The Nisha Enterprise, Kolkata V. ITO, Wd-28(2), Kolkata, Kolkata

ITA 1182/KOL/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3114 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 26-05-2014
• Court: TRIBUNAL
• Department Lawyers: M K BISWAS
• Assessee Lawyers: P K SANGHAI
• Section: 143(3)

Judgement Text

I.T.A. NO. 1182/KOL./2014 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 1182/KOL/ 2014 ASSESSMENT YEAR: 2008-2009 THE NISHA ENTERPRISE,.............................. ...............................APPELLANT 40A, DR. SUDHIR BOSE ROAD, KOLKATA-700 023 [PAN : AADFT 1905 E] -VS.- INCOME TAX OFFICER,................................ ..................................RESPONDENT WARD-28(2), KOLKATA, AAYAKAR BHAWAN DAKSHIN, 2, GARIAHAT ROAD (SOUTH), KOLKATA-700 068 APPEARANCES BY: SHRI P.K. SANGHAI, FCA, FOR THE ASSESSEE SHRI M.K. BISWAS, JCIT, SR. D.R., FOR THE DEPARTMEN T DATE OF CONCLUDING THE HEARING : JANUARY 08, 2016 DATE OF PRONOUNCING THE ORDER : FEBRUARY 10, 2016 O R D E R THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XIV, KOLKATA D ATED 28.02.2014 FOR THE ASSESSMENT YEAR 2008-09 AND IN THE SOLITARY GRO UND RAISED THEREIN, THE ASSESSEE HAS CHALLENGED THE ADDITION OF RS.5,21 ,950/- MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(APPE ALS) UNDER SECTION 41(1) ON ACCOUNT OF CESSATION OF LIABILITY. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHI P FIRM, WHICH IS ENGAGED IN THE BUSINESS OF TRADING OF HARDWARE GOOD S. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED B Y IT ON 29.09.2008 DECLARING TOTAL INCOME OF RS.80,205/-. DURING THE C OURSE OF ASSESSMENT I.T.A. NO. 1182/KOL./2014 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 3 PROCEEDINGS, IT WAS NOTICED BY THE ASSESSING OFFICE R THAT A SUM OF RS.5,21,950/- PAYABLE TO M/S. YOGI SEA WAYS (P.) LI MITED WAS SHOWN UNDER THE HEAD SUNDRY CREDITORS BY THE ASSESSEE A S ON 31.03.2008. SINCE THE SAID LIABILITY WAS FOUND TO BE NON-EXISTENT DUR ING THE COURSE OF ASSESSMENT PROCEEDINGS UNDER SECTION 143(3) FOR ASS ESSMENT YEAR 2006- 07, THE ASSESSEE WAS CALLED UPON BY THE ASSESSING O FFICER TO OFFER ITS EXPLANATION IN THE MATTER. IN REPLY, IT WAS EXPLAIN ED BY THE ASSESSEE THAT A SUM OF RS.5,21,950/- ON ACCOUNT OF CESSATION OF T HIS LIABILITY HAS ALREADY BEEN ADDED TO ITS TOTAL INCOME IN THE ASSES SMENT COMPLETED UNDER SECTION 143(3) FOR A.Y. 2006-07. THIS EXPLANATION O F THE ASSESSEE WAS NOT FOUND ACCEPTABLE BY THE ASSESSING OFFICER AND HE MA DE THE ADDITION OF RS.5,21,950/- AGAIN TO THE TOTAL INCOME OF THE ASSE SSEE FOR THE YEAR UNDER CONSIDERATION. ON APPEAL, THE LD. CIT(APPEALS) CONF IRMED THE SAID ADDITION MADE BY THE ASSESSING OFFICER. AGGRIEVED B Y THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THE ADDITION OF RS.5,21,950/- ON ACCO UNT OF THE SAME LIABILITY PAYABLE BY THE ASSESSEE TO M/S. YOGI SEA WAYS (P.) LIMITED WAS MADE BY THE ASSESSING OFFICER IN THE ASSESSMENT COM PLETED UNDER SECTION 143(3) FOR A.Y. 2006-07 AFTER HAVING FOUND THAT THE SAID LIABILITY HAD CEASED TO EXIST. AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESESE FROM THE COPY OF ORDER FOR A.Y. 2006-07 PLACED ON RECORD , THE SAID ORDER WAS PASSED ON 19.12.2008 AND, THEREFORE, THE CONCERNED LIABILITY WAS STILL SHOWN IN THE BALANCE-SHEET AS ON 31.03.2008 AND WAS RETURNED BACK ONLY THEREAFTER. KEEPING IN VIEW THIS SUBMISSION MADE BY THE LD. COUNSEL FOR THE ASSESSEE AS WELL AS THE RELEVANT MATERIAL PLACE D ON RECORD INCLUDING THE COPY OF ASSESSMENT ORDER FOR A.Y. 2006-07, I FI ND THAT THE ADDITION OF RS.5,21,950/- ON ACCOUNT OF CESSATION OF LIABILITY PAYABLE BY THE ASSESSEE TO M/S. YOGI SEA WAYS (P.) LIMITED WAS ALREADY MADE TO THE TOTAL INCOME OF THE ASSESSEE IN A.Y. 2006-07 AND THE ACTION OF T HE ASSESSING OFFICER IN BRINGING TO TAX THE SAME AMOUNT AGAIN IN THE YEAR U NDER CONSIDERATION I.T.A. NO. 1182/KOL./2014 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 3 CLEARLY AMOUNTED TO DOUBLE ADDITION, WHICH IS NOT S USTAINABLE. I ACCORDINGLY DELETE THE SAID ADDITION AND ALLOW THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 10, 2016. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 10 TH DAY OF FEBRUARY, 2016 COPIES TO : (1) THE NISHA ENTERPRISE, 40A, DR. SUDHIR BOSE ROAD, KOLKATA-700 023 (2) INCOME TAX OFFICER, WARD-28(2), KOLKATA, AAYAKAR BHAWAN DAKSHIN, 2, GARIAHAT ROAD (SOUTH), KOLKATA-700 068 (3) COMMISSIONER OF INCOME-TAX (APPEALS)-XIV, KOLKA TA (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.