Santosh Kumar Chaudhary, Kolkata v. ACIT, Circle - 56, Kolkata, Kolkata

ITA 510/KOL/2010 | 2004-2005
Pronouncement Date: 30-04-2014 | Result: Allowed

Appeal Details

RSA Number 51023514 RSA 2010
Assessee PAN ACKPC0431D
Bench Kolkata
Appeal Number ITA 510/KOL/2010
Duration Of Justice 4 year(s) 1 month(s) 18 day(s)
Appellant Santosh Kumar Chaudhary, Kolkata
Respondent ACIT, Circle - 56, Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 30-04-2014
Assessment Year 2004-2005
Appeal Filed On 12-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI SHAMIM YAHYA ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEMBER ITA NO. 510 / KOL / 2010 ASSESSMENT YEAR :2004-05 SANTOSH KUMAR CHAUDHARY 2 CHAPEL ROAD HASTINGS KOLKATA 700 022 [ PAN NO.ACKPC 0431D ] V/S . ACIT CIRCLE-56 3 GOVERNMENT PLACE KOLKATA 700 001 / APPELLANT .. / RESPONDENT) /BY APPELLANT SHRI SOUMITRA CHOWDHURY AR /BY RESPONDENT SHRI RAJENDRA PRASAD JCIT SR-DR /DATE OF HEARING 30-04-2014 /DATE OF PRONOUNCEMENT 30-04-2014 / // / O R D E R PER SHAMIM YAHYA ACCOUNTANT MEMBER:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XXXVI KOLKATA DATED 30-11-2009 AND PERTAINS TO ASSESSMENT YEAR 2004-05. THE GROUND S OF APPEAL ARE AS UNDER:- 1. THE ORDERS PASSED BY THE LOWER AUTHORITIES ARE ARBITRARY ERRONEOUS INVALID AND BAD IN LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LEARNED CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF THE LOSS OF RS.15 42 590/- INCURRED BY THE APPELLANT ON SALE OF SHARES OF BANK OF RAJASTHAN ON THE GROUND OF LACK OF VERIFIABILITY OF THE PURCHASE PRI CES OF THE SHARES THEREBY COMPLETING NEGLECTING TO TAKE INTO ACCOUNT THE FACT THAT ALL THESE SHARES HAVING BEEN PURCHASED IN EARLIER YEARS THEI R PURCHASE PRICES STOOD ACCEPTED IN THE RETURNS/ASSESSMENTS OF THE RE SPECTIVE YEARS OF PURCHASES. ITA NO.510/KOL/2010 A.Y. 2004-05 SANTOH KR. CHAUDHARY V. ACIT CIR-56 KOL PAGE 2 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LEARNED CIT(A) ERRED IN CONFIRMING THE ADDITION OF THE AMOUNT OF R S.11 LACS U/S. 68 OF THE INCOME TAX ACT 1961 AS UNEXPLAINED RECEIPTS F ROM THREE PERSONS SOLELY ON THE BASIS OF CERTIFICATES ISSUED BY THOSE THREE PERSONS ABOUT PAYMENTS OF THE AMOUNTS BY THEM TO THE APPELLANT AN D AT THE SAME TIME COMPLETELY DISREGARDING THE OTHER PARTS OF THE CERT IFICATES TO THE EFFECT THAT THE AMOUNTS WERE NOTHING BUT DIVIDENDS EARNED BY THOSE PERSONS ON BEHALF OF THE APPELLANT. 4. (A). ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE LEARNED CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.6 82 546/- OUT OF INTEREST PAYMENT ON THE ALLEGED GROUND THAT ONLY 35 % OF THE TOTAL LOAN TAKEN WAS UTILIZED FOR THE PURPOSE OF BUSINESS OF T HE APPELLANT OF SHARE TRADING. 4(B). ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) ERRED IN CONFIRMING THE ABOVE DISALLOWANCE C OMPLETELY DISREGARDING THE FACT THAT THE ENTIRE LOAN TAKEN IN THE EARLIER YEARS HAD BEEN FULLY UTILIZED FOR THE PURPOSE OF PURCHASES OF SHARES IN THE BUSINESS OF THE APPELLANT AND THAT NO PART OF THE I NTEREST PAYMENT ON THE SAID LOANS TAKEN IN PAST HAD BEEN DISALLOWED IN ANY PAST ASSESSMENTS. 4.(C) IN ANY CASE THE ABOVE DISALLOWANCE MADE BY T HE EARNED A.O U/S. 14A OF THE I.T. ACT 1961 WITHOUT SPECIFYING IN RES PECT OF WHICH INCOME NOT FORMING PART OF TOTAL INCOME OF THE APPELLANT T HE INTEREST EXPENDITURE HAD BEEN INCURRED IS UNWARRANTED AND BAD IN LAW. 2. IN THIS CASE DURING THE YEAR ASSESSEE EARNED IN COME FROM ITS PROPRIETORSHIP CONCERNS WHICH WERE DEALING IN SHARE S ENGAGED IN THE BUSINESS OF STITCHING AND TAILORING AND DEALING IN CLOTH. ASSESSEE WAS ALSO ENGAGED IN SHARE TRADING. ASSESSEE RETURNED A NET L OSS OF RS.1 78 472/-. IN THE COURSE OF ASSESSMENT ASSESSING OFFICER MADE SE VERAL DISALLOWANCES AND ADDITIONS AND ULTIMATELY COMPUTED THE TOTAL INCOME AT RS.31 36 660/-. 3. AGAINST THE ABOVE ORDER ASSESSEE PREFERRED APPEA L BEFORE LD. CIT(A). IN AN EX PARTE ORDER LD. CIT(A) AFFIRMED THE ORDER OF ASSESSING OFFICER. 4. AGAINST THE ABOVE ORDER NOW ASSESSEE IS IN APPEA L BEFORE US. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT DUE TO UNAVOIDABLE ITA NO.510/KOL/2010 A.Y. 2004-05 SANTOH KR. CHAUDHARY V. ACIT CIR-56 KOL PAGE 3 CIRCUMSTANCES ASSESSEES CASE COULD NOT BE PROPERLY PRESENTED BEFORE THE LD. CIT(A). HE PLEADED THAT ASSESSEES CASE WAS NOT CANVASSED BEFORE LD. CIT(A) AND LD. CIT(A) HAS MADE AFFIRMED THE ORDER O F AO. LD. COUNSEL FOR THE ASSESSEE PLEADED THAT ONE MORE OPPORTUNITY MAY BE G IVEN TO THE ASSESSEE TO CANVASS THE CASE BEFORE LD. CIT(A). ON THE OTHER HA ND LD. DR DID NOT HAVE ANY SERIOUS OPPOSITION TO THIS PROPOSITION. 5. UPON CAREFUL CONSIDERATION IN OUR CONSIDERED OP INION INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS REMITTED BACK TO T HE FILE OF LD. CIT(A) TO CONSIDER THE ISSUE AFRESH AFTER GIVING REASONABLE OPPORTUNIT Y OF BEING HEARD. WE DIRECT AND HOLD ACCORDINGLY. 6. IN THE RESULT THIS APPEAL FILED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT 30 /04/2014 SD/- SD/- (GEORGE MATHAN) (SHAMIM YAHYA) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA *DKP !- 30/04/2014 - - - - / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT SANTOSH KUMAR CHAUDHARY 2 CHAPEL ROAD HASTINGS KOLKATA 700 022 2. / RESPONDENT ACIT CIRCLE-56 3 GOVERNMENT PLACE KOL 01 3. 1 / CONCERNED CIT 4. 1- / CIT (A) 5. / DR ITAT KOLKATA 6. 8 / GUARD FILE. BY ORDER/ /TRUE COPY/ /