Sri Jagmohan Sharma, Burdwan v. I.T.O. Ward 3(1)/Asansol, Burdwan

ITA 832/KOL/2009 | 2005-2006
Pronouncement Date: 28-02-2011

Appeal Details

RSA Number 83223514 RSA 2009
Bench Kolkata
Appeal Number ITA 832/KOL/2009
Duration Of Justice 1 year(s) 9 month(s) 9 day(s)
Appellant Sri Jagmohan Sharma, Burdwan
Respondent I.T.O. Ward 3(1)/Asansol, Burdwan
Appeal Type Income Tax Appeal
Pronouncement Date 28-02-2011
Appeal Filed By Assessee
Bench Allotted B
Tribunal Order Date 28-02-2011
Date Of Final Hearing 17-03-2010
Next Hearing Date 17-03-2010
Assessment Year 2005-2006
Appeal Filed On 19-05-2009
Judgment Text
IN THE INCOME-TAX APPELLATE TRIBUNAL B BE NCH : KOLKATA [BEFORE HONBLE SHRI B.R. MITTAL JM AND HONBLE SH RI C. D. RAO AM] ITA NO. 832 (KOL) OF 2009 : ASSESSMENT YEAR : 2005 -06 SRI JAGMOHAN SHARMA -VS.- INCOME TAX OFFICER/WARD-3(1) BURDWAN [PAN : AJAPS 8] ASANSOL. [APPELLANT] [RESPONDENT] APPELLANT BY : SHRI S. BAN DOPADHYAY RESPONDENT BY : SHRI PIYUSH KOLHE SR. D.R. PER C. D. RAO A.M. THE ASSESSEE HAS FILED THIS APPEAL FOR AS SESSMENT YEAR 2005-06 AGAINST THE ORDER OF THE LD. CIT(A) ASANSOL DATED 02.04.2009. 2. BRIEF FACTS OF THE ISSUE ARE THAT WHILE DOING SC RUTINY ASSESSMENT ASSESSING OFFICER MADE AN ADDITION OF RS.11 00 000/- AS UNEXPLAINED MONEY U/S. 69A OF THE INCOME TAX ACT AND RS.20 290/- ON ACCOUNT OF SUPPRESSION OF INTEREST ON F.D. BY OBSERVING AS UNDER :- ADDITION ON ACCOUNT OF RS..11 00 000/- THE ASSESSEE HAS ONE OD/CC ACCOUNT WITH UNION BANK OF INDIA RANIGANJ AND TWO LOAN ACCOUNTS WITH RANIGANJ CO-OPE RATIVE BANK LTD. IN ACCOUNT NO.107 OF RANIGANJ CO-OPERATIVE BANK LTD. T HERE IS DEBIT BALANCE AS ON 31.03.2005 IS RS.6 26 989/- AND IN ANOTHER AC COUNT WITH THE BANK BEARING NO.3838 THERE IS DEBIT BALANCE OF RS.4 44 5 06/-. IN THE ACCOUNT OF UNION BANK OF INDIA BEARING NO.30020 THERE IS DEBIT BALANCE OF RS.5 71 804/-. ON EXAMINATION OF COPY OF BANK STATE MENT OF ACCOUNT NO.107 IT APPEARS THAT THERE ARE CASH DEPOSITS OF RS.19 25 000/- ON VARIOUS DATES OF WHICH THERE IS ONE DEPOSIT RS.11 00 000/- ON 19.06.04 BY CASH. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCES OF SUCH DEPOSITS IN THE QUESTIONNAIRE SENT ALONGWITH NOTICE U/S. 142(1). TH E CASE WAS SEVERALLY FIXED FOR HEARING ASKING SUCH DETAILS. ON 14 TH SEPTEMBER 2006 THE ASSESSEE FILED A WRITTEN EXPLANATION THE CONTENTS O F THE LETTER IS REPRODUCED BELOW :- YOUR LETTER DATED 25.6.06 3.8.06 AND 6.9.06 REC EIVED. MY ADVOCATE SRI S. N. CHATTERJEE APPEARED AND DISCUSSE D WITH YOU. THE CASH DEPOSITED DURING FINANCIAL YEAR 2004-05 IS THE CASH WHICH WITHDREW FROM MY BANK A/C AND THE SAME IS DEPOSITED INTO BANK. ALSO THE CASH OF FAMILY MEMBERS WAS DEPOSITED IN MY BANK ACCOUNT TEMPORARILY AND ALSO WITHDREW WITHIN THE FI NANCIAL YEAR 2004-05. ITA NO. 832/KOL/20 09 2 THE ASSESSEE WAS AGAIN ASKED VIDE THIS OFFICE LETT ER DATED 8 TH OCTOBER 2007 TO EXPLAIN WITH EVIDENCES THE SOURCE S OF DEPOSIT OF RS.19 50 000/- SPECIALLY ONE DEPOSIT OF RS.11 00 00 0/- IN CASH ON 19.6.04. THE ASSESSEE SUBMITTED A WRITTEN EXPLANATION REPROD UCED BELOW :- YOUR LETTER DT. 8.10.07 I AM TO INFORM YOU THAT THE AMOUNT OF RS.11 00 000/- HAS BEEN DEPOSITED BY MY FAMILY M EMBERS TEMPORARY AND WITHDREW WITHIN THE FINANCIAL YEAR. THE A.R. OF THE ASSESSEE DURING THE COURSE OF HEA RING WAS ASKED TO GIVE THE DETAILS OF THE FAMILY MEMBERS WHO HAVE DEP OSITED THE MONEY ALONGWITH SOURCES OF THEIR INCOME THE A/R OF THE AS SESSEE ADMITTED THAT HE IS UNABLE TO OFFER ANY INFORMATION ABOUT THE SAM E. THEREFORE THE AMOUNT OF RS.11 00 000/- DEPOSITED ON 19.06.04 IS T REATED AS UNEXPLAINED MONEY U/S. 69A OF THE INCOME TAX ACT 1961 AND ADDE D BACK TO THE INCOME OF THE ASSESSEE. ADDITION ON ACCOUNT OF SUPPRESSION OF INTEREST OF RS.20 290/- IT APPEARS FROM THE BALANCE SHEET AS ON 31.3.2005 SUBMITTED ALONGWITH THE RETURN THAT THE ASSESSEE HAS SHOWN TH E FOLLOWING FDR :- 1) F.D. RS.88 133/- [INTEREST RS.4642/- @ 5.25%] 2) F.D. RS.72 291/- [INTEREST RS.3 795/- @ 5.25%] 3) F.D. RS.1 39 852/- [INTEREST RS.7342/- @ 5.25%] FROM THE ABOVE IT APPEARS THAT THE INTEREST CREDIT ED IS @ 5.25% P.A. WHEREAS THE INFORMATION COLLECTED FROM BANK AS WELL AS COPY OF FDR COLLECTED FROM BANK SHOWS RATE OF INTEREST AT 12% P .A. THEREFORE THERE IS SUPPRESSION OF 6.75% IN CALCULATING INTEREST OF F.D .R. TOTAL F.D.R. COMES TO RS.3 00 576/- ON WHICH INTEREST OF 12% COMES TO RS.36 069/- WHEREAS THE ASSESSEE HAS SHOWN INTEREST AMOUNT OF RS.15 779 /-. THEREFORE THERE IS SUPPRESSION OF INTEREST AMOUNT OF RS.20 290/- WHICH IS ADDED BACK TO THE INCOME OF THE ASSESSEE. ON APPEAL LD. CIT(A) AFTER TAKING INTO CONSIDERATI ON THE SUBMISSION OF THE ASSESSEE HAS CONFIRMED THE ADDITION OF UNEXPLAINED MONEY U/S. 69 A OF THE ACT BY OBSERVING AS UNDER :- THIS PLEA OF THE APPELLANT IS ALSO NOT ACCEPTABLE THAT THE DEPOSIT OF RS. 11 00 000/- WERE FULLY EXPLAINED TO THE SATISFACTIO N OF THE A. 0. ALONG WITH THE CASH-FLOW STATEMENT FILED BEFORE THE A.0. HOWEVER NEITHER THE DEPOSITS WERE EXPLAINED WITH CORROBORATIVE MATERIAL NOR DID SUCH CASH-FLOW STATEMENT WAS FOUND IN THE ASSESSMENT RECORD AND ALSO NO COPY OF THE SAID CASH-FLOW STATEMENT IS FURNISHED BEFORE ME HENCE THIS PLEA IS NOT CORRE CT HENCE REJECTED. ITA NO. 832/KOL/20 09 3 THE APPELLANT HAS ALSO FAILED TO CORROBORATE HIS FU RTHER PLEA THAT HE WAS HAVING THE OPENING CASH BALANCE OF RS. 6 21 423.36 INCLUDE D A SUM OF RS. 5 30 000/- WHICH WAS WITHDRAWN ON 15.12.2003 FROM THE SAVINGS A/C NO. 55 FROM RANIGANJ CO-OPERATIVE BANK LTD. FURTHER THE APPELLANT HAS ALSO FAILED TO PRODUCE T HE COPY OF THE BANK A/C TO PROVE THE WITHDRAWAL ON 15.12.2003. MOREOVER IT IS UNBELIEVABLE THAT THE CASH WITHDRAWN ON 15.12.2003 WAS STILL REMAINED UNUTILIZ ED TILL 1 ST OF FEBRUARY 2004 BECAUSE NO PRUDENT BUSINESSMAN WOULD PREFER TO INTE REST LOSS ON THIS AMOUNT THEREFORE THIS PLEA IS NOT BELIEVABLE AT ALL. LIKEWISE THE APPELLANT HAS ALSO FAILED TO PRODUCE ANY COPY OF THE BANK A/C IN RESPECT OF RS. 66 000/- CASH WITHDRAWAL MADE BY HIM BETWEEN 01.04.2004 TO 19.06.2004. SAME IS THE CASE IN RESPECT OF CASH WIT HDRAWAL OF RS.1 86 500/- FROM THE OD A/C OF TIRUPATI AUTO ENGG. WORKS RANIGANJ B ECAUSE THE COPY OF THE SAME WAS NOT ENCLOSED BEFORE ME AS CLAIMED IN HIS S UBMISSION. LIKEWISE THE APPELLANT HAS ALSO FAILED TO PROVE TH AT NSC RS.39 120/- (MATURED AMOUNT) WAS RECEIVED BY THE APPELLANT ON 16.05.2004 AS NO EVIDENCE IN THIS REGARD HAS BEEN FURNISHED. THEREFORE THIS PLEA IS ALSO REJECTED. LIKEWISE THE APPELLANT HAS FAILED PRODUCE THE COPY OF THE LOAN PASS BOOK TO SUBSTANTIATE HIS CONTENTION THAT HE HAD RECEIVED A SUM OF RS.45 000/- FROM HIS ELDER BROTHER SRI BHAGWATI PRASAD SHARMA AN EMPLO YEE OF ECL ON 01.06.2004. LIKEWISE THE APPELLANT HAS FAILED TO PRODUCE ANY E VIDENCE TO PROVE THAT SMT. SUMITRA DEVI SHARMA HAS ALSO MADE CASH PAYMENT OF RS. 4 LACS TO THE APPELLANT. MOREOVER THE REFLECTION OF CASH AVA ILABILITY IN THE A/C. OF SMT. SUMITRA DEVI SHARMA DOES NOT MEAN THAT SHE HAS GIVEN THIS MONEY TO THE APPELLANT BECAUSE THERE IS NOTHING TO PROVE THE SAME. HENCE THIS PLEA IS ALSO REJECTED. ON ACCOUNT OF INTEREST THE LD. CIT(A) CONFIRMED TH E SAME BY OBSERVING AS UNDER :- THE A.0. HAS NOTICED FROM THE BALANCE SHEET THAT T HE ASSESSEE HAS SHOWN THREE FDRS AS DISCUSSED IN PARA-2 OF THE ASSESSMENT ORDER. IT IS CLEAR THAT THE INTEREST CREDITED WAS @ 5.25% WHEREAS THE INFOR MATION COLLECTED FROM BANK AS WELL AS COPY OF FDR COLLECTED FROM BANK SHO WS RATE OF INTEREST @ 12% P.A. AND ACCORDINGLY THE A. 0. REACHED TO THE CONCLUSION THAT THERE WAS A SUPPRESSION ON RATE OF INTEREST OF 6.75% IN C ALCULATING INTEREST OF FDR TOTALLING TO RS.3 00 576/-. THEREFORE HE WORKE D OUT INTEREST OF RS.36 069/- AS AGAINST RS.15 779/- DISCLOSED BY THE APPELLANT AND HE HAS THEREFORE ADDED THE DIFFERENCE OF RS.20 290/- TO TH E TOTAL INCOME OF THE APPELLANT AS SUPPRESSION OF INTEREST. IN THIS WAY THE A. 0. HAS PROVED HIS CASE THAT 12% INTEREST P.A. WAS RECEIVABLE ON FDRS BY THE APPELLANT. AGGRIEVED BY THIS NOW THE ASSESSEE IS IN APPEAL BEF ORE US. ITA NO. 832/KOL/20 09 4 3. AT THE TIME OF HEARING BEFORE US LD. COUNSEL AP PEARING ON BEHALF OF THE ASSESSEE HAS SUBMITTED AS UNDER :- THE PETITIONER MOST HUMBLY AND RESPECTFULLY PRAYS TO CONSIDER FOLLOWING PAPERS INCLUDED IN PAPER BOOK AS WELL THOSE THE PET ITIONER WISHES TO FILE AT THE TIME OF HEARING WHICH COULD NOT BE FILED BEFORE AUTHORITIES BELOW. 1. PAPERS AT SERIAL NO. 2 TO 7 OF PAPER BOOK DT. 02 -07-2009 AS DETAILED BELOW WERE GIVEN TO ONE MR. G. P. KUNDU F .C.A. ALONGWITH WRITTEN SUBMISSION AND CASH FLOW AT SERIAL NO.2 OF PAPER BOOK AND ALSO EVIDENCES OF FAMILY MEMBERS AS TO FUNDS GIVEN TO AS SESSEE (SL. NO. 3 TO 7) TO BE FILED WITH LD. C.I.T.(A) :- PAGE NO. 2. CASH FLOW STATEMENT FOR F.Y. 2004-05 09 09 3. CERTIFICATE FROM UNION BANK OF INDIA AS TO INTEREST ON F.D.S 10 4. BANK STATEMENT OF BHARAT ENTERPRISES A PROP. : CONCERN OF SRI RAJESH LIKHRA 11 5. ACKNOWLEDGE OF RETURN FOR ASST. YEAR 2004-05 OF SMT. SUMITRA DEVI SHARMA (ASSESSSEES SISTER-IN-LAW) 12 6. COMPUTATION OF INCOME OF ABOVE RETURN 13 7. BANK PASS BOOK OF SRI B. P. SHARMA ASSESSEES BROTHER 14 & 15 HOWEVER FOR THE REASONS MR. KUNDU BEST KNOWS HE D ID NOT FILE THESE PAPERS BEFORE THE LD. C.I.T.(A). 2. PAPERS AT SERIAL NO.8 TO 10 (PAGES 16 TO 26) WE RE PRODUCED BEFORE AND REFERRED TO BEFORE A.O. AND BEFORE CIT(A) (AS I NFORMED BY MR. KUNDU) BUT NOT FILED ON RECORD :- PAGE NO. 8. COPY OF BANK STATEMENT OF TIRUPATI AUTO ENGG. WORKS A PROPRIETARY FIRM OF APPELLANT/ASSESSEE IN UNION BANK 16 9. IN STATE BANK 17 10. COPIES OF CASH BOOK RELEVANT PAGES OF APPELLANT/ASSESSEE. 18 TO 26 ITA NO. 832/KOL/20 09 5 3. CONFIRMATIONS OF TEMPORARY ACCOMMODATION FROM S MT. SUMITRA DEVI SHARMA SRI BHAGWATI PRASAD SHARMA AND SRI RAJ ESH SHARMA (LIKHRA) WHO ARE INCOME TAX ASSESSEES HAVING PAN WE RE NEVER ASKED FOR BY MY REPRESENTATIVE MR. S. N. CHATTERJEE WHO REPRESENTED ME BEFORE A.O. I HAD FULL KNOWLEDGE ABO UT THESE TEMPORARY ACCOMMODATION AND FULL ADDRESSES AND WAS ALSO POSSESSING THE PAPERS AT SERIAL NO. 4 TO 7 OF PAPER BOOK. HOWEVER THE STATEMENT AS MADE BY SHRI S. N. CHATERJEE IS NO T CORRECT AND WAS GIVEN WITHOUT CONSULTING ME. 1. FOR THE FACTS AND UNDER THE CIRCUMSTANCES IT IS MO ST HUMBLY AND RESPECTFULLY PRAYED BEFORE HONBLE MEMBERS TO CONSI DER THE PAPERS /EVIDENCES CONTAINED IN PAPER BOOK AND CONFI RMATIONS FROM THREE PARTIES BEING FILED HEREWITH AS EVIDENCES IN THE APPEAL BEFORE THE HONBLE BENCH. 4. ON THE OTHER HAND LD. DEPARTMENTAL REPRESENTATI VE RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 5. AFTER HEARING THE RIVAL SUBMISSIONS AND TAKING I NTO CONSIDERATION OF THE SUBMISSIONS FILED BY THE ASSESSEE BEFORE THE REVENUE AUTHORITIE S AS WELL AS BEFORE US AND BASED ON THE DOCUMENTS FILED BY THE ASSESSEE AT PAGES 9 TO 15 W HICH ARE NOT FILED BEFORE THE REVENUE AUTHORITIES WE ARE OF THE VIEW THAT THE ADDITIONS ON ACCOUNT OF UNEXPLAINED MONEY OF RS.11 00 000/- REQUIRES FRESH VERIFICATION. THEREFO RE IN THE INTEREST OF JUSTICE WE SET ASIDE THE ORDER OF LD. CIT(A) ON ACCOUNT OF ADDITIONS U/S 69A OF THE ACT TO THE FILE OF THE ASSESSING OFFICER TO REDECIDE THE SAME AFTER CONSIDERING THE DOCUMENTS BEFORE US AS PER LAW AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. AS REGARDING ADDITIONS ON ACCOUNT OF INTEREST WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) AND CONFIRM THE SAME. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 28. 02. 2011. SD/- SD/- [ B. R. MITTAL ] [ C. D. RAO ] JUDICIAL MEMBER ACCOUN TANT MEMBER DATED : 28TH FEBRUARY 2011. ITA NO. 832/KOL/20 09 6 COPY FORWARDED TO THE - 1 SRI JAGMOHAN SHARMA TIRUPATI AUTO ENGG. WORKS G.T . ROAD P.O. SEARSOLE RAJBARI DIST. BURDWAN-713347. 2. INCOME TAX OFFICER WARD-3(1) PARMAR BUILDING P.O . ASANSOL BURDWAN PIN-713303. 3. CIT(A)- (4) CIT- 5. D.R. I.T.A.T. KOLKATA. [TRUE COPY] BY ORDER DEPUTY/ASSISTANT REGISTRAR (KKC) I.T.A.T. KOLKATA.