ITO, Ward - 1(2), Kolkata, Kolkata V. M/s. Akash Ganga Polyplast Pvt. Ltd., Howrah

ITA 109/KOL/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7879 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 14-01-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 68; 148

Judgement Text

I.T.A. NO. 109/KOL./2011 ASSESSMENT YEAR: 2005-2006 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI SHAMIM YAHYA (ACCOUNTANT MEMBER), AND SHRI GEORGE MATHAN (JUDICIAL MEMBER) I.T.A. NO. 109/KOL. / 2011 ASSESSMENT YEAR : 2005-2006 INCOME TAX OFFICER,............................... ......APPELLANT WARD-1(2), KOLKATA, ROOM NO. 11A, 4 TH FLOOR, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 -VS.- M/S. AKASH GANGA POLYPLAST PVT. LTD.,.............. ....RESPONDENT HARI KRISHNA NAGAR, D.S. LANE, HOWRAH-711 109 [PAN : AACCA 7879 L] APPEARANCES BY: SHRI DAVID Z. CHAWNGTHU, ADDL. CIT, SR. D.R., FOR T HE DEPARTMENT SHRI RAJEEVA KUMAR, ADVOCATE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : AUGUST 04, 2014 DATE OF PRONOUNCING THE ORDER : AUGUST 04, 2014 O R D E R PER GEORGE MATHAN: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKATA IN APPEAL NO. 311/CIT(A)-1/WD-1(2)/08-09 DATED 30.09.2010 FOR THE ASSESSMENT YEAR 2005-06. 2. IN THE REVENUES APPEAL, REVENUE HAS RAISED THE FOLLOWING GROUNDS:- (1) THAT LD. CIT(A)-1, KOLKATA ERRED IN LAW AS WELL IN FACTS IN HIS DECISION BY DELETING THE ADDITION OF RS.2,72,90,300/- ON ACCOUNT OF UNEXPLAINED CASH DEP OSITS MADE U/S 68 OF THE I.T. ACT, 1961 BY THE ASSESSING OFFICER. I.T.A. NO. 109/KOL./2011 ASSESSMENT YEAR: 2005-2006 PAGE 2 OF 3 (2) THAT LD. CIT(A)-1, KOLKATA ERRED IN LAW AS WELL IN FACTS IN HIS DECISION BY REJECTING THE ACTION OF THE ASSE SSING OFFICER OF TREATING THE ALLEGED PURCHASE OF EQUITY SHARES OF QSIL AS FICTITIOUS. 3. SHRI DAVID Z. CHAWNGTHU, ADDL. CIT, SR. D.R., RE PRESENTED ON BEHALF OF THE REVENUE AND SHRI RAVEEJA KUMAR, ADVOCATE, RE PRESENTED ON BEHALF OF THE ASSESSEE. 4. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. D.R. THAT IN THE COURSE OF ASSESSMENT THE ASSESSING OFFICER HAD DISA LLOWED SOME CASH DEPOSITS AGGREGATING TO RS.2,72,90,300/- IN THE ASS ESSEES BANK ACCOUNT BY INVOKING THE PROVISIONS OF SECTION 68 AS THE ASS ESSEE WAS UNABLE TO EXPLAIN THE DEPOSITS. IT WAS THE FURTHER SUBMISSION THAT THE ASSESSING OFFICER HAD ALSO TREATED THE PURCHASE OF EQUITY SHA RES OF QSIL BY THE ASSESSEE AS BOGUS. IT WAS THE SUBMISSION THAT THE L D. CIT(APPEALS) HAD IN THE COURSE OF APPELLATE PROCEEDINGS WITHOUT LOOKING INTO ANY EVIDENCE AND ONLY ON THE GROUND THAT THE ASSESSING OFFICER H AD NOT BROUGHT ANY FURTHER EVIDENCE OTHER THAN THE INFORMATION FROM TH E INVESTIGATION WING DELETED THE ADDITION AND THE BOGUS TRANSACTIONS OF 39000 QSIL LTD. SHARES. IT WAS THE SUBMISSION THAT THE ORDER OF LD. CIT(APPEALS) WAS LIABLE TO BE REVERSED. 5. IN REPLY, LD. A.R. SUBMITTED THAT THE NOTICE UND ER SECTION 148 WAS ISSUED ON 08.08.2007 AND THE RETURN OF INCOME WAS F ILED ON 17.10.2008 AND THE ASSESSMENT WAS COMPLETED ON 31.12.2008. IT WAS THE SUBMISSION THAT THE ASSESSMENT WAS COMPLETED IN A HURRIED MANN ER. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD NO OBJECTION IF TH E ISSUES WERE RESTORED TO THE FILE OF ASSESSING OFFICER FOR RE-ADJUDICATIO N. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ASSESSMENT HAS BEEN DONE IN A HURRIED MANNER WITHOU T GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE THE C REDITS IN THE BANK ACCOUNT AS ALSO THE PURCHASE OF THE SHARES OF QSIL. THE ASSESSMENT ORDER I.T.A. NO. 109/KOL./2011 ASSESSMENT YEAR: 2005-2006 PAGE 3 OF 3 AS PASSED IS SET ASIDE AND THE ISSUES ARE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATION. THE ASSESSIN G OFFICER SHALL PASS THE ASSESSMENT DE NOVO AFTER DOING ALL NECESSARY VERIFI CATIONS AND AFTER GIVING ADEQUATE OPPORTUNITY TO THE ASSESSEE ON ALL ISSUES THAT NEED EXAMINATION. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH AUGUST, 2014. SD/- SD/- SHAMIM YAHYA GEORGE MATHAN (ACCOUNTANT MEMBER) (JU DICIAL MEMBER) KOLKATA, THE 4 TH DAY OF AUGUST, 2014 COPIES TO : (1) INCOME TAX OFFICER, WARD-1(2), KOLKATA, ROOM NO. 11A, 4 TH FLOOR, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (2) M/S. AKASH GANGA POLYPLAST PVT. LTD. HARI KRISHNA NAGAR, D.S. LANE, HOWRAH-711 109 (3) COMMISSIONER OF INCOME-TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.