ACIT, C.C. - XXIV, Kolkata, Kolkata v. Smt. Lekha Rani Gupta, Kolkata

ITA 2081/KOL/2010 | 2005-2006
Pronouncement Date: 31-01-2011 | Result: Dismissed

Appeal Details

RSA Number 208123514 RSA 2010
Assessee PAN AEBPG7227G
Bench Kolkata
Appeal Number ITA 2081/KOL/2010
Duration Of Justice 2 month(s) 11 day(s)
Appellant ACIT, C.C. - XXIV, Kolkata, Kolkata
Respondent Smt. Lekha Rani Gupta, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 31-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 31-01-2011
Assessment Year 2005-2006
Appeal Filed On 19-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH-B: KO LKATA [BEFORE HONBLE SHRI B.R. MITTAL J.M. & HONBLE SH RI C.D. RAO A.M] I.T.A. NO. 2081/KOL. /2010 ASSESSMENT YEAR : 2005-2006 ASSISTANT COMMISSIONER OF INCOME TAX -VS.- SMT . LEKHA RANI GUPTA KOLKATA CENTRAL CIRCLE-XXIV KOLKATA. (PAN : AEBPG 7227 G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.C. NAYAK SR. D.R. RESPONDENT BY : SHRI M. SATNALIWALA O R D E R PER SHRI B. R. MITTAL JUDICIAL MEMBER : THE DEPARTMENT HAS FILED THIS APPEAL FOR THE ASSES SMENT YEAR 2005-06 AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XX KOL KATA DATED 14.07.2010 ON THE FOLLOWING GROUND :- THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A.) HAS ERRED IN DELETING THE ADDITION OF RS.10 56 750/ - MADE ON ACCOUNT OF CESSATION OF LIABILITY UNDER SECTION. 41(1) OF THE ACT WITHOUT PROPER APPRECIATION OF THE EVIDENCE BROUGHT ON RECORD BY T HE ASSESSING OFFICER. 2. WE HAVE HEARD THE LD. REPRESENTATIVES OF BOTH TH E PARTIES AND PERUSED THE ORDERS OF AUTHORITIES BELOW. 3. AT THE TIME OF HEARING THE LD. DEPARTMENTAL REP RESENTATIVE RELIED ON THE ORDER OF ASSESSING OFFICER AND WHEREAS THE LD. AUTHORIZED RE PRESENTATIVE OF THE ASSESSEE RELIED ON THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS). 4. WE OBSERVE THAT THE ASSESSING OFFICER HAS MADE A N ADDITION OF RS.10 56 750/- ON THE GROUND THAT THE SAID LIABILITY HAS CEASED TO EXIST IN THE ASSESSMENT YEAR UNDER CONSIDERATION AS THE CREDITOR HAS NEVER APPROACHED THE ASSESSEE FOR HIS DUE. THEREFORE THE ASSESSING OFFICER MADE AN ADDITION OF RS.10 56 750/- UNDER SECTION 41 (1) OF THE INCOME TAX ACT. ITA NO. 2081/KOL./2010 2 5. IN THE FIRST APPEAL THE LD. COMMISSIONER OF INC OME-TAX (APPEALS) HAS DELETED THE SAID ADDITION BY OBSERVING THAT THE SAID LIABILITY IS BR OUGHT FORWARD FROM ASSESSMENT YEAR 2001-02 UNDER THE HEAD LOANS AND ADVANCES. THE ASSESSEE P RODUCED COPIES OF PROFIT & LOSS A/C. BALANCE-SHEET PERTAINING TO THE ASSESSMENT YEARS 20 01-02 TO 2005-06 SHOWING THE EXISTENCE OF THE ABOVE LIABILITY. THE LD. COMMISSIONER OF INCOME -TAX (APPEALS) HAS STATED THAT THE ASSESSING OFFICER HAS CONCLUDED THAT THE SAID LIABILITY HAS C EASED TO EXIST ON PRESUMPTIONS AND IS NOT SUPPORTED BY ANY MATERIAL ON RECORD. THE LD. COMMI SSIONER OF INCOME-TAX (APPEALS) HAS OBSERVED THAT WHEN THE ASSESSEE HAS CONTINUED TO SH OW THE AMOUNT OF LIABILITY IN THE BALANCE- SHEET AS PER DECISION OF THE HONBLE MADRAS HIGH C OURT IN THE CASE OF CIT VS.- TAMILNADU WAREHOUSING CORPORATION (2007) 292 ITR 310 (MAD.) THE SAID AMOUNT OF LIABILITY SHOWN IN THE BALANCE-SHEET IS NOT ASSESSABLE UNDER SECTION 41(1) OF THE ACT UNLESS AND UNTIL THERE IS A CESSATION OF LIABILITY. SINCE THERE IS NO MATERIAL ON RECORD TO SHOW THAT THE ASSESSEE HAS PAID OFF THE LIABILITY FROM HIS UNACCOUNTED SOURCES AND THAT IT NO LONGER EXISTS THE ACTION OF THE ASSESSING OFFICER TO MAKE THE ADDITION BY INVOKING THE PROVISIONS OF SECTION 41(1) ARE NOT ATTRACTED. 6. DURING THE COURSE OF HEARING THE LD. D.R. HAS N OT DISPUTED THE ABOVE FINDINGS OF THE LD. COMMISSIONER OF INCOME-TAX (APPEALS). THERE IS NO D ISPUTE TO THE FACT THAT THE SAID AMOUNT IS SHOWN UNDER THE HEAD LOANS AND ADVANCES SINCE ASS ESSMENT YEAR 2001-02 AND HAS ALSO BEEN SHOWN IN THE BALANCE-SHEET PERTAINING TO THE ASSESS MENT YEAR UNDER CONSIDERATION. WE AGREE WITH THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) T HAT WHEN THE LIABILITY IS APPEARING IN THE BALANCE-SHEET FOR THE PAST SEVERAL YEARS IT CANNOT BE PRESUMED THAT THE LIABILITY HAS CEASED TO EXIST SIMPLY BECAUSE THE ADDRESS OF THE OLD LOAN CR EDITOR WAS NOT FURNISHED BY THE ASSESSEE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD. COMMI SSIONER OF INCOME-TAX (APPEALS) IN DELETING THE SAID AMOUNT OF RS.10 56 750/- ADDED BY THE ASSE SSING OFFICER. WE UPHOLD HIS ORDER AND REJECT THE GROUND OF APPEAL TAKEN BY THE DEPARTMENT . 7. IN THE RESULT THE APPEAL FILED BY THE DEPARTMEN T IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31.01. 2011. SD/- SD/- [ C. D. RAO ] [ B.R. MITTAL ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31/ 01/ 2011 ITA NO. 2081/KOL./2010 3 COPY OF THE ORDER FORWARDED TO: 1. SMT. LEKHA RANI GUPTA 4 B.B.D. BAG EAST KOLKATA- 1. 2 ACIT CENTRAL CIRCLE-XXIV KOLKATA 3. CIT KOLKATA- 4. CIT(A)- KOLKATA 5. DR KOLKATA BENCHES KOLKATA (TRUE COPY) BY ORDER DEPUTY REGISTRAR I.T.A.T. KOLKATA. LAHA SR. P.S.