SRI SANKAR BAIRAGI,KOLKATA vs. ACIT, CIRCLE - 50, KOLKATA, KOLKATA

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ITA 2437/KOL/2016Status: DisposedITAT Kolkata01 October 2019AY 2009-102 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee was not given an opportunity to substantiate its grounds before the CIT(A). Therefore, the matter was remanded to the CIT(A) for fresh verification and to allow the assessee to file supporting evidence.

What were the facts?

The Assessing Officer made additions under Section 40(a)(ia) and estimated net profit at 6.50%. The assessee argued that separate additions are not maintainable when net profit is estimated. The CIT(A) decided the appeal on merits due to non-compliance by the assessee.

What were the issues?

Whether separate additions are permissible when net profit is estimated, and whether the assessee was denied a proper opportunity to present its case before the CIT(A).

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH: KOLKATA

Before: Shri P. M. Jagtap & Shri S.S. Viswanethra Ravi

Hearing: 07.08.2019Pronounced: 01.10.2019

Sri Sankar Bairagi Appellant [PAN:AIQPB0740A] Vs ACIT, Circle-50, Kolkata Respondent For the Appellant : Shri Soumitra Choudhury, Adv. For the Respondent : Shri Shankar Halder, JCIT, Sr. DR Date of hearing : 07.08.2019 Date of pronouncement : 01.10.2019 ORDER Shri S.S. Viswanethra Ravi, JM:

This appeal by the assessee against the order dated 31.01.2013 passed by the Commissioner of Income Tax (Appeals)-XXXII, Kolkata [‘CIT(A)’] for Assessment Year 2009-10.

2.

Heard both parties and perused the material available on record. It is noted that the Assessing Officer made two additions u/s 40(a)(ia) of the Act and determined net profit @6.50% on the basis of estimation. The contention of the ld. AR is that the Assessing Officer cannot make additions separately, when the net profit on estimation was made and placed reliance in the case of Sri Ajit Prasad Dey vs. ITO in order dated 25.04.2019 and argued that when the Assessing Officer determines net profit on estimation basis and the additions made separately, are not maintainable. Further it is noted that the assessee challenged the order of Assessing Officer before the CIT(A) and for non-compliance on behalf of assessee decided the appeal on merit on the basis of Sri Sankar Bairagi material available on record. Therefore it is clear that there was no opportunity for the assessee to substantiate its grounds raised

before the First Appellate Authority. Therefore, in our opinion, the assessee must get an opportunity to substantiate his claims raised in the First Appellate Proceedings as there was no such opportunity, we deem it proper to remand the matter to the file of CIT(A) for his fresh verification. The assessee is liberty to file evidences, if any, in support of his claim. Thus grounds raised by the assessee are allowed for statistical purposes.

3. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 01.10.2019.

Sd/- Sd/- [P. M. Jagtap] [S.S. Viswanethra Ravi] Vice President Judicial Member Dated : 01.10.2019 Place : Kolkata RS, Sr.PS Copy of the order forwarded to: 1. Appellant –Sri Sankar Bairagi, Netajipally, Paschim Khilapur, Noapara Barasat, Kolkata – 700125. 2 Respondent – ACIT, Circle-50, Kolkata 3. The CIT(A), Kolkata 4. CIT , Kolkata 5. DR, Kolkata Benches, Kolkata

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