Shri Chittaranjan Maity, Midnapore V. ITO, Ward - 1(3), Midnapore, Midnapore

ITA 1457/KOL/2011

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0481 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 19-08-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 31-10-2011
• Court: TRIBUNAL
• Department Lawyers: SANJAY
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B , KOLKATA [BEFORE HON BLE SRI P.K.BANSAL , A M & HON BLE SRI MAHAVIR SINGH , J M] ITA NO. 1457/KOL/2011 ASSESSMENT YEAR : 2005 - 06 ( A PPELLANT ) - (RESPONDENT) SHRI CHITTAR ANJAN MAITY I.T.O., WARD - 1(3), MIDNAPORE - VERSUS - MIDNAPORE (PAN: ADVPM 9118 K) FOR THE APPELLANT : NONE FOR THE RESPONDENT : SHRI SANJAY, ADDL. CIT, SR.DR DATE OF HEARING : 27 .05 .2015 DATE OF PRONOUNCEMENT : 08.06.2015. ORDER PER SHRI P.K.B ANSAL, AM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD . CIT(A) - XXX I , KOLKATA DATED 20.01 .2011 FOR A.YR. 2005 - 06 BY TAKING THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL : - 1. FOR THAT THE I.T.O. WAS WRONG IN ADDING RS.1,32,140/ - IN N SC INVESTMENT IN THE YEAR 1998 - 99 AND THE SAME HAD BEEN MADE PRIOR TO SIX YEARS EARLIER, AND THE SAME IS ILLEGAL. 2 . FOR THAT THE VALUE OF NSC OF R S.4,24,000/ - WERE MADE NOT IN THE FINANCIAL YEAR I.E. 2004 - 2005 AND THE SAME IS UNJUSTIFIED. 2. NONE APPEA RED ON BEHALF OF THE ASSESSEE. AFTER HEARING THE LD DR AND PERUSING THE MATERIALS AVAILABLE ON RECORD THE APPEAL WAS DISPOSED OF. 3. GROUND NO.1 RELATES TO THE ADDITION OF RS.1,32,140/ - AS INTEREST ACCRUED ON NSC. THE AO NOTED FROM THE BALANCE SHEET AS O N 31.03.2004 THAT THE ASSESSEE HAD SHOWN AN INVESTMENT OF RS.4,24,000/ - IN NSC WHICH HAD BEEN MATURED DURING THE PERIOD 2004 - 05. THE NSC HAS BEEN PURCHASED IN 1998 - 99. THEREFORE THE AO CALCULATED THAT INTEREST FOR THE PERIOD 2004 - 05 WAS RS.94,976/ - . THE AS SESSEE HAS ALSO PURCHASED DURING THE PERIOD 2000 - 01 AND 2001 - 02 OF RS.3,20,000/ - . THE INTEREST ACCRUED FOR THE PERIOD 2004 - 05 IN RESPECT OF NSC PURCHASED IN 2000 - 01 WAS ITA NO. 1457/KOL/2011 SHRI CHITTARANJAN MAITY A.YR. 2005 - 06 2 RS.15,892/ - AND FOR THE NSC PURCHASED DURING THE PERIOD 2001 - 02 WAS RS.37,472/ - ., THE T OTAL INT EREST ACCRUED COMES TO RS.1,48,340/ - . THE ASSESSEE HAS SHOWN INTEREST INCOME FROM NSC ONLY AT RS.16,000/ - . THE AO, THEREFORE, TREATED A SUM OF RS. 1, 32,140/ - AS THE INTEREST ACCRUED ON NSC DURING THE IMPUGNED YEAR. WHEN THE MATTER WENT BEFORE CIT(A ) THE ASSESSEE DID NOT PRESS THIS GROUND. BEFORE US NONE APPEARED ON BEHALF OF THE ASSESSEE. NEITHER ANY EVIDENCE WAS FURNISHED BEFORE US WHICH MAY PROVE THAT THE INTEREST ON NSC TO THE EXTENT OF RS.1,48,340/ - HAS NOT ACCRUED TO THE ASSESEE. IN VIEW OF TH E FACTS, WE DO NOT FIND ANY ILLEGALITY OR INFIRMITY IN THE ORDERS OF THE AUTHORITIES BELOW. WE ACCORDINGLY CONFIRM THE ADDITION OF 1,32,340/ - . THUS GROUND NO.1 IS DISMISSED. 4. GROUND NO.2 RELATES TO THE ADDITION OF RS.4,24,000/ - ON ACCOUNT OF UNDISCLOSED INCOME. THE FACTS RELATING TO THE SAME ARE THAT THE AO NOTED THAT THE ASSESSEE HAS INVESTED AN AMOUNT OF RS.4,24,000/ - DURING THE PERIOD 1998 - 99 IN NSC , RS.1,04,000/ - DURING THE PERIOD 2000 - 01 AND RS.3,20,000/ - DURING THE PERIOD 2001 - 02. ACCORDING TO AO THE TOTAL INVESTMENT IN NSC AS ON 01.04.2004 COMES TO RS.8,48,000/ - BUT THE ASSESSEE HAS SHOWN NSC IN THE BALANCE SHEET AT RS.4,24,000/ - . THE AO, THEREFORE, MADE ADDITION AT RS.4,24,000/ - . 5. AFTER HEARING THE LD. DR AND GOING THROUGH THE ORDERS OF THE T AX AUTHORITIES BELOW WE NOTED THAT IT IS NOT A CASE WHERE THE ASSESSEE HAS MADE AN UNEXPLAINED INVESTMENT. ACCORDING TO AO THE NSC SHOULD BE RS.8,48 ,000/ - BUT IN THE BALANCE SHEET IT WAS APPEARING RS.4,24,000/ - WHICH CANNOT BE A CASE OF UNDER STATEMENT OF NSC. THE ASSESSMENT YEAR INVOLVED IS 2005 - 06. THEREFORE THE BALANCE SHEET FOR THE PERIOD 2005 - 06 WOULD HAVE BEEN RELEVANT WHILE MAKING THE ADDITION OF RS. 4,24,000/ - WE NOTED THAT THE AO HAS GIVEN A FINDING THAT INVESTMENT OF NSC OF RS.4,24,000/ - WAS MATURE D DURING 2004 - 05. ONCE THIS INVESTMENT OF RS.4,24,000/ - HAS BEEN MATURED AS IS APPARENT FROM PAGE 2 OF THE ASSESSMENT ORDER HOW IT CAN BE AN INVESTMENT TO BE SHOWN AS ON 31.03.2005. THIS INVESTMENT DOES NOT RELATE TO THE IMPUGNED ASSESSMENT YEAR. WE ACCOR DINGLY SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND DELETE THE ADDITION OF RS.4,24,000/ - . ITA NO. 1457/KOL/2011 SHRI CHITTARANJAN MAITY A.YR. 2005 - 06 3 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 0 8.06.2015. SD/ - SD/ - [MAHAVIR SINGH ] [P.K.BANSAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 08.06.2015. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . SHRI CHITTARANJAN MAITY, C/O SRI RATAN KUMAR GUHA, KSHUDIRAM NAGAR, MIDNAPORE - 721101. 2 I.T.O., WARD - 1(3), MIDNAPORE. 3 . C IT KO LKATA 4. CIT(A) - XXX VI , KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY, BY ORDER, DEPUTY /ASST. R EGISTRAR , ITAT, KOLKATA BENCHES