ITO, Ward - 49 (1), Kolkata, Kolkata v. Shri Probhat Golder, North 24 Parganas

ITA 1106/KOL/2011 | 2008-2009
Pronouncement Date: 05-11-2014

Appeal Details

RSA Number 110623514 RSA 2011
Assessee PAN AGIPG5014A
Bench Kolkata
Appeal Number ITA 1106/KOL/2011
Duration Of Justice 3 year(s) 2 month(s) 13 day(s)
Appellant ITO, Ward - 49 (1), Kolkata, Kolkata
Respondent Shri Probhat Golder, North 24 Parganas
Appeal Type Income Tax Appeal
Pronouncement Date 05-11-2014
Appeal Filed By Department
Bench Allotted C
Tribunal Order Date 05-11-2014
Assessment Year 2008-2009
Appeal Filed On 23-08-2011
Judgment Text
C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE /AND ! ) [BEFORE SHRI MAHAVIR SINGH JM & SHRI SHAMIM YAHYA AM] ' / I.T.A NO.1106/KOL/2011 #$ %&/ ASSESSMENT YEAR: 2008-09 INCOME-TAX OFFICER WD-49(1) KOLKATA. VS. SHRI P ROBHAT GOLDER (PAN: AGIPG5014A) (() /APPELLANT ) (*+()/ RESPONDENT ) DATE OF HEARING: 29.09.2014 DATE OF PRONOUNCEMENT: 05.11.2014 FOR THE APPELLANT: SHRI SNEHATPOL DUTTA JCIT SR. DR FOR THE RESPONDENT: SHRI S. M. SURANA ADVOCATE / ORDER PER SHRI MAHAVIR SINGH JM : THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A)-XXXII KOLKATA IN APPEAL NO. 141/CIT(A)-XXXII/10-11/49(1)/KOL DATED 31.03.2011. ASSESSMENT WAS FRAMED BY ITO WARD- 49(1) KOLKATA U/S. 143(3) OF THE INCOME-TAX ACT 1 961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2008-09 VIDE HIS ORDER DATED 27.12. 2010. 2. THE FIRST ISSUE IN THIS APPEAL OF REVENUE IS AGA INST THE ORDER OF CIT(A) IN DELETING THE ADDITION MADE BY AO ON ACCOUNT OF UNDISCLOSED BANK ACCOUNT. FOR THIS REVENUE HAS RAISED FOLLOWING GROUND NO.1: 1. THAT THE LD. CIT(A) ERRED IN DELETING THE ADDIT ION OF RS.26 63 535/- U/S. 69 OF THE I. T. ACT 196 1 ON ACCOUNT OF UNDISCLOSED BANK ACCOUNTS ONLY ON THE BASIS OF SUBMISSION OF THE ASSESSEE NOT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE . 3. BRIEFLY STATED FACTS ARE THAT THE AO FOUND THAT THE ASSESSEE IS MAINTAINING ONE SAVINGS BANK A/C NO. 548010100024772 AND ONE CURRENT A/C. NO. 5 48010200004657 WITH AXIS BANK LTD. BASIRHAT BRANCH. IN THESE TWO BANK ACCOUNTS THERE ARE TOTAL DEPOSITS OF RS.26 63 530/-. ACCORDING TO AO THESE BANK ACCOUNTS WERE NOT DISCLOSED BY TH E ASSESSEE ON THE BALANCE SHEET AS ON 31.03.2008 AND ACCORDINGLY ASSESSEE WAS REQUESTED TO EXPLAIN THE SOURCE OF DEPOSITS IN THE ABOVE BANK ACCOUNTS AMOUNTING TO RS.18 68 500/- AND RS.7 95 035/- IN TOTAL RS.26 63 535/-. THE ASSESSEE 2 ITA NO.1106/K/2011 SHRI PROBHAT GOLDER AY 2008-09 FILED EXPLANATION THAT THE ABOVE AMOUNTS WERE REFLE CTED IN THE BALANCE SHEET IN A COMPOSITE MANNER UNDER THE HEAD CASH AT BANK AND CASH IN HAND. HE SU BMITTED STATEMENT AS UNDER: A/C. NO.548010100024772 RS. 990.40 A/C. NO.548010200004657 RS. 433.65 CASH IN HAND RS.1024.16 THE ASSESSEE ALSO FILED RECONCILIATION STATEMENT R ECONCILING THE DEPOSITS WITH THE BOOKS OF ACCOUNT BUT THE AO STATED THAT THE ASSESSEE HAS GIVEN A NEW PICTURE OF HIS ACCOUNTS WHEN HE WAS CAUGHT WITH THESE TWO UNDISCLOSED ACCOUNTS. ACCORDINGLY HE AD DED THE ENTIRE DEPOSITS MADE IN THESE TWO ACCOUNTS AS UNEXPLAINED AT RS.26 63 535/-. AGGRIEV ED ASSESSEE PREFERRED APPEAL BEFORE CIT(A) WHO AFTER CONSIDERING THE SUBMISSIONS AND DETAILS F ILED BEFORE HIM RESTRICTED THE ADDITION AT RS.3000/- AND DELETED THE BALANCE ADDITION OF RS.26 60 535/- WITH FOLLOWING OBSERVATIONS: FROM THE PERUSAL OF THE LEDGER ACCOUNTS FROM THE A SSESSEES BOOKS OF ACCOUNT IT IS OBSERVED THAT THE ENTRIES IN THE TWO BANK ACCOUNTS MAINTAINE D BY THE ASSESSEE WITH THE AXIS BANK INFACT RELATE TO ASSESSEES BUSINESS TRANSACTIONS AND SUCH TRANSACTIONS ARE DULY RECORDED AND ACCOUNTED FOR BY THE ASSESSEE IN HIS BOOKS OF ACCOU NT. EVEN IF IT IS PRESUMED THAT THE ASSESSEE HAS NOT DSCLOSED THE BALANCES OF BOTH THE ABOVE ME NTIONED BANK ACCOUNTS IN HIS BALANCE SHEET THAT FACT PER SE WILL NOT RENDER SUCH ACCOUN TS AS CONCEALED ONES ESPECIALLY WHEN THE ENTRIES OF THOSE ACCOUNTS HAVE BEEN DULY ACCOUNTED FOR BY THE ASSESSEE IN HIS BOOKS OF ACCOUNT. THE A.O. HIMSELF HAS NOTED IN THE ASSESSMENT ORDER THAT THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE HAD ATTENDED AND FILED REQUISITE DETAILS B EFORE HIM WHICH MEANS THAT THERE WAS NO DEFAULT ON THE PART OF THE ASSESSEE IN FURNISHING T HE DETAILS REQUIRED BY THE A.O. THE A.O. HAS GIVEN NO FINDING THAT THE TRANSACTIONS IN THOSE TWO BANK ACCOUNTS WERE NOT RECORDED AND NOT ACCOUNTED FOR IN THE ASSESSEES BOOKS OF ACCOUNT. T HE A.O. ASSUMED BOTH THOSE ACCOUNTS TO HAVE BEEN CONCEALED BY THE ASSESSEE ONLY FOR THE RE ASON THAT THE BALANCES OF BOTH THOSE BANK ACCOUNTS WERE NOT REFLECTED IN THE BALANCE SHEET OF THE ASSESSEE. SECTION 69 OF THE ACT PROVIDES FOR DEEMING INVESTME NTS MADE BY THE ASSESSEE DURING A FINANCIAL YEAR TO BE ASSESSEES INCOME IF SUCH INVE STMENTS ARE NOT RECORDED IN THE BOOKS OF ACCOUNT MAINTAINED BY THE ASSESSEE AND THE ASSESSEE OFFERS NO EXPLANATION ABOUT THE NATURE AND SOURCE OF THE SAME. AS DISCUSSED ABOVE THE ENTRIES IN THE TWO BANK ACC OUNTS MAINTAINED BY THE ASSESSEE WITH AXIS BANK ARE FOUND TO BE ACCOUNTED FOR IN THE ASSESSEES BOOKS OF ACCOUNT THEREFORE THERE IS NO JUSTIFICATION IN TREATING THE AMOUNT OF TRANSACTION S IN THOSE ACCOUNTS AS ASSESSEES INCOME UNDER THE PROVISIONS OF SECTION 69 OF THE ACT. THER EFORE THE ADDITION OF RS.26 63 535/- MADE BY THE A.O. IS ERRONEOUS AND NOT SUSTAINABLE. HOWEVER IN HIS LETTER NO. DCIT/WARD-49(1)/REPORT/1 0-11/175 DATED 24.03.2011 THE A.O. HAS POINTED OUT THAT THOUGH THE ASSESSEE HAD C LAIMED THE BALANCE OF RS.433.65 ONLY IN THE A/C. NO. 548010200004657 WITH AXIS BANK BUT IN FACT THE BALANCE IN THAT ACCOUNT AS ON 31/03/2008 WAS RS.3 433.65. IN THIS REGARD THE ASSE SSEE SUBMITTED BEFORE THE A.O. THAT HE HAD ISSUED A CHEQUE FOR RS.3000/- WHICH HAD BEEN ACCOUN TED FOR IN THE BOOKS OF ACCOUNT BUT THE SAME WAS NOT ENCASHED. HOWEVER NO EVIDENCE FOR SUCH CLAIM WAS FILED BY THE ASSESSEE. DURING THE APPELLATE PROCEEDINGS ALSO NO EVIDENCE I N THIS REGARD WAS PRODUCED BY THE ASSESSEE THEREFORE SNCE THE SAID AMOUNT WAS NOT DISCLOSED BY THE ASSESSEE. ACCORDINGLY THE ADDITION MADE BY THE A.O. AS DISCUSSED ABOVE IS R ESTRICTED TO RS. 3 000/-. THE ASSESSEE GETS RELIEF OF RS 26 60 535/-. GROUNDS NO. 1 & 2 AR E HENCE PARTLY ALLOWED. 3 ITA NO.1106/K/2011 SHRI PROBHAT GOLDER AY 2008-09 AGGRIEVED NOW REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND FROM THE RECORDS THAT THE ASSESSEE HAS FILED B EFORE AO RECONCILED STATEMENT IN RESPECT TO ACCOUNT NO. 548010200004657 AND ALSO STATED BEFORE THE AO THAT THESE ACCOUNTS WERE REFLECTED IN THE BOOKS OF ACCOUNT AND EVEN DURING THE APPEAL PRO CEEDINGS BEFORE CIT(A) ASSESSEE REITERATED THAT BOTH THE ACCOUNTS MAINTAINED WITH AXIS BANK WERE DU LY ACCOUNTED FOR BY HIM IN HIS BOOKS OF ACCOUNT AND THE FINAL ACCOUNTS WERE PREPARED ON THE BASIS OF THESE TWO ACCOUNTS. HE CLAIMED THAT ALL THE ENTRIES IN THESE TWO BANK ACCOUNTS RELATE TO BU SINESS TRANSACTION ONLY. THE ASSESSEE PRODUCED COMPLETE BOOKS OF ACCOUNT BEFORE THE AO AS WELL AS BEFORE CIT(A). THE CIT(A) HAS GONE INTO LEDGER ACCOUNT EXTRACTING THE BANK STATEMENTS AND C OPY OF SALES ACCOUNT FROM HIS BOOKS OF ACCOUNT AND NOTED THAT THE ENTRIES DEPOSITS OF THESE TWO BA NK ACCOUNTS MAINTAINED BY THE ASSESSEE WITH AXIS BANK RELATE TO ASSESSEES BUSINESS TRANSACTIONS AND SUCH TRANSACTIONS ARE DULY RECORDED AND ACCOUNTED FOR BY THE ASSESSEE IN HIS BOOKS OF ACCOU NT. ON QUERY FROM THE BENCH THE LD. SR. DR COULD NOT NEGATE THE FINDING GIVEN BY CIT(A) AND EV EN NOW HE COULD NOT ARGUE ON THE ASPECT OF THE FACT THAT THESE TWO ACCOUNTS ARE INCORPORATED IN TH E BOOKS OF ACCOUNT AND THESE ACCOUNTS RELATE TO BUSINESS TRANSACTIONS OF THE ASSESSEE. ONCE THIS I S A FACTUAL POSITION WE ARE OF THE VIEW THAT THE CIT(A) HAS RIGHTLY DELETED THE ADDITION AND WE CONF IRM THE SAME. THIS GROUND OF REVENUES APPEAL IS DISMISSED. 5. THE NEXT ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) DELETING THE ADDITION MADE BY AO ON ACCOUNT OF SUPPRESSION OF LIABILITY T O THE EXTENT OF RS.42 931/-. FOR THIS REVENUE HAS RAISED FOLLOWING GROUND NO.2: 2. THAT THE LD. CIT(A) ERRED IN DELETING THE ADDIT ION OFRS.42 931/- ON ACCOUNT OF SUPPRESSION OF LIABILITY ONLY ON THE BASIS OF SUBMISSION OF THE ASSESSEE NOT CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE. 6. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE CLOSING BALANCE IN THE BALANCE SHEET AS ON 31.03.2008 WAS AT RS.1 73 256/- FOR THE CAR LOAN ACCOUNT I.E. LIABILITY SIDE. BUT THE AO AFTER GOING THROUGH THE STATEMENT OF BANK ACCOUNT OF INDUS IND BANK LTD. I.E. THE LOAN ACCOUNT NOTED THA T THE OPENING BALANCE OF CAR LOAN AFTER INITIAL PAYMENT OF RS.80 579/- REMAINS AT RS.2 59 621/-. T HE AO NOTED THAT THE PAYMENT OF INSTALLMENT DURING THE YEAR UNDER CONSIDERATION WAS RS.42 434/- AND ACCORDINGLY THE BALANCE SHOULD HAVE BEEN RS.2 16 187/- AS AGAINST THE DISCLOSED CLOSING BALA NCE OF RS.1 73 256/-. ACCORDING TO AO THIS IS SUPPRESSION OF LIABILITY TO THE EXTENT OF RS.42 931 /-. HENCE HE ADDED THIS TO THE RETURNED INCOME OF 4 ITA NO.1106/K/2011 SHRI PROBHAT GOLDER AY 2008-09 THE ASSESSEE. THE CIT(A) AFTER PERUSING THE LEDGER ACCOUNT OF CAR LOAN AND ASSESSEES CASH BOOK NOTED THAT PAYMENT OF CAR LOAN INSTALLMENTS ARE ROU TED THROUGH ASSESSEES CASH BOOK AND THE FIGURE OF CAR LOAN OF RS.1 73 256/- BEING CLOSING BALANCE WAS AS PER ASSESSEES BOOKS OF ACCOUNT. THE ASSESSEE FILED COMPLETE RECONCILIATION OF CAR LOAN ACCOUNT AND STATED THE SUM OF RS.42 931/- WAS PAID IN THREE INSTALLMENTS IN ADDITION TO REGULAR I NSTALLMENTS WHICH THE COMPANY MISSED TO SHOW IN THEIR STATEMENT AND DUE TO THAT DIFFERENCE AROSE. NOW THE ASSESSEE IN THE RECONCILIATION HAS SHOWN THIS ADDITIONAL PAYMENT OF RS.42 931/- IN THREE INS TALLMENTS IN ADDITION TO REGULAR INSTALLMENT WHICH PROVES THAT THE ACCOUNT IS TALLIED. IN TERMS OF TH E ABOVE CIT(A) ACCEPTED THE EXPLANATION OF THE ASSESSEE. WE FIND NO INFIRMITY IN THE ORDER OF CIT (A) AND HENCE THE SAME IS CONFIRMED. THIS GROUND OF APPEAL OF REVENUE IS ALSO DISMISSED. 7. IN THE RESULT APPEAL OF REVENUE IS DISMISSED. 8. ORDER PRONOUNCED IN OPEN COURT ON 05.11.2014 SD/- SD/- ! (SHAMIM YAHYA) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 5 TH NOVEMBER 2014 - #./ 0 JD.(SR.P.S.) 1 *2 3 2%4- COPY OF THE ORDER FORWARDED TO: 1 . () / APPELLANT ITO WARD-49(1) KOLKATA 2 *+() / RESPONDENT SHRI PROBHAT GOLDER TAKI ROAD BASIRH AT COLLEGE MIRZAPUR BASIRHAT 24 PGS. (N) 743412 3 . # ( )/ THE CIT(A) KOLKATA 4. 5. # / CIT KOLKATA 2:; *# / DR KOLKATA BENCHES KOLKATA +2 */ TRUE COPY #