Amit Kumar Saha, Hooghly V. ACIT, CIR-1, HOOGHLY, Hooghly

ITA 1370/KOL/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5064 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 10-11-2015
• Court: TRIBUNAL
• Department Lawyers: RAJAT KUMAR KUREEL
• Keywords: Unexplained cash credit; Gift
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: K OLKATA [BEFORE SHRI MAHAVIR SINGH, JM] I.T.A NO.1370/KOL/2015 ASSESSMENT YEAR: 2010-11 AMIT KUMAR SAHA VS. ASSISTANT COMMISSIONER OF INCOME-TAX, (PAN: AKAPS5745C) CIRCLE-1, HOOGHLY. ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 22.02.2016 DATE OF PRONOUNCEMENT: 22.02.2016 FOR THE APPELLANT: SHRI SOMNATH GHOSH, ADVOCATE FOR THE RESPONDENT: SHRI RAJAT KUMAR KUREEL, JCI T, SR. DR ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-6, KOLKATA VIDE APPEAL NO. 122/CIT(A)-6/KOL/CIR-23/HG/13-14 DATED 11.09.2015. ASSESSMENT WAS FRAMED BY ACIT, CIRCLE- 1, HOOGHLY U/S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2010-11 VIDE HIS ORDER DATED 31.03. 2013. 2. THE FIRST ISSUE IN THIS APPEAL OF ASSESSEE IS A GAINST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN MAKING ADDITION U/S. 68 OF THE ACT BEING UNEXPLAINED CASH CREDIT AMOUNTING TO RS.1,05,411/-. 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAS R ECEIVED A GIFT OF RS.1,05,411/- FROM HIS UNCLE SHRI BIJOY SAHA, WHO IS NRI. THIS FACT WAS N OTICED BY AO FROM THE AUDITED BALANCE SHEET AS AT 31.03.2010. DURING THE COURSE OF ASSES SMENT PROCEEDINGS THE ASSESSEE PRODUCED CONFIRMATION FROM THE DONOR AND DETAILS REGARDING R ECEIPT OF MONEY INCLUDING BANK ACCOUNT. THE ASSESSEES UNCLE SHRI BIJOY SAHA GIFTED THIS AM OUNT THROUGH MONEY TRANSFER AND THIS FACT IS NOTED BY AO IN HIS ASSESSMENT ORDER AND CIT(A) CONF IRMED THE ACTION OF THE AO ONLY ON THE BASIS OF CREDITWORTHINESS OF THE DONOR IS NOT PROVE D. I FIND FROM THE CASE RECORDS THAT SHRI BIJOY SAHA, WHO IS NRI RESIDING IN FRANCE FROM LAST FORTY YEARS HAS MADE A GIFT OF 4000 EURO I.E. EQUIVALENT TO AN AMOUNT OF RS.1,05,400/-. THIS BEI NG A PETTY AMOUNT AND IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE VIEW THAT TH E GIFT IS A GENUINE AND HENCE, THIS ADDITION IS DELETED. THIS ISSUE OF ASSESSEES APPEAL IS ALLOWE D. 4. THE NEXT ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN MAKING ADDITION OF AD HOC ESTIMATIO N OF RS.1 LAC. 5. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS A TRADER OF CEMENT AND HAS SHOWN INCOME FROM CEMENT BUSINESS AT RS.7,50,236/-. THE ASSESSEE FILE D COMPLETE DETAILS OF PURCHASE AND SALES BUT 2 ITA NO.1370/KOL/2015 AMIT KUMAR SAHA, AY 2010-11 2 ACCORDING TO AO, THE SALES ARE NOT FULLY VERIFIABLE BUT NO REASON WAS ADDUCED. ACCORDINGLY, HE ESTIMATED THE AD HOC ADDITION OF RS. 1 LAC BY OBSER VING IN PARA 6 AS UNDER: 6. THE ASSESSEE IS A TRADER OF CEMENT. THE ASSES SEE HAS SHOWN INCOME FROM CEMENT BUSINESS AT RS.7,50,236/-. THE ASSESSEE FILED DETAILS OF PURCH ASES, SALES ETC. HOWEVER, THE DETAILS OF SALES BEING RETAIL IN NATURE ARE NOT FULLY VERIFIABLE ONL Y ON THE BASIS OF BILLS AVAILABLE TO THE ASSESSEE. DAY TO DAY RECEIPT OUT OF TRADING BUSINESS IS NOT E VIDENCED BY CASH MEMOS FULLY. IN SUCH CIRCUMSTANCES, AN AD HOC TRADING ADDITION IN THE SU M OF RS.1,00,000/- IS MADE ON ESTIMATE BASIS TO THE SAID INCOME. THE CIT(A) CONFIRMED THE ACTION OF AO EXACTLY ON SA ME REASONING. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE TRIBUNAL. 6. I FIND FROM THE FACTS AND ARGUMENTS OF LD. COUNS EL FOR THE ASSESSEE THAT THE AO HAS MADE THIS ADDITION WITHOUT ANY BASIS. ON ONE HAND HE SA YS THAT COMPLETE PARTICULARS OF SALES AND PURCHASES ARE PRODUCED AND DESPITE THAT HE ESTIMATE D THIS ADDITION. IN SUCH CIRCUMSTANCES, THIS ADDITION CANNOT BE SUSTAINED AND HENCE, THE SAME IS DELETED. THIS ISSUE OF ASSESSEES APPEAL IS ALLOWED. 7. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22.02.2016 SD/- (MAHAVIR SINGH) ` JUDICIAL MEMBER DATED : 22ND FEBRUARY, 2016 JD. SR. P.S COPY OF THE ORDER FORWARDED TO: 1. APPELLANT SHRI AMIT KUMAR SAHA, C/O S. N. GHOSH & ASSOCIATES, ADVOCATES, SEVEN BROTHERS LODGE, P.O. BUROSHIBTALA, P.S. CHINSURAH, DIST. HOOGHLY, PIN-712 105. 2. RESPONDENT ACIT, CIR-1, HOOGHLY. 3. CIT(A) , KOLKATA 4. CIT , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .