APURBA KUMAR DEY, BARDDHAMAN vs. I.T.O.,WARD-1(3), BURDWAN

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH, KOLKATA (Before Sri J. Sudhakar Reddy, Hon’ble Accountant Member) Assessment Years: 2012-13 Apurba Kumar Dey……………….………...........................................................……………….…......Appellant C/o. S.N. Ghosh & Associates, Advocates Seben Brothers’ Lodge P.O. Buroshibtala P.S. Chinsurah Dist.:- Hooghly West Bengal – 712 105 [PAN : ACWPD 6113 B] Vs. Income Tax Officer, Ward-1(3), Burdwan………………..……………….............….……....…....Respondent Appearances by: Shri Somnath Ghosh, Advocate, appeared on behalf of the assessee. Shri Jayanta Khanra, JCIT Sr. D/R, appearing on behalf of the Revenue. Date of concluding the hearing : March 17th, 2020 Date of pronouncing the order : June 19th, 2020 ORDER Per J. Sudhakar Reddy, AM :-

This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) – Burdwan, (hereinafter the “ld.CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 17/06/2019 for the Assessment Year 2012-13.

Assessment Years: 2012-13 Apurba Kumar Dey 5. The allegation is that the assessee made purchases of Rs.1,62,15,614/ on is that the assessee made purchases of Rs.1,62,15,614/ on is that the assessee made purchases of Rs.1,62,15,614/- and whereas he has recorded payments of Rs.1,58,29,257/ whereas he has recorded payments of Rs.1,58,29,257/-, after taking into account the , after taking into account the opening balance of Rs.7,52,468/ opening balance of Rs.7,52,468/-, and the unpaid amount as Rs.11,38,825/ , and the unpaid amount as Rs.11,38,825/-. In other words, this amount is a credit receipt by the assessee. These suppliers are sundry redit receipt by the assessee. These suppliers are sundry redit receipt by the assessee. These suppliers are sundry creditors. When these sundry creditors are brought into books and corresponding stock creditors. When these sundry creditors are brought into books and corresponding stock creditors. When these sundry creditors are brought into books and corresponding stock is recorded there would be no income that would be liable to tax as undisclosed stock. is recorded there would be no income that would be liable to tax as undisclosed stock. is recorded there would be no income that would be liable to tax as undisclosed stock. There cannot be an addition of undisclosed credit. on of undisclosed credit. 5.1. Considering the alternative contention of the ld. D/R, if these purchases are Considering the alternative contention of the ld. D/R, if these purchases are Considering the alternative contention of the ld. D/R, if these purchases are taken as unrecorded and that equivalent stock is not available with the assessee then taken as unrecorded and that equivalent stock is not available with the assessee then taken as unrecorded and that equivalent stock is not available with the assessee then the addition can be only of a percentage of such purchases. the addition can be only of a percentage of such purchases. During the year, the assessee During the year, the assessee has undisclosed purchases of Rs.3,86,357/ has undisclosed purchases of Rs.3,86,357/-. In my opinion, the opening balance of . In my opinion, the opening balance of unpaid amounts cannot be taken into account in the current year. Under these unpaid amounts cannot be taken into account in the current year. Under these unpaid amounts cannot be taken into account in the current year. Under these circumstances, at best a percentage of Rs.3,86,357/ circumstances, at best a percentage of Rs.3,86,357/- may be considered as addition by red as addition by applying net profit. In my view, net profit of 10% would serve the purpose. Hence the applying net profit. In my view, net profit of 10% would serve the purpose. Hence the applying net profit. In my view, net profit of 10% would serve the purpose. Hence the addition is restricted to Rs. 38,635/ addition is restricted to Rs. 38,635/-.

Kolkata, the Kolkata, the 19th day of June, 2020.