
Held
The Tribunal condoned the delay in filing the appeal, accepting the reasons provided by the assessee. Considering the assessee had accepted 5% commission in earlier statements and filed returns with similar income in subsequent years, the Tribunal directed the Assessing Officer to estimate the income at 5% of the total turnover (Rs. 1,78,57,075/-) instead of 8%.
Key Issues
1. Whether the delay in filing the appeal should be condoned. 2. What should be the appropriate percentage for the estimation of income from fish trading for the assessee.
Sections Cited
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Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA
आदेश / O R D E R This is an appeal filed by the assessee against the order dated 28.06.2024, passed by the Addl./JCIT(A)-7, Mumbai, for the assessment year 2017-2018.
Shri Miraz D. Shah, ld. AR appeared on behalf of the assessee and Shri S.B.Chakraborthy, ld. Sr. DR appeared on behalf of the revenue.
The appeal of the assessee is time barred by 170 days. In this regard, the assessee has filed affidavit in support of the condonation of delay stating therein sufficient reasons which are not found to be false. Ld.Sr. DR also did not raise any serious objection. Accordingly, delay of 170 days in filing the present appeal is condoned and appeal of the assessee is admitted for hearing.
2 ITANo.327/KOL/2025 4. It was the submission of the ld. AR that assessee is a dealer in fish. It was the submission that there was consequential cash deposit in the bank account of the assessee and assessment proceedings have been initiated against the assessee. As the assessee has been called to produce the details before the Assessing Officer, the Assessing Officer had estimated the income of the assessee at 8% on the total turnover of Rs.1,78,57,075/- It was submitted by the ld. AR that the assessee had himself confirmed during the period from 01.04.2016 to 31.03.2017, the source of income is commission at 5% on the transaction of fish trading. This has also incorporated by the Assessing Officer in his assessment order. It was the submission that the estimation as done by the Assessing Officer may be restricted to 5%.
In reply, ld.Sr. DR relied on the order of the ld.AO and ld. CIT(A).
I have considered the rival submissions. A perusal of the facts clearly shows that for subsequent assessment years, the assessee is filing his returns of income disclosing income of Rs.34,200/- and Rs.90,600/-, respectively for the assessment years 2018-2019 and 2019-2020. Admittedly, the assessee has accepted 5% as the commission in fish trading. This being so, I am of the view that the income of the assessee can be estimated at 5% of the total turnover of Rs.1,78,57,075/- as has been accepted by the assessee in the statement made before the Assessing Officer and also before the Tribunal. This being so, the Assessing Officer is directed to estimate the income of the assessee at 5% instead of 8%.