ACIT, CC-1(1), kOLKATA, Kolkata v. M/s Jai Lokenath Flour Mills Pvt. Ltd., Kolkata

ITA 1488/KOL/2015 | 2012-2013
Pronouncement Date: 30-11-2017 | Result: Dismissed

Appeal Details

RSA Number 148823514 RSA 2015
Assessee PAN AABCJ9249C
Bench Kolkata
Appeal Number ITA 1488/KOL/2015
Duration Of Justice 1 year(s) 11 month(s) 14 day(s)
Appellant ACIT, CC-1(1), kOLKATA, Kolkata
Respondent M/s Jai Lokenath Flour Mills Pvt. Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 30-11-2017
Assessment Year 2012-2013
Appeal Filed On 16-12-2015
Judgment Text
IN THE INCOME TAX APPELLATE TR IBUNAL KOLKATA A BENCH KOLKATA [BEFORE SRI J. SUDHAKAR REDDY ACCOUNTANT MEMBER & SRI S.S. VISWANETHRA RAVI JUDICIAL MEMBER] I.T.A. NO. 1488/KOL/2015 ASSESSMENT YEAR: 2012-13 ASSISTANT COMMISSIONER OF INCOME TAX.. ....APPELLANT AAYKAR BHAWAN (POORVA) 110 SHANTIPALLY 3 RD FLOOR KOLKATA 700 107 M/S. JAI LOKENATH FLOUR.. ....RESPONDENT 103 PARK STREET ROOM NO. 5B 5 TH FLOOR KOLKATA 700 016 [PAN : AABCJ 9249 C] APPEARANCES BY: SHRI AVINASH MISHRA CIT APPEARED ON BEHALF OF THE ASSESSEE. SHRI K.K.CHHABARIA FCA APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : NOVEMBER 27 2017 DATE OF PRONOUNCING THE ORDER : NOVEMBER 30 2017 O R D E R PER J. SUDHAKAR REDDY :- THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) CENTRAL-20 KO LKATA (HEREINAFTER THE LD. CIT (A)) PASSED U/S 250 OF THE INCOME TAX ACT 1961 ( THE ACT) DT. 03/09/2015 FOR THE ASSESSMENT YEAR 2006-07. 2. THE ASSESSEE IS A COMPANY. A SEARCH & SEIZURE OP ERATION WAS CONDUCTED U/S 132 OF THE INCOME TAX ACT 1961 ON 17/01/2012 AT VA RIOUS PREMISES OF MANOHARLAL AGARWAL GROUP WHICH INCLUDED THE OFFICE OF THE ASS ESSEE. THE ASSESSEE IS IN THE BUSINESS OF MANUFACTURE AND TRADING OF FLOUR. 3. THE ASSESSEE MADE THE FOLLOWING DISCLOSURE:- DURING THE COURSE OF SEARCH AND SEIZURE OPERATION CERTAIN DOCUMENTS PERTAINING TO THE COMPANY WERE SEIZED FROM OUT PREMISES AT 103 PARK STREET 5 TH FLOOR ROOM NO. 5B KOLKATA 700016. BASED ON VARIOUS SEIZED D OCUMENTS AND THE TRANSACTIONS 2 I.T.A. NO. 1488/KOL/2015 ASSESSMENT YEAR: 2012-13 M/S. JAI LOKENATH FLOUR UNDERTAKEN IN F.Y. 2011-12 WE HEREBY OFFER A SUM O F RS.5 00 000/- AS OUR INCOME FOR THE F.Y. 2011-12 UP TO THE PERIOD OF SEARCH. WE HAVE BEEN CARRYING OUT REGULAR AND BONAFIDE TRAN SACTIONS. HOWEVER WE ARE NOT ABLE TO INSTANTLY PRODUCE ALL THE RELEVANT DOCUMENT ATION OR PAPERWORK WHICH MAY BE REQUIRED BY THE DEPARTMENT. HENCE TO DEMONSTRATE OUR CO OPERATIVE ATTITUDE AND TO AVOID NECESSARY LONG DRAWN LITIGATIONS WITH THE DEPARTMENT AND TO BUY PEACE WE ARE OFFERING AN ADDITIONAL INCOME OF RS.2 00 00 000 /- FOR THE F.Y. 2011-12 (INCLUDING RS.5 00 000/- BASED ON IMPOUNDED DOCUMEN TS) 3.1. THE ASSESSEE OFFERED RS.1 50 00 000/- AS ADDI TIONAL INCOME U/S 132(4). THE BALANCE OF RS.50 00 000/- WAS OFFERED AS ESTIMATED INCOME UP TO THE DATE OF SEARCH. THE ASSESSEE CLAIMED THAT WHILE OFFERING ESTIMATED INCOME UP TO THE DATE OF SEARCH DEPRECIATION OF RS.70 83 826/- WAS NOT TAKEN INTO ACCOUNT. IT WAS HIS CASE THAT IF DEPRECIATION AMOUNT IS IGNORED THE PROFIT ACTUALLY EXCEEDS RS.74 00 000/- AGAINST THE ESTIMATED PROFIT OF RS.50 00 000/- REPORTED DU RING THE COURSE OF SEARCH. THE ASSESSEE HAD FILED ITS RETURN OF INCOME OFFERING TH E RS.1 50 00 000/- DISCLOSED AS INCOME. THE ASSESSING OFFICER ADDED RS.50 00 000/- TO THIS RETURN FILED BY THE ASSESSEE ON THE GROUND THAT THE ASSESSEE BACKTRACKE D ON HIS STATEMENT AND THE DISCLOSURE WAS OF RS.2 00 00 000/- IS OVER AND ABOV E THE DISCLOSED INCOME LESS DEPRECIATION IN THE BOOKS OF ACCOUNT. THE ASSESSEE CARRIED THE MATTER IN APPEAL. 3.2. THE LD. FIRST APPELLATE AUTHORITY GRANTED REL IEF. 3.2. AGGRIEVED WITH THIS ORDER THE REVENUE FILED T HIS APPEAL ON THE FOLLOWING GROUND/S:- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE T HE CIT(A) ERRED IN ALLOWING DEPRECIATION ON DISCLOSURE MADE FOR THE CU RRENT YEAR. THE DISCLOSURE WAS MADE ON INCOME DETERMINED OVER AND A BOVE THE INCOME DISCLOSED IN THE BOOKS OF ACCOUNTS. THE ALLOWANCE O F DEPRECIATION RESULTED IN TOTAL INCOME TO BE REDUCED TO A SUM OF RS. 4 04 082/- ON A TOTAL DISCLOSURE OF RS.50 00 000/-. 4. WE HAVE HEARD SHRI AVINASH MISHRA CIT DR ON BEHALF OF THE REVENUE AND SHRI K.K.CHHABARIA THE LD. COUNSEL FOR THE ASSESSEE. 3 I.T.A. NO. 1488/KOL/2015 ASSESSMENT YEAR: 2012-13 M/S. JAI LOKENATH FLOUR 4.1. THE LD. CIT(A) AT PARA 5 OF HIS ORDER HAS HEL D AS FOLLOWS:- 5. DURING THE APPELLATE PROCEEDINGS THE AR HAS SUB MITTED WRITTEN SUBMISSIONS ALONG WITH COPIES OF IMPOUNDED THE BOOKS OF ACCOUNT AND EXPLANATION REGARDING DISCLOSURE MADE AT THE TIME OF SURVEY. THE AR HAS C ATEGORICALLY SUBMITTED THAT THE ASSESSEE HAS NOT RETRACTED FROM THE ASSESSMENT AND SURRENDER OF INCOME MADE BY ITS DIRECTOR MR RAKESH KUMAR AGARWAL. THE AR HAS FU RTHER SUBMITTED THAT AS DISCLOSED AT THE TIME OF SURVEY RS.L.5 CRORE AS UND ISCLOSED INCOME HAS BEEN OFFERED FOR TAXATION WITHOUT ANY ADJUSTMENT. HOWEVER RS.50 LAKHS WHICH WAS OFFERED AS AN ESTIMATED INCOME HAS ACTUALLY BEEN ON THE BASIS OF ESTIMATE ONLY. THE AR HAS BROUGHT ON RECORD THAT IN FACT THE ESTIMATED INCOME OF RS.50 LAKHS WAS NOT THE ACTUAL INCOME OF THE ASSESSEE RATHER THE ACTUAL INC OME WAS RS. 74 87 908/-. THUS THERE WAS NO REDUCTION IN THE DECLARED INCOME RATHE R THERE WAS AN INCREASE OF MORE THAN RS.24 LAKHS OVER AND ABOVE THE ESTIMATED INCOM E DECLARED ON THE BASIS OF IMPOUNDED DOCUMENTS AT THE TIME OF SURVEY. I HAVE G ONE THROUGH THE FINDING OF THE AO IN THE ASSESSMENT ORDER AND THE EXPLANATION/ SUB MISSIONS FILED BY THE AR. I FIND THAT THE ASSESSEE THROUGH ITS DIRECTOR DISCLOSED TH E AMOUNT OF RS.2 CRORE IN TWO PARTS. IN PART 1 RS..1.5 CRORE WAS OFFERED AS UNDIS CLOSED INCOME AND RS.50 LAKHS WAS OFFERED AS AN ESTIMATED INCOME OF THE DIRECTOR AND THE COMPANY UPTO THE DATE OF SURVEY (BASED ON THE BASIS OF IMPOUNDED DOCUMENTS). I FURTHER FIND THAT THE ASSESSEE COMPANY HAS OFFERED RS.L.5 CRORE AS IT IS. HOWEVER THE ESTIMATED INCOME OF RS.50 LAKHS HAS BEEN ENHANCED BY THE ASSESSEE TO RS . 74 87 908/-. I FIND NOTHING WRONG ON THE PART OF THE ASSESSEE AS THE ASSESSEE H AS SHOWN AN ENHANCED ACTUAL INCOME AGAINST THE DISCLOSED ESTIMATED INCOME. IN A NY CASE DEPRECIATION HAS TO BE ALLOWED AS PER THE PROVISIONS OF THE I T ACT 1961 IN CASE THE ASSESSEE IS SO ENTITLED FOR IT. ASESSEE'S CLAIM OF THE DEPRECIATION CANNOT BE DENIED. AS THE ASSESSEE HAS DECLARED MORE INCOME AS ACTUAL INCOME IN THE RETURN OF INCOME AGAINST THE ESTIMATED INCOME DECLARED AT THE TIME OF SURVEY. TH EREFORE AO'S ACTION OF FURTHER ADDITION OF RS.50 LAKHS IS NOT JUSTIFIED. ACCORDING LY ASSESSEE'S APPEAL ON GROUNDS NO 1 AND 2 ARE ALLOWED. 5. WE FIND NO INFIRMITY IN THIS ORDER. A PLAIN READ ING OF THE STATEMENT OF DISCLOSURE MADE BY THE ASSESSEE AT THE TIME OF SEAR CH DEMONSTRATES THAT HE HAS OFFERED RS.1.5 CRORES AS UNDISCLOSED INCOME AND RS. 50 LAKHS WAS OFFERED ONLY AS ESTIMATED REGULAR INCOME. THE ACTUAL INCOME EARNED WAS MORE THAN RS.50 LAKHS AND DEPRECIATION HAS TO BE ALLOWED ON SUCH INCOME. 4 I.T.A. NO. 1488/KOL/2015 ASSESSMENT YEAR: 2012-13 M/S. JAI LOKENATH FLOUR UNDER THESE CIRCUMSTANCES WE FIND NO INFIRMITY IN THE ORDER OF THE LD. FIRST APPELLATE AUTHORITY. ACCORDINGLY WE UPHOLD THE SAM E AND DISMISS THIS APPEAL OF THE REVENUE. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISS ED. KOLKATA THE 30 TH DAY OF NOVEMBER 2017. SD/- SD/- [ S.S. VISWANETHRA RAVI ] [ J. SUDHAKAR REDDY ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 30.11.2017 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. ASSISTANT COMMISSIONER OF INCOME TAX AAYKAR BHAWAN (POORVA) 110 SHANTIPALLY 3 RD FLOOR KOLKATA 700 107 2. M/S. JAI LOKENATH FLOUR 103 PARK STREET ROOM NO. 5B 5 TH FLOOR KOLKATA 700 016 3. CIT(A)- 4. CIT- 5. CIT(DR) KOLKATA BENCHES KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/ D.D.O. ITAT KOLKATA BENCHES