Susanta Biswas, Kolkata v. ITO, Ward - 1(1), Durgapur, Durgapur

ITA 2112/KOL/2009 | 2006-2007
Pronouncement Date: 01-12-2010

Appeal Details

RSA Number 211223514 RSA 2009
Assessee PAN AGEPB8054D
Bench Kolkata
Appeal Number ITA 2112/KOL/2009
Duration Of Justice 11 month(s) 17 day(s)
Appellant Susanta Biswas, Kolkata
Respondent ITO, Ward - 1(1), Durgapur, Durgapur
Appeal Type Income Tax Appeal
Pronouncement Date 01-12-2010
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 01-12-2010
Date Of Final Hearing 21-04-2010
Next Hearing Date 21-04-2010
Assessment Year 2006-2007
Appeal Filed On 14-12-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL BEN CH A KOLKATA () BEFORE . . . . . . . . SHRI B.R.MITTAL JUDICIAL MEMBER. ! ! ! ! /AND . .. .'# '#'# '#. .. . $% SHRI C.D. RAO ACCOUNTANT MEMBER !& !& !& !& / ITA NO. 2112/KOL/2009 '( )* / ASSESSMENT YEAR : 2006-07 ( - / APPELLANT ) SUSANTA BISWAS (PAN:AGEPB 8054D) - ' - - VERSUS - (/0 -/ RESPONDENT ) ITO WARD-1(1) DURGAPUR - 1 2 $/ FOR THE APPELLANT: SHRI H.S.BHATTACHARJEE /0 - 1 2 $ / FOR THE RESPONDENT : SHRI PIYUSH KOLHE $3 / ORDER ( . .. .'# '#'# '#. .. . ) $% PER SHRI C.D.RAO A.M . THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ORDER OF THE C.I.T.(A) DURGAPUR DATED 15.09.2009 FOR THE ASSESSMENT YEAR 2 006-07. 2. THE ONLY EFFECTIVE ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL IS RELATING TO THE ADDITION OF RS.3 70 240/-. 3. BRIEF FACTS OF THE ABOVE ISSUE ARE THAT WHILE D OING THE SCRUTINY ASSESSMENT THE AO MADE AN ADDITION OF RS.3 70 240/- BY OBSERVING T HAT THE ASSESSEE IS DOING CONTRACT WORK FOR SIMPLEX CONCRETE PILES (INDIA) LTD. FOR VE RIFICATION OF THE WORK DONE BY THE ASSESSEE LETTERS HAVE BEEN SENT TO THEM. IN REPLY TO THE SAME M/S. SIMPLEX CONCRETE PILES (INDIA) LTD. HAS SHOWN AN OUTSTANDING BALANCE OF RS.3 70 240/- AS ON 31.03.2006 HAD TO BE RECEIVED FROM THE ASSESSEE. WHEN THIS MAT TER HAS BEEN CONFRONTED TO THE ASSESSEE THE ASSESSEE HAS SUBMITTED THAT A LETTER VIDE NO.ITO.WD-1(1)/DGP/08- 09/SUSANTA BISWAS/290 DATED 22/12/2008 HAS BEEN ISS UED TO THE ASSESSEE FOR RECONCILIATION AND TO EXPLAIN WHY THIS AMOUNT SHALL NOT BE ADDED TO THE INCOME OF THE 2 ASSESSEE. THE ASSESSEES EXPLANATION TO THIS QUERY WAS THAT SINCE WE MAINTAIN THE ACCOUNTS ON THE BASIS OF ACTUAL PAYMENT THAT WE ARE RECEIVING YEAR TO YEAR AS PER TDS CERTIFICATE YOUR PETITIONER TRULY AND HONESTLY DISC LOSE THE TURNOVER AND IF ANY AMOUNT REMAINS OUTSTANDING PAYMENT THAT IS DEFINITELY RETE NTION MONEY OR OTHERWISE SECURITY DEPOSITS WHICH SHOULD NOT CONSIDER AS TURNOVER EXCE EDING THE AMOUNT WE HAVE ALREADY SHOWN. HOWEVER THE AO HAS NOT CONSIDERED THE SAME . THEREFORE THE AMOUNT RECEIVABLE SHOWN BY SIMPLEX CONCRETE PILES (INDIA) LTD. ADDED TO THE INCOME OF THE ASSESSEE. 4. ON APPEAL THE LD. CIT(A) HAS CONFIRMED THE ACTI ON OF THE AO BY OBSERVING AS UNDER: I HAVE CONSIDERED THE MATTER. IT IS AN ADMITTED FAC T THAT THE ASSESSEE IS FOLLOWING THE MERCANTILE SYSTEM OF ACCOUNTING. THER EFORE EVEN THOUGH THE GROSS RECEIPTS HAVE BEEN CREDITED IN FULL IN TH E P & L A/C. THE OUTSTANDING RETENTION MONEY SHOULD HAVE FIGURED IN THE BALANCE SHEET AS A RECEIVABLE. THE FACT THAT THIS IS NOT THE CASE WO ULD MEAN THAT THE BALANCE SHEET IS NOT TRUE AND CORRECT. UNDER THE CI RCUMSTANCES I AM OF THE OPINION THAT THE A.O. RIGHTLY ADDED THE AMOUNT OF RECEIVABLE NOT SHOWN IN THE BALANCE SHEET. THESE GROUNDS ARE THERE FORE DISMISSED. 5. AGGRIEVED BY THIS NOW THE ASSESSEE IS IN APPEAL BEFORE US. 6. AT THE TIME OF HEARING THE LD. COUNSEL APPEARI NG ON BEHALF OF THE ASSESSEE HAS SUBMITTED THE LETTER FROM SIMPLEX CONCRETE PILE S (INDIA) LTD. DATED 19.11.2010 WHEREIN THEY HAVE CONFIRMED THAT THEY HAVE RECEIVED THE AMOUNT OF RS.3 70 240/- FROM THE ASSESSEE ON VARIOUS DATES FROM 4.4.2006 TO 09.06.2006 BY WAY OF CHEQUES. THEREFORE HE REQUESTED TO DELETE THE ADDITION MADE AND CONFIRMED BY THE REVENUE AUTHORITIES. 7. ON THE OTHER HAND THE LD. D.R. APPEARING ON BE HALF OF THE REVENUE RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES AND HE HAS NO T OBJECTED FOR THE ACCEPTANCE OF THE ADDITIONAL EVIDENCES. 8. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF THE MATERIALS AVAILABLE ON RECORD WE ADMIT ADDITIONAL EVIDENCES FILED BY THE LD. COUNSEL FOR THE ASSESSEE. IT IS OBSERVED THAT THOUGH M/S. SIMPLEX C ONCRETE PILES (I) LTD. HAS 3 MENTIONED THAT THE PAYMENTS HAVE BEEN RECEIVED BY C HEQUE NO CHEQUE NUMBER HAS BEEN MENTIONED AND FURTHER THE DATES APPEARING IN THE LETTER ARE ALSO HAPHAZARDLY MENTIONED. THEREFORE THIS REQUIRES FRESH VERIFICAT ION. HENCE IN THE INTEREST OF JUSTICE WE SET ASIDE THE ORDERS OF THE REVENUE AUTHORITIES ON THIS ISSUE AND REMIT BACK THE SAME TO THE FILE OF THE AO TO RE-DECIDE THE ISSUE AFTER CONSIDERING THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE AND AFTER GIVING REASONABLE O PPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ORDER ACCORDINGLY. 9. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. 4 $3 5 6' 7 48 ORDER IS PRONOUNCED IN THE OPEN COURT ON 01.12.2010 SD/- SD/- . . . . . . . . B.R.MITTAL JUDICIAL MEMBER . .. .'# '#'# '#. .. . $% C.D. RAO ACCOUNTANT MEMBER ( (( (#% #% #% #%) )) ) DATE: 01.12.2010 MST(SR.P.S.) $3 1 /9 :$9);- COPY OF THE ORDER FORWARDED TO: 1. SUSANTA BISWAS PRIYADARSHINI APARTMENT (INDRADEEP HOUSING COMPLEX) BLOCK-B FL.NO.GD 111/A DUM DUM ROAD KOLKATA 7 00 074. 2. ITO WARD-1(1) DURGAPUR 3. THE CIT(A) 4. THE CIT 5 . DR KOLKATA BENCHES KOLKATA 09 // TRUE COPY $3'6/ BY ORDER DEPUTY /ASST. REGISTRAR ITAT KOLKATA BENCHES 4