What did the Tribunal hold?

The Tribunal, following its own earlier decision in the assessee's own case, held that the interest of justice would be met by estimating gross profit at 6% of gross receipts. The assessee would be entitled to deductions for interest on capital and partner's remuneration from this estimated gross profit.

The assessee, Maa Transport Agency, appealed against the order of the CIT(A) for the assessment year 2015-16. The appeal was based on similar circumstances as a previous appeal for assessment year 2008-09.

What were the issues?

The primary issue was the estimation of the assessee's net profit, with the Tribunal relying on its previous order for an identical issue in an earlier assessment year.

Maa Transport Agency, Asansol vs A.C.I.T., Circle-2, Asansol | ITAT Kolkata 2021

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.

MAA TRANSPORT AGENCY,ASANSOL vs. A.C.I.T.,CIRCLE-2, ASANSOL

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments