ANITA BASAK, Nadia v. D.C.I.T., Circle-Nadia, Nadia

ITA 2136/KOL/2009 | 2006-2007
Pronouncement Date: 08-04-2010

Appeal Details

RSA Number 213623514 RSA 2009
Assessee PAN AHBPB7104J
Bench Kolkata
Appeal Number ITA 2136/KOL/2009
Duration Of Justice 3 month(s) 17 day(s)
Appellant ANITA BASAK, Nadia
Respondent D.C.I.T., Circle-Nadia, Nadia
Appeal Type Income Tax Appeal
Pronouncement Date 08-04-2010
Appeal Filed By Assessee
Bench Allotted C
Tribunal Order Date 08-04-2010
Date Of Final Hearing 08-04-2010
Next Hearing Date 08-04-2010
Assessment Year 2006-2007
Appeal Filed On 21-12-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [BEFORE HONBLE SRI D. K. TYAGI JM & HONBLE SRI B . C. MEENA AM] I.T.A. NO. 2136/KOL/2009 ASSESSMENT YEAR :2006-07 SMT. ANITA BASAK -VS- DEPUTY COMMISSIONER OF I NCOME-TAX (PA NO.AHBPB 7104 J) CIRCLE-NADIA NADIA (APPELLANT) (RESPONDENT) APPELLANT BY : SRI P. K. BANIK RESPONDENT BY : MRS. JYOTI KUMARI O R D E R PER D. K. TYAGI JM : THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER OF THE LD. CIT(A) KOLKATA DATED 27.11.2009 FOR ASSESSMENT YEA R 2006-07 IN SUSTAINING THE DISALLOWANCE OF PURCHASES OF RS.12 33 547/-. 2. FACTS OF THE CASE ARE THAT THE ASSESSEE IS A DE ALER IN CLOTH AND SAREES. THE AO DURING THE ASSESSMENT PROCEEDINGS TO EXAMINE THE C ORRECTNESS OF THE PURCHASES MADE ENQUIRIES WITH THE SUPPLIERS OF THE ASSESSEE AND OB TAINED ACCOUNT COPIES OF THE ASSESEE AS APPEARING IN THE BOOKS OF ACCOUNTS OF THE SUPPLI ERS. ON VERIFICATION HE FOUND THAT THERE WERE DISCREPANCIES IN RESPECT OF THE AMOUNTS SHOWN AS OPENING BALANCES PURCHASES PAYMENTS AND CLOSING BALANCES BETWEEN TH E AMOUNTS ADMITTED IN THE RETURN OF INCOME AND THE AMOUNTS APPEARING IN THE ACCOUNT COPIES OBTAINED FROM THE SUPPLIERS. IT WAS FURTHER FOUND THAT SUMMONS ISSUED TO 13 SUPP LIERS HAVE RETURNED UN-SERVED WITH POSTAL REMARKS THAT THEY ARE NOT AVAILABLE AT THE G IVEN ADDRESS. THE ASSESSING OFFICER ALSO NOTED THAT THERE WAS NO RESPONSE FROM THE 10 A LLEGED SUPPLIERS EVEN THOUGH SUMMONS WERE SERVED ON THEM. FURTHER THE ENQUIRIES MADE BY THE INSPECTOR OF THE INCOME TAX REVEALED THAT 10 ALLEGED SUPPLIERS WERE NOT TRACEABLE. SINCE THE ASSESSEE HAS CLAIMED TO HAVE PURCHASED FROM THE ABOVE 23 SUPPLIE RS (10+13) DURING THE YEAR FOR A SUM OF RS.12 08 133/- WHICH WAS SHOWN AS PAID THE ASSESSING OFFICER HAS ISSUED A SHOW CAUSE NOTICE TO THE ASSESSEE. NOT SATISFIED WITH TH E EXPLANATION OF THE ASSESSEE THE AO TREATED RS. 12 33 547/- AS BOGUS PURCHASES AND ADDE D THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. THE RELEVANT PORTION OF THE ASSTT. ORDER WAS REPRODUCED BY THE LD. CIT(A) IN HIS ORDER. IN APPEAL THE LD. CIT(A) CONFIRMED TH E ACTION OF THE AO. BEING FURTHER AGGRIEVED NOW THE ASSESSEE IS IN APPEAL BEFORE US. 2 3. AT THE TIME OF HEARING BEFORE US THE LD. COUNSE L FOR THE ASSESSEE SUBMITTED THAT THE AO WHILE MAKING THIS ADDITION HAS ALSO OBSERVED THAT ASSESSEE HAS NOT MAINTAINED/FURNISHED ANY QUANTITATIVE DETAILS REGAR DING THE PURCHASES AND SALES IN ORDER TO CORRELATE BETWEEN THE SALES AND PURCHASES FROM T HE 23 SUPPLIERS/CREDITORS. THIS OBSERVATION OF THE AO IS FACTUALLY INCURRED AS IS C LEAR FROM THE AUDIT REPORT OF THE ASSESSEE SUBMITTED ALONG WITH THE RETURN OF INCOME WHICH IS AVAILABLE IN THE PAPER BOOK PAGES 9 AND 17 CLEARLY SHOWS THAT THE ASSESSEE HAS GIVEN QUANTITATIVE DETAILS IN RESPECT OF SAREES PURCHASED. HE FURTHER SUBMITTED THAT BEF ORE THE LD. CIT(A) ALL THE 23 PARTIES HAVE FILED AFFIDAVITS IN REPLY TO THE NOTICES U/S. 131 ISSUED TO THEM BY THE AO CONFIRMING THE SUPPLY MADE BY THEM TO THE ASSESSEE ON WHICH REMAND REPORT FROM THE AO WAS ALSO OBTAINED AND THE AO WITHOUT MAKING ANY ENQUIRY WHATSOEVER IN RESPECT OF THE AFFIDAVITS OF THE SUPPLIERS HAS ONLY REITERATED WHAT WAS MENTIONED BY HIM IN THE ASSESSMENT ORDER WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND FAIR PLAY. THE LD. CIT(A) WAS ALSO NOT JUSTIFIED IN ACCEPTING THE REMA ND REPORT AND DISMISSING THE APPEAL OF THE ASSESSEE. 4. LD. DR ON THE OTHER HAND RELIED ON THE ORDERS OF THE LOWER AUTHORITIES AND PRAYED BEFORE THE BENCH TO CONFIRM THE ACTION OF TH E LD. CIT(A). 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORDS WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE AO WAS NOT JUSTIFIED IN MAKING THIS ADDITION BY OBSERVING THA T QUANTITATIVE DETAILS OF THE SAREES WERE NOT MAINTAINED BY THE ASSESSEE OR WERE NOT FU RNISHED TO THE AO AS IS CLEAR FROM THE AUDIT REPORT OF THE ASSESSEE FILED ALONG WITH T HE RETURN AND IS ALSO AVAILABLE IN THE PAPER BOOK. WE FURTHER FIND THAT LD. CIT(A) WHILE DECIDING THE APPEAL OF THE ASSESSEE HAS OBSERVED AS UNDER : DURING THE COURSE OF HEARING THE A/R FURNISHED LET TERS & AFFIDAVITS FROM THE ABOVE 23 ALLEGED SUPPLIERS. SINCE THESE AFFIDAVITS WERE NOT FILED BEFORE THE ASSESSING OFFICER VIDE THIS OFFICE LETTER DATED 8.5.2009 THE ASSESSING OFF ICER WAS ASKED TO EXAMINE THE SAME AND FURNISHED A REMAND REPORT. THE ASSESSING OFFICER I N HIS LETTER DATED 19.5.2009 HAS FURNISHED A REMAND REPORT WHEREIN HE MERELY REITERA TED WHAT WAS CONTAINED IN THE ASSESSMENT ORDER. IT IS CLEAR FROM THE ABOVE THAT NO ENQUIRY OR VERIF ICATION HAS BEEN DONE BY THE AO AND HAS ONLY REITERATED THE STAND TAKEN BY HIM DURING T HE ASSESSMENT PROCEEDING WHICH ACCORDING TO US IS NOT PROPER ON THE PART OF THE A O AND THE LD. CIT(A) SHOULD NOT HAVE 3 ACTED UPON SUCH REMAND REPORT. WE HOWEVER FEEL T HAT SINCE THE AFFIDAVITS AND THE LETTERS OF CONFIRMATION FILED BY THE SUPPLIERS REQU IRES VERIFICATION AT THE END OF THE AO THE MATTER IS RESTORED BACK TO HIS FILE TO PASS A F RESH ASSESSMENT ORDER AFTER MAKING NECESSARY VERIFICATION ON GIVING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THEREFORE THE APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES 7. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (B. C. MEENA) ( D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 8 TH APRIL 2010 COPY FORWARDED TO THE :- 1) SMT. ANITA BASAK DURGA SAREE CENTRE 2 NO. NUTA N FULIA (MATHPARA) P.O. FULIA COLONY DIST. NADIA PIN-741402. 2) DCIT CIRCLE-NADIA NADIA 3) CIT(A) KOLKATA 4) CIT KOLKATA. 5) D. R. ITAT KOLKATA. (TRUE COPY) BY ORDER DEPUTY REGISTRAR JD. (SR. P.S.) I.T.A.T. KOLKATA