Ajoy Kumar Dey, Kolkata v. ITO, Ward - 2(1), Midnapore, Midnapore

ITA 983/KOL/2011 | 2005-2006
Pronouncement Date: 25-11-2011 | Result: Partly Allowed

Appeal Details

RSA Number 98323514 RSA 2011
Assessee PAN ADEPD2788D
Bench Kolkata
Appeal Number ITA 983/KOL/2011
Duration Of Justice 4 month(s) 18 day(s)
Appellant Ajoy Kumar Dey, Kolkata
Respondent ITO, Ward - 2(1), Midnapore, Midnapore
Appeal Type Income Tax Appeal
Pronouncement Date 25-11-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 25-11-2011
Assessment Year 2005-2006
Appeal Filed On 07-07-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA ( ) . . ) [BEFORE SHRI MAHAVIR SINGH J.M. AND SRI C.D. RAO A.M. ] ! ! ! ! / I.T.A NO. 983/KOL/2011 ASSESSMENT YEAR : 2005-2006 AJOY KUMAR DEY PANCHIM MIDNAPUR -VS.- INCOME TAX OFFICER WARD-2(1) MIDNAPUR (PAN : ADEPD 2788 D) ( '# /APPELLANT ) ( $%'# / RESPONDENT ) FOR THE APPELLANT : SHRI ABHIJIT KUNDU A.R. FOR THE RESPONDENT : SHRI D.J. MEHT A D.R. &' ( ) &' ( ) &' ( ) &' ( ) /DATE OF HEARING : 15.11.2011 *+ ) *+ ) *+ ) *+ ) /DATE OF PRONOUNCEMENT : 25.11.2011 / ORDER PER SHRI C.D. RAO ACCOUNTANT MEMBER/ . . ) :- THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORDE R OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXXVI KOLKATA DATED 07.03.2011 FOR THE A SSESSMENT YEAR 2005-06. 2. BRIEF FACTS OF THE CASE ARE THAT WHILE DOING THE SCRUTINY ASSESSMENT ASSESSING OFFICER MADE AN ADDITION OF RS.4 27 191/- ON ACCOUNT OF UND ISCLOSED INVESTMENT IN F.D. A/C. AND INTEREST OF RS.23 842/- BY OBSERVING AS UNDER :- NOTICE UNDER SECTION 133(6) WAS ISSUED TO ALLAHABA D BANK KOLAGHAT. AS PER INFORMATION RECEIVED UNDER SECTIO N 133(6) DATED 2.8.2007 FROM THE SAID BANK IT IS OBSERVED THAT DU RING THE FINANCIAL YEAR 2004-05 THE ASSESSEE INVESTED IN F.D. A/C. FO R RS.69 665/- AND RS.3 57 526/- ON 25.05.2004 AND INTEREST WAS ACCRUE D THEREON FOR RS.4 179/- AND RS.19 663/- RESPECTIVELY DURING THE FINANCIAL YEAR 2004-05. THE ASSESSEE DID NOT DISCLOSE THE SAME IN HIS BALANCE SHEET IN FINANCIAL YEAR 2004-05. HENCE THE INVESTMENT IN F. D. A/C. IS TREATED AS UNEXPLAINED INVESTMENT UNDER SECTION 69 AND ACCR UED INTEREST IS TREATED AS UNDISCLOSED INCOME AND IS ADDED BACK TO THE RETURNED INCOME OF THE ASSESSEE. ITA NO. 983/KOL./2011 2 3. ON APPEAL LD. CIT(APPEALS) HAS CONFIRMED THE AC TION OF ASSESSING OFFICER BY OBSERVING IN PARA 3.4. & 3.5 OF HIS IMPUGNED ORDER WHICH READS AS UNDER :- 3.4. I HAVE DULY CONSIDERED THE SUBMISSION OF THE AR OF THE APPELLANT. ADMITTEDLY BOTH THE TDS WERE UNDISCLOSED NOT ONLY AT THE TIME OF ORIGINAL INVESTMENTS IN THE FY 1999-2000 BUT AT THE TIME OF REINVESTMENT ALSO IN THE FY 2004-05. THE APPELLANT HAD CONCEALED THE INTERES T INCOME ALSO ACCRUED ON SUCH INVESTMENTS YEARS AFTER YEARS. THE PROCEEDS OF ONE UNDISCLOSED INVESTMENT CANNOT BE ACCEPTED AS A SOURCE OF ANOTHE R UNDISCLOSED INVESTMENT. SINCE THE ORIGINAL INVESTMENTS IN BOTH TDS WERE FROM UNDISCLOSED SOURCES AND SINCE INTEREST ACCRUED ON S UCH INVESTMENTS WEE NEVER OFFERED AS INCOME THE MATURITY VALUE OF SUCH TDS AS ON THE DATE OF REINVESTMENT OUGHT TO BE TAKEN AS FRESH INVESTMENT. THUS I DO NOT FIND ANY INCONGRUITY IN THE DECISION OF THE AO FOR TAKING TH E REINVESTMENT IN TDS AS UNDISCLOSED. THE ADDITION MADE FOR PRINCIPAL INVEST MENTS IN TWO TDS AMOUNTING TO RS.4 27 191/- IS THEREFORE SUSTAINED . 3.5. SO FAR AS ACCRUED INTEREST INCOME IS CONCERNED THE AR HAS TAKEN PLEA THAT AS PER TDS CERTIFICATE ISSUED BY THE BANK SAME SHOULD BE TAKEN AT RS.14 952/-. HOWEVER IT IS QUITE CLEAR FR OM THE BANK CONFIRMATION THAT NO TAX WAS DEDUCTED AT SOURCE ON ACCRUED INTEREST OF RS.2 913/-. THEREFORE THE ACCRUED INTEREST INCO ME SHOULD BE TAKEN AT RS.17 865/- (RS.14 952/- + RS.2 913/-) AS PER TH E LATEST CONFIRMATION OF THE BANK. THE AO IS DIRECTED ACCORD INGLY. BEING AGGRIEVED WITH THE ORDER OF LD. CIT(APPEALS) THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. AFTER HEARING THE RIVAL SUBMISSIONS CAREFUL PER USAL OF THE MATERIAL AVAILABLE ON RECORD AND KEEPING IN VIEW OF THE FACT WE FIND THAT ALL T HE FDS ARE ACCRUING SINCE 1992 TO THE NAMES OF THE FATHER AND MOTHER OF THE ASSESSEE. IT IS EVI DENT FROM THE ANNEXURE G SUBMITTED BY THE ASSESSEE RELATED TO THE CERTIFIED COPY ISSUED BY TH E ALLAHABAD BANK KOLAGHAT BRANCH WHICH READS AS UNDER :- ANNEXURE G KOLAGHAT BRANCH (0210539) KOLAGHAT PURBA MIDNAPORE PH: 03228-256236 TO WHOM IT MAY CONCERN THIS IS TO CERTIFY THAT THE TERM DEPOSIT OF SHRI A JAY KUMAR DEY OF VILL. KOLA PO KOLAGHAT PURB MIDNAPUR ORIGINATED/ CONVERTED FROM THE FOLLOW ING TERM DEPOSIT ACCOUNTS :- SL. NAME TD NO. ISSUE DATE MATURITY AMOUNT MATURITY ITA NO. 983/KOL./2011 3 NO. DATE VALUE 1. SMT . KAMALA RANI DEY & SRI AJAY DEY 572323/44/361 10.08.92 09.11.95 24368 29690 2. SRI MURARI DEY SMT. KAMALA RANI DEY & SRI AJAY KUMAR DEY 572324/44/362 05.10.92 09.11.95 13427 17188 3. SRI MURARI DEY AN SRI AJAY KUMAR DEY 572322/44/360 10.08.92 09.11.95 32774 39933 4. SMT. BARNA DEY & 572321/44/359 10.08.92 09.11.95 15839 19298 5. SMT. KAMALA DEY & SRI AJAY KUMAR DEY 430201/51/484 09.11.95 10.02.98 29960 60006 6. SRI MURARI DEY & SRI AJAY KUMAR DEY 255300/51/483 09.11.95 10.02.98 39933 80707 7. SRI MURARI MOHAN DEY SMT. KAMALA RANI DEY & SRI AJAY KUMAR DEY 430202/51/485 09.11.95 05.04.98 17188 34738 8. SMT. BARNA DEY & SRI AJAY KUMAR DEY 255299/51/482 09.11.95 10.02.98 19298 39003 9. SRI AJAY KUMAR DEY 641741/58/284 14.07.99 10.05.04 179716 365034 10. SRI AJAY KUMAR DEY 641742/58/285 15.07.99 05.04.04 34738 70615 11. SRI AJAY KUMAR DEY 255548/69/110 25.05.04 25.05.07 357526 421190 12. SRI AJAY KUMAR DEY 255549/69/111 25.05.04 25.05.07 69665 82070 FOR ALLAHABAD BANK SD/- SENIOR MANAGER/ KOLAGHAT BRANCH ITA NO. 983/KOL./2011 4 4.1. BY CONSIDERING THE TOTALITY OF THE FACTS AND C IRCUMSTANCES OF THE CASE AND ON THE BASIS OF ABOVE CERTIFICATE ISSUED BY THE BANK WE ARE OF THE CONSIDERED VIEW THAT THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT( APPEALS) IN THE ASSESSMENT YEAR UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2005-06 IN RES PECT OF FIXED DEPOSIT AMOUNT IS NOT SUSTAINABLE IN THE EYES OF LAW. SINCE ALL THE FIXED DEPOSITS ARE RENEWAL FROM THE FATHER AND MOTHER OF THE ASSESSEE SINCE ASSESSMENT YEAR 1991-9 2 AND HOWEVER THE FIXED DEPOSITS ARE IN THE NAME OF ASSESSEE WHICH IS LIABLE TO CONFER THE INTEREST ACCRUED ON THE SAID FIXED DEPOSITS FOR THE YEAR UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2005-06 THEREFORE WE DIRECT THE ASSESSING OFFICER TO DELETE THE PRINCIPAL AMOUNT OF THE FIXED DEPOSIT AND CHARGE THE INTEREST PERTAINING TO THE ASSESSMENT YEAR ONLY IN THE HANDS OF THE ASSESS EE. 5 IN THE RESULT THE APPEAL FILED BY THE ASSESSEE I S ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 25/11/2011. SD/- SD/- [MAHAVIR SINGH/ ] [C.D. RAO/ ( . . )] JUDICIAL MEMBER/ ACCOUNTANT MEMBER/ DATED : 25/ 11/ 2011 COPY OF THE ORDER FORWARDED TO: 1. SHRI AJOY KUMAR DEY VILL. & P.O. SHYAMAGANG DIST. PASCHIM MIDNAPORE; 2 ITO WARD-2(1) MIDNAPORE 3. COMMISSIONER OF INCOME-TAX (APPEALS)- KOLKATA 4. CIT- KOLKATA 5. DR KOLKATA BENCHES KOLKATA (TRUE COPY) BY ORDER ASSISTANT REGISTRAR I.T.A.T. KOLKATA LAHA SR. P.S.