ITO, Ward - 9(1), Kolkata, Kolkata V. M/s. Adi Lokenath Fashion Pvt. Ltd., Kolkata

ITA 1389/KOL/2011

• Counselvise Citation: 138923514 RSA 2011
• Duration Of Justice: 3 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 17-10-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Source of fund
• Section: 144

Judgement Text

I.T.A. NO . 1 38 9 / KOL ./20 1 1 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI S.V. MEHROTRA , ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH , JUDICIAL MEMBER I.T.A. NO. 1 38 9 / KOL / 20 1 1 ASSESSMENT YEAR : 200 6 - 20 0 7 INCOME TAX OFFICER , .......................... .. .. ........ . APPELLANT WARD - 9( 1 ) , KOLKATA , AAYAKAR BHAWAN, 5 TH FLOOR, ROOM NO. 14, P - 7, CHOWRINGHEE SQUARE, KOLKATA - 700 069 - VS. - M/S. A DI LOKENATH FASHION PVT. LIMITED, . ... . RESPONDE NT 6, SURA EAST ROAD, KOLKATA - 700 010 [PAN : AA DCA 3958 P J ] A PPEARANCES BY: SHRI KALYAN NATH , JCIT, SR. D.R., FOR THE DEPARTMENT NONE , FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : AUGUST 12 , 2 01 5 DATE OF PRONOUNCING THE ORDER : AUGUST 13 , 201 5 O R D E R PER S.V. MEHROTRA : THIS A PPEAL HA S BEEN FILED BY THE REVENU E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - VIII, KOLKATA D ATED 0 2 . 0 8 .20 1 1 FOR THE ASSESSMENT YEAR 200 6 - 0 7 . 2. SHRI KALYAN NATH, LD. JCIT, SR. D.R. REPRESENTED ON BEHALF OF THE REVENUE AND NONE APPEARED ON BEHALF OF THE A SSESSEE AT THE TIME OF HEARING INSPITE OF SERVICE OF NOTICE. WE, THEREFORE, DECIDED TO DISPOSE OF THE APPEAL AFTER HEARING THE LD. D.R. AND ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESS E E - COMPANY HAD FILED IT S RETURN OF INCOME DECLARING TOTAL INCOME OF RS.34,095/ - . AS INSPITE OF SERVICE OF NOTICE FOR VARIOUS DATES, THE ASSESSEE DID NOT TURN UP BEFORE I.T.A. NO . 1 38 9 / KOL ./20 1 1 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 2 OF 3 THE LD. CIT(APPEALS), THEREFORE, HE PASSED THE ORDER UNDER SECTION 144 READ WITH SECTION 145(3) OF THE INCOME T AX ACT, 1961. THOUGH, AT PAGE 1 OF THE ASSESSMENT ORDER, IT HAS WRONGLY MENTIONED AS 143(3). THE ASSESSING OFFICER MADE THE ADDITION OF RS.67,68,490/ - ON ACCOUNT OF UNEXPLAINED FUNDS AS UNDER: - SOURCE OF FUND: ( A ) INCREASED LOAN FROM BANK RS.85,03,361/ - [R S.1,35,03,361 MINUS 21,78,184/ - ] ( B ) UNSECURED LOAN RS.29,45,816/ - [RS.51,24,000 MINUS RS.21,78,184/ - ] ( C ) DECREASE IN STOCK RS.59,13,928/ - [RS.66,17,091/ - MINUS RS.7,03,163/ - ] _____________________ RS.1,73,63,105/ - __________________ ______ BALANCE RS.67,68,490/ - HENCE, UNEXPLAINED FUND...................... RS.67,68,490/ - THE ASSESSING OFFICER FURTHER MADE AN ADDITION OF RS.1,66,249/ - IN RESPECT OF PROVISION FOR SALES TAX. 4. LD. CIT(APPEALS) DELETED THE ADDITION IN RESPECT OF UNEXPLAINED FUND AFTER CONSIDERING THE DETAILS FURNISHED BY THE ASSESSEE , WHICH HAVE BEEN REPRODUCED AT PAGE 3, PARA 4 OF HIS ORDER. THE ASSESSEE PRIMARILY IN ITS SUBMISSIONS SUBMITTED THAT ITS BALANCE - SHEET WAS DULY TALLIED AND AUDITED AS PER COMPANIES A CT, 1956 AND INCOME TAX ACT, 1961 UNDER SECTION 44AB WHERE THE SOURCE OF FUND WAS EQUAL TO THE APPLICATION OF FUND. 5. BEING AGGRIEVED AGAINST THE ORDER OF LD. CIT(APPEALS), THE DEPARTMENT IS IN APPEAL BEFORE THE TRIBUNAL BY TAKING THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) - VIII ERRED IN LAW IN DECIDING THE APPEAL IN FAVOUR OF THE ASSESSEE BY DELETING THE ADDITION OF RS.67,68,490/ - ON ACCOUNT OF UNEXPLAINED FUND. I.T.A. NO . 1 38 9 / KOL ./20 1 1 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 3 OF 3 ON THE FACTS AND IN THE C IRCUMSTANCES OF THE CASE, LD. CIT(A) - VIII ERRED IN LAW IN DECIDING THE APPEAL IN FAVOUR OF THE ASSESSEE WITHOUT GIVING OPPORTUNITY TO AO AS PER PROVISION OF RULE 46A OF THE I.T. RULE, 1962. 6. AFTER HEARING THE LD. D.R., WE ARE OF THE OPINION THAT SINCE T HE ASSESSEE HAD NOT FURNISHED ANY DETAILS BEFORE THE ASSESSING OFFICER, THEREFORE, THE LD. CIT(APPEALS) SHOULD HAVE CALLED FOR A REMAND REPORT ON THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE . A S NO OPPORTUNITY WAS PROVIDED TO ASSESSING OFFICER , THEREFORE, CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE, WE SET ASIDE THE ORDER OF LD. CIT(APPEALS) AND RESTORE THE MATTER BACK TO THE FILE OF ASSESSING OFFICER FOR DE NOVO ADJUDICATION AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE SHOULD COOPERATE IN THE PROCEEDINGS FOR FINALISATION OF ASSESSMENT. 7 . IN THE RESULT, THE APPEAL FILED BY THE REVENU E IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH AUGUST , 201 5 . SD/ - SD/ - MAHAVIR SINGH S.V. MEHROTRA ( JUDICIAL MEMBER) ( ACCOUNTANT MEMBER) KOLKATA, THE 13 TH D AY OF AUGUST , 201 5 COPIES TO : (1) INCOME TAX OFFICER, WARD - 9(1), KOLKATA, AAYAKAR BHAWAN, 5 TH FLOOR, ROOM NO. 14, P - 7, CHOWRINGHEE SQUARE, KOLKA TA - 700 069 (2) M/S. ADI LOKENATH FASHION PVT. LIMITED, 6, SURA EAST ROAD, KOLKATA - 700 010 (3) COMMISSIONER OF INCOME - TAX (APPEALS) - VIII , KOLKATA (4) COMMISSIONER OF INCOME TAX - , KOLKATA ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUAR D FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA B ENCHES, KOLKATA LAHA/SR. P.S .