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Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA
Before: Shri S.S, Godara
This assessee’s appeal for assessment year 2009-10, arises against the Commissioner of Income-tax (Appeals)-6, Kolkata’s order dated 07.05.2018 passed in case No.111/CIT(A)-6/Kol/28(4)/HG/15-16, involving proceedings u/s. 263 r.w.s.143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.
I notice at the outset that assessee’s instant appeal suffers of 27 days delay in filing stated to be attributable health related issues. The Revenue is fair enough in not disputing all these averments. I therefore condone the impugned delay of 27 days in filing of the instant appeal. The case is now taken up for adjudication on merits.
The assessee’s former substantive ground seeks to reverse both the lower authorities action adding the entire alleged sales of ₹4,20,600/- in sarees job work business. Both the parties failed to dispute that the entire alleged sales also includes
ITA No.1657/Kol/2018 A.Y. 2009-10 Sk. Md. Harun Vs. ITO Wd-23(4) HGY Page 2 cost component of the raw materials and other heads of labour etc., I take into account all these clinching facts and circumstances to direct the Assessing Officer to restrict the impugned addition to the extent of net profit component therein @ 10% only with a rider that same shall not be treated as precedent in any other assessment year. The assessee gets part relief in above terms.
Next comes labour charges disallowance of 5% of ₹57,20,435/- coming to ₹2,86,021/- on ad hoc basis. It transpires during the course of hearing that neither the lower authorities have drawn any comparative charge of labour expenditure nor the assessee could produce all the relevant details of the impugned expenditure. I therefore deem it appropriate in view of these facts and circumstances to restrict the impugned disallowance@ 5% to that @ 2% only with a rider that same shall not be treated as a precedent in any other assessment year. The Assessing Officer shall finalize consequential computation as per law.
This assessee’s appeal is partly allowed in above terms. Order pronounced in open court on 28/02/2019 (S.S. Godara) Judicial Member Kolkata, *Dkp/Sr.PS "दनांकः- 28/02/2019 कोलकाता आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. अपीलाथ"/Appellant-Sk. Md. Harun Prop. Harun Jori Centre, Khanakul, Arambagh, Hooghly-712406
""यथ"/Respondent-ITO, Ward-23(4), Aaykar Bhawan, G.T. Road, Khadina More, P.O. Chinsurah, Hooghly-712101 3. संबं"धत आयकर आयु%त / Concerned CIT 4. आयकर आयु%त- अपील / CIT (A) 5. &वभागीय ")त)न"ध, आयकर अपील"य अ"धकरण कोलकाता / DR, ITAT, Kolkata 6. गाड+ फाइल / Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील"य अ"धकरण, कोलकाता ।