DCIT, Circle - 1, Kolkata, Kolkata V. M/s. Bee Dee Dealers Pvt. Ltd., Howrah

ITA 102/KOL/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100051 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-07-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 13-01-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 68; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO. 102 / KOL / 2011 ASSESSMENT YEAR:2007-08 DCIT, CIRCLE-1, 7 TH FLOOR, AAYKAR BHAWAN, KOLKATA 700 069 V/S . M/S BEE DEE DEALERS PVT. LTD., 3, SATYANARAYAN TEMPLE ROAD, 1 ST FLOOR BANDHAGHAT, HOWRAH 711 106 [ PAN NO.AACCB 5319 C ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI AMITAVA BHATTACHARYYA, JCIT, SR-DR /BY RESPONDENT SHRI SUBASH AGARWAL, ADVOCATE /DATE OF HEARING 27-10-2015 /DATE OF PRONOUNCEMENT 06-11-2015 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:- THIS APPEAL BY THE REVENUE IS ARISING OUT OF ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-I, KOLKATA IN APPEAL NO.446/CI T(A)-I/C-1/09-10 DATED 20.09.2010. ASSESSMENT WAS FRAMED BY DCIT CIR CLE-1, KOLKATA U/S 144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED T O AS THE ACT) VIDE HIS ORDER DATED 21.12.2009 FOR ASSESSMENT YEAR 2007-08. ITA NO.102/KOL/2011 A.Y. 2007-08 DCIT CIR-1, KOL. V. M/S BEE DEE DEALERS PVT. PAGE 2 2. AT THE OUTSET IT WAS OBSERVED THAT THE ASSESSING OFFICER HAS FRAMED THE ASSESSMENT U/S. 144 OF THE ACT BY MAKING THE ADDITI ON / DISALLOWANCE DETAILED AS UNDER:- (A) DURING THE YEAR THE SALES WERE MADE FOR AN AMOU NT OF RS.12.35 LAKH WHICH WAS REALIZED IN TOTALITY DURING THE YEAR UNDER CONS IDERATION. AGAINST THE ABOVE SALE A PURCHASE OF RS.9.75 LAKH WAS ALSO MADE ON CR EDIT AND SAME WAS OUTSTANDING AT THE END OF YEAR. IT WAS ALSO OBSERVE D THAT NO BUSINESS WAS CARRIED OUT BY THE ASSESSEE COMPANY IN THE EARLIER YEARS. ON QUESTION BY THE AO ABOUT THE GENUINENESS OF THE TRANSACTION, THE AS SESSEE FAILED TO EXPLAIN. THEREFORE AO TREATED THE ENTIRE SALES AS UNEXPLAINE D CASH CREDIT IN THE BOOKS OF ASSESSEE AND ADDED IT TO THE INCOME OF ASSESSEE U/S. 68 OF THE ACT. (B) DURING THE YEAR ASSESSEE HAS MADE AN INVESTMENT OF RS.2,25,23,000/- IN SHARES AND PROPERTIES, ON BEING QUESTION BY AO TO A SSESSEE ABOUT THE SOURCE OF SUCH INVESTMENT, ASSESSEE COULD NOT GIVE ANY SAT ISFACTORY REPLY THEREFORE AO TREATED IT AS UNDISCLOSED INCOME U/S 69A OF THE ACT AND ADDED IT TO THE INCOME OF ASSESSEE. BEING AGGRIEVED BY THE ORDER OF AO ASSESSEE PREFERR ED APPEAL BEFORE LD. CIT(A) WHO HAS DELETED THE ADDITION MADE BY AO ON T HE BASIS OF SUBMISSION MADE AND DOCUMENTS PRODUCED BEFORE HIM FOR VERIFICA TION. SHRI SUBHASH AGARWAL, LD. AUTHORIZED REPRESENTATIVE IS APPEARING ON BEHALF OF ASSESSEE AND SHRI AMITAVA BHATTACHARYYA, LD. DEP ARTMENTAL REPRESENTATIVE IS APPEARING ON BEHALF OF REVENUE. 3. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE OBSERVE THAT DOCUMENTS WHICH WERE SUBMIT TED BEFORE APPELLATE STAGE TO CIT(A) WERE NEVER CONFRONTED FOR VERIFICAT ION BY THE AO. THEREFORE, WE OPINED THAT THE MATTER HAS NOT BEEN ADJUDICATED ON THE PRINCIPLE OF NATURAL JUSTICE AND ON MERITS. IT WAS THE DUTY OF LD. CIT(A ) TO CALL FOR A REMAND REPORT FROM THE AO REGARDING THE EXPLANATION AND DOCUMENTS SUBMITTED BY ASSESSEE BEFORE CIT(A) AT THE APPELLATE STAGE. WE ALSO OBSER VE THAT ASSESSMENT HAS ITA NO.102/KOL/2011 A.Y. 2007-08 DCIT CIR-1, KOL. V. M/S BEE DEE DEALERS PVT. PAGE 3 BEEN FRAMED BY AO U/S 144 OF THE ACT. FROM THE AFOR ESAID DISCUSSION, WE INFER THAT ASSESSMENT HAS NOT BEEN DONE ON THE BASIS OF M ERIT EITHER AT APPELLATE STAGE OR ASSESSMENT STAGE. SO IN VIEW OF ABOVE AND IN THE INTEREST OF JUSTICE AND FAIR PLAY WE DEEM IT FIT TO RESTORE THE MATTER BEFORE AO FOR FRESH ADJUDICATION AS PER LAW. NEEDLESS TO SAY THAT ASSES SEE SHOULD COOPERATE BEFORE AUTHORITIES BELOW AS AND WHEN REQUIRED. IN T ERMS OF THE ABOVE, REVENUES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE . 4. IN THE RESULT, REVENUES APPEAL IS ALLOWED FOR STAT ISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT 06/ 11/2015 SD/- SD/- (MAHAVIR SINGH) (WASEEM AHMED) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA, *DKP !- 06 /1 1 /2015 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-DCIT, CIR-1, 7 TH FL. AAYAKAR BHAWAN, KOL-69 2. /RESPONDENT-M/S BEE DEE DEALERS PVT. 3, SATYANARAYA N TEMPLE ROAD, 1 ST FLOOR, BANDHAGHAT, HOWRAH 711 106 3. * +, . / CONCERNED CIT KOLKATA 4. .- / CIT (A) KOLKATA 5. 012 33+,, +, , / DR, ITAT, KOLKATA 6. 267 89 / GUARD FILE. BY ORDER/ , /TRUE COPY/ / +, ,