M/s. Biplab Biswas, Nadia v. I.T.O Wd - 2,Nadia, Nadia

ITA 1314/KOL/2013 | 2007-2008
Pronouncement Date: 27-11-2014

Appeal Details

RSA Number 131423514 RSA 2013
Assessee PAN AKUPB3001G
Bench Kolkata
Appeal Number ITA 1314/KOL/2013
Duration Of Justice 1 year(s) 6 month(s) 11 day(s)
Appellant M/s. Biplab Biswas, Nadia
Respondent I.T.O Wd - 2,Nadia, Nadia
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2014
Appeal Filed By Assessee
Bench Allotted SMC
Tribunal Order Date 27-11-2014
Assessment Year 2007-2008
Appeal Filed On 16-05-2013
Judgment Text
SM C IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA ( ) BEFORE ) [BEFORE SHRI MAHAVIR SINGH JM] / I.T.A NO. 1 314 /KOL/20 1 3 / ASSESSMENT YEAR : 20 0 7 - 0 8 SHRI BIPLAB BISWAS VS. INCOME - TAX OFFICER WD - 2 NADIA (PAN:A KUPB3001G ) ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 2 5 . 11 .201 4 DATE OF PRONOUNCEMENT: 28. 1 1 .201 4 FOR THE APPELLANT : SHRI P. S. GUPTA ADVOCATE FOR THE RESPONDENT : SHRI K. K. TRIPATHI JCIT SR. DR / ORDER THIS APPEAL BY ASSESSEE IS ARI SING OUT OF ORDER OF CIT(A) - X X XV I KOLKATA IN APPEAL NO. 916 /CIT(A) - XX X V I / KOL/W - 2 NADIA/09 - 10 DATED 2 8 . 0 1 .201 3 . ASSESSMENT WAS FRAMED BY ITO WARD - 2 NADIA U/S. 14 3(3) OF THE INCOME - TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 200 7 - 0 8 VIDE HIS ORDER DATED 31 .1 2 .20 0 9 . 2 . THE FIRST ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE AD - HOC ADDITION OF RS.10 000/ - AS AGAINST THE ADDITION MADE BY AO AT RS.37 932/ - BY WAY OF DISALLOWING THE EXPENSES INCURRED ON ACCOUNT OF CARRIAGE INWARD LOADING AND UNLOADING AND MISCELLANEOUS EXPENSES. 3 . I HAVE HEARD BOTH THE SIDES AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE AO HAS MADE ADDITION ON ACCOUNT OF FOLLOWING EXPENSES: I) INFLATED CARRIAGE INWARD : RS. 5 125.00 II) INFLATED LOADING/UNLOADING : RS.10 100.00 III) INFLATED EXPENSES AS DEBITED IN THE P/L ACCOUNT: : RS.22 707.11 FOR THE REASON THAT THE ASSESSEE COULD NOT PRODUCE THE DETAILS INCLUDING BILLS AND VOUCHERS. THE CIT(A) RESTRICTED THE DISALLOWANCE AT RS.10 000/ - BY OBSERVING AS UNDER: GROUND NOS. 2 3 4 AND 5 ARE AD HOC DISALLOWANCE OF EXPENSES OF RS.37 932/ - OUT OF CARRIAGE INWARD LOADING AND UNLOADING AND OTHER INFLATED EXPENSES. THESE EXPENSES WERE DISALLOWED ON AD HOC BASIS WITHOUT BRINGING MATERIAL FACTS ON RECORD. HENCE 2 ITA NO.1 314 /K/201 3 SHRI BIPLAB BISWAS AY 2007 - 08 OUT OF SUCH DISALLOWANCES OF RS.37 932/ - AS SUM OF RS.10 000/ - IS CONFIRMED AND BALANCE AMOUNT I.E. RS.27 932/ - IS DELETED. NOW BEFORE ME LD. COUNSEL FOR THE ASSESSEE CONCEDED THAT HE HAS NO O BJECTION TO THE ORDER OF CIT(A). EVEN HE COULD NOT PRODUCE ANY EVIDENCE DESPITE THE FACT THAT I HAVE GRANTED OPPORTUNITY TO HIM. ACCORDINGLY I CONFIRM THE ORDER OF CIT(A) RESTRICTING THE DISALLOWANCE OF EXPENSES AT RS.10 000/ - . THIS ISSUE OF ASSESSEE S APPEAL IS DISMISSED. 4. THE NEXT ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIGT(A) CONFIRMING THE ADDITION OF RS.56 249/ - BEING CLOSING BALANCE IN THE UBI BANK. FOR THIS ASSESSEE HAS RAISED FOLLOWING GROUND NO.3 AND 4: 3. FOR THAT THE LD. CIT(A) WAS NOT AT ALL JUSTIFIED IN CONFIRMING THE ADDITION OF THE CLOSING BANK BALANCE OF RS.56 249.00 WITHOUT PASSING A SPEAKING ORDER IN THIS REGARD & HE OUGHT TO HAVE CONSIDERED THAT THE HUMBLE APPELLANT DISCLOSED THIS BANK BALANCE IN THE ASSET SID E OF HIS REVISED AUDITED BALANCE SHEET FILED BEFORE THE LD. ITO AT THE ASSESSMENT STAGE. 4. FOR THAT THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THAT THE LD. ITO HAS NOT DETECTED ANY MISTAKE IN THE BOOKS OF ACCOUNT MAINTAINED BY THE HUMBLE APPELLANT & AS SUC H THE LD. ITO WAS NOT JUSTIFIED IN REJECTING THE REVISED AUDITED BALANCE SHEET DISCLOSING THE TRUE & ACTUAL STATE OF AFFAIRS OF THE BUSINESS OF THE APPELLANT. 5. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE AO MADE ADDITION OF RS.56 248/ - FOR THE REASON THAT THIS BANK ACCOUNT WAS NOT DISCLOSED IN THE BALANCE SHEET FILED WITH THE RETURN OF INCOME. THE ASSESSEE IS MAINTAINING THIS BANK ACCOUNT WITH UBI HABIBPUR BRANCH. THE OUTSTANDI NG BALANCE AS ON 13.03.2007 WAS AT RS.56 248/ - . THE ASSESSEE BEFORE AO FILED REVISED AUDITED BALANCE SHEET IN WHICH HE HAS INCLUDED THIS ACCOUNT AND FILED EXPLANATION STATING THAT THESE ASSETS ARE PERMISSIBLE BY THE CAPITAL ACCOUNT REFLECTED IN THE SAID BALANCE SHEET. THE ASSET SIDE IS BALANCED BY THE LIABILITIES OF THE ASSESSEE AND AS SUCH NO ADDITION SHOULD BE MADE UNDER THIS HEAD. THE AO HAS NOT ACCEPTED THE REVISED BALANCE SHEET AND EXPLANATION AND MADE ADDITION OF CLOSING BALANCE. AGGRIEVED ASSES SEE PREFERRED APPEAL BEFORE CIT(A) WHO ALSO CONFIRMED THE ADDITION BY OBSERVING IN PARA 6 AS UNDER: GROUND NO. 6 IS REGARDING UNDISCLOSED CLOSING BANK BALANCE OF RS.56 249/ - AND OTHER ADDITION OF RS.15 736/ - ON ACCOUNT OF INFLATED CAPITAL ADJUSTMENT. APPELLANT DID NOT FILE ANY PROPER REPLY DURING ASSESSMENT AND APPELLATE PROCEEDINGS. HENCE APPEAL OF APPELLANT ON THIS ISSUE IS DISMISSED. 6. I FIND FROM THE FACTS OF THE CASE THAT THE ASSESSEE HAS FILED A REVISED AUDITED BALANCE SHEET. THESE ASSETS A RE PERMISSIBLE AND BALANCE IS EQUALIZED BY CAPITAL ACCOUNT AS WELL AS LIABILITIES IN THE BALANCE SHEET AS ON 31.03.2007. THE AO COULD NOT POINT OUT ANY DEFECT IN 3 ITA NO.1 314 /K/201 3 SHRI BIPLAB BISWAS AY 2007 - 08 THE SAME AND HE HAS SUMMARILY REJECTED THE EXPLANATION OF THE ASSESSEE. I FIND NO REASON TO REJECT THIS EXPLANATION. ACCORDINGLY I DELETE THE ADDITION AND DIRECT THE AO TO RECOMPUTE THE INCOME ACCORDINGLY. THIS ISSUE OF ASSESSEE S APPEAL IS ALLOWED. 7 . IN THE RESULT APPEAL OF ASSESSEE IS PARTLY ALLOWED . 8 . ORDER IS PRONOUNCED IN THE OPEN C OURT ON 27.11.2014 SD/ - (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 27TH NOVEMBER 201 4 JD.(SR.P.S.) - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT SHRI BIPLAB BISWAS C/O P. S. GUPTA ADVOCATE 100 BANK LANE HATARPARA KRISHNAGAR DIST. NADIA PIN - 741 101 2 / RESPONDENT ITO WARD - 2 KOLKATA . 3 . ( )/ THE CIT(A) KOLKATA 4. 5. / A CIT KOLKATA / DR KOLKATA BENCHES KOLKATA / TRUE COPY / BY ORDER /ASSTT. REGISTRAR .