Shri Sanjit Kundu, Malda V. ITO, Ward - 3, Malda, Malda

ITA 1139/KOL/2011

• Counselvise Citation: [2013] 119 COUNSELVISE.COM (IT) 2935 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2013
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 02-09-2011
• Court: TRIBUNAL
• Assessee Lawyers: ARVIND AGARWAL
• Keywords: Gift
• Section: 143(3); 68; 6

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE . . . . . . . . , /AND ! '! , ) [BEFORE SHRI P. K. BANSAL, AM & SHRI MAHAVIR SINGH, JM] # # # # / I.T.A NO. 1139/KOL/2011 '$% &' '$% &' '$% &' '$% &'/ // / ASSESSMENT YEAR: 200 4- 0 5 SHRI SANJIT KUNDU VS. INCOME-TAX OFFICER, WD-3 , MALDA (PAN:AJXPK3387Q) ()* /APPELLANT ) (+,)*/ RESPONDENT ) DATE OF HEARING: 20.03.2013 DATE OF PRONOUNCEMENT: 20.03.2013 FOR THE APPELLANT: SHRI ARVIND AGARWAL, ADVO CATE FOR THE RESPONDENT: SHRI SANJAY MUKHERJEE, SR. DR - / ORDER PER BENCH: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), JALPAIGURI IN APPEAL NO. 198/MLD/CIT(A)/JAL/06-07 DATED 30.06.2011. ASSESSME NT WAS FRAMED BY ITO, WARD-3, MALDA U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HERE INAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2004-05 VIDE HIS ORDER DATED 27.12. 2006. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE RAISE D BY WAY OF GROUND NOS. 1 TO 10 IS AS REGARDS TO THE ADDITION OF GIFTS RECEIVED OF RS. 3 LAKH BY BANKERS CHEQUE FROM THE FOLLOWING: NAME GIFT AMOUNT RETURNED INCOME RELATIONSHIP WITH ASSESSEE SANDIP KR. ROY 45,000/- 52,520/- FAMILY FRIEND UTTAM KR. MANDAL 45,000/- 75,644/- FAMILY FRIEND SANAT HAZRA 40,000/- 72,510/- LIKE BROTHER BAIDYA B. PATHAK 45,000/- 75,760/- LIKE BROTHER AMALENDU KARMAKAR 35,000/- 64,434/- BUSINESS RELATI ON SUBRATA KR. DAS 48,000/- 76,250/- CLIENT GOUTAM KR. DAS 42,000/- 92,300/- LIKE BROTHER ACCORDING TO AO, THE ASSESSEE PRODUCED ALL THE DONO RS BEFORE THE AO, WHO EXAMINED THESE DONORS AND ALSO DOCUMENTS SUBMITTED BEFORE HIM. AC CORDING TO AO, ALL THE DONORS HAVE MEAGRE SOURCE OF INCOME AND THEIR DRAWINGS ARE INSI GNIFICANT DURING THE RELEVANT YEARS WHEREAS ASSESSEE IS A MEMBER OF VERY AFFLUENT FAMILY RUNNIN G BUSINESS UNDER THE NAME AND STYLE OF M/S. G. L. KUNDU & SONS, WHICH IS A WELL KNOWN PARTY IN MALDA. ACCORDING TO AO, THESE DONORS DID NOT MAKE ANY GIFT TO ANY OTHER PERSON OTHER THA N ASSESSEE AND THEY HAVE NO DIRECT 2 ITA NO.1139/K/2011 SANJIT KUNDU AY: 2004-05 RELATIONSHIP WITH HIM ALSO. IN VIEW OF THE ABOVE, THE AO CONCLUDED THAT THE ASSESSEE COULD NOT ESTABLISH THE CREDITWORTHINESS OF THE DONORS, OCCAS ION TO MAKE THE GIFT. HENCE, HE MADE ADDITION BY TREATING THE SAME AS CASH CREDIT U/S. 6 8 OF THE ACT OF THE ABOVE UNEXPLAINED GIFTS. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONFIRMED THE ACTION OF AO. 3. HENCE, ASSESSEE IS IN APPEAL BEFORE US. BEFORE US, ASSESSEE FILED AGAIN COMPLETE DETAILS CHART WISE, WHICH IS AS UNDER: SL. NO. NAME CAPITAL GROSS RECEIPTS/SALES AMOUNT OF GIFT MADE % AGE OF GIFT TO CAPITAL PERSONAL EXPENSES CASH IN HAND CASH AT BANK 1. SANDIP KR. ROY PROP. OF ROY GOURI ENTERPRISE 284,582 799,332 45,000 16% 20,000 26,987 182,454 2. UTTAM KR. MANDAL (LIC AGENT) 205,085 159,210 45,000 21% 25,000 104,639 (CLOSING CAPITAL) 3. SANAT HAZRA 192,704 218,472 40,000 20% 25,000 93 ,667 4. BIDYA BHUSAN PATHOK (PROP, RANUBANU CONSTN.) 257,711 946,924 45,000 17.50% 25,000 79,133 5. AMALENDU KARMAKAR (COMMISSION AGENT) 275,379 164,678 35,000 12.70% 25,000 82,591 2,745 6. SUBRATA KR. DAS 155,918 230,640 48,000 30% 20,00 0 54,427 9,413 7. GOUTAM KR. DAS 290,892 297,318 42,000 14.50% 25, 000 162,202 11,790 KEEPING IN VIEW THE ABOVE EXPLANATION SUBMITTED IN EARLIER FORUM, THE LD. COUNSEL FOR THE ASSESSEE FAIRLY CONCEDED THAT THE BENCH CAN SUSTAIN THE ADDITION OF UNEXPLAINED GIFTS IN THE CASE OF UTTAM KUMAR MONDAL FOR AN AMOUNT OF RS.45,000/-, SANAT HAZRA RS.40,000/- AND AMALENDU KARMAKAR AMOUNTING TO RS.35,000/- THAT MEANS OUT OF RS.3 LAKH OF CASH GIFTS THE ASSESSEE HAS SURRENDERED THE GIFT OF RS.1.20 LAKH. FOR THE BALA NCE, HE STATED THAT THE BALANCE ARE EXPLAINED GIFTS. THE LD. DR HAS NOT CONTESTED WHAT WAS STATE D BY THE ASSESSEE. IN VIEW OF THE ABOVE, WE ARE OF THE VIEW THAT THE ADDITION TO THE EXTENT OF RS.1.20 LKH IS CONFIRMED AS ADMITTED BY ASSESSEE AND BALANCE ADDITION OF RS.1.80 LAKH IS DE LETED. 4. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALLO WED. 5. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- . . . . . . . . , ! ! ! ! '! '! '! '! , (P. K. BANSAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( . . . .) )) ) DATED : 20TH MARCH, 2013 /0 '$12 '3 JD.(SR.P.S.) 3 ITA NO.1139/K/2011 SANJIT KUNDU AY: 2004-05 - 4 +''5 65&7- COPY OF THE ORDER FORWARDED TO: 1 . )* / APPELLANT SHRI SANJIT KUNDU, PRANTAPALLY, MALDA, PIN:732101 2 +,)* / RESPONDENT ITO, WARD-3, MALDA. 3 . '-$ ( )/ THE CIT(A), JALPAIGURI 4. 5. '-$ / CIT JALPAIGURI 5 <'= +'$ / DR, KOLKATA BENCHES, KOLKATA ,5 +'/ TRUE COPY, -$>/ BY ORDER, ! 2 /ASSTT. REGISTRAR .