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Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA
आदेश /O R D E R The present appeal has been preferred by the assessee against the order dated 25.09.2019 of the Commissioner of Income-tax (Appeals)-10, Kolkata [hereinafter referred to as ‘CIT(A)’]. 2. None has put in appearance on behalf of the assessee despite notice. In view of this, I proceed to decide the appeal on merits after going through the record and after hearing the Ld. DR.
The assessee in this appeal has contested the addition made by the Assessing Officer on account of estimation of profits earned on sale of import goods @ 15% and thereby making the total addition at ₹10,66,945/-. The assessee has taken the plea that in fact the assessee did not make any sales. The goods, that were imported were Shree Shubham Exports Vs. ITO Wd-36(2), Kol. Page 2 returned by the assessee due to inferior quality. It has been pleaded that since the assessee did not make any sales / purchase, the estimation of profit on sale by the Assessing Officer was not justified. In the alternative, it has been pleaded that the estimation of profit @ 15% was too high, which could have been at the most estimated at 2% of total purchase. It has been further pleaded that even otherwise the assessee is entitled to set off the profits against the carried forward losses of the earlier assessment years.