ITO, Ward - 49 (1), Kolkata, Kolkata V. Shri Shyam Sunder Paul, North 24 Parganas

ITA 1568/KOL/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70432 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2013
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 15-11-2011
• Court: TRIBUNAL
• Department Lawyers: AMIT KR MAITRA LD JCITSR DR
• Assessee Lawyers: ALOK SUR LD
• Keywords: Business income; Opportunity of being heard; Revised return
• Section: 69; 139; 143(3); 142(1); 139(5)

Judgement Text

, C , , INCOME TAX APPELLATE TRIBUNAL, BENCH- C KOLKATA ( ) BEFORE . , SHRI R.C. SHARMA, ACCOUNTANT MEMBER !' /AND #$# 1 & ' , SHRI GEORGE MATHAN, JUDICIAL MEMBER '( / ITA NO. 1568/KOL/2011 A.Y 2008-09 I.T.O WARD 49(1), KOLKATA - !' - - VERSUS - . SHRI SHYAM SUNDER PAUL PAN:AFQPP0035F ( &* / APPELLANT ) ( +,&* / RESPONDENT ) C.O NO. 06/KOL/2012 [ITA NO.1568/KOL/2011] A.Y 2008 -09 SHRI SHYAM SUNDER PAUL PAN:AFQPP0035F - !' - - VERSUS - . I.T.O WARD 49(1), KOLKATA ( &* / APPELLANT ) ( +,&* / RESPONDENT ) &* /FOR THE APPELLANT /SHRI AMIT KR. MAITRA, LD. JCIT/SR.DR +,&* / FOR THE RESPONDENT: / SHRI ALOK SUR, ADVOCATE, LD.AR .'!/ 0 1 /DATE OF HEARING : 02-12--2013 23 0 1 /DATE OF PRONOUNCEMENT: 6.12.2013 / ORDER . , SHRI R.C. SHARMA, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AND CRO SS OBJECTION BY THE ASSESSEE AGAINST THE ORDER PASSED BY THE LD. CIT(A), DATED 29-06-2011 FOR THE ASSESSMENT YEAR 2008-09, IN THE MATTER OF ORDER PASSED U/S. 143(3) OF THE I.T ACT 1961. 2. THE ONLY GRIEVANCE OF REVENUE RELATES TO DELET ION OF AN ADDITION OF RS.33,48,006/- MADE BY AO ON ACCOUNT OF UNDISCLOSE D BANK ACCOUNTS. THE ASSESSEE HAS ALSO FILED CROSS OBJECTION IN SUPPORT OF THE OR DER OF THE LD. CIT(A) DELETING THE IMPUGNED ADDITION. ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 2 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND PERUSED THE RECORD. 4. FACTS IN BRIEF ARE THAT DURING THE ASSESSMENT P ROCEEDINGS THE A.O DISCOVERED THAT THE ASSESSEE WAS MAINTAINING SOME BANK ACCOUNTS WI TH AXIS BANK, NABAPALLY BRANCH WHICH HE HAD NOT DISCLOSED IN HIS BALANCE SHEET FOR THE YEAR UNDER APPEAL. THE DETAILS OF THOSE BANK ACCOUNTS ARE AS FOLLOWS :- HOLDER A/C NO. 1. SHYAM SUNDAR PAUL 021010100582278(SAVINGS) 2. SHYAM SUNDAR PAUL & KAJAL PAUL 021010110012573( SAVINGS) 3. SHYAM SUNDAR PAUL 02101101100012815(SAVINGS) 4. SHYAM SUNDAR PAUL 021013000000644(O.D) 5. SHYAM SUNDAR PAUL & KAKAL PAUL 0210103000000694 1(O.D) 4.1 BESIDE THE ABOVE BANK ACCOUNTS, FOLLOWING TERM DEPOSITS/FDS WERE ALSO FOUND NOT TO HAVE BEEN DISCLOSED IN THE ASSESSEES BALANC E SHEET: A/C NO. AMOUNT A/C OPEN DATE 1. 0210110400692359 2,00,000/- 26-04-2007 2. 0210110400603812 39,304/- 22-03-2008 3. 021010400603829 39,304/- 22-03-2008 4.2 THE AO OBSERVED THAT INTEREST OF RS.31,015/- AC CRUED ON THOSE F.DS WAS ALSO NOT OFFERED AS INCOME OF THE RELEVANT ASSESSMENT YEAR. LATER ON, FROM A CLARIFICATION RECEIVED FROM THE BANK, IT WAS LEARNT THAT THE F.D NO.021010400476496 OF RS.2,00,000/- DID NOT BELONG TO THE ASSESSEE. IN R ESPONSE TO SHOW CAUSE ISSUED BY THE A.O, THE ASSESSEE SUBMITTED BEFORE HIM THAT ALL THE DEPOSITS IN THE ABOVE MENTIONED BANK ACCOUNTS, WHICH WERE NOT DISCLOSED IN HIS BALA NCE SHEET, REPRESENTED SALE PROCEEDS OF HIS REGULAR BUSINESS WHICH WERE SHOWN IN HIS PRO FIT AND LOSS ACCOUNT FOR THE RELEVANT YEAR. THE ASSESSEE ALSO FILED A REVISED RETURN OF INCOME ON 07.10.10. THE AO DID NOT TAKE COGNIZANCE OF THE REVISED RETURN SINCE THE TIM E LIMIT FOR FILING REVISED RETURN HAD ALREADY EXPIRED. THE A.O NOTICED THAT THERE WERE CASH DEPOSITS TOTALLING TO RS.40,58,633/- IN THE ABOVE MENTIONED BANK ACCOUNT S DURING THE PERIOD RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL, WHICH HE CONSTRUED WERE MADE FROM UNEXPLAINED SOURCES AND ADDED THE SAME TO ASSESSEES INCOME. B ESIDES, THE A.O ALSO ADDED U/S. 69 OF THE ACT A SUM OF RS.2,75,342/- BEING THE AMOUNT OF THE ABOVE MENTIONED THREE F.DS ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 3 AS ASSESSEES UNDISCLOSED INVESTMENT AND AMOUNT OF RS.11,617/- BEING INTEREST ACCRUED ON THOSE F.DS. 5. AGAINST THE ABOVE ADDITIONS THE ASSESSEE HAD AP PROACHED TO THE LD. CIT(A). DURING THE COURSE OF APPELLATE PROCEEDINGS THE LD. CIT(A) HAD CALLED FOR THE REMAND REPORT. IN THE REMAND REPORT SUBMITTED VIDE HIS LET TER NO. ITO, WD-49(1)/REMAND REPORT/10-11/10 DATED 25/04/11 THE A.O SUBMITTED AS FOLLOWS:- AS PER SECTION 44AB EVERY PERSON WHO IS REQUIRED T O GET HIS ACCOUNTS AUDITED SHOULD BE AUDITED BY AN ACCOUNTANT BEFORE THE SPECIFIED DATE AND FURNISH BY THAT DATE THE REPORT OF SUCH AU DIT IN THE PRESCRIBED FORM DULY SIGNED AND VERIFIED BY SUCH ACCOUNTANT AN D SETTING FORTH SUCH PARTICULARS AS MAY BE PRESCRIBED. AND, EXPLANATION (II) TO SEC. 44A8 STATES THAT - SPECIFIED DATE , IN RELATION TO THE ACCOUN TS OF -THE ASSESSEE OF THE PREVIOUS YEAR RELEVANT TO AN ASSESSMENT YEAR, MEANS THE 130TH DAY OF SEPTEMBER] OF THE ASSESSMENT YEAR.. IN THE INSTANT CASE ASSESSEE GOT HIS ACCOUNT AUDITE D ON 10-05-2008 AND SUBMITTED HIS RETURN OF INCOME ON 24-09-2005 W HICH IS A VALID RETURN OF INCOME AND THE AO CONSIDERED THE SAME WHILE FRAM ING THE ASSESSMENT ORDER. DURING THE COURSE OF ASSESSMENT PROCEEDINGS SOME D ISCREPANCIES REGARDING CONCEALMENT OF THREE BANK ACCOUNTS AND TE RM DEPOSITS/F.DS. WERE TRANSPIRED AND ACCORDINGLY ASSESSEE WAS REQUES TED TO SHOW CAUSE FOR SUCH MALPRACTICES. IN RESPONSE TO THAT SHOW CAUSE N OTICES ASSESSEE SUBMITTED REVISED AUDITED ACCOUNTS ALONG WITH RETUR N OF INCOME ON 07/10/2010 WHICH WAS REJECTED AS THE SAME WAS NOT V ALID AS PER THE ACT PROVIDED AS UNDER: SECTION 139(5) OF THE IT. ACT, 1961 READS AS UNDER: IF ANY PERSON, HAVING FURNISHED A RETURN UNDER SUB -SECTION (1), OR IN PURSUANCE OF A NOTICE ISSUED UNDER SUB-SECTION ( 1) OF SECTION 142, DISCOVERS ANY OMISSION OR ANY WRONG STATEMENT THERE IN, HE MAY FURNISH A REVISED RETURN AT ANY TIME BEFORE THE EXPIRY OF ONE YEAR FROM THE END OF THE RELEVANT ASSESSMENT YEAR OR BEFORE THE COMPLETION O F THE ASSESSMENT, WHICHEVER IS EARLIER . HENCE, IN THE CASE OF THE ASSESSEE THE TIME LIMIT F OR SUBMISSION OF REVISED RETURN OF INCOME WAS BARRED BY LIMITATION O N 31-03-2010. BUT ASSESSEE FURNISHED THE SAME ON 07/10/2010, WHICH WA S BARRED BY LIMITATION ON 31-3 -2010. SO, IT CANNOT BE SAID TO BE A VALID REVISED RETURN MERELY ON THE GROUND THAT THE SAME WAS SUBMITTED WI TH THE OFFICE OF THE A. 0. FURTHER, SRI P. K, CHATTERJEE, FCA, AUDITED THE ACCOUNTS OF THE ASSESSEE ON 10- 05-2008 AND GIVEN HIS SATISFACTORY REPORT ON THE BASIS OF THE BOOKS ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 4 OF ACCOUNTS MAINTAINED BY THE ASSESSEE. LATER ON, T HE SAME PERSON I.E. SRI CHATTERJEE HAS GIVEN ANOTHER SATISFACTORY REPORT ON THE BASIS OF THE SAME SET OF BOOKS OF ACCOUNTS ON 02-03- 2010. AUDITOR EX PRESSED HIS SATISFACTORY REPORT ON THE BASIS OF BOOKS OF ACCOUNTS AND ASSESS EE FURNISHED THE SAME WELL WITHIN THE TIME LIMIT. BUT THE SAID AUDITOR EX PRESSED HIS SECOND SATISFACTION REPORT DEPENDING ON THE SAME SET OF BO OKS OF ACCOUNTS. SO THERE WAS LACK OF PRUDENCE IN FILING REVISED RETURN OF INCOME. ASSESSEE ALSO CLAIMED THAT NO SHOW- CAUSE LETTER WAS ISSUED BEFOR E MAKING ADDITION U/S. 69. IT IS PROMINENT FROM THE ASSESSMENT ORDER U/S. 143( 3) ITSELF THAT BEFORE MAKING ADDITION IN RESPECT OF THE ABOVE, SHO W-CAUSE LETTER WAS ISSUED ON 01/07/2010 AND THE SAME WAS DULY SERVED O N THE ASSESSEE. FURTHER, VIDE THIS OFFICE ORDER SHEET NOTING DT.20- 09-2010, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE TO WHOM THE ENTIRE R ESPONSIBILITY WAS SHOVED OVER BY ASSESSEE TO COMPOSE HIS ACCOUNTS WAS ASKED TO SHOW CAUSE FOR NON- REFLECTION OF SOME BANK ACCOUNTS AND TERM DEPO SITS AS WELL AS THEIR SOURCES OF DEPOSITS. IT IS ALSO CERTIFIED BY THE AS SESSEE HIMSELF BY SUBMITTING LETTERS ON 07/10/2010 IN RESPONSE TO THE ABOVE SHOW-CAUSES. BEFORE THE LD. CIT(A) THE ASSESSEE TOOK THE PLEA TH AT ASSESSEES AUDITOR EXPRESSED HIS SATISFACTORY REPORT ON 02/03/2010 BUT THE SAME COULD NOT SUBMITTED BEFORE 0 7/1 0/2010 DUE TO SERIOUS ILLNES S OF THE ASSESSEE. HOWEVER, IT IS SEEN FROM THIS OFFICE ORDER-SHEET NO TING THAT THE AR OF THE ASSESSEE APPEARED TWICE BEFORE THE AO AND SUBMITTED HIS EXPLANATION IN RESPECT OF THIS OFFICE SHOW-CAUSE LETTER ON 7/4/201 0 AND 20/09/2010 RESPECTIVELY BUT HE NEVER DIVULGED SUCH REVISED AUD IT REPORT. SO, IT IS CONCLUDED THAT THE SO-CALLED REVISED AUDIT REPORT W AS FRAMED IN A LATER DATE BUT AUDITOR PLACED HIS SIGNATURE THEREON ON AN EARLIER DATE TO MAKE IT AS BONAFIDE. IT IS NOTHING BUT A MANUFACTURED REPOR T FRAMED IN A LATER DATE AFTER GETTING SHOW CAUSE LETTER FROM THIS END. HENC E, ASSESSEE S PLEA IN RESPECT OF THE ABOVE IS NOT BASED ON MERITS AND THE AO RIGHTLY REJECTED THE REVISED RETURN OF INCOME. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THREE B ANK ACCOUNTS VIZ. NO.021010300000644, 021010100582278 AND 021010 100012815 WERE NOT REFLECTED IN THE BOOKS. ACCORDINGLY, ASSES SEE WAS REQUESTED TO SHOW CAUSE AS TO THE SOURCES OF DEPOSITS /INVESTMEN TS ROUTED THROUGH THESE ACCOUNTS AND REASONS FOR WITHDRAWAL, VIDE LETTER DI . 0 7/1 0/2010 ASSESSEE STATED THAT HE IS A SENIOR CITIZEN AND AXIS BANK GA VE THE FACILITY OF MAKING DRAFT AND PAY ORDER FREE OF COST. AT THAT TIME THER E WAS NO CALCUTTA CLEARANCE FACILITY FROM BONGAON. THAT IS WHY HIS BR OTHER AND ASSESSEE HIMSELF DEPOSITED MONEY IN AXIS BANK TO GET DRAFT A ND PAY ORDER. HE ALSO STATED THAT ADVANCE PAYMENT BY THE RETAILER DEPOSIT ED IN AXIS BANK AGAINST MATERIALS. HENCE, THERE IS NO CONCEALMENT OF SALE P ROCEEDS. HE ALSO ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 5 SUBMITTED A REVISED RETURN OF INCOME ALONG WITH REV ISED AUDIT REPORT ENHANCING INCOME FOR WHICH TAX OF RS. 7,320/- WAS P AID. AS DIRECTED, ASSESSEE WAS GIVEN AN OPPORTUNITY OF B EING HEARD. DURING THIS HEARING ON 18/04/2011 ASSESSEE TRIED TO ESTABLISH THE DEPOSITS IN THE ABOVE THREE UNDISCLOSED BANK ACCOUNTS WERE F ROM SALE PROCEEDS WHICH WERE INCLUDED IN THE DECLARED SALES. IN SUPPO RT OF HIS CLAIM HE PRODUCED CASH BOOK, PURCHASE & SALE REGISTERS AND V ARIOUS OTHER REGISTERS, BUT NO EXPLANATION COULD BE OFFERED IN R ESPECT OF THE UNDISCLOSED F.D.S./TERM DEPOSITS. 6. VIDE THE IMPUGNED ORDER THE LD.CIT(A) HAD DELETE D THE ADDITIONS AFTER HAVING THE FOLLOWING OBSERVATIONS:- I HAVE CAREFULLY PERUSED THE ASSESSMENT ORDER, SUBM ISSIONS OF THE A.R, A.OS REMAND REPORT AND THE REJOINDER THER ETO SUBMITTED BY THE A.RS IT IS A FACT THAT THE ASSESSEE HAD NOT DISCLOSED TH REE ACCOUNTS WITH AXIS BANK, WHICH HAVE BEEN MENTIONED EARLIER I N THIS ORDER, IN THE RETURN OF INCOME FILED BY HIM ULS 139(1) OF THE ACT . WHEN THOSE BANK ACCOUNTS CAME TO THE KNOWLEDGE OF THE A.O., THE ASS ESSEE FILED A REVISED RETURN ON 07.10.2010. SECTION 139 OF THE ACT DEALS WITH PROVISIONS RELA TING TO RETURNS OF INCOME. SUB SECTION (5) OF THAT SECTION LAYS DOW N PROVISIONS REGARDING FILING OF REVISED RETURNS. THAT SUB SEC TION LAYS DOWN THAT WHERE A RETURN HAS ALREADY BEEN FILED ULS 139(1) OR U/S 142(1) BY A PERSON AND HE DISCOVERS ANY OMISSION OR ANY WRONG S TATEMENT THEREIN, HE MAY FURNISH A REVISED RETURN AT ANY TIME BEFORE THE EXPIRY OF ONE YEAR FROM THE END OF THE RELEVANT ASSESSMENT YEAR OR BEF ORE THE COMPLETION OF THE ASSESSMENT, WHICHEVER IS EARLIER. ACCORDINGLY, IN THE INSTANT CASE, THE REVISED RETURN COULD HAVE BEEN VALIDLY FILED UP TO 31.03.2010. BUT THE ASSESSEE FILED THE REVISED RETURN ON 07.10.2010, WH ICH WAS DEFINITELY OUT OF TIME, THEREFORE, INVALID, AS PER THE PROVISIONS OF SECTION.139(5). OTHERWISE ALSO, THE ASSESSE HAD FILED THE REVISED R ETURN ONLY AFTER THE EXISTENCE OF THE UNDISCLOSED ACCOUNTS HAD COME TO K NOWLEDGE OF THE A.O. THE A.O. HAD, THEREFORE, RIGHTLY IGNORED THE R EVISED RETURNS OF INCOME AS WELL AS THE REVISED AUDIT REPORT DATED 02 .03.2010. THEREFORE, ADDITIONAL GROUNDS NO 1 AND 2 ARE DIS MISSED. AS REGARDS ORIGINAL GROUNDS THAT ARE DIRECTED AGA INST AN ADDITION OF A SUM OF RS. 40,58,633/- IT IS OBSERVED THAT IN HIS REMAND REPORT THE A.O HAS REPORTED THAT DURING THE REMAND PROCEEDINGS HE HAD ALLOWED ASSESSEE THE OPPORTUNITY OF BEING HEARD AND DURING SUCH HEARING THE ASSESSEE TRIED TO ESTABLISH THE DEPOSIT S IN THE THREE ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 6 UNDISCLOSED ACCOUNTS WERE FROM SALE PROCEEDS WHICH WERE INCLUDED IN THE DECLARED SALES AND IN SUPPORT OF HIS CLAIM THE ASSESSEE HAD PRODUCED CASH BOOK, PURCHASE & SALE REGISTERS AND V ARIOUS OTHER REGISTERS. HOWEVER, THE A.O CONCLUDED IN THE REMAND REPORT THAT ON GOING THROUGH THE UNDISCLOSED THREE BANK ACCOUNTS I T WAS SEEN THAT MOST OF THE WITHDRAWALS WERE AGAINST PAYMENT OF GOODS PU RCHASED, BUT IT WAS NOT ESTABLISHED THAT THE DEPOSITS IN THOSE BANK ACC OUNTS WERE OUT OF SALE PROCEEDS AND WHICH WERE INCLUDED IN THE DECLARED TU RNOVER. THE FACT THAT THE PURCHASES OF THE ASSESSEE WERE ROUTED THROUGH THE THREE BANK ACCOUNTS UNDER CONSIDERATION SUGGEST S THAT ENTRIES IN THOSE ACCOUNTS WERE RELATED TO ASSESSEES BUSINESS TRADING ACTIVITIES. THE DEPOSITS IN THE THREE BANK ACCOUNTS ARE LARGELY IN CASH, THEREFORE, THERE CANNOT BE ANY INK-LINK OF THE DEPOSITS WITH T HE SALES MADE BY THE ASSESSEE. IN CASE THE SALES WERE NOT MADE IN CASH B Y THE ASSESSEE THE SAME MUST HAVE BEEN REALIZED BY WAY OF CHEQUES, DEM AND DRAFTS, PAY ORDERS ETC. WHICH, IN ANY CASE, WOULD HAVE BEEN CRE DITED IN ASSESSEES BANK ACCOUNTS AND IN CASE THE SALES REMAINED UNREAL IZED IN THAT CASE THE SAME WOULD APPEAR IN THE ASSESSEES BALANCE SHE ET AS SUNDRY DEBTORS. TOTAL SALES REPORTED IN THE PROFIT AND LOSS ACCOU NT FOR THE RELEVANT YEAR ARE TO THE TUNE OF RS. 76,02,526/-. S UNDRY CREDITORS DISCLOSED IN THE BALANCE SHEET FOR THE SAME YEAR AR E TO THE TUNE OF RS. 1,56,750/-. THAT MEANS SALES TO THE TUNE OF RS. 74, 45,776/- HAD BEEN REALIZED WITHIN THE RELEVANT YEAR ITSELF. AS PER THE DETAILS OF DEPOSITS IN BANK OF ACCOUNT S, THE TOTAL DEPOSITS IN ASSESSEES ALL SIX BANK ACCOUNTS, DISC LOSED AND UNDISCLOSED ONES TAKEN TOGETHER, WERE TO THE TUNE OF / RS.76,63 ,589/- TAKING INTO CONSIDERATION CROSS ENTRIES, I.E., AMOUNT DEPOSITED IN ONE BANK ACCOUNT OUT OF CASH WITHDRAWN FROM ANOTHER BANK ACCOUNT, AN D THE AMOUNT OF MATURITY OF F.D.R. OUT OF 41 THE DEPOSITS IN ACCOUN T NO.12815 WITH AXIS BANK, THE ASSESSEE CLAIMED DEPOSITS TO THE TUN E OF RS. 1,31,500/- TO BE ON ACCOUNT OF UNSECURED LOANS RECEIVED BY HIM. T OTAL UNSECURED LOAN REPORTED IN THE BALANCE SHEET, RELEVANT TO THE YEAR UNDER APPEAL, WERE OF RS. 1,16,510/-, THAT TOO FROM ASSESSES FATHER, AS PER LAST ACCOUNT. THEREFORE, THE UNSECURED LOANS OF RS. 1,31 ,500/-, AS CLAIMED BY THE ASSESSEE TO HAVE BEEN RECEIVED DURING THE YEAR, REM AIN UNEXPLAINED, SINCE THE SAME WERE NEITHER DISCLOSED IN THE BALANC E SHEET NOT ANY CONFIRMATION FOR THE SAME WAS FILED. HENCE, THERE WERE TOTAL DEPOSITS TO THE TUNE OF R S.76,63,589/- IN ALL SIX BANK ACCOUNTS OF THE ASSESSEE AND THE TO TAL SALES REALIZED BY HIM DURING THE YEAR WERE TO THE TUNE OF RS.74,45,77 6/. IN THE LIGHT OF THE FACTS DISCUSSED ABOVE, THE DEPOSITS TO THE TUNE OF RS.74,45,776/- STAND ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 7 EXPLAINED AS REALIZATION OF SALES TO THE TUNE OF TH AT AMOUNT AND THE BALANCE AMOUNT OF RS.2.17,813/- REMAINS UNEXPLAINED AND ADDITION TO THAT EXTENT IS JUSTIFIED. ACCORDINGLY, ADDITION ON ACCOUNT OF UNEXPLAINED DEPOSITS IN ASSESSEES THREE UNDISCLOSED BANK ACCOU NT IS RESTRICTED TO RS.2,17,813/-. HOWEVER, SINCE THE ASSESSEE HAD NOT DISCLOSED THE THREE ACCOUNTS WITH AXIS BANK IN HIS BALANCE SHEET (AUDIT ED ON 10.05.2008) RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL, THE C LOSING BALANCES IN THOSE ACCOUNTS AS ON 31.03.2008 NEED TO BE ADDED TO HIS INCOME. THE BALANCES IN THOSE ACCOUNTS AS ON 31.03.2008 WERE AS FOLLOWS: A/C. NO. 021010100582278 - RS.4,83,263/- A/C. NO. 021010100012815 - RS.5,733.24 A/C. NO. 021013000000644 - RS.3,844.81 THEREFORE, IHE TOTAL OF THE ABOVE BALANCES, I.E., RS.4,92,841/- IS ADDED TO THE ASSESSEES INCOME. ACCORDINGLY, THE ADDITION ON ACCOUNT OF THE ABOVE MENTIONED THREE ACCOUNTS WITH AXIS BANK IS CONFIRMED TO THE T UNE OF RS.7,10,627/- (RS.2,17,813/- + RS. 4,92,841/-) AND THE ASSESSEE G ETS RELIEF OF RS.33,48,006/- 7 . AGAINST THE ORDER OF THE LD.CIT(A) THE REVENUE IS I N FURTHER APPEAL BEFORE US. THE ASSESSEE HAS ALSO FIELD CROSS OBJECTION IN SUPP ORT THE ORDER OF THE LD.CIT(A). 8. WE HAVE CONSIDERED THE RIVAL CONTENTIONS, CAREFU LLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM THE RECORD THAT THE ASSESSEE IS ENGAGED IN TRADING OF PESTICIDES, FERTILISERS AND JUTE ETC. D URING THE COURSE OF SCRUTINY ASSESSMENT THE AO FOUND THAT THE ASSESSEE WAS HAVING SOME BANK ACCOUNTS WITH AXIS BANK, WHEREIN CASH WAS DEPOSITED DURING THE YEAR, HOWEVER , THESE BANK ACCOUNTS WERE NOT DISCLOSED IN THE ACCOUNTS SUBMITTED BY THE ASSESSEE ALONG WITH THE RETURN OF INCOME. ACCORDINGLY, THE AMOUNTS DEPOSITED IN THESE ACCOUNT S ALONG WITH SOME FDS [FIXED DEPOSITS] WERE ADDED BY THE AO IN ASSESSEES INCOME . DURING THE COURSE OF ASSESSMENT ITSELF THE ASSESSEE HAS ALSO FILED A REVISED RETURN DULY INCORPORATING THE AMOUNTS DEPOSITED IN THESE BANK ACCOUNTS. THE ASSESSEE HAD SHOWN DEPOSIT OF CASH IN THESE ACCOUNTS OUT OF SALE PROCEEDS OF PESTICIDES, FERTI LISERS AND JUTE ETC. THE AO DID NOT ACCEPT THE ASSESSEES CONTENTION AND ADDED THE EN TIRE AMOUNT OF CASH DEPOSIT IN ASSESSEES INCOME, ACCORDINGLY, AN ADDITION OF RS.4 0,58,633/- WAS MADE. DURING THE COURSE OF THE APPELLATE PROCEEDINGS THE LD.CIT(A) H AS CALLED FOR A REMAND REPORT AND ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 8 ASKED THE AO TO VERIFY THE DEPOSIT IN THESE BANK AC COUNTS AS PER BOOKS OF ACCOUNTS. DURING THE REMAND PROCEEDINGS, THE AO HAS STATED TH AT THE AMOUNT SO DEPOSITED AS UNDISCLOSED BANK ACCOUNTS WERE FROM SALE PROCEEDS, WHICH WERE INCLUDED IN THE DECLARED SALES OF THE ASSESSEE. THE AO FURTHER OBSE RVED IN HIS REMAND REPORT DATED 25- 04-2011 THAT THE ASSESSEE PRODUCED CASH BOOK, PURCH ASE AND SALE REGISTERS AND VARIOUS OTHER REGISTERS FOR VERIFICATION. AFTER CONSIDERIN G THE REMAND REPORT, THE LD.CIT(A) HAS RECORDED THE FINDING TO THE EFFECT THAT THERE WERE TOTAL CASH DEPOSITS OF RS. 73,63,589/- IN THE BANK ACCOUNT, OUT OF WHICH REALISATION FROM SALES WERE TO THE TUNE OF RS.74,45,776/-. ACCORDINGLY, AN ADDITION OF RS.2,1 7,813/- WAS CONFIRMED BY THE LD.CIT(A). 9. IN RESPECT OF THREE BANK ACCOUNTS WITH AXIS BANK , THE LD.CIT(A) FOUND THAT THE BALANCE IN THESE ACCOUNTS AS ON 10-05-2008 WERE NOT DISCLOSED IN THE AUDITED ACCOUNTS, WHICH AMOUNTS TO RS.4,92,841. ACCORDINGLY , THE LD.CIT(A) HAS ALSO CONFIRMED FURTHER ADDITION OF RS.4,92,841/-.THUS, O UT OF TOTAL ADDITION OF RS.40,58,633/- , THE LD.CIT(A) HAS CONFIRMED THE ADDITION OF RS. 7 ,10,627/- AND GIVEN RELIEF OF RS.33,48,006/-. THE FINDINGS RECORDED BY THE LD.CI T(A) ARE AS PER MATERIAL AVAILABLE ON RECORD, WHICH ESTABLISHES THE SOURCE OF CASH DEPOSI T IN THE BANK ACCOUNTS. TO THE EXTENT, THE ASSESSEE HAS EXPLAINED THE AVAILABILITY OF CASH AS PER HIS BOOKS OF ACCOUNT, THE LD.CIT(A) HAS DELETED THE ADDITION AND BALANCE ADD ITION OF RS.7,10,627/- WAS CONFIRMED BY THE LD.CIT(A). NOTHING HAS BEEN BROUG HT ON RECORD BY THE LD.DR TO CONTROVERT THE FINDING OF THE LD.CIT(A). ACCORDING LY, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS RECORDED BY THE LD.CIT( A) RESULTING IN DELETION OF ADDITION OF RS.33,48,006/- OUT OF TOTAL ADDITION OF RS.40,58,63 3/-. 10. THE CROSS OBJECTION FILED BY THE ASSESSEE IS BA SICALLY IN SUPPORT OF THE ORDER OF THE LD.CIT(A). AS WE HAVE ALREADY DISMISSED THE REVENUES APPEAL BY CONFIRMING THE ORDER OF THE LD.CIT(A), THE CROSS OBJECTION FILED B Y THE ASSESSEE HAS BECOME INFRUCTUOUS. THE SAME IS DISMISSED. ITA NO. 1568/KOL/11 & C.O NO.06/KOL/12-C-AM 9 .11. IN THE RESULT, THE REVENUES APPEAL AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED AS STATED ABOVE. . 4 . 5 .' 6 47 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT 6 TH DEC 2013 SD/- SD/- ** PRADIP SPS 0 +8 983: / COPY OF THE ORDER FORWARDED TO: 1. . &* / THE APPELLANT : I.T.O WARD 49(1), KOLKATA 2 +,&* / THE RESPONDENT- SHRI SHYAM SUNDER PAUL VILL: M OTIGANJ, P.O BANGAON , 24 OGS (N), W.B PIN 743235 3 4. . ' / THE CIT, ' ( )/ THE CIT(A) 5 . !;6 +' / DR, KOLKATA BENCH 6 . GUARD FILE . ,8 +/ TRUE COPY, './ BY ORDER, 4 '# /ASSTT REGISTRAR ( #$# 1 & ' , ) ( GEORGE MATHAN, JUDICIAL MEMBER ) ( . , ) ( R.C. SHARMA, ACCOUNTANT MEMBER ( (( ( 1 1 1 1 ) )) ) DATE 6.12.2013