DCIT, CIRCLE - 49(1), KOLKATA, KOLKATA V. PARTHA CHAKRABORTI, SALT LAKE CITY, KOLKATA

ITA 1473/KOL/2024

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A), Kolkata-20, which pertained to the assessment year 2013-2014. The dispute centered on the rate of commission applied to alleged bogus transactions by the assessee, Anand Kumar Sharma. The Assessing Officer had estimated the income of the assessee at 2% of these transactions, treating the amount as commission. However, the CIT(A) reduced this rate to 0.16%, following a previous decision by a coordinate bench of the Tribunal in the assessee's own case. The revenue challenged this reduction, but the Tribunal upheld the CIT(A)'s decision, citing judicial discipline and the absence of any change in facts for the assessment year under consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313021 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Other Referred Cases: IT(SS)A Nos.169 to 172/Kol/2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJA SENGUPTA
• Assessee Lawyers: SIDDHARTH AGARWAL
• Keywords: Set aside; Accommodation entries; Bogus
• Section: 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER आयकर अपील (तलाशियाां और अशिग्रहण)सं/ITA No.17/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2013-2014) DCIT, Central Circle-1(2), Kolkata Vs Anand Kumar Sharma 50/21, Shree Arvind Road, Salkia, Howrah PAN No. :AVMPS 0367 F (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) रधजस्व की ओर से /Revenue by : Shri Raja Sengupta, CIT-DR निर्धाररती की ओर से /Assessee by : Shri Siddharth Agarwal, AR सुनवाई की तारीख / Date of Hearing : 01/05/2025 घोषणा की तारीख/Date of Pronouncement : 01/05/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the revenue against the order dated 21.11.2024, passed by the CIT(A), Kolkata-20, passed in DIN & Order No.ITBA/APL/S/250/20241-25/1070521556(1), for the assessment year 2013-2014. 2. Shri Raja Sengupta, CIT-DR, appeared on behalf of the revenue. Shri Siddharth Agarwal, AR appeared on behalf of the revenue. 3. It was submitted by the ld. CIT-DR that the Assessing Officer in the course of assessment had estimated the income of the assessee at 2% of the alleged bogus transactions treating the said amount as commission of the assessee. It was the submission that the ld. CIT(A) had, following the decision of the coordinate bench of the Tribunal in assessee’s own case, held that the rate of commission is to be estimated at 0.16%. It was the submission that the revenue does not agree with the order of the ld. CIT(A) IT(SS)A No.17/KOL/2025 2 or the Tribunal. The ld. CIT-DR vehemently supported the order of the Assessing Officer. 4. In reply, ld.AR placed before us a copy of the order of the coordinate bench of the Tribunal in assessee’s own case passed in IT(SS)A Nos.169 to 172/Kol/2023 for A.Ys.2010-2011 to 2013-2014, order dated 14.03.2024. He vehemently supported the order of the ld. CIT(A). 5. We have considered the rival submissions. A perusal of the decision of the coordinate bench of the Tribunal in assessee’s own case, cited supra, shows that the coordinate bench of the Tribunal has, in para 16.1 in the order dated 14.03.2024 (supra), held as follows :- 16.1. Though we have held that since the revenue authorities have treated the assets and liabilities of the 11 concerns as Nil, the bank balance also being part of the assets, deserves to be treated as Nil. But undisputedly it is a part of the entry providing business of the 11 concerns, allegedly owned, controlled and managed by the assessee as part of the entry providing business. Further we notice that the turnover of accommodation entries routed by the assessee and the concerns controlled by it have already been added up and commission income on such turnover has been estimated and the rate of such commission income has been held by us 00.16%. Now, the alleged sum of Rs.7,79,88,144.85/- which is the total of bank balance of 11 concerns as on 30/05/2011 is also the part of accommodation entry providing business. The assessee has failed to prove that the alleged sum has been considered by the ld. Assessing Officer in the total turnover of accommodation entry providing business. We, therefore, considering that against the alleged sum of bank balances, there has to be some funds received from other sources by the 11 concerns and, therefore, the total of receipt of the funds and the bank balance totals to Rs. 15,59,76,290/- (Rs.7,79,88,144.85/-X 2). Now, treating it to be the turnover, the income at the most can be calculated @0.16% i.e., Rs. 2,49,562/ being the commission income which is required to be added in the hands of the assessee as against the alleged addition u/s 69 of the Act. We accordingly, set aside the finding of the lower authorities and partly allow the Grounds raised by the assessee sustaining the addition at Rs.2,49,562/-. Accordingly, ,the additional ground raised by the assessee for Assessment Year 2012-13 is partly allowed.” IT(SS)A No.17/KOL/2025 3 6. It is noticed that the ld. CIT(A) has followed the judicial discipline in relying upon the order of the Tribunal for the immediate previous assessment years. This being so, we find no reason to interfere in the order of the ld. CIT(A) and also the revenue even has not been able to show any change of facts for the impugned assessment year under consideration. Accordingly, the appeal of the revenue is dismissed. 7. In the result, appeal of the revenue is dismissed. Order dictated and pronounced in the open court on 01/05/2025. Sd/- (RAKESH MISHRA) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 01/05/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "