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Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI N.S SAINI
This is an appeal filed by the assessee against the order of the
CIT(A)-1, Bhubaneswar dated 12.1.2017 for the assessment year 2011-
12.
The assessee has raised the following grounds of appeal:
“1. For that it is arbitrary and unlawful to make a BEST JUDGMENT ASSESSMENT U/s.144 of I.T. Act; and further it is baseless to treat the Appellant's STATUS as Association of Persons U/s. 185(5) of I.T. Act.
For that the Appellant made all possible and effective compliance to Notice dt.06.11.2013 issued U/s.142(1) of I.T. Act even when Regular Books of Account was not maintained by the Appellant . Therefore the finding of Appellant's Non Compliance to Notice U/s.142(1) is without any basis.
2 ITA No .164 /CT K/ 2017 Asse ssment Year : 20 11- 201 2 3. For chat without indicating/ observing any such specific failure the finding of Appellant's Non Compliance to any such provision of Sec-144 of IT Act is without any basis.
Accordingly the adoption of provision of Sec-185(5) of Act as well as determination of Appellant's Status, Disallowance Salary and Interest of Rs.1,20,000.00 and Rs.2,36,856.00 respectively is arbitrary and the same should have been allowed U/s.44AD(2) of I.T. Act.
For that the Appellant never indicated the opening stock value at SI No.6 of his I.T. Return (A.Y.2011 = 12) to be at NIL. The Appellant in absence of Regular Books of Account filed his return on presumptive basis U/S.44AD of I.T. Act leaving no scope to indicate the opening stock in the I.T. Return,
Accordingly it is arbitrary to enhance the Appellant's Gross Sales, and it is arbitrary to add the Opening Stock (with profit thereon @ 8.1%) with the Appellant's Sales Torn Over. Therefore the determination of Appellant's Gross Sale at Rs.60,52,199.00 is arbitrary & the same should have been at Rs.45,32,226.00 as considered by the Sales Tax Authority.”
At the outset, ld A.R. of the assessee submitted that the Assessing
Officer has made assessment u/s.144 of the Act as the assessee failed to
file necessary details and documents called for. Therefore, he made
assessment u/s.144 of the Act disregarding the status of the assessee as
partnership firm and making the assessment on the assessee as an AOP.
While doing so, he has made addition of Rs.4,84,176/- to the returned
income of Rs.3,6,578/- by the assessee as extra profit relating to
undisclosed opening stock and made a high pitch addition of
Rs.8,46,754/-, which has been confirmed in appeal by the CIT(A). He
submitted that one more opportunity should be granted to the assessee
to represent its case before the Assessing Officer and he undertakes to
3 ITA No .164 /CT K/ 2017 Asse ssment Year : 20 11- 201 2 appear before the Assessing Officer suo-moto and file all necessary details
and documents for completing the assessment.
Ld D.R. had no objection to the above submission of ld A.R. of the
assessee.
In view of above, I set aside the orders of lower authorities and
restore the matter back to the file of the Assessing Officer for doing
assessment denovo after allowing reasonable and proper opportunity to
the assessee.
The assessee is directed to appear before the Assessing Officer
within 30 days from the date of this order for fixing the date of hearing
and render full co-operation to the Assessing Officer by filing all the
details as and when called upon to do so. The Assessing Officer is
directed to complete the assessment expeditiously. With these directions,
the appeal of the assessee is allowed for statistical purposes.
In the result, appeal is allowed for statistical purposes.
.
Order pronounced on 4 /10/2017.
Sd/- (N.S Saini) ACCOUNTANT MEMBER Cuttack; Dated 4 /10/2017 B.K.Parida, SPS
4 ITA No .164 /CT K/ 2017 Asse ssment Year : 20 11- 201 2 Copy of the Order forwarded to : 1. The appellant: M/S. Jammula Ventaraman & Sons, At: Big Bazar, Berhampur, Ganjam 2. The Respondent. ITO, Ward-1, Berhampur 3. The CIT(A)-1, Bhubaneswar 4. Pr.CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// BY ORDER,
SR.PRIVATE SECRETARY ITAT, Cuttack