ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, SAMBALPUR, SAMBALPUR vs. ASHOKA ISPAT UDYOG, ROURKELA
Facts
The Revenue filed two appeals against the orders of the Ld.CIT(A) for AY 2019-20 and AY 2018-19. In AY 2018-19, undisclosed sales of Rs. 17.25 lakhs were found, and in AY 2019-20, undisclosed sales of Rs. 92,23,979 were found.
Held
For AY 2018-19, the tax effect was below the prescribed limit for filing an appeal, hence the appeal was dismissed. For AY 2019-20, the Assessing Officer was directed to rework the undisclosed income by estimating income on the suppressed turnover at 3.5%.
Key Issues
Dismissal of Revenue's appeal for AY 2018-19 due to low tax effect and direction to re-estimate income for AY 2019-20.
Sections Cited
IT Act sections
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश कुमार, लेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.484/CTK/2024 आयकर अपील सं/ITA No.485/CTK/2024 (नििाारण वर्ा / Assessment Year : 2019-2020) (नििाारण वर्ा / Assessment Year : 2018-2019) ACIT, Vs Ashok Ispat Udyog, Sambalpur Kachery Road, Udit Nagar, Rourkela PAN No. : AACFA 3178 P (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररती की ओर से /Assessee by : Shri K.K.Agarwalla, AR राजस्व की ओर से /Revenue by : Shri Ashim Kumar Chakraborty, CIT-DR सुनवाई की तारीख / Date of Hearing : 25/09/2025 घोषणा की तारीख/Date of Pronouncement : 25/09/2025 आदेश / O R D E R Per Bench : These are two appeals filed by the Revenue against the order of the Ld.CIT(A), Bhubaneswar-2 both dated 26/09/2024 and ITA No.484/CTK/2024 in Appeal No.CIT(A),Bhubaneswar-2/10646/2018-19 for A.Y. 2019-20 and ITA No.485/CTK/2024 in Appeal No. CIT(A),Bhubaneswar-2/11291/2017-18 for the A.Y. 2018-19 respectively. 2. It was submitted by the Ld.CIT DR that the facts are similar to the facts in the case of Shree Salasar Castings Private Limited in ITA No.482/CTK/2024 and ITA No.483/CTK/2024. It was the submission that in the course of search on M/s Sunayana Metals Industries Limited undisclosed sales from the assessee was found for the A.Y. 2018-19 the undisclosed sales was found at Rs.17.25 lakhs/-. For the A.Y. 2019-20 the sales found was to the extent of Rs.92,23,979/-. It was submission that on
2 ITA No.484/CTK/2024 ITA No.485/CTK/2024 similar findings as in Shree Salasar Castings Pvt. Ltd., the order of the Ld.CIT(A) is liable to be reversed or in the alternative the GP rate to be fixed at least at 3.5%. 3. In reply, the Ld. AR submitted that for the A.Y. 2018-19 the tax effect was below the limit of Rs.50 Lakhs and consequently, the departmental appeal is not liable to be admitted in view of the CBDT Circular No.096/2024, dated 17.09.2024. For the A.Y. 2019-20, the Ld.AR vehemently supported the order of the Ld.CIT(A). 4. We have considered the rival submissions. As it is noticed that the tax effect for the A.Y. 2018-19 is below the prescribed limit for filing revenue’s appeal before the Tribunal, therefore, on account of tax effect the appeal of the revenue stands dismissed. 5. Consequently, ITA No.485/CTK/2024 stands dismissed on account of tax effect. 6. In respect of revenue’s appeal for the A.Y. 2019-20, on Identical findings as in the case of Shree Salasar Castings Private Limited in ITA Nos.482&483/CTK/2024 of even date, the AO is directed to rework the undisclosed income of the assesee by estimating the income on the suppressed the turnover at 3.5% as against the 2.18% adopted by the ld. CIT(A). Thus, the appeal of the revenue in ITA No.484/CTK/2024 is party allowed.
3 ITA No.484/CTK/2024 ITA No.485/CTK/2024 7. In the result, appeal of the revenue in ITA No.485/CTK/2024 is dismissed and ITA No. 484/CTK/2024 stands partly allowed. Order dictated and pronounced in the open court on 25/09/2025.
Sd/- Sd/- (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 25/09/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- ACIT, Central Circle, Sambalpur 2. प्रत्यर्थी / The Respondent- Ashok Kumar Dwari Jamunadeipur, Ward No:-18, Baripada, Mayurbhanj, 757001 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, 5. Cuttack आदेशािुसार/ BY ORDER, 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack
