Alamgir Molla, Kolkata vs Department Of Income Tax

IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH: KOLKATA [Before Shri Mahavir Singh, JM & Shri Shamim Yahya, AM]

I.T.A Nos. 2006 & 2007/Kol/2009 Assessment Years: 2005-06 & 2006-07

Assistant Commissioner of Income-tax, Vs. Shri Alamgir Molla Central Circle-XXIII, Kolkata. (PAN: AJJPM8661M) (Appellant) (Respondent)

Date of hearing: 29.01.2015 Date of pronouncement: 03.02.2015

For the Appellant: Shri Varinder Mehta, CIT, DR For the Respondent: N o n e

आदेश /ORDER Per Shri Mahavir Singh, JM :

Both these appeals by revenue are arising out of common order of CIT(A), Central- III, Kolkata in Appeal No. 327 & 328/CC-XXIII/CIT(A)/C-III/08-09 dated 04.09.2009. Assessments were framed by ACIT, CC-XXIII, Kolkata u/s. 153C/144 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Years 2005-06 & 2006-07 vide his separate orders dated 31.12.2008.

2. The only common issue in these two appeals of revenue is against the order of CIT(A) restricting the disallowance of Gross sales/Gross receipts (not purchases as mentioned in the ground raised by revenue) at 20% as against 100% disallowed by AO.

3. We have heard Ld. Sr. DR and gone through facts and circumstances of the case. Briefly stated facts are that in both the AYs. 2005-06 & 2006-07 the AO adopted the gross receipt/sales at Rs.14,09,465/- and Rs.24,02,500/- respectively as income of the assessee. For this, AO noted that the assessee is unable to produce sale receipts and purchase vouchers for his garment trade and hence, he disallowed the entire gross sales/Gross receipts. Aggrieved, assessee preferred appeal before CIT(A), who restricted the disallowance of gross receipts/sales at 20% as against the disallowance made by AO at 100% for the reason that assessee's gross profit is ranging between 64.36% and 65% in AY 2005-06 and @ 65% in AY 2006-07. According to CIT(A), the entire sale/receipt cannot be the income of the assessee. Aggrieved revenue came in appeal before us.

4. We find that the AO has added back the entire sale/receipts out of which assessee has already declared profit @ 64.36% to 65% in AY 2005-06 and @ 65% in AY 2006-07. We 2 ITA No. 2006 & 2007/K/2009 Shri Alamgir Molla AY. 2005-06 & 2006-07

find that the assessee has already declared a very high gross profit on the total turnover and there is no scope for making further disallowance even though the assessee has not produced books of account or sale vouchers or bills. In term of the above, we confirm the order of CIT(A) in both the years restricting the disallowance at 20% on sales/receipts. Both the appeals of revenue are dismissed.

5. In the result, appeals of revenue are dismissed.

6. Order is pronounced in the open court on 03.02.2015

Sd/- Sd/-

(Shamim Yahya) (Mahavir Singh) Accountant Member Judicial Member Dated: 03rd February, 2015 Jd.(Sr.P.S.)

Copy of the order forwarded to:

1. APPELLANT - ACIT, CC-XXIII, Kolkata.

2 Respondent - Shri Alamgir Molla, 2 No. Bacharpara Road, Netaji Nagar, P/S. Thakurpukur, L.P. No.180/14/9/1, Kol-63. 3. The CIT(A), Kolkata 4. CIT Kolkata 5. DR, Kolkata Benches, Kolkata

/True Copy, By order,

Asstt. Registrar.