ITO, Ward - 36(2), Kolkata, Kolkata V. Shri Shyam Sunder Jalan, Kolkata

ITA 1061/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54746 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 03-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K PARAMANIK
• Assessee Lawyers: S L KOCHAR
• Keywords: Assessment record
• Section: 143(3); 133(6)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE . . , ! '# '# '# '# /AND ' # , ! ) [BEFORE SHRI S. V. MEHROTRA, AM & SRI MAHAVIR SINGH , JM] #$ #$ #$ #$ / I.T.A NO. 1061/KOL/2011 %& ''( %& ''( %& ''( %& ''(/ // / ASSESSMENT YEAR: 2008-09 INCOME-TAX OFFICER, WD-36(2), KOLKATA. VS. SHRI S HYAM SUNDER JALAN (PAN: ACKPJ 7725 P) (*+ /APPELLANT ) (,-*+/ RESPONDENT ) DATE OF HEARING: 29.12.2011 DATE OF PRONOUNCEMENT: 29.12.2011 FOR THE APPELLANT: SHRI A. K. PARAMANIK FOR THE RESPONDENT: SHRI S. L. KOCHAR . / ORDER PER MAHAVIR SINGH, JM ( ' # ' # ' # ' #, , , , ! ! ! ! ) THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A)-XX, KOLKATA IN APPEAL NO.144/ CIT(A)-XX/WD-36(2)/10-11/KOL DATED 30.05.20 11. ASSESSMENT WAS FRAMED BY ITO, WARD-36(2), KOLKATA U/S. 143(3) OF THE INCOME-TAX A CT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2008-09 VIDE DATED 30.12 .2010. 2. THE FIRST ISSUE IN THIS APPEAL OF REVENUE IS AGA INST THE ORDER OF CIT(A DELETING UNDISCLOSED PURCHASES IGNORING THAT PURCHASE DETAIL S FILED BY THE ASSESSEE ARE PART OF RECORDS. FOR THIS, REVENUE HAS RAISED FOLLOWING GROUND NO.1: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN JUSTIFYING THE CLAIM OF THE ASSESSEE THAT THERE WAS NO BASIS OF DE TECTION OF UNDISCLOSED PURCHASE IGNORING THAT PURCHASE DETAILS FILED BY THE ASSESSE E ARE PART OF THE RECORDS. 3. WE HAVE HEARD RIVAL PARTIES AND GONE THROUGH FAC TS AND CIRCUMSTANCES OF THE CASE. THE LD. COUNSEL FOR THE ASSESSEE FILED COMPLETE PARTY W ISE PURCHASE DETAILS, VAT DETAILS AND STATEMENT OF OUTPUT AND INPUT TAX ADJUSTED FOR THE FY 2007-08. THE ASSESSEE HAS ALSO FILED ACCOUNTS FOR THE YEAR ENDED 31.03.2008. SUBSEQUENT LY, ASSESSEES COUNSEL ALSO FILED PURCHASE RECONCILIATION. THE COMPLETE RECONCILIATION FILED B Y ASSESSEE IS BEING REPRODUCED AS IT IS: 2 ITA 1061/K/2011 SHYAM SUNDER JALAN A.Y.08-09 4. THE LD. DR AT THIS STAGE PRODUCED ASSESSMENT REC ORDS AND REFERRED TO A STATEMENT FILED BY ASSESSEE WHEREIN THE PURCHASES DISCLOSED ARE AT RS.1,51,72,294/-. WE FIND THAT THE CUSTOMS DUTY IS NOT INCLUDED BY THE ASSESSEE WHILE DISCLOSI NG TOTAL PURCHASES IN THE TRADING ACCOUNT, 3 ITA 1061/K/2011 SHYAM SUNDER JALAN A.Y.08-09 WHICH ARE AT RS.1,51,72,294/-. NOW ASSESSEE HAS FI LED COMPLETE RECONCILIATION, WHICH IS MATCHING, ON THE BASIS OF THE SAME, THE CIT(A) ALSO DELETED THE ADDITION. WE FIND NO INFIRMITY IN THE RECONCILIATION AND EVEN LD. SR. DR COULD NOT POINT OUT ANY DEFECT IN THE RECONCILIATION, HENCE WE CONFIRM THE ORDER OF CIT(A) DELETING THE A DDITION. THIS ISSUE OF REVENUES APPEAL IS DISMISSED. 5. THE NEXT ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) DELETING THE ADDITION OF CLOSING STOCK OF SHARES. FOR THIS, REV ENUE HAS RAISED FOLLOWING GROUND NO.2: 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN IGNORING THE TRADING AND PROFIT & LOSS ACCOUNT TO ASCERTAIN THE RESULT OF SHARE TRANSACTION THEREIN AND OVERLOOKING THE FACT THAT NO DETAILS/EXPLANATION RE GARDING PURCHASE, SALE & LOSS INCURRED IN RESPECT OF SHARE TRANSACTION WERE PRODUCED BEFOR E THE A.O. 6. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT ASSESSING OFFICER NOTICED THAT THERE I S OPENING STOCK OF SHARES AT RS.99,584/- AND PURCHASES DURING THE YEAR ARE AT RS.65,72,782/-. T HE ASSESSING OFFICER ALSO NOTICED THAT THE SALE OF SHARES ARE AT RS.65,71,601/-, THEREBY HE PR ESUMED THAT THE ASSESSEE HAS NOT DISCLOSED THE CLOSING STOCK AS APPEARING IN THE ACCOUNTS OF THE A SSESSEE. ASSESSEE BEFORE ASSESSING OFFICER AS WELL AS CIT(A) CONTENDED THAT IT HAS SOLD THE ENTIR E STOCK OF SHARES INCLUDING PURCHASES AT RS.65,71,601/- AND INCURRED LOSS AT RS.1,00,710/-, WHICH WAS DISCLOSED IN THE P&L ACCOUNT. WHEN WE HAVE GONE THROUGH THE DOCUMENTS I.E. TRADIN G AND P&L ACCOUNT, NOTICED THAT THE FACTS AND FIGURES STATED BY THE ASSESSEE ARE MATCHI NG AND CIT(A) HAS ALSO GONE THROUGH THE SAME, HENCE, WE ARE OF THE VIEW THAT THE CIT(A) HAS RIGHTLY DELETED THE ADDITION AND WE CONFIRM THE SAME. THIS ISSUE OF REVENUES APPEAL I S DISMISSED. 7. THE NEXT ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) DELETING THE ADDITION AFTER CONSIDERING THE RECONCILIATION OF CR EDIT BALANCES. REVENUE ALSO CONTENDED THAT THIS IS A NEW DOCUMENT AND HENCE, RULE 46A OF THE I . T. RULES, 1962 (HEREINAFTER REFERRED TO AS THE RULES) ARE VIOLATED. FOR THIS, REVENUE HAS R AISED FOLLOWING GROUND NO.3: 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN NOT CONSIDERING THE FACT THAT RECONCILIATION OF CREDITO RS BALANCE PRODUCED/EXPLAINED BEFORE HIM WAS COMPLETELY NEW AND WERE NEVER PRODUCED/EXPL AINED BEFORE THE A.O. WHICH IS AGAINST THE SPIRIT OF RULE 46A. 8. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE ASSESSEE BEFORE CIT(A) HAS FILED C OMPLETE RECONCILIATION IN RESPECT TO THE 4 ITA 1061/K/2011 SHYAM SUNDER JALAN A.Y.08-09 CREDIT OF M/S. ARIHANT INDUSTRIAL CORPORATION. ASS ESSEE CONTENDED THAT IT HAS ISSUED CHEQUE OF RS.70,886/- AGAINST PURCHASES WHICH WAS NOT DEBITED IN THE BOOKS OF ACCOUNT AND THE SAME WAS ENTERED IN THE BOOKS OF M/S. ARIHANT INDUSTRIAL COR PORATION. SUBSEQUENTLY, A DEBIT NOTE ISSUED BY ASSESSEE ON 31.03.2008 FOR AN AMOUNT OF RS.15,53 5/- WHICH WAS NOT ACCOUNTED FOR IN THE BOOKS OF ARIHANT INDUSTRIAL CORPORATION. ACCORDING LY, DIFFERENTIAL AMOUNT OF RS.55,351/- AROSE, WHICH WAS RECONCILED BY THE ASSESSEE BEFORE CIT(A). THE CIT(A) AFTER CONSIDERING THE FACTS DELETED THE ADDITION BY GIVING FOLLOWING FIND ING: I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT . I HAVE ALSO PERUSED THE ASSESSMENT RECORD. I FIND THAT THE BOOKS OF ACCOUNT AND RELEV ANT DETAILS WERE PRODUCED AT THE ASSESSMENT STAGE. MOREOVER, IN RESPONSE TO NOTICE U/S. 133(6) ISSUED BY THE A.O, M/S. ARIHANT INDUSTRIAL CORPORATION HAS FURNISHED VARIOU S DETAILS INCLUDING LEDGER COPY OF THE APPELLANT AND DETAILS OF CREDIT/DEBIT NOTES ISS UED BY THE APPELLANT. I FIND FROM THE LEDGER COPY OF THE APPELLANT AS APPEARING IN THE BO OKS OF M/S. ARIHANT INDUSTRIAL CORPORATION THAT PAYMENT OF RS.70,886/- VIDE CHEQUE NO. 000087 DRAWN ON HDFC BANK IS RECORDED ON 28.03.2008; HOWEVER, THE SAME HAS NO T BEEN ENTERED IN THE BOOKS OF THE APPELLANT. SECONDLY, FREIGHT CHARGE DEBIT NOTE ISS UED BY THE APPELLANT ON 31.03.2008 HAS NOT BEEN ACCOUNTED FOR BY M/S. ARIHANT INDUSTRI AL CORPORATION. THE DIFFERENCE OF RS.51,351/- IS THUS SATISFACTORILY EXPLAINED. THE A.O. HAS FAILED TO ANALYZE THE MATERIAL AVAILABLE ON RECORD. HE HAS PRESUMED, WITHOUT ANY BASIS, THAT THE APPELLANT MADE PAYMENTS FROM UNDISCLOSED SOURCES. IN VIEW OF THE ABOVE, THE ADDITION OF RS.51,351/- IS DELETED. GROUND NO. 8 IS ALLOWED. WE FIND NO INFIRMITY IN THE ORDER OF CIT(A) AS THE ASSESSEE HAS COMPLETELY RECONCILED THE DIFFERENCE AND THIS BEING A NEGLIGIBLE AMOUNT INVOL VED, NO PURPOSE WILL BE SERVED IN SENDING BACK THE ISSUE TO THE FILE OF ASSESSING OFFICER. H ENCE, THIS ISSUE OF REVENUES APPEAL IS ALSO DISMISSED. 9. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. 10. ORDER PRONOUNCED IN OPEN COURT ON. SD/- SD/- . . ! ' '' ' # # # # , ! (S. V. MEHROTRA) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( / / / /) )) ) DATED : 29TH DECEMBER, 2011 '01 %23 4' JD.(SR.P.S.) 5 ITA 1061/K/2011 SHYAM SUNDER JALAN A.Y.08-09 . 5 ,6 76'8- COPY OF THE ORDER FORWARDED TO: 1 . *+ / APPELLANT ITO, WARD-36(2), KOLKATA. 2 ,-*+ / RESPONDENT, SHRI SHYAM SUNDER JALAN, 32, EZRA STR EET, KOLKATA-700 001. 3 . .% ( )/ THE CIT(A), KOLKATA 4. .% / CIT, KOLKATA 5 . '> ,% / DR, KOLKATA BENCHES, KOLKATA -6 ,/ TRUE COPY, .%?/ BY ORDER, #3 /ASSTT. REGISTRAR .