Platinum Commerce Pvt. Ltd., Kolkata V. D.C.I.T.Central Circle-VII, Kolkata, Kolkata

ITA 10/KOL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4042 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 06-10-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 02-01-2014
• Court: TRIBUNAL
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [BEFORE HONBLE SRI ABY T.VARKEY, JM & DR.ARJUN L AL SAINI, AM ] I.T.A NO.10/KOL/2014 ASSESSMENT YEAR : 2008-0 9 PLATINUM COMMERCE PVT.LTD. -VS.- D.C.I.T. , CENTRAL CIRCLE-VII, KOLKATA KOLKATA [PAN : AABCP 8186 E] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI SUBASH AGARWAL, ADVOCATE FOR THE RESPONDENT : SHRI RAJAT KUMAR KUREEL, J CIT, SR.DR DATE OF HEARING : 19.12.2016. DATE OF PRONOUNCEMENT : 30.12.2016. ORDER PER ABY T.VARKEY, JM THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-CENTRAL- I, KOLKATA DATED 29.11.2013 FOR AY 2008-09. 2. GROUND NO.1 IS GENERAL IN NATURE AND DOES NOT RE QUIRE ANY ADJUDICATION AND STANDS DISMISSED. 3. GROUND NO.2 IS AGAINST THE CONFIRMATION OF DISAL LOWANCE OF RS.26,35,000/- IN RESPECT OF LAND PURCHASE. 4. THE BRIEF FACTS OF THE CASE IS THAT THE AO OBSER VED DURING THE SCRUTINY ASSESSMENT THAT THE ASSESSEE COMPANY HAS MADE CASH PAYMENT OF RS.25 ,68,000/- FOR PURCHASE OF LAND WHICH WAS ADDED BACK AS UNEXPLAINED INVESTMENT BECA USE THE ASSESSEE HAS MADE CASH PAYMENT FOR PURCHASING THE LAND. AGGRIEVED THE ASSE SSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO HAS CONFIRMED THE SAME. AGGRIEVED THE ASSESSEE IS BEFORE US. 2 ITA NO.10/KOL/2014 PLATINUM COMMERCE PVT.LTD. A.YR.2008-09 2 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED T HE RECORDS. WE TAKE NOTE THAT THE AO HAS MADE THE ADDITION OF RS.25,68,000/- SINCE THE C OMPANY HAS MADE CASH PAYMENTS TO PURCHASE THE LAND. ON APPEAL THE LD. CIT(A) HAS CON FIRMED THE SAME BY STATING THOUGH IT WAS CLAIMED THAT THE CASH PAYMENTS WERE COVERED BY THE CASH WITHDRAWALS FROM THE BANK ACCOUNT, THE SAME COULD NOT BE CORRELATED AS NO CASH FLOW STATEMENT WAS FILED. IN THE LIGHT OF THE AFORESAID FACT, THE LD. CIT(A) COULD NOT ACCEPT THE CONTENTIONS OF THE ASSESSEE AND THEREFORE HE CONFIRMED THE ADDITION OF RS.25,68,000/-. BEFORE US THE LD. AR TOOK OUR ATTENTION TO PAGE-7 OF THE PAPER BOOK WHIC H IS THE CASH BOOK OF THE ASSESSEE FROM 01.04.2007 TO 31.03.2008. THE LD. AR TOOK OUR ATTENTION TO THE DEBIT OF RS.5,00,000/- ON 13.04.2007 AND OF RS.5,00,000/- ON 25.05.2007 AND THEREAFTER ANOTHER RS.5,00,000/- DEBIT ON 07.11.2007 AND THEREAFTER H E TOOK OUR ATTENTION TO THE CASH BOOK ENTRY ON 07.11.2007 ITSELF WHEREIN THERE ARE TWO EN TRIES FOR LAND WHEREIN CREDIT OF RS.12,00,000/- AND RS.84,000/- HAS BEEN MADE. THE REAFTER HE TOOK OUR ATTENTION TO THE ENTRY ON 08.11.2007 WHEREIN A DEBIT OF RS,4,00,000 /-, RS.1,00,000/- AND RS.7,00,000/- HAS BEEN MADE FROM THE ACCOUNT OF ABN AMRO BANK AND ON 20.11.2007 FOR LAND RS.12,00,000/- AND RS.84,000/- HAS BEEN CREDITED. T HUS ACCORDING TO THE LD AR A SUM OF RS.25,68,000/- HAS BEEN WITHDRAWN FROM THE BANK ACCOUNT OF THE ASSESSEE AND THEREAFTER PAYMENT WERE MADE FOR PURCHASE OF LAND. IN THE LIGHT OF THE AFORESAID FACTS THAT HAVE BEEN BROUGHT TO OUR NOTICE BY THE LD. AR AND IN THE LIGHT OF THE REASON RECORDED BY THE LD. CIT(A) TO REJECT THE CONTENTION OF THE ASSESSEE, WE ARE INCLINED TO SET ASIDE THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND REMAND THE MATTER BACK TO THE FILE OF THE LD. CIT(A) AND DIRECT THE ASSESSEE TO FILE THE CASH FLOW STATEMENT IN SUPPORT OF ITS SUBMISSIONS THAT CASH PAYMENTS WERE COVERED BY CASH WITHDRAWALS FROM ITS OWN BANK ACCOUNT. THE LD.CIT(A) TO DE NOVO ADJUDICATE THIS ISSUE AFTER SATISFYING HIMSELF AFTER PERUSAL OF THE CASH FLOW STATEMENT AND IN ACCORDANC E TO LAW DECIDE. 3 ITA NO.10/KOL/2014 PLATINUM COMMERCE PVT.LTD. A.YR.2008-09 3 6. THE NEXT ISSUE IS REGARDING THE ADDITION OF R S.67,000/- WHICH HAS BEEN CONFIRMED BY THE LD. CIT(A) TOWARDS PURCHASE OF BUILDING. NOT HING HAS BEEN BROUGHT TO OUR NOTICE BY THE LD. AR TO WARRANT OUR INTERFERENCE. THEREFO RE WE CONFIRM THE SAME. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 30.12.2016. SD/- SD/- [A.L.SAINI] [ ABY T.VARKEY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30.12.2016. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.PLATINUM COMMERCE PVT. LTD., 51, NALINI SETH ROAD , KOLKATA-700007. 2. D.C.I.T.-CENTRAL CIRCLE-VII, KOLKATA. . 3..CIT(A)-CENTRAL-I, KOLKATA 4. CIT CENTRAL -I, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSTT.REGISTRAR, ITAT, KOLKATA BENCHES 4 ITA NO.10/KOL/2014 PLATINUM COMMERCE PVT.LTD. A.YR.2008-09 4