ACIT, Circle - 54, Kolkata, Kolkata V. Shri Deepak Roy, Kolkata

ITA 1104/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54770 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 22-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N DUTTA GUPTA
• Assessee Lawyers: SUJIT SENGUPTA A R

Judgement Text

, ' , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA ( ) . . , , , , , , ) [BEFORE SRI S.V. MEHROTRA, A.M. & SRI MAHAVIR SING H, J.M.] ! ! ! ! / I.T.A NO. 1104/KOL/2011 ASSESSMENT YEAR : 2008-2009 ASSISTANT COMMISSIONER OF INCOME TAX, -VS.- SRI DEEPAK ROY, KOLKATA CIRCLE-54, KOLKATA (PAN : ADHPR 7505 H) ( '# /APPELLANT ) ( $%'# / RESPONDENT ) FOR THE APPELLANT ( '# ) : SHRI N. DUTTA GUPTA, D.R. FOR THE RESPONDENT ( $%'# ) : SHRI SUJIT SENGUPTA, A.R. &' ( ) * &' ( ) * &' ( ) * &' ( ) * /DATE OF HEARING : 30.12.2011 +, ) * +, ) * +, ) * +, ) * /DATE OF PRONOUNCEMENT : 30.12.2011 - / ORDER PER SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER/ . . , :- THIS APPEAL FILED BY THE REVENUE IS AGAINST THE OR DER OF LD. COMMISSIONER OF INCOME- TAX (APPEALS)-XXXVI, KOLKATA DATED 08.06.2011 FOR T HE ASSESSMENT YEAR 2008-09. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED HIS RETURN OF INCOME DECLARING TOTAL INCOME AT RS.32,84,335/-. THE ASSESSING OFFICER NOT ICED THAT IN THE BOOKS OF DELOITTE HASKINS & SELLS, CAPITAL A/C. BALANCE OF ASSESSEE WAS RS.60 ,00,000/-, WHEREAS IN THE BALANCE-SHEET OF ASSESSEE, IT WAS ONLY RS.35,00,000/-. HE, THEREFORE , MADE AN ADDITION OF RS.25,00,000/- AS UNDISCLOSED INVESTMENT. LD. CIT(APPEALS) DELETED TH E ADDITION BY OBSERVING IN PARA 6 & 6.1 AS UNDER :- 6. IN GROUND NO. 4 OF THE APPEAL, THE APPELLANT HA S CHALLENGED ADDITION OF RS.25,00,000/- ON CCOUNT OF DIFFERENCE IN CAPITAL A CCOUNT OF THE APPELLANT WITH DELOITTE HASKINS & SELLS. THE AO OBSERVED THAT THE APPELLANT WAS HAVING CAPITAL BALANCE OF RS.60,00,000/- AS PER THE BOOKS OF DELOITTE HASKINS & SELLS AS ON 3 1/03/2008, WHEREAS IN THE BALANCE SHEET OF THE APPELLANT, CAPITAL ALE WITH DELOITTE HASKINS & SELLS WAS SHOWN AS RS.35,00,000/-. THE APPELLANT IN HIS WRITT EN SUBMISSION CONTENDED AS FOLLOWS: ITA NO. 1104/KOL./2011 2 AN AMOUNT OF RS.35,00,000/- WAS INTRODUCED FURT HER AS THE FIXED CAPITAL OF THE APPELLANT WITH THE FIRM DURING THE Y EAR UNDER ASSESSMENT. IT WAS EXPLAINED BY THE APPELLANT BEFORE THE ASSESSING AUT HORITY VIDE A LETTER DATED 26.04.2010 OF WHICH THERE WAS NOT MENTIONING IN THE ASSESSMENT ORDER. HOWEVER THE DETAILS ARE ENCLOSED HEREWITH INCLUDING THE XEROX COPY OF THE BANK STATEMENT. (ANNEXURE-B). 6.1. I HAVE DULY CONSIDERED THE SUBMISSION OF THE APPELLANT AND SEEN THE RELEVANT DETAILS FILED. THE APPELLANT WAS HAVING CLOSING CAP ITAL BALANCE WITH DELOITTE HASKINS & SELLS AS ON 31/03/2007, OF RS.25,00,000/-. HE FURTH ER CONTRIBUTED RS.35,00,000/- BY CHEQUE TOWARDS CAPITAL CONTRIBUTION ON 27/03/2008. THUS HIS TOTAL CAPITAL CONTRIBUTION WAS RS.60,00,000/-, WHICH TALLIED WITH THE ACCOUNT OF DELOITTE HASKINS & SELLS. THE APPELLANT REITERATED THAT THIS ISSUE HAD BEEN EXPLA INED BY HIM DURING THE ASSESSMENT PROCEEDINGS, VIDE LETTER DATED 26/04/20 10, BUT THE AO WITHOUT MAKING ANY COMMENTS ON SUCH SUBMISSION, ADDED RS.25,00,000/- ON WHIMS A ND FANCY. IT IS FOUND OUT FROM THE DETAILS FILED THAT THE APP ELLANT WAS HAVING AN OPENING CAPITAL BALANCE OF RS.25.00 LAKHS WITH DELOITTE HASKINS & S ELLS. DURING THE YEAR, APPELLANT FURTHER CONTRIBUTED RS.35.00 LAKHS. THEREFORE, ALTO GETHER APPELLANTS CAPITAL CONTRIBUTION WAS R.S.60.00 LAKHS, WHICH TALLIED WIT H THE ACCOUNTS OF DELOITTE HASKINS & SELLS. THUS, THERE WAS NO DIFFERENCE IN CAPITAL CON TRIBUTION. THE ADDITION OF RS.25 LAKHS IS THEREFORE, DELETED. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE PRODUCED BEFORE US A COPY OF LETTER DATED 26.04.2010, WHICH WAS FILED BEFORE THE ASSESS ING OFFICER AS UNDER :- PLEASE NOTE THAT THERE IS NO DIFFERENCE BETWEEN CU RRENT ACCOUNT AND CAPITAL ACCOUNT AND THE COMBINED BALANCE OF BOTH THE ACCOUN TS REPRESENTS AMOUNT DUE TO THE PARTNER. AS PER INTERNAL POLICIES OF THE FIR M, THE PARTNER WAS REQUIRED TO MAINTAIN A DEPOSIT IN THE FORM OF CAPITAL ACCOUNT I NITIALLY FOR RS.25 LAKHS AND DURING THE YEAR ENDED MARCH 31,2008 THE AMOUNT WAS INCREASED TO RS.60 LAKHS AND ACCORDINGLY CONTRIBUTION OF RS.35 LAKHS WAS MAD E FROM BANK OF INDIA, KHAN MARKET BRANCH. THE BALANCE IN THE CURRENT ACCO UNT CAN BE WITHDRAWN AT ANY POINT OF TIME BUT THE BALANCE IN THE CAPITAL AC COUNT CAN BE WITHDRAWN AS AND WHEN PERMITTED BY THE MANAGEMENT OF THE FIRM. 4. LEARNED DEPARTMENTAL REPRESENTATIVE RELIED ON TH E ASSESSMENT ORDER. 5. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL AV AILABLE ON RECORD. LD. COUNSEL FOR THE ASSESSEE PRODUCED BEFORE US FUND FLOW STATEMENT FOR THE YEAR ENDING ON 31.03.2008 IN WHICH IT HAS BEEN SHOWN THAT RS.35,00,000/- WAS DEPOSITED WI TH DELOITTE HASKINS & SELLS, NEW DELHI. NOTHING HAS BEEN BROUGHT ON RECORD TO CONTROVERT TH E FINDINGS OF LD. CIT(APPEALS) THAT THE ASSESSEE WAS HAVING AN OPENING CAPITAL BALANCE OF R S.25,00,000/- WITH DELOITTE HASKINS & SELLS AS APPEARING IN THE BALANCE-SHEET ON 31.03.20 07 AND, ASSESSEE FURTHER CONTRIBUTED ITA NO. 1104/KOL./2011 3 RS.35,00,000/- TOWARDS CAPITAL CONTRIBUTION. BOTH A MOUNTS AGGREGATE TO RS.60,00,000/- WHICH TALLIES WITH THE ACCOUNTS OF DELOITTE HASKINS & SEL L. THEREFORE, THERE WAS NO DIFFERENCE. WE, THEREFORE, CONFIRM THE ORDER OF LD. CIT(APPEALS) AN D REJECT THE GROUNDS OF APPEAL TAKEN BY THE REVENUE. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. . / . / . / . / 0 1 0 1 0 1 0 1 .2 .2 .2 .2 3 3 3 3 2 2 2 2 45 4545 45 ORDER PRONOUNCED IN THE OPEN COURT ON 30/ 12 /2011. & 6 7 - 30/12/2011. SD/- SD/- [ MAHAVIR SINGH / ] [S.V. MEHROTRA/ ( . . )] JUDICIAL MEMBER/ ACCOUNTANT MEMBER/ DATED : 30/ 12/ 2011 COPY OF THE ORDER FORWARDED TO: 1. SHRI DEEPAK ROY, 26/1, RAM CHANDRA COLONY, BARISHA, KOLKATA-8. 2 ACIT, CIRCLE-54, KOLKATA, 3, GOVT. PLACE WEST, KOLK ATA-700 001 3. COMMISSIONER OF INCOME-TAX (APPEALS)- , KOLKATA 4. CIT- , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA (TRUE COPY) BY ORDER ASSISTANT REGISTRAR, I.T.A.T., KOLKATA LAHA, SR. P.S.