Sri Samiran Saha, Nadia v. ITO, Ward - 2, Nadia, Nadia

ITA 2133/KOL/2009 | 2006-2007
Pronouncement Date: 02-07-2010

Appeal Details

RSA Number 213323514 RSA 2009
Assessee PAN AVLPS9786R
Bench Kolkata
Appeal Number ITA 2133/KOL/2009
Duration Of Justice 6 month(s) 15 day(s)
Appellant Sri Samiran Saha, Nadia
Respondent ITO, Ward - 2, Nadia, Nadia
Appeal Type Income Tax Appeal
Pronouncement Date 02-07-2010
Appeal Filed By Assessee
Bench Allotted C
Tribunal Order Date 02-07-2010
Date Of Final Hearing 14-05-2010
Next Hearing Date 14-05-2010
Assessment Year 2006-2007
Appeal Filed On 18-12-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH - C KOLKATA ( ) BEFORE . . SHRI B.R.MITTAL JUDICIAL MEMBER. /AND . . SHRI C.D. RAO ACCOUNTANT MEMBER . / I.T.A.NO. 2133/KOL/2009 / ASSESSMENT YEAR 2006 - 07 SRI SAMIRAN SAHA PGDS BRICKS VILL: SABDALPUR P.O.ARANGHATA DIST. NADIA PAN AVLPS 9786 R - - - VERSUS - . INCOME - TAX OFFICER WARD 2 NADIA. ( / A PPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI S.BANDYOPADHYAY & D.CHATTERJEE ARS / FOR THE RESPONDENT : / SHRI PIYUSH KOLHE DR / ORDER . . SHRI B.R.MITTAL JUDICIAL MEMBER. THE ASSESSEE HAS FILED THIS APPEAL AGAINST ORDER DT.27.10.2009 OF THE COMMISSIONER OF INCOME - TAX (APPEALS) XXXVI KOLKATA FOR THE ASSESSMENT YEAR 2005 - 06. 2. DURING THE ASSESSMENT YEAR UNDER CONSIDERATION THE ASSESSEE HAD SHOWN A CLOSING STOCK AS ON 31.3.2006 AT RS. 10 42 272. FROM THE STATEMENT OF STOCK AS ON 17.4.2006 AS FURNISHED BY THE ASSESSEE TO THE UNITED BANK OF INDIA ARANGHATA BRANCH WAS RS.32 65 775. CONSIDERING THESE THE ASSESSING OFFICER WAS OF THE VIEW THAT THE ASSESSEE HAS MANIP ULATED CLOSING STOCK WHICH UNEXPLAINED INVESTMENT IS MADE FROM A SOURCE OF INCOME NOT DISCLOSED TO THE DEPARTMENT. ACCORDINGLY HE ADDED THE DIFFERENTIAL AMOUNT OF RS.22 23 503 ( I.E. RS.32 65 775 RS.10 42 272) TO THE TOTAL INCOME OF THE ASSESSEE. THE S AID ADDITION HAS BEEN CONFIRMED BY THE LEARNED CIT(A). THIS IS THE ONLY SUBJECT MATTER OF APPEAL FILED BY THE ASSESSEE HERE BEFORE THE TRIBUNAL. 3. THE LEARNED AR OF THE ASSESSEE CONCEDED THAT THE STATEMENT SUBMITTED BEFORE THE BANK WAS INFLATED. HE CONTE NDED THAT THE CLOSING STOCK AT THE END OF THE / I.T.A.NO.2133/KOL/2009 2 YEAR I.E. 31.3.2006 WAS RS.10 42 272 WHICH IS SUPPORTED BY THE TAX AUDIT REPORT. THE STOCK STATEMENT SUBMITTED BEFORE THE BANK WAS AS ON 17.4.2006 SHOWING STOCK AT 32 65 775 AND THE SAID INCREASE WAS DUE TO AD DITION OF THE PRODUCTION FROM 1.4.2006 TO 17.4.2006. HE FURTHER SUBMITTED THAT MERELY ON THE BASIS OF THE BANK STATEMENT THE ADDITION COULD NOT BE MADE AND IN SUPPORT HE PLACED RELIANCE ON VARIOUS DECISION INTER ALIA THE DECISION IN THE CASE S OF ASHOK K UMAR V. ITO (201 CTR J & K) 178. CIT V. APCOM COMPUTER (P) LTD [292 ITR 63) (MAD)] CIT V. DAS INDUSTRIES [303 ITR 199 (ALL)] CIT V. ACROW INDIA LTD [298 ITR 447 (BOM)] CIT V. RAMA ENGINEERING WORKS [(313 ITR 312 (KAR)] CIT V. SRI PADMAVATHI COTTON MI LLS [236 ITR 340 (MAD)] UNITED COMMERCIAL BANK V. CIT [240 ITR 355 (SC)] CIT V. N.SWAMY [241 ITR 363 (MAD)] AND CIT V. LAXMI ENGINEERING INDUSTRIES [308 ITR 279 (RAJ)]. THE LEARNED AR OF THE ASSESSEE FURTHER CONTENDED THAT WITHOUT PREJUDICE TO THE ABOVE THE PRODUCTION FROM 1.4.2006 TO 17.4.2006 BE CONSIDERED WHILE CALCULATING THE DEFICIENCY IN STOCK AS SHOWN TO THE BANK AS ON17.4.2006 AND AS SHOWN IN THE BOOKS OF ACCOUNT AS ON 31.3.2006 . 4. THE LEARNED DR ON THE OTHER HAND SUBMITTED THAT THE CLOSING STOCK SHOWN AS ON 31.3.2006 IS RS.10 42 072 AND THERE COULD NOT BE A PRODUCTION WITH A PERIOD OF 17 DAYS TO THE EXTENT SO AS TO INCREASE THE STOCK POSITION AS ON 17.4.2006 TO RS.32 65 775. HE FURTHER SUBMITTED THAT THE STOCK STATEMENT SUBMITTED BY THE ASSE SSEE TO THE BANK SHOULD BE ACCEPTED AS CORRECT AND IN SUPPORT HE PLACED RELIANCE ON THE DECISION IN THE CASE OF RECON MACHINE TOOLS P. LTD V. CIT [286 ITR 637 (KAR)]. THE LEARNED DR FURTHER SUBMITTED THAT EVEN BENEFIT OF PRODUCTION FOR17 DAYS I.E. FROM 1 .4.2006 TO 17.4.2006 IS ALLOWED AS CLAIMED BY THE ASSESSEE IT COULD NOT BE MORE THAN RS.2.75 LAKHS AS THE PRODUCTION OF ONE MONTH COMES TO RS.5.50 LAKHS. HE SUBMITTED THAT THE ADDITION MADE BY THE AUTHORITIES BELOW SHOULD BE CONFIRMED BY GIVING BENEFIT OF PRODUCTION OF RS.2.75 LAKHS ONLY. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF THE LEARNED REPRESENTATIVES OF THE PARTIES. AS PER THE AUDITED ACCOUNTS THERE IS NO DISPUTE TO THE FACT THAT THE CLOSING STOCK AS ON 31.3.2006 IS RS.10 42 262. HOWEVER THE STOCK STATEMENT SUBMITTED BY THE ASSESSEE TO THE BANK SHOWS THE STOCK POSITION AS ON 17.4.2006 AT / I.T.A.NO.2133/KOL/2009 3 RS.32 65 775. A COPY OF STOCK STATEMENT SUBMITTED TO THE BANK IS PLACED ON RECORD AT PAGE 48 OF THE PAPER BOOK. THE BANK HAS STATED VIDE ITS LETTER DT.6.12. 2008 (COPY PLACED AT PAGE 48 OF THE PB) THAT THEY ACCEPTED THE STOCK POSITION AS SUBMITTED BY THE ASSESSEE AT RS.32 65 775. IT IS NOT E WORTHY THAT IT IS NOT THE CASE OF THE BANK THAT THEY INSPECTED THE PHYSICAL STOCK AS ON 17.4.2006 . BUT IT IS AN ADMITTED FACT THAT THE STOCK STATEMENT GIVEN TO THE BANK ARE MADE ON ESTIMATE BASIS AND FIGURES ARE INFLATED TO GET MORE CREDIT WHICH IS ALSO NOT DISPUTED BY THE LEARNED AR OF THE ASSESSEE AT THIS STAGE. WE HAVE CAREFULLY GONE THROUGH THE DECISIONS RELIED ON BY TH E LEARNED AR OF THE ASSESSEE AND WE ARE OF THE CONSIDERED VIEW THAT MERELY ON THE BASIS OF STATEMENT SUBMITTED TO THE BANK ADDITION COULD NOT BE MADE BY CONSIDERING THE STOCK POSITION AS SHOWN IN THE BOOKS OF ACCOUNT AND THE STOCK POSITION SUBMITTED TO TH E BANK. BUT AT THE SAME TIME THE ASSESSEE CANNOT TAKE ANY ADVANTAGE OF HIS OWN ACT OF OMISSION AND COMMISSION. WHEN THE ASSESSEE HAS PREPARED THE STATEMENT HIMSELF HE CANNOT DISPUTE THE CORRECTNESS OF THE SAME PARTICULARLY WHEN THE SAID STATEMENT HAS BEE N SUBMITTED TO A PUBLIC BANK AND HAS TAKEN THE ADVANTAGE BY TAKING MORE CREDIT FROM THE BANK. HOWEVER WE AGREE WITH THE LEARNED D R OF THE ASSESSEE THAT WHEN THE AUDITED ACCOUNTS SHOWS A CLOSING STOCK AS ON 31.3.2006 AT RS.10 42 272 WHEREAS THE STOCK SHOW N IN THE STATEMENT FURNISHED TO THE BANK AS ON 17.4.2006 AT RS.32 65 775 IT IS QUITE IMPOSSIBLE THAT THE ASSESSEE HAD AN ADDITION TO THE STOCK OF RS.22 23 503 BY WAY OF PRODUCTION FROM 1.4.2006 TO 17.4.2006. FURTHER THE ASSESSEE HAS NOT PRODUCED ANY EVID ENCE TO SHOW THAT THE PRODUCTION FROM 1.4.2006 TO 17.4.2006 WAS ACTUALLY OF RS.22 23 503. AT THE SAME TIME THE STOCK STATEMENT SUBMITTED BY THE ASSESSEE TO THE BANK COULD NOT BE IGNORED ALTOGETHER PARTICULARLY WHEN ASSESSEE HAS ALSO GIVEN BREAK UP OF QUAN TITY AND QUALITY OF BRI CKS AS IS OBSERVED FROM PAGE 4 9 OF THE PB. AS ALREADY NOTED ABOVE THE STOCK STATEMENT FURNISHED BY THE ASSESSEE BEFORE THE BANK WAS BY WAY OF INFLATED FIGURES AND IN OTHER WORDS BY WAY OF ESTIMATION OF STOCK AS ON 17.4.2006. CONS IDERING THE ABOVE FACTS THAT THE ASSESSEE WOULD HAVE ACQUIRED STOCK BY WAY OF PRODUCTION FROM 1.4.2006 TO 17.4.2006 AND ALSO GIVING BENEFIT OF INFLATION OF STOCK STATEMENT SUBMITTED TO THE BANK WE ESTIMATE THE UNDERSTATEMENT OF STOCK AS ON 31.3.2006 AT RS .12 00 000. THEREFORE WE RESTRICT THE ADDITIO N TO RS.12 00 000 AS AGAINST / I.T.A.NO.2133/KOL/2009 4 RS.22 23 503 MADE BY THE A.O. AND CONFIRMED BY THE LEARNED CIT(A) ON THIS COUNT AND THUS ALLOW THE APPEAL OF THE ASSESSEE IN PART. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 02.07.2010 SD/ - SD/ - ( . . ) (C.D. RAO) ACCOUNTANT MEMBER ( . . ) ( B.R.MITTAL ) JUDICIAL MEMBER ( ) DATE : 02.07.2010 - COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT : SRI SAMIRAN SAHA PGDS BRICKS VILL: SABDALPUR P.O.ARANGHATA DIST . NADIA 2 / THE RESPONDENT - INCOME - TAX OFFICER WARD 2 NADIA. 3. / THE CIT 4. ( )/ THE CIT(A) 5. / DR KOLKATA BENCH 6. GUARD FILE . / TRUE COPY / BY ORDER / DEPUTY REGISTRAR . ( /) H.K.PADHEE / SNR.PRIVATE SECRETARY.