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Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA
Before: Sri J. Sudhakar Reddy, Hon’ble & Sri Aby T. Varkey, Hon’ble
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA VIRTUAL COURT HEARING (Before Sri J. Sudhakar Reddy, Hon’ble Accountant Member & Sri Aby T. Varkey, Hon’ble Judicial Member) Assessment Year: 2015-16 Maa Transport Agency….……………..……………………...…………...…………..…Appellant C/o Shri Kanchan Sadhu, Advocate Vivekanada Park P.O.-Ramkrishna Mission Asansol Dist – Burdwan PIN - 713305 [PAN : AAKFM 9822 A] Astt. Commissioner of Income Tax, Cricle-2, Asansol....…….……........Respondent Appearances by: Shri Kanchan Sadhu, Advocate, appeared on behalf of the assessee. Smt. Ranu Biswas, Addl. CIT, DR appearing on behalf of the Revenue. Date of concluding the hearing : December 1st, 2020 Date of pronouncing the order : January 8th, 2021 O R D E R Per J. Sudhakar Reddy :-
This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)- Asansol, (hereinafter the ‘ld. CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 02/07/2019.
We have heard rival contentions. On careful consideration of the facts and circumstances of the case, perusal of the papers on record, orders of the authorities below as well as case law cited, we hold as follows:- 3. We find that the SMC Bench of the Tribunal in the assessee’s own case under identical circumstances in Assessment Year: 2008-09, order dt. March 9th, 2018, has held as under:-
“5. After hearing rival submissions, I find that the ld. CIT(A) estimated the net profit at 9.1 per cent as against the profit estimated at 10.90 per cent by the Assessing Officer. Keeping in view, the earlier estimations made by the Co-ordinate Bench of the ITAT in the assessee’s own case, for the earlier Assessment Years, I am of the opinion that interest of justice would be met if gross
Assessment Year: 2015-16 Maa Transport Agency profit is estimated at 6 per cent of gross receipts. The assessee would be entitled to deduction of interest on capital and partner’s remuneration from such estimation of gross profit. Ordered accordingly.”
Consistent with the view taken therein, we are of the opinion that interest of justice would be met if gross profit is estimated at 6 per cent of gross receipts. The assessee would be entitled to deduction of interest on capital and partner’s remuneration from such estimation of gross profit. Ordered accordingly.”
In the result, appeal of the assessee is allowed in part. Kolkata, the 8th day of January, 2021.