ITO, Ward - 50(2), Kolkata, Kolkata V. Shri Ram Narayan Singh, North 24 Parganas

ITA 1073/KOL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9279 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-03-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 25-05-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: H N SINGH LD
• Keywords: Unexplained investment; Set aside
• Section: 133A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA ( ) . . , , . . , ) [BEFORE HONBLE SRI B.R.MITTAL, JM & HONBLE SRI B. K. HALDAR, AM] / I.T.A NO. 1073/KOL/2010 !' !' !' !' #$ #$ #$ #$ / ASSESSMENT YEAR : 2005-06 INCOME TAX OFFICER, WARD-50(2), KOLKATA -VS.- SHRI RAM NARAYAN SINGH, BARASAT (PAN : AIFPS 5557 G) ( %& %& %& %& /APPELLANT ) ( '(%& '(%& '(%& '(%& / RESPONDENT ) %& %& %& %& / FOR THE APPELLANT : ) ) ) ) !* !* !* !* / NONE '(%& '(%& '(%& '(%& / FOR THE RESPONDENT : + ++ + / SHRI H.N. SINGH, LD.DR , , , , / ORDER PER SHRI B. R. MITTAL, JUDICIAL MEMBER/ . . , :- THE DEPARTMENT HAS FILED THIS APPEAL FOR THE ASSES SMENT YEAR 2005-06 AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XXXII, KOLKATA DATED 18.01.2010. THE ONLY GRIEVANCE OF THE DEPARTMENT IS THAT THE LD. COMMISS IONER OF INCOME-TAX (APPEALS) HAS DELETED THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOU NT OF UNEXPLAINED INVESTMENT IN STOCK BY TAKING THE NEW EVIDENCES INTO ACCOUNT WITHOUT GIVIN G OPPORTUNITY TO THE ASSESSING OFFICER. 2. AT THE TIME OF HEARING, ON BEHALF OF THE ASSESSE E, NO ONE APPEARED INSPITE OF SERVICE OF NOTICE THROUGH LD. D.R. AS PER REPORT PLACED ON REC ORD. THEREFORE, WE DECIDED TO DISPOSE OF THE APPEAL AFTER CONSIDERING THE SUBMISSION OF THE LD. D.R. AND THE MATERIAL PLACED ON RECORD. 3. THE LD. D.R. SUBMITTED THAT THERE WAS A SURVEY U NDER SECTION 133A OF THE INCOME TAX ACT. DURING THE COURSE OF SURVEY, THE VALUE OF STOC K WAS FOUND OF RS.23,65,400/- BUT AS PER BOOKS THE VALUE OF BRICKS WAS AT RS.4,81,823/-. IT IS OBSERVED THAT THE ASSESSING OFFICER HAS CONSIDERED THE VALUE OF THE CLOSING STOCK ON THE DA TE OF SURVEY AS PER ASSESSMENT ORDER AT RS.90,775/-. THEREFORE, THE ASSESSING OFFICER MADE THE ADDITION OF RS.22,74,625/- AS UNEXPLAINED INVESTMENT IN STOCK IN THE HANDS OF THE ASSESSEE AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE FOR THE FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION. BEING AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A). 4. THE LD. D.R. SUBMITTED THAT THE LD. CIT(A) ACCEP TED THE CONTENTION OF THE ASSESSEE THAT THE ESTIMATION OF BRICKS IN THE DUMPER AT 10,75,200 MADE BY THE A.O. IS NOT CORRECT AND ITA NO.1073/KOL./2010 2 ACCEPTED THAT THE STOCK IN THE DUMPER ON THE DATE O F SURVEY WAS 2,30,400. HE FURTHER SUBMITTED THAT THE LD. CIT(A) ALSO ACCEPTED THE VALUE OF THE BRICK AT RS.1.50 PER PIECE AS AGAINST RS.2/- PER BRICK CONSIDERED BY THE A.O. THE LD. D.R. SUBMITTED THAT THE MATTER BE RESTORED TO THE CIT(A) TO DECIDE THE GROUND OF APPEAL TAKEN BY THE ASSESSE E AFTER GIVING OPPORTUNITY TO THE A.O. SO THAT THE A.O. COULD PLACE BEFORE THE LD. CIT(A) THE SURV EY REPORT PREPARED AT THE TIME OF SURVEY CONDUCTED UNDER SECTION 133A OF THE INCOME TAX ACT. 5. CONSIDERING THE ABOVE SUBMISSION OF THE LD. D.R. AND IN THE ABSENCE OF ANY EVIDENCE TO THE CONTRARY ON RECORD, WE ARE OF THE CONSIDERED VI EW THAT THE MATTER BE DECIDED AFRESH BY THE LD. CIT(A) AFTER GIVING OPPORTUNITY OF HEARING TO A .O. AND ALSO CONSIDERING SUCH MATERIAL AS MAY BE PRODUCED BY THE DEPARTMENT BEFORE HIM. HENCE , WE SET ASIDE THE ORDER OF LD. CIT(A) BY RESTORING THE GROUND OF APPEAL TAKEN BY THE DEPARTM ENT WITH A DIRECTION THAT CIT(A) WILL DECIDE THE APPEAL AFRESH AFTER GIVING DUE OPPORTUNITY OF H EARING TO BOTH THE PARTIES AND ALSO CONSIDERING SUCH EVIDENCES AS MAY BE RELIED UPON. H ENCE, THE GROUND OF APPEAL TAKEN BY THE DEPARTMENT IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMEN T IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11.03.2011. SD/- SD/- [B.K. HALDAR / ( . . ) ] [ B.R. MITTAL / . . ] ACCOUNTANT MEMBER/ JUDICIAL MEMBER/ DATED : 11/ 03 / 2011 COPY OF THE ORDER FORWARDED TO: 1. SHRI RAM NARAYAN SINGH, SITHI KAJIPARA, BARASAT, 24 -PARGANAS (NORTH), 2 ITO, WARD-50(2), KOLKATA, 169, AJC BOSE ROAD, KOLKA TA-14. 3. CIT(A)- ,KOLKATA 4. CIT, KOLKATA- 5. DR, KOLKATA BENCHES, KOLKATA (TRUE COPY) BY ORDER ASSISTANT REGISTRAR, I.T.A.T., KOLKATA LAHA, SR. P.S.