TRADE KINGS,NEW DELHI vs. ITO, CIVIC CENTER, NEW DELHI

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ITA 3890/DEL/2024Status: DisposedITAT Delhi02 January 2025Bench: SHRI SATBEER SINGH GODARA (Judicial Member)3 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the assessee's purchases were explained and the business operated in an unorganized sector with cash payments. Therefore, the assessment rate was reduced from 20% to 5% on the turnover, with the condition that this would not set a precedent.

What were the facts?

The assessee's appeal concerns the assessment year 2018-19. The lower authorities assessed the assessee at 20% on sales turnover of Rs. 1,01,15,230/- in the waste paper recycle business. The assessee did not press the ground challenging the validity of the reopening of assessment.

What were the issues?

The primary issue was the rate of profit to be applied to the assessee's turnover in the waste paper recycling business. The validity of the assessment reopening was also an issue, but the assessee did not press it.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 31.12.2024Pronounced: 02.01.2025

ORDER This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1066023644(1) dated 25.06.2024 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Heard both the parties at length. Case file perused.

3.

Leaned counsel representing assessee does not press for its ground challenging validity of the reopening of assessment.

4.

Next comes the sole substantive issue on merits between the parties wherein the learned lower authorities have assessed the assessee at the rate of 20% on sales turnover of Rs.1,01,15,230/-, in waste paper recycle business. Learned departmental representative could hardly rebut the clinching facts, inter alia, emerging from the case file that neither the purchases made by the assessee remained unexplained, nor the nature of the primary business activity which has been carried on in unorganized sector involving most of the small-time traders insisting for cash payment only. There are also no concrete comparable instances discussed in the lower orders.

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