GOUR MOHAN KUNDU,NORTH 24 PARGANAS vs. ITO, WARD - 49(1), KOLKATA, KOLKATA

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ITA 1389/KOL/2018Status: DisposedITAT Kolkata04 January 2019AY 2013-142 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal found that neither party provided sufficient basis for their net profit estimations. Therefore, the tribunal decided to estimate the net profit at 4% as a fair compromise.

What were the facts?

The Assessing Officer treated cash deposits as turnover and rejected the assessee's declared net profit of 2.22%, re-estimating it at 8%. The CIT(A) upheld this decision. The assessee did not challenge the rejection of its books of account.

What were the issues?

The primary issue was the estimation of the assessee's net profit percentage after the rejection of its books of account. The tribunal had to determine a fair net profit rate.

Which sections of the Income-tax Act were involved?

Section 145,Section 143(3),Section 145A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA

Before: Shri S.S, Godara

O R D E R This assessee’s appeal for assessment year 2013-14, arises against the Commissioner of Income-tax (Appeals)-15, Kolkata’s order dated 08.03.2018 passed in case No.370/CIT(A)-15/155-16/Wd-49(1)/Kol involving proceedings u/s. 145 r.w.s. 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

2.

Case file suggests at the outset that I need not dig into deeper in facts of the case since the issue between the parties is that of estimation of net profit only. The Assessing Officer treated assessee’s cash deposits other than in interest of ₹1,77,73,703/- to be turnover from assessee’s edible oil trading business. The taxpayer had declared net profit percentage thereupon @ 2.22%. The Assessing Officer rejected its books to be not indicating true picture to re-estimate the same @ 8% coming to ₹14,23,351/-. The CIT(A) has affirmed the same.

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