Salman Mujeer Vs ITO (ITAT Bangalore)
Bangalore ITAT Restores 8% Profit Estimation on ₹2.52 Crore Export Turnover for Fresh Adjudication
The assessee carried out exports amounting to ₹2,52,44,434 during AY 2016-17 but did not file his return of income. Reassessment proceedings were initiated based on information flagged under the CBDT’s Risk Management Strategy.
During the proceedings, the assessee furnished his sales register, bank statements, VAT returns, audited financial statements and export invoices. However, as sufficient evidence supporting the income and expenditure was not produced, the AO completed the assessment on a best-judgment basis and estimated profit at 8% of the export turnover, resulting in an addition of ₹20,19,555.
The CIT(A) dismissed the appeal because the assessee did not respond to the hearing notices. Before the ITAT, the assessee appeared through an authorised representative and undertook to furnish all the documents necessary to substantiate the actual business income and expenses.
Considering the circumstances, the Tribunal granted the assessee another opportunity and restored the matter to the jurisdictional AO for de novo adjudication. The assessee was directed to furnish all supporting evidence and fully cooperate; failing this, the AO would be free to assess the income based on the material available on record.
The ITAT also condoned the 116-day delay in filing the appeal. It accepted the explanation that the CIT(A)’s notices and order had been sent to the consultant’s email address, due to which the assessee remained unaware of them.
List of Cases Discussed / Relied Upon
- Collector Land Acquisition, Ananth Nag vs. MST Katiji and others (Supreme Court), reported in 1987 SCR (2) 387.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
