M/s. New Joy Guru Husking Mills, Burdwan v. ITO, Ward - 2(2)/Burdwan, Burdwan

ITA 233/KOL/2009 | 2005-2006
Pronouncement Date: 11-05-2010

Appeal Details

RSA Number 23323514 RSA 2009
Assessee PAN AAEFN6009L
Bench Kolkata
Appeal Number ITA 233/KOL/2009
Duration Of Justice 1 year(s) 2 month(s) 17 day(s)
Appellant M/s. New Joy Guru Husking Mills, Burdwan
Respondent ITO, Ward - 2(2)/Burdwan, Burdwan
Appeal Type Income Tax Appeal
Pronouncement Date 11-05-2010
Appeal Filed By Assessee
Bench Allotted C
Tribunal Order Date 11-05-2010
Date Of Final Hearing 11-05-2010
Next Hearing Date 11-05-2010
Assessment Year 2005-2006
Appeal Filed On 23-02-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH - C KOLKATA ( ) BEFORE . . SHRI D.K.TYAGI JUDICIAL MEMBER. /AND . . SHRI C.D. RAO ACCOUNTANT ME MBER . / I.T.A.NO. 233/KOL/2009 / ASSESSMENT YEAR 2005 - 06 M/S.NEW JOY GURU HUSKING MILL VILL & P.O. TORKANA DIST. BURDWAN. AAEFN 6009 L - - - VERSUS - . ITO WARD 2(2) BURDWAN. ( / A PPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI S.K.MUKHERJEE AR / FOR THE RESPONDENT : / SHRI P.KOLHE DR / ORDER . . SHRI C.D. RAO ACCOUNTANT MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINS T ORDER DT.27.11.2008 OF THE COMMISSIONER OF INCOME - TAX (APPEALS) FOR THE ASSESSMENT YEAR 2005 - 06. 2. AS THE GROUNDS APPEAL FILED ALONGWITH THE MEMORANDUM OF APPEAL WAS NARRATIVE THE ASSESSEE SUBMITTED REVISED GROUNDS OF APPEAL AND THE SAME READS AS UNDE R : THAT THE LD. COMMISSIONER (APPEAL) HAS ERRED IN LAW AS WELL FACTS BY SUSTAINING THE ADDITION OF RS.11 70 828 AS UNEXPLAINED CASH CREDIT BANK INTEREST OF RS.58 171 AND RS.10 000 U/S.40(3) 3. THE FACTS RELEVANT ARE THAT THE ASSESSEE DURING THE ASSES SMENT YEAR UNDER CONSIDERATION HAD GIVEN A LOAN OF RS.8 00 000 BY CHEQUE NO.100511 ON 22.9 .2004 AND A FURTHER SUM OF RS.2 00 553 TO ITS SISTER CONCERN M/S.JOY GURU RICE MILL. THE ASSESSEE HAD ALSO GIVEN LOAN OF RS.1 70 275 TO ONE MRITYUNJOY GORAI WHO WAS THE FATHER OF THE PARTNER SRI HEMANTA GOPRAI. IT WAS STATED THAT ALL THE ABOVE AMOUNTS HAVE BEEN REPAID DURING THE ASSESSMENT YEAR UNDER CONSIDERATION. IT WAS FURTHER / I.T.A.NO.233/KOL/2009 2 STATED THAT THE LOAN TO JOY GURU RICE MIOLL HAS TO BE TREATED AS LOAN TO PARTNER SRI HEM ANTA GORAI WHO WAS THE CREDITOR OF THE LOAN TO JOY GURU RICE MILL DUE TO THE FACT THAT MRITYNJOY GORAI WAS THE FATHER OF HEMANTA GORAI WHO WAS THE OWNER OF JOY GURU RICE MILL AND HEMANTA GORAI SUBSEQUIENTLY REPAID THE SAID LOAN GIVEN TO JOY GURU RICE MILL AND THAT HEMANTA GORAI REPAID THE SAID AMOUNT TO THE ASSESSEE FIRM IN CASH ON SEVERAL DATES AFTER RECEIVING OF THE FUND FROM HIS FATHER MRITYUNJOY GORAI. THE ASSESSING OFFICER OBSERVED THAT NO BOOKS OF ACCOUNTS IN RESPECT OF JOY GURU RICE MILL WERE PRODUCE D WITH SUPPORTING EVIDENCE. THE ASSESSING OFFICER FURTHER OBSERVED THAT HE FOUND FROM THE LEDGER COPY OF ACCOUNTS OF JOY GURU RICE MILL THAT THE SAID ACCOUNTS WERE MEANT FOR JOY GURU RICE MILL AND MRITYNUJOY GORAI. HE FURTHER OBSERVED THAT THE LEDGER OF C OPY OF THE JOY GURU RICE MILL INDICATES THAT CASH OF RS. 8 LAKHS AND RS.2 00 553 HAVE BEEN DEBITED THOUGH IN FACT THE REPAYMENT WAS MADE BY CHEQUE. SIMILARLY IN THE LEDGER COPY OF MRITYUNJOY GORAI SHOWS THAT THE SUM OF RS.1 70 275 WAS DEBITED TO CASH ACCO UNT WHICH IN FACT PAID BY CHEQUE DRAWN FROM CASH CREDIT ACCOUNT OF THE ASSESSEE FIRM. ON THE ABOVE OBSERVATION THE ASSESSING OFFICER CONCLUDED THAT THE REPAYMENT OF LOAN BY HEMANTA GORAI ON BEHALF OF MRITYUNJOY GORAI WAS FROM JOY GURU RICE MILL WAS NOTHIN G BUT AN AFTERTHOUGHT TO SUBSTANTIATE THE LOAN WITH SUPPORTING EVIDENCE AND THEREFORE HE TREATED THE SAME AS BOGUS. THEREFORE THE ASSESSING OFFICER TREATED THE TOTAL AMOUNT OF RS.11 70 828 (I.E. RS.8 00 000 + 2 00 553 AND 1 70 275) AS UNEXPLAINED CASH C REDIT AND ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE U/S.68 OF THE INCOME - TAXACT 1961. FURTHER THE ASSESSING OFFICER DISALLOWED THE CORRESPONDING INTEREST THEREON CALCULATED TO RS.58 171 ON THE TOTAL REPAYMENT OF RS.11 70 828. IN APPEAL THE LEARN ED CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. THE ASSESSING OFFICER MADE ANOTHER ADDITION OF RS.50 000 U/S.40A(3) OF THE ACT PAID TO JAGANNATH DAWAN VIDE BEARER CHEQUE NO.10054 ON 10.11.2004. THE LEARNED CIT(A) CONFIRMED THE SAME. 4. AT THE TIM E OF HEARING THE LEARNED AR OF THE ASSESSEE SUBMITTED BEFORE US THAT THE ADDITION OF RS.11 70 828 U/S.68 OF THE ACT AND ADDITION OF RS.58 171 ON ACCOUNT OF DISALLOWANCE OF CORRESPONDING INTEREST AND THE ADDITION OF RS.50 000 U/S.40A(3) HAVE BEEN MADE BY T HE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED / I.T.A.NO.233/KOL/2009 3 CIT(A) ON THE ALLEGATION OF NON - FURNISHING OF SUPPORTING EVIDENCE. THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS ALL SUPPORTING EVIDENCE WITH IT AND THEY CAN BE PRODUCED IN SUPPORT OF THE C LAIM OF THE ASSESSEE IF AN OPPORTUNITY IS GIVEN TO THE ASSESEE. THE LEARNED DR ON THE OTHER HAND SUPPORTED THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW. 5. HAVING HEARD BOTH THE PARTIES AND PERUSING THE IMPUGNED ORDERS OF THE LOWER AUTHORITIES WE FIND THAT THE ADDITIONS HAVE BEEN MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED CIT(A) ON THE GROUND THAT THE ASSESSEE COULD NOT SUBSTANTIATE ITS CLAIM BY SUPPORTING EVIDENCE. NOW THAT THE LEARNED AR OF THE ASSESSEE SUBMITS THAT THE ASSESSEE IS HA VING ALL SUPPORTING EVIDENCE AND THEY CAN BE PRODUCED IF ONE MORE OPPORTUNITY IS GIVEN FOR THE ENDS OF JUSTICE WE SET ASIDE THE IMPUGNED ORDER OF THE LEARNED CIT(A) AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE ISSUES AFTER CON SIDERING THE EVIDENCES AS MAY BE PRODUCED BY THE ASSESSEE AND AFTER GIVING AN OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. WE ALSO DIRECT THE ASSESSEE TO COOPERATE WITH THE ASSESSING OFFICER IN FURNISHING ALL SUCH DETAILS AS MAY BE REQUIRED BY THE ASSESSING OFFICER . IT IS HOWEVER MADE CLEAR THAT IN CASE OF IN - ACTION ON THE PART OF THE ASSESSEE THE ASSESSING OFFICER WILL BE AT LIBERTY TO REPEAT THE ADDITIONS. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 11.05.2010 SD/ - SD/ - ( . . ) (D.K.TYAGI) JUDICIAL MEMBER. ( . . ) (C.D. RAO) ACCOUNTANT MEMBER. ( ) DATE : 11.05.2 010 ( /) H.K.PADHEE / SNR.PRIVATE SECRETARY. / I.T.A.NO.233/KOL/2009 4 - COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT : M/S.NEW JOY GURU HUSKING MILL VILL & P.O. TORKANA DIST. BURDWAN 2 / THE RESPONDENT - ITO WARD 2(2) BURDWAN. 3. / THE CIT 4. ( )/ THE CIT(A) 5. / DR KOLKATA BENCH 6. GUARD FILE . / TRUE COPY / BY ORDER / DEPUTY REGISTRAR .