MAA TRANSPORT AGENCY,ASANSOL vs. I.T.O., WARD-2(2), ASANSOL, ASANSOL

The assessee is a partnership firm and is in the business of transport contractor. It filed its return of income on 30/09/2008, declaring total income at Rs.7,07,290/-, on a gross receipt of Rs.1,41,45,800/-, after deducting capital and partner’s remuneration, the returned income was 1.9% of the gross receipts. Admittedly, the assessee has not maintained any books of accounts. The Assessing Officer made an addition of Rs.13,31,097/- 2.1. On appeal, the ld. First Appellate Authority, granted part relief.

Aggrieved, the assessee is in appeal before us. 4. The assessee filed written submissions. The sum and substance of the submissions are that in the previous Assessment Years, the ITAT 2 Assessment Year: 2008-09 Maa Transport Agency had estimated the income at 5.35 per cent for the Assessment Years 2005-06 & 2006-07. Hence, he requests that the same percentage be adopted. The ld. D/R opposes the same. 5. After hearing rival submissions, I find that the ld. CIT(A) estimated the net profit at 9.1 per cent as against the profit estimated at 10.90 per cent by the Assessing Officer. Keeping in view, the earlier estimations made by the Co-ordinate Bench of the ITAT in the assessee’s own case, for the earlier Assessment Years, I am of the opinion that interest of justice would be met if gross profit is estimated at 6 per cent of gross receipts. The assessee would be entitled to deduction of interest on capital and partner’s remuneration from such estimation of gross profit. Ordered accordingly. 6. In the result, appeal of the assessee is allowed in part. Kolkata, the 9th day of March, 2018. Sd/- [J. Sudhakar Reddy] Accountant Member Dated : 09.03.2018 {SC SPS} Copy of the order forwarded to: 1. Maa Transport Agency C/o Shri Kanchan Sadhu, Advocate Vivekanada Park P.O.-Ramkrishna Mission Asansol Dist – Burdwan PIN - 713305 2. Income Tax Officer, Ward-2(2), Asansol 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata.