DINABANDHU SOM,BURDWAN vs. ITO, WARD - 2(3), BURDWAN, BURDWAN

PDF · subscribers
ITA 762/KOL/2018Status: DisposedITAT Kolkata05 December 2018AY 2013-142 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the profit from undisclosed turnover of rice should be estimated at 1.5% of such turnover. It reasoned that the Revenue should not apply different standards to individuals in the same trade.

What were the facts?

The assessee, a rice trader, appealed against the estimation of profit on undisclosed sales at 5%. The Assessing Officer and CIT(A) had applied this rate, while the assessee argued for a lower rate based on a previous Tribunal decision and the Revenue's own acceptance of a lower GP ratio in similar cases.

What were the issues?

The primary issue was the correct rate of profit to be applied for estimating income from undisclosed sales of rice. The assessee contested the 5% rate applied by the authorities.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

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.

2.

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.

Recent GST High Court judgments

Search GST case law →