Sujit Kumar Bhagat, Kolkata v. ITO, Ward - 28(2),

ITA 1688/KOL/2009 | 2006-2007
Pronouncement Date: 28-01-2011

Appeal Details

RSA Number 168823514 RSA 2009
Assessee PAN ADTPB8219J
Bench Kolkata
Appeal Number ITA 1688/KOL/2009
Duration Of Justice 1 year(s) 3 month(s) 29 day(s)
Appellant Sujit Kumar Bhagat, Kolkata
Respondent ITO, Ward - 28(2),
Appeal Type Income Tax Appeal
Pronouncement Date 28-01-2011
Appeal Filed By Assessee
Bench Allotted C
Tribunal Order Date 28-01-2011
Assessment Year 2006-2007
Appeal Filed On 29-09-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA (BEFORE HONBLE SRI B.R.MITTAL J. M. AND HONBLE SRI C.D.RAO A.M) I.T.A. NO. 1688/KOL/2009 A SSESSMENT YEAR -2006-07 SUJIT KUMAR BHAGAT (PAN ADTPB 8219 J) VS IN COME TAX OFFICER WARD 28(2) KOL (APPELLANT) (RESPONDENT) APPELLANT BY : SR I MIHIR BANDYOPADHYYA. RESPONDENT BY : SRI S. BHADRA. O R D E R PER SHRI B.R.MITTAL J.M. THE ASSESSEE HAS FILED THIS APPEAL FOR THE ASSE SSMENT YEAR 2006-07 AGAINST THE ORDER OF THE LEARNED C.I.T(A) DATED 23 RD JULY 2009 ON THE FOLLOWING GROUNDS : 1. THAT THE LEARNED C.I.T(A) XIV HAS GROSSL Y ERRED IN CONFIRMING THE ADDITION OF RS.43 57 135/- WHICH WAS RECEIVED BY THE APPE LLANT FROM HIS FATHER AS GIFT IN FAVOUR OF HIS HUF. 2. THAT THE LEARNED C.I.T(A)-XIV HAS GROSSLY E RRED IN PROVIDING RELIEF TO THE TUNE OF RS.14 14 000/- INSTEAD OF RS.14 24 000/- (OUT OF THE TOTAL ADDITION OF RS.60 70 784/-) RELATED TO THE REDEMPTION OF MUTU AL FUNDS AND RETURN OF CHEQUES. 3. THAT THE LEARNED C.I.T(A)- XIV HAS GROSSLY ERR ED IN TAXING THE SHORT TERM CAPITAL GAIN OF RS.2 99 649/- WHICH WAS RELATED TO HIS HUF. 4. THAT THE LEARNED C.I.T(A) XIV HAS GROSSLY ERR ED IN NOT RELYING ON THE EVIDENCES PRODUCED BEFORE HIM BEFORE ANY CROSS EXAM INATION AND BEFORE USING HIS MACHINERY FOR CROSS VERIFICATION. 5. THAT THE LEARNED C.I.T(A)-XIV HAS GROSSLY ERRED IN CONFIRMING THE CHARGING OF INTEREST U /S 234A 234B & 234C AS A RESULT OF ABOVEMENTIONED DISALLOWANCE. 6. THAT THE APPELLANT CRAVES LEAVE TO ADD OR ALTER AMEND AND MODIFY SUBSTITUTE DELETE AND/OR REVISE ALL OR ANY OF THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. RELEVANT FACTS GIVING RISE TO THIS APPEAL A RE THAT THE ASSESSEE IS AN INDIVIDUAL. ASSESSEE FILED THE RETURN FOR THE ASSESSMENT YEAR UNDER CONSIDERATION SHOWING TOTAL INCOME OF RS.2 33 159. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY. THE AO HAS STATED THAT AS PER AIR INFORMATION THE ASSESSEE IN VESTED IN S.B.I. AND H.S.B.C. MUTUTAL FUNDS AS UNDER : THE SBI MUTUAL FUND REPORTED AS UNDER : SR. NO. FOLIO NO. NAME OF THE INVESTORS AMOUNT DATE OF INVESTMENTS SCHEME NAME CHEQUE NO. BANK NAME & BRANCH 2 1. 5545961 SUJIT BHAGAT 300000/- 8/30/2005 MAGNUM GLOBAL FUND G 278235 ABN AMRO BANK CAMAC STREET 2. 5709577 SUJIT BHAGAT 300000/- 9/29/2005 MAGNUM MULTICAP FUND-G 022817 STANDARD CHARTERED BANK SHAKESPEARE THE HSBC GLOBAL ASSET MANAGEMENT REPORTED AS UNDE R : SR.NO. FOLIO NO. NAME OF INVESTOR HOLDING NATURE AMOUNT TRANSACTION DATE SCHEME NAME 1 265661 SUJIT BHAGAT SINGLE 300000 30/AUG/2005 00:00:00 HSBC INDIA OPPORTUNITIES FUND -GROWTH 2 268119 SUJIT BHAGAT SINGLE 100000 15/SEP/2005 00:00:00 HSBC EQUITY FUND- GROWTH 3 288626 SUJIT BHAGAT SINGLE 46000 14/DEC/2005 00:00:00 HSBC INDIA OPPORTUNITIES FUND- GROWTH 4 288627 SUJIT BHAGAT SINGLE 45000 14/DEC/2005 00:00:00 HSBC EQUITY FUND -GROWTH 5 288628 SUJIT BHAGAT SINGLE 44000 14/DEC/2005 00:00:00 HSBC MIDCAP EQUITY FUND- DIVIDEND 6 393644 SUJIT BHAGAT SINGLE 49000 23/FEB/2006 00:00:00 HSBC ADVANTAGE INDIA FUND- DIVIDEND 7 393643 SUJIT BHAGAT SINGLE 48000 23/FEB/2006 00:00:00 HSBC ADVANTAGE INDIA FUND DIVIDEND DETAILS OF PAYMENTS REGARDING PURCHASE INFORMED BY THE HSBC IS AS UNDER : PAYMENT DESCRIPTION INSTRUMENT NUMBER INSTRUMENT DATE ACCOUNT NUMBER ACCOUNT TYPE BANK NAME BRANCH NAME CHEQUE 011871 17-AUG-05 028025518006 SB HSBC LTD. NEW ALIPORE CHEQUE 321632 9-SEP-05 0141000146998 SB HDFC BANK LTD. 2/6 SARAT BOSE ROAD CHEQUE 104994 12-DEC-05 1534 SB CANARA BANK SHAKESPEARE SARANI CHEQUE 104993 11-DEC-05 1534 SB CANARA BANK SHAKESPEARE SARANI CHEQUE 026051 10-DEC-05 520010058013 SB ING VYSYA BANK MIDDLETON STREET CHEQUE 022824 26-JAN-06 33710186950 SB STANDARD CHARTERED SHAKESPEARE SARANI 3 BANK CHEQUE 278242 25-JAN-06 1004645 SB ABN AMRO BANK CAMAC STREET 3. THE AO HAS STATED THAT THE STANDARD CHARTERED B ANK WHILE SENDING THEIR STATEMENT OF ACCOUNT STANDING IN THE NAME OF THE AS SESSEE ALSO INFORMED THAT A/C NO. 33305044445 STANDS IN THE NAME OF M/S AMBAY IN WH ICH DOLA BHAGAT SURJIT BHAGAT (THE ASSESSEE) AND CHANDA KAMPOJ ARE JOINT HOLDERS. I T WAS ALSO INFORMED THAT THE ASSESSEE WAS ALSO HOLDER OF THE A/C NO. 33705049347 ALONG WITH KALAVATHI DEVI AND THE A/C STANDS IN THE NAME OF M/S ANGELINA OF WHICH THE ASSESSE E IS A PARTNER. THE AO HAS STATED THAT THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF DE POSITS IN THE SAID BANK A/CS MAINTAINED AT STANDARD CHARTERED BANK ABN AMRO BANK ING VYSYA B ANK AND CANARA BANK. THE AO HAS STATED THAT IN THE RETURN FILED THERE WAS NEI THER ANY REFLECTION OF MUTUAL FUND RELATING TO INVESTMENT AMOUNTING TO TOTAL SUM OF RS.15 00 000 WHICH WAS RECEIVED THROUGH A.I.R NOR THERE WAS ANY INCOME FROM CAPITAL GAI N ETC. IN THE BALANCE SHEET ONLY BANK A/C NO. 141000146998 WITH HDFC BANK IS MENTIONED. 4. ASSESSEE ALSO STATED BEFORE THE AO THAT THE AFO RESAID INVESTMENTS IN MUTUAL COMPANIES DETAILS OF WHICH ARE MENTIONED HEREINAB OVE TABLES AND ALSO STATED BY THE AO AT PAGES 1 & 2 OF THE ASSESSMENT ORDER WERE INTRO DUCED BY HUF. SINCE THE ASSESSEE FAILED TO FURNISH DETAILS OF MEMBERS OF HUF AND OTHER DETAILS OF VERIFYING OF RETURN IN THE NAME OF HUF PAN NO ETC. THE AO CONSIDERED T HE SAID DEPOSITS IN THE BANK ACCOUNT OF RS.60 70 784 AS INCOME OF THE ASSESSEE FROM UND ISCLOSED SOURCES. BEING AGGRIEVED ASSESSEE FILED APPEAL BEFORE THE LEARNED C.I.T(A). 5. THE ASSESSEE FILED AFFIDAVIT REGARDING THE SO URCE OF MONEY DEPOSITED IN THE BANK ACCOUNT CONTENTS OF WHICH HAVE BEEN STATED BY TH E LEARNED C.I.T(A) AT PAGES 3 & 4 OF THE IMPUGNED ORDER. SINCE ASSESSEE COULD NOT SUBSTANTI ATE THE SAME WITH ANY DOCUMENTARY EVIDENCE THE LEARNED C.I.T(A) REJECTED THE CONTEN TIONS OF THE ASSESSEE. HOWEVER LEARNED C.I.T(A) AFTER CONSIDERING THAT THE SUM OF RS.14 1 4 000 WAS THE REDEEMED AMOUNT OF MUTUAL FUNDS OR CHEQUE RETURNED OR WRONG ENTRY IN THE BANK ACCOUNT DEDUCTED THE SAID AMOUNT OF RS.14 14 000 FROM THE TOTAL ADDITION O F RS.60 70 784 MADE BY THE AO BECAUSE IT IS GETTING ADDED TWICE . THE C.I.T(A) HAS FURT HER STATED THAT OUT OF THE REMAINING AMOUNT OF RS.46 56 784 THERE IS AN AMOUNT OF RS.2 99 649 WHICH IS A SHORT TERM CAPITAL GAIN WITH PAYMENT OF SECURITY TRANSACTION TAX. TH EREFORE THIS AMOUNT OF RS.2 99 649 IS TO BE TAXED AT SPECIAL RATE AS PROVIDED IN LAW . LEARNED C.I.T(A) HAS STATED THAT BALANCE AMOUNT OF RS.43 57 135 (RS. 46 56 784 MINUS RS.2 99 649) IS TO BE TAXED AT NORMAL 4 RATE. ACCORDINGLY THE APPEAL OF THE ASSESSEE WAS PARTLY ALLOWED BY THE LEARNED C.I.T(A). HENCE THE ASSESSEE IS IN FURTHER APPEAL BEFORE T HE TRIBUNAL. 6. AT THE TIME OF HEARING THE LEARNED A.R. OF THE ASSESSEE HAS STATED THAT HE IS UNABLE TO ADDUCE ANY DOCUMENTARY EVIDENCE (DIRECT ) IN RESPECT OF THE SOURCE OF THE GIFT ALLEGEDLY RECEIVED BY THE ASSESSEE FROM HIS FATHER WHO IS NO MORE THE PERMISSION BE GIVEN TO WITHDRAW THIS APPEAL. THE LEARNED D.R. HAS NO OBJECTION TO THE ABOVE PRAYER OF THE LEARNED A.R. AND SUBMITTED THAT THE ADDITION CO NFIRMED BY THE LEARNED C.I.T(A) SHOULD BE CONFIRMED AS THE ASSESSEE IS NOT ABLE TO FIL E ANY DOCUMENT THAT HE HAS RECEIVED SUM OF RS.43 57 135 FROM HIS FATHER AS GIFT IN FAVOUR OF HIS HUF. 7. CONSIDERING THE SUBMISSIONS OF THE LEARNED A. R. AND THE FACTS OF THE CASE BEFORE US WE DO NOT FIND ANY INFIRMITY IN THE ORDER O F THE LEARNED C.I.T(A) IN DIRECTING THE AO THAT THE SUM OF RS.43 57 135 BE CONSIDERED AS INC OME OF THE ASSESSEE FROM UNDISCLOSED SOURCES AND BE TAXED AT NORMAL RATE AND WHEREAS THE AMOUNT OF RS.2 99 649 IS TO BE TAXED AS SHORT TERM CAPITAL GAIN AT CONCESSATIO NAL RATE BECAUSE THE ASSESSEE HAS PAID SECURITY TRANSACTION TAX. THEREFORE IN THE ABSENC E OF ANY DOCUMENTS BEFORE US AND/OR ANY OTHER FACTS ON RECORD WE UPHOLD THE ORDER OF T HE LEARNED C.I.T(A) BY REJECTING THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE. HENCE T HE APPEAL BY THE ASSESSEE IS DISMISSED. 8. IN THE RESULT THE ASSESSEES APPEAL IS DISMISSE D. ORDER PRONOUNCED IN OPEN COURT ON SD/- SD/- (C.D.RAO) (B.R.MITTAL) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : .01.2011 COPY TO :- 1. ITO WARD-28(2) KOLKATA 2. SRI SUJIT KUMAR BHAGAT 8 HO CHI MINH SARANI KOLKA TA. 3. C.I.T.(A) KOLKATA. 4. C.I.T. KOLKATA 5. D.R. ITAT KOLKATA. TRUE COPY BY ORDER BCD DY REGISTRAR I.T.AT. KOLKATA