M/S. REVIVE TRADERS PVT. LTD., (STRIKE-OFF), LEGAL REPRESENTATIVE KAMAR KR. AGARWAL,KOLKATA vs. ITO, WARD - 12(2), KOLKATA, KOLKATA

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ITA 1554/KOL/2018Status: DisposedITAT Kolkata20 March 2019AY 2009-102 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that a sister concern involved in the same search was assessed at a lower commission rate. The department could not dispute this fact, leading the Tribunal to partly accept the assessee's arguments.

What were the facts?

The assessee had significant bank deposits and declared a small commission income. The Assessing Officer (AO) assessed the commission income at a higher rate, and the CIT(A) further enhanced it. The case originated from a search and seizure operation.

What were the issues?

The key issue was the correct rate of commission income to be assessed on bank deposits, and whether the CIT(A)'s enhancement was justified in light of comparable cases.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B-SMC” BENCH : KOLKATA

Before: Hon’ble Shri S.S. Godara, JM]

1.

This assessee’s appeal is directed against the CIT(A), Kolkata-4’s order, dated 12- 06-2018 passed in case no. 2088/CIT(A)-4/2014-15 involving proceedings u/s 143(3) of the I.T Act, 1961 ( in short ‘Act’).

Heard both the sides. Case file perused.

2.

I noticed at the outset the instant plea is emanated from a search & seizure operation dated 10-10-09 conducted in M/s. Badalia Group of cases. The AO noticed during assessment that the assesse had made deposits in its two bank accounts of Rs. 5,69,78,325/- in the relevant previous year. It claimed to have derived commission income @ 100 per lakh to Rs.56,978/- only whereas the Assessing Officer assessed the same @250 per lakh resulting in addition of Rs. 1,42,446/-.

M/s. Revive Traders P.Ltd

3.

The assessee preferred appeal. The CIT(A) has made the impugned enhancement by assessing the above commission income @ Rs. 1,000/- per lakh from Rs. 250/- per lakh added during assessment.

4.

I have given my thoughtful consideration to the rival contentions. It emerges during the course of hearing that the department has assessed the assessee’s sister concern, M/s. Sawaria Trading Pvt. Ltd involved in the very search in A/Y 2009-10 at commission rate of Rs. 250/- per lakh involving similar deposits. Learned departmental representative fails to dispute all these clinching developments. I therefore partly accept the assessee’s arguments in the instant appeal and direct the Assessing Officer to re- compute assessee’s commission income @ 250 per lakh only. Necessary computation to follow.

5.

This assessee’s appeal is partly allowed in above terms. Order pronounced in the Court on 20-03-2019

Sd/- [ S.S.Godara ] Judicial Member Dated :20 -03-2019 *PP, Sr. PS Copy of the order forwarded to: 1.Appellant/Assessee: M/s. Revive Traders Pvt. Ltd. C/o Kamal Kr. Agarwal 87A, New Station Road, Bhadrakali, Hooghly-712232. 2. Respondent/ Department : The ITO, W 12(2), Kolkata Aaykar Bhawan, P-7 Chowringhee Sq., Kolkata-700 069. 3..C.I.T(A).- 4. C.I.T.- Kolkata. 5. CIT(DR), Kolkata Benches, Kolkata.

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