Sri Madhusudan Chakraborty, Kolkata V. DCIT, Kolkata-XXXII, Kolkata, Kolkata

ITA 1443/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74974 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 09-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A P RAY SRDR
• Section: 68; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI, P.K BANSAL, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ITA NO. 1443 / KOL / 2012 ASSESSMENT YEAR :2007-08 SRI MADHUSUDAN CHAKRABORTY DC-116, NARAYANTALA (WEST), VIP ROAD, KOLKATA 700 059 [ PAN NO.AFGPC 4163 H ] V/S . DCIT, CIRCLE-49, 54/1, RAFI AHMED KIDWAI ROAD, KOLKATA 700 016 /APPELLANT .. / RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI A.P. RAY, SR-DR /DATE OF HEARING 16-01-2014 /DATE OF PRONOUNCEMENT 17-01-2014 / // / O R D E R PER P.K.BANSAL, ACCOUNTANT MEMBER:- THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-XXXII, KOLKATA DATED 24-07-2012 PERTAINS TO ASSESSMENT YEAR 2007-08. 2. THE ONLY ISSUE INVOLVED IN THIS CASE IS DELETED OF PENALTY U/S. 271(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO A S THE ACT). THE BRIEF FACTS ARE THAT THE ASSESSING OFFICER IMPOSED PENALTY AMOU NTING TO RS.8,85,632/- FOR CONCEALMENT OF INCOME VIDE ORDER DATED 25-06-2010. THE ASSESSEE HAS SUBMITTED THE RETURN OF INCOME SHOWING TOTAL INCOME OF RS.25,60,472/- INCLUDING AGRICULTURAL INCOME OF RS.30,00,084/-. TH E AO MADE THE ASSESSMENT ITA NO.1443/KOL/2012 A.Y. 2007-08 SH MADHUSUDAN CHKRABORTY V. DCIT CIR-49 KOL PAGE 2 U/S.144 OF THE ACT AT AN INCOME OF RS.55,12,580/- B Y MAKING FOLLOWING ADDITIONS / DISALLOWANCE:- I) RS.22,02,889/- ON ACCOUNT OF CASH DEPOSITS WITH STANDARD CHATTERED BANK AT SALTLAKE CITY KOLKATA. II) RS.2,66,837/- ON ACCOUNT OF CREDIT CARD BILLS W ITH STANDARD CHATTERED BANK AT BANGALORE. III) RS.4,82,679/- ON ACCOUNT OF CREDIT CARD BILLS WITH AMERICAN EXPRESS BANK LTD. AT GURGOAN THE AO ALSO INITIATED THE PENALTY PROCEEDINGS U/S. 271(1) OF THE ACT SEPARATELY WITHOUT MENTIONING WHETHER THE PENALTY H AS BEEN INITIATED FOR CONCEALMENT OF THE PARTICULARS OF INCOME OR INACCUR ATE PARTICULARS OF INCOME. ULTIMATELY, PENALTY U/S. 271(1) OF THE ACT WAS IMP OSED FOR CONCEALMENT OF THE PARTICULARS OF INCOME @ 30% OF THE ESCAPED INCO ME OF RS.8,85,632/-. 3. THE ASSESSEE WENT IN APPEAL BEFORE CIT(A) BUT TH E CIT(A) CONFIRMED THE ORDER OF ASSESSING OFFICER. 4. NONE APPEARED ON BEHALF OF ASSESSEE EVEN THOUGH THE NOTICE OF HEARING WAS SENT THROUGH REGISTERED WITH A/D. 5. WE THEREFORE DECIDED TO DISPOSE OF APPEAL AFTER HEARING THE LD. SR-DR. WE HEARD LD. SR-DR AND CAREFULLY CONSIDERED THE SAM E ALONG WITH ORDERS OF TAX AUTHORITIES BELOW. IN OUR OPINION, ISSUED APPEL LATE PROCEEDINGS AND THE PENALTY PROCEEDINGS BOTH ARE DIFFERENT. THE ASSESSE E HAS TAKEN THE STATEMENT OF FACTS BEFORE CIT(A) IN PENALTY PROCEEDINGS THAT THE PAYMENTS OF RS.2,66,837/- AND RS.4,82,679/- WERE MADE OUT OF TH E INCOME OF THE ASSESSEE. IT IS NOTED THAT ASSESSEE HAVING AGRICULT URAL INCOME TO THE EXTENT OF RS.30,00,084/- WHICH WAS DULY ACCEPTED BY THE ASSES SING OFFICER. THE ADDITION OF RS.22,02,889/- WAS MADE AS THE CASH WAS DEPOSITED IN THE STANDARD CHATTERED BANK. THE CASH DEPOSITED, IN OUR OPINION IS ALSO COVERED BY THE AGRICULTURAL INCOME DERIVED BY THE ASSESSEE. THERE IS NO EVIDENCE OR ITA NO.1443/KOL/2012 A.Y. 2007-08 SH MADHUSUDAN CHKRABORTY V. DCIT CIR-49 KOL PAGE 3 FINDING ON RECORD BY THE AO THAT A SUM OF RS.30,00, 084/- WAS NOT AVAILABLE WITH THE ASSESSEE OR HAS BEEN UTILIZED BY THE ASSES SEE FOR ACQUIRING SOME ASSETS. ADDITIONS MIGHT HAVE BEEN MADE U/S 68 OF TH E ACT AS THE ASSESSEE COULD NOT HAVE SATISFIED THE AO BUT IT CANNOT BE SA ID THAT THE ASSESSEE HAS CONCEALED THE PARTICULARS OF INCOME. THE ASSESSEE H AS ALSO SUBMITTED IN WRITTEN SUBMISSION THAT IN HIS BALANCE-SHEET THAT T HERE WAS A LOAN TO THE EXTENT OF RS.49,54,114/- FROM THE BANK. THIS ALSO, IN OUR OPINION, IS SUFFICIENT TO EXPLAIN THE SOURCE OF THE PAYMENT AS WELL AS DEPOSI T MADE IN THE SAID BANK. IN THIS VIEW, SINCE IN OUR OPINION ON MERIT, NO ADDITI ON SHOULD HAVE BEEN MADE. WE DELETE THE PENALTY. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT 17/ 01/2014 SD/- SD/- (GEORGE MATHAN) (P.K.BANSAL) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA, *DKP !- 17/01/2014 , , , , -, -, -, -, / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT SRI MADHUSUDAN CHAKRABORTY DC-116, NARAYANTALA (WEST), VIP ROAD, KOLKATA 700 059 2. / RESPONDENT DCIT, CIRCLE-49, 54/1, RAFI AHMED KIDWAI ROAD, KOLKATA 700 016 3. 2 / CONCERNED CIT 4. 2- / CIT (A) 5. , , , / DR, ITAT, KOLKATA 6. 9 / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ,