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

For the Appellant: Shri Kanchan Sadhu, Advocate For the Respondent: Shri Rajendra Prasad, JCIT, Sr. DR ORDER

This appeal by assessee is arising out of order of CIT(A), Asansol vide Appeal No. 288/CIT(A)/Asl/W-2(2)/Asl/10-11 dated 24.01.2013. Assessment was framed by ITO, Wd-2(2), Asnasol u/s. 143(3)/263 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2005-06 vide his order dated 03.12.2010.

3. I have heard rival submissions and gone through facts and circumstances of the case. I find from the records that the AO during the course of assessment proceedings noticed from the statement received from Indus Ind Bank that it had received an amount of Rs.8,57,373/- during the period 27.09.2004 to 25.03.2005 fall in the relevant financial year, but the Balance Sheet shows that the total repayment is made by assessee at Rs.9,38,281/-. But as per copy of bank statement of Oriental Bank of Commerce, Current Account No. CD-1661, the details of payment made to Indus Ind Bank are at Rs.7,31,000/- as against the claim of the assessee at Rs.9,38,231/-. But the AO noted that the total repayment comes to Rs.4,81,146/-. According to the AO, this quantum of undisclosed deposit of draft and cash for repayment of unsecured loan is at Rs.4,57,135/- and added to the total income of the assessee. Similar was the plea before CIT(A) but before CIT(A) it was further pleaded that once the turnover and the income was estimated and profit is also estimated at 5.35%, this unexplained expenditure related

2 Maa Transport Agency AY 2005-06 to business should not have been assessed separately. I find that originally the CIT(A) after rejecting the book result estimated gross profit at 5.35% assessing the total income at Rs.5,72,358/- against the gross turnover of Rs.1,06,98,282/-. This unsecured repayments and unsecured loan is a part of business transaction and no separate addition can be made with income as assessed by applying gross profit rate and after rejecting the book result. Accordingly, we delete this addition and allow this issue of assessee’s appeal.

Dated : 11th December, 2015 Jd.(Sr.P.S.) Copy of the order forwarded to:

APPELLANT – Maa Transport Agency, C/o Shri Kanchan Sadhu, 1. Advocate, Vivekananda Park, P.O. Ramkrishna Mission, Pin-713305, Dist. Burdwan. Respondent – ITO, Wd-2(2), Asansol. 2 The CIT(A), Asansol 3. 4. CIT , Asansol. 5. DR, Kolkata Benches, Kolkata