INCOME TAX OFFICER, KOLKATA V. NITIN HIRE PURCHASE PRIVATE LIMITED, KOLKATA

ITA 1561/KOL/2024

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A), which had deleted an addition of Rs.1,92,00,000 made by the AO on account of unexplained cash credit under section 68 of the Income Tax Act. The AO had initially reopened the assessment based on information received from the DDIT, Investigation Unit-1(2), Kolkata, alleging that the assessee was a beneficiary of unaccounted money. However, the CIT(A) found that the reopening was based on a change of opinion and not on new material, leading to the quashing of the reopening. The Tribunal dismissed the revenue's appeal as they did not challenge the legal issue of the reopening's validity.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126779 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Other Referred Cases: Nitin Hire Purchase Pvt. Ltd. vs. ITA No.1526/Kol/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H. RBINDRO SINGH
• Assessee Lawyers: A. K. TIBREWAL; OBSERVING; HOLDING
• Keywords: Difference of opinion; Change of opinion; Unexplained cash credit; Accommodation entries; Grounds of appeal; Dismissed; National Faceless Appeal; HRA; Department; ADIT
• Section: 142(1)

Judgement Text

" आयकर अपीलीय अधिकरण, सी न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI SONJOY SARMA, JUDICIAL MEMBER आयकर अपील सं/ITA No.1561/KOL/2024 (नििाारण वर्ा / Assessment Year : 2013-2014) ITO, Ward-6(3), Kolkata Vs Nitin Hire Purchase Pvt. Ltd., Stephen House, 4 BBD Bag(E), Room No.77, 5th Floor, Kolkata PAN No. :AABCN 8093 Q (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri A.K.Tibrewal, AR राजस्व की ओर से /Revenue by : Shri H. Rbindro Singh, Addl.CIT सुनवाई की तारीख / Date of Hearing : 06/02/2025 घोषणा की तारीख/Date of Pronouncement : 25/04/2025 आदेश / O R D E R Per Rajesh Kumar, AM : This is an appeal filed by the revenue against the order dated 08.04.2024, passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2013-2014. 2. The only issue raised by the revenue in its appeal is against the deletion of addition of Rs.1,92,00,000/- by the ld. CIT(A) comprising of Rs.55,00,000/- and Rs.1,37,00,000/- on account of unexplained cash credit u/s.68 of the Act. 3. Facts in brief are that the assessee filed return of income on 30.09.2013 declaring total income of Rs.3,780/-. The case was selected for scrutiny and assessment u/s.143(3) of the Act was framed vide order dated 26.12.2019 assessing income of Rs.1,03,780/-. Subsequently the case was reopened u/s.147 of the Act after receiving the information from ITA No.1561/KOL/2024 2 DDIT, Investigation Unit-1(2), Kolkata vide letter dated 04.03.2019 that the assessee is a beneficiary of accounted money of Rs.55 lakhs during the year and accordingly notice u/s.148 was issued on 28.03.2019. The AO after issued notices u/s.143(2) & 142(1) of the Act along with questionnaire and AO after taking into consideration the reply/evidence filed by the assessee made two additions to the income of the assessee. Thereafter again a specific information was received by the AO from ADIT, Investigation Unit-1, Kolkata vide letter dated 26.12.2019 stating therein that the assessee is beneficiary of unaccounted money in the form of accommodation entries of Rs.1,37,00,000/- from Spice Merchants Pvt. Ltd.. Thereafter notice u/s.148 of the Act was issued on 28.03.2019. The assessee filed return of income in response to the notice on 14.02.2021. The AO after issuing statutory notice along with questionnaire and after taking into account the replies/evidences/details filed by the assessee, made addition of Rs.1,37,00,000/- on account of unaccounted cash credit u/s.68 of the Act. 4. After hearing the rival submissions of the parties and perusing the material available on record, we find that the coordinate bench of the Tribunal on similar issue in the case of Nitin Hire Purchase Pvt. Ltd., passed in ITA No.1526/Kol/2024 for the A.Y.2012-2013, vide order dated 09.10.2024, has held that reopening was made on the basis of some material which was available before the AO at the time of proceedings u/s.147, is a change of opinion on the part of the AO. Now, the department has challenged in the grounds of appeal the addition made in ITA No.1561/KOL/2024 3 the assessment order passed u/s.147/143(3) of the Act vide order dated 26.12.2019 and also Rs.1,37,00,000/- made u/s.147/143(3) of the Act vide order dated 21.09.2021. The ld. CIT(A) in the appellate proceedings has already allowed the appeal of the assessee by observing and holding that there is no material on record before the AO while issuing notice u/s.148 of the Act and is only a change of opinion on the part of the AO and accordingly the reopening was quashed on the ground of change of opinion. 5. Before us, the revenue has challenged the order of the ld. CIT(A) on merit without challenging the legal issue on which the ld. CIT(A) has decided the appeal of the assessee. Since the revenue has not challenged the legal issue before us and ld. CIT(A) has not decided the same on merit which was challenged by the revenue before us, therefore, the legal issue decided by the ld. CIT(A) becomes final resulting into appeal of the revenue becoming infructuous. Thus, the appeal of the revenue is dismissed as infructuous. 6. In the result, appeal of the revenue is dismissed. Order pronounced in the open court on 25/04/2025. Sd/- (SONJOY SARMA) Sd/- (RAJESH KUMAR) न्यानयक सदस्य / JUDICIAL MEMBER लेखा सदस्य/ ACCOUNTANT MEMBER कोलकाता Kolkata; ददनाांक Dated 25/04/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), ITA No.1561/KOL/2024 4 आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "