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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA
Before: Sri J. Sudhakar Reddy]
Date of concluding the hearing : November 26th, 2018 Date of pronouncing the order : December 5th , 2018 O R D E R Per J. Sudhakar Reddy :-
This appeal filed by the assesse is directed against the order of the ld. Commissioner of Income Tax (Appeals)- Burdwan, (hereinafter the ‘ld. CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 04/09/2017, for the Assessment Year 2013-14.
The assessee is an individual and is in the business of trading in rice. The sole issue that arises for my adjudication is the rate of profit that has to be applied for the purpose of estimating the profit on undisclosed sale proceeds received by the assessee. the Assessing Officer as well as the ld. CIT(A) has applied the rate of 5% to the turnover. The assessee relies on the decision of the ‘SMC’ Bench of the Tribunal in the case of Sk. Md. Mahasin vs. ITO, Assessment Year 2012-13, order dt. July 20th, 2018, and argues that the Department itself has applied the GP Ratio of 1.46% under similar circumstances, where the assessee was a trader in rice. 2.1. The ld. D/R, points out that the assessee himself has offered GP Rate of 1.5% and hence the rate of estimation of GP made by the Assessing Officer and confirmed by the ld. CIT(A) has to be upheld.
Assessment Year: 2012-13 Dinabandhu Som 3. In my view, interest of justice would be met if the profit from undisclosed turnover of rice is estimated at the rate of 1.5% of such turnover. The Revenue cannot adopt different yardsticks in case of different persons who are in the same trade. 4. In the result, appeal of the assessee is allowed.