Electronics Components Industries, ... vs Assessee

I .T.A . N o. 20 46 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 10 - 20 1 1

Page 1 of 3

IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA 'SM C' BENCH, KOLKATA

Before Shri George Mathan, Judicial M ember

I.T .A. No . 204 6 /KOL/ 2 01 4 Assess ment year : 2010 -2 01 1

M/s. Elec tronic s Comp onen ts Ind ustries,..........................A pp e lla nt 261 /76/77, G. T. Roa d (N orth), Sa lkia , Howra h -7 11 106 [PA N : AA A FE 7756 P]

-Vs.-

Joint Co mmissi oner of Income Ta x,................. ...................Resp ond e nt Ra ng e-48, Kolka ta , 3, Gove rnment Pla c e(West), Kol ka ta -700 001

Appeara nces by : Shri Sunil Sur ana, F. C. A. , f or the as sessee Shri K.L. Kanak, JCIT, Sr. D.R., for th e Department

Dat e of concluding t he hearin g : Feb ruary 25, 2015 Dat e of pr onouncing th e order : Feb ruary 25, 2015

Per Ge orge M athan:

This is an app eal filed by the assess ee a gain st th e order of ld. Commissioner of Inco me Ta x (Appea ls)-XXX, Kolkata in Appeal No. 87/CIT(A )-XXX/JCIT,R-48/2 012-13 date d 05. 08.2014 for the ass essment year 2 010-11.

2. Sh ri Sunil Su ran a, F .C.A., rep re sented o n behalf of the as ses se e and Sh ri K.L. Kanak, JCIT, Sr. D.R. rep resented on behalf of th e R evenue.

3. At the ti m e of hearin g, it was submitt ed b y the ld. A.R. th at the as se sse e is in th e b usiness o f el ect ronic goo ds and sp are p a rts. It wa s the submission that the A ssessin g Office r had esti mated the as se sse e's g ros s profit b y rejectin g th e assessee's boo ks of account s. It wa s th e submis sion that the n et p rofit of the asses see fo r the rel evant ass es sment year was I .T.A . N o. 20 46 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 10 - 20 1 1

Page 2 of 3

highe r than the e arlier year al so. It was the submis sion that the boo ks hav e not been reject ed. The esti mation o f the ass ess ee could not be done. It was th e submi ssion that th e o rde r o f the ld. CIT(Ap peals ) con fi rmin g the e sti mation may be rev ers ed.

4. In reply , ld. Sr. D.R. vehemently su pported th e ord er o f th e Assessing Officer and ld. CIT(Appe als).

5. Ld. A.R. also placed relian ce upon th e d ecision of th e Division Ben ch of this T ribunal in the ca se of SRK Tea Proces sin g Indu stries in ITA No. 1685/Kol/2009 dated 11.03.2011, wherein it has been held as follows :-

"In th e abs en ce of this finding and in the a bsence of r ejectio n of books o f acco unt, we are un able to accept that the Ass essing Officer h as rightly estimated th e gross profit. Accordingly, we are of the vi ew that th e lower au tho rities have err ed in ap plying gro ss profit rate o n th e basis of ea rlier years withou t r ejecting books of accou nt. W e allow the claim of the assess ee a nd this issue o f assessee's appeal is allowed".

6. I have considered the rival submis sion s. As it is notic ed that the issu e in this app eal i s squa rely covered by the deci sion of th e Division Bench of this Tribunal in the case o f SRK Tea Processin g Indust rie s referred to sup ra and as it i s noticed t hat the As sessin g Officer has not rejected the ass ess ee's book s of accoun t, the estimation of th e assessee's gross profit is not p ermissible. In the se circu mstances, the add ition m ade by the Ass es sin g Office r and a s confi rmed by the ld. CIT(Appeals) by estim atin g the a sse ss ee's gross p ro fit stands d elet ed.

7. In the result, the appeal filed by the ass essee is allowed.

Orde r p ronounced in th e open Co urt on 25 t h Feb rua ry, 2015.

Sd/-

George Mathan (Judicial M embe r) Kolkata, th e 25 t h day of Feb ruary , 2015 I .T.A . N o. 20 46 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 10 - 20 1 1

Page 3 of 3

Co pies to : (1) M/s. Elec tronic s Comp onen ts Ind ustries, 261 /76/77, G. T. Roa d (N orth), Sa lkia , Howra h -7 11 106

(2) Joint Co mmissi oner of Income Ta x, Ra ng e-48, Kolka ta , 3, Gove rnment Pla c e(West), Kol ka ta -700 001

(3) Comm iss ioner of Income-T ax (Appeal s ) (4) Com mis sioner of Incom e Tax (5) The Depar tmental R epr es entative (6) Guard Fil e By order

Assistant Registrar Income Tax App ellate Tribunal Kolkata Ben ch es, Kolkata Laha/Sr. P.S.