AKTAR ALI,KOLKATA vs. ITO, WARD-24(1), HOOGHLY, HOOGHLY

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ITA 1919/KOL/2017Status: DisposedITAT Kolkata14 February 2018AY 2011-123 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the interest of justice would be met by estimating the net profit on undisclosed sales at 10%. The issue was set aside to the Assessing Officer for recomputation.

What were the facts?

The assessee appealed an order regarding the percentage of net profit to be applied on undisclosed sales. The Assessing Officer estimated it at 17.5%, while the assessee claimed it was not more than 8%. The assessee attributed discrepancies to mistakes by their tax consultants.

What were the issues?

The primary issue was the determination of the correct net profit rate to be applied to undisclosed sales. The assessee also raised a point about errors made by their tax consultants.

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]

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH, KOLKATA [Before Sri J. Sudhakar Reddy, Accountant Member] Assessment Year: 2011-12 Aktar Ali…………….…………………………………………………………….…….……...Appellant Iswar Baha, Sahabgunj District-Hooghly PIN – 712 104 [PAN : AHDPA 2420 J] Income Tax Officer, Ward-24(1), Hooghly………...……………………..…. Respondent G.T. Road Chinsurah Hooghly - 712101 Appearances by: Shri Saumitra Choudhury, Advocate, appeared on behalf of the assessee. Shri Saurabh Kumar, Addl. CIT, DR appearing on behalf of the Revenue. Date of concluding the hearing : February 5th, 2018 Date of pronouncing the order : February 14th , 2018 O R D E R Per J. Sudhakar Reddy :-

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-6, Kolkata, (hereinafter the ‘ld. CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 17/05/2017.

2.

The only issue that is argued before me is the percentage of net profit that has to be applied on the undisputed undisclosed sales of the assessee. The Assessing Officer estimated the net profit at 17.5 per cent. The assessee submits that the profit is not more than 8 per cent. A copy of the letter from the advocate and tax consultant, Mr. Suman Ray, filed before the revenue authorities is produced before us and it was submitted that due to the mistakes committed by the advocates and tax consultants, these discrepancies have crept in and resultantly, the assessee has suffered for no fault of his own.

3.

After hearing rival submissions, I am of the considered opinion that interest of justice would be met if net profit on undisclosed sale is 2 Assessment Year: 2010-11 M/s. Arihant Nidhi estimated at 10 per cent of such sales. With these directions, I set aside this issue to the file of the Assessing Officer for computing the net profit at 10 per cent of the undisclosed sales.

4.

In the result, appeal of the assessee is allowed for statistical purposes.

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