DCIT, CENTRAL CIRCLE - 4(1), KOLKATA, AAYAKAR BHAWAN POORVA V. GAURAV KUMAR CHOPRA, KOLKATA

ITSSA 79/KOL/2024

AI Insights

The case involves appeals by the revenue against the CIT(A)'s decision favoring the assessee, Gaurav Kumar Chopra and Prerna Kumar Chopra, concerning unexplained investments in foreign companies for the Assessment Year 2011-12. The Assessing Officer had made an addition of Rs. 1,464 as unexplained investment under Section 69C of the Income Tax Act, which the CIT(A) later deleted, accepting the assessee's explanation that the amount was drawn from regular funds during a foreign visit and was not separately accounted for due to its small size. The Tribunal, after reviewing the submissions and facts, concurred with the CIT(A) and dismissed the revenue's appeals.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469671 (ITAT-KOLKATA)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Document seized; Documents seized; Search and seizure
• Section: 143(3); 142(1); 143(2); 132; 153A; 69C; 139

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.(SS)A. No. 79/Kol/2024 Assessment Year: 2011-12 DCIT, Central Circle-4(1), Kolkata Vs. Gaurav Kumar Chopra (PAN: ADZPC 8840 J) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ I.T.(SS)A. No. 80/Kol/2024 Assessment Year: 2011-12 DCIT, Central Circle-4(1), Kolkata Vs. Prerna Kumar Chopra (PAN: AFXPJ4093 C) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 10.12.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 31.12.2024 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri S Jhajharia, A.R For the revenue / राजèव कȧ ओर से Shri Guru Bhashyam, CITDR 2 I.T.(SS)A. Nos. 79 & 80/Kol/2024 Assessment Years: 2011-12 Gaurav Kumar Chopra & Prerna Chopra ORDER / आदेश Per Pradip Kumar Choubey, JM: These are the appeal preferred by the revenue against separate orders of Commissioner of Income Tax (Appeal)-27, Kolkata (hereinafter referred to as the Ld. CIT(A)] for AY 2011-12. In both the appeals, the issues are common and hence taken up together for disposal. 2. Brief facts of the case of the assessee are that the assessee filed her original return of income u/s 139 of the Act declaring total income of Rs. 25,56,827/- after claiming deduction of Rs. 150/- u/s VIA of the Act. A search and seizure action u/s 132 of the was conducted against Zenith Metal Group of cases. The group is engaged in the business of export and import of metals and ferro alloys, distribution of chewing tobacco products and other activities. A notice u/s 153A of the Act was issue and served upon the assessee requesting thereby to file the return, in respect of responses to same, the assessee has filed return of income of Rs. 25,56,830/-. Thereafter all the statutory notices u/s 143(2) and 142(1) of the Act was issued to the assessee. The AO on basis of the assessment order u/s 153A read with Section 143(3) of the Act by determining the total income at Rs. 25,58,294/- by unexplained investigation u/s 69C of the Act by making the addition of Rs. 1,464/-. 3. The assessee has preferred the appeal before the Ld. CIT(A) wherein the appeal of the assessee have been allowed by holding that the assessee has shown such investment in the books by crediting her capital gain, the source of amount is explained. Being aggrieved and dissatisfied the revenue has preferred the appeal. 4. The Ld. D.R has challenged the impugned order thereby submitting that the Ld. CIT(A) has erred in deleting the addition amounting Rs. 1,464/- u/s 69C of the Act which was made as per seized documents under unexplained investment in foreign companies. 3 I.T.(SS)A. Nos. 79 & 80/Kol/2024 Assessment Years: 2011-12 Gaurav Kumar Chopra & Prerna Chopra 5. The Ld. A.R supports the impugned the order of the Ld. CIT(A) thereby submitting that the assessee herself explained that this amount will be Rs. 1,464/- was drawn from regular funds for earning during her foreign investment and as per the assessee’s since the assessed amount was pretty small it was not accounted separately. 6. Upon hearing the submission of the ld. Counsel for the respective parties, we have perused the records and find that the AO on examination of books of account for the year under consideration that the assessee in course of assessment proceedings, the said investment was not duly disclosed. The assessee had failed to explain why the said investment in shares of foreign deals were not disclosed in the books of account. The assessee herself explained that this amount of Rs. 1,464/- was drawn from regular fund during her foreign visit. Since the amount was pretty small hence it was not accounted separately in the balance sheet for FY 2010-11 and was considered to be part of the expenditure for such foreign visit. However, in due course i.e. in the AY 2016-17 the assessee has shown such investment in the books of account by crediting her capital account. Going over the submission and facts of the case, we find that the source of this amount has clearly been explained. The Ld. CIT(A) has considered the facts of the case of the assessee and there after allowed the appeal of the assessee. We do not find any infirmity in the impugned order. In the result, both the appeals of the revenue are dismissed. Order is pronounced in the open court on 31st December, 2024 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 31st December, 2024 SM, Sr. PS 4 I.T.(SS)A. Nos. 79 & 80/Kol/2024 Assessment Years: 2011-12 Gaurav Kumar Chopra & Prerna Chopra Copy of the order forwarded to: 1. Appellant- DCIT, Central Circle-4(1), Kolkata 2. Respondent – Gaurav Kumar Chopra & Prerna Chopra, both are residing at Chopra House, 133, BRBB Road, West Bengal- 700107. 3. Ld. CIT(A)-27, Kolkata 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "