ITO, Ward - 1(3), Midnapore, Midnapore V. Shri Madan Mohan Patra, Paschim Medinipur

ITA 1596/KOL/2010

• Counselvise Citation: 159623514 RSA 2010
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 10-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P P SARKAR
• Assessee Lawyers: N O N E
• Keywords: Unexplained cash credit; Income from undisclosed sources; Assessment record
• Section: 133(6)

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL : B BENCH : KOLKATA ( ) . . , , , , ) [BEFORE HONBLE SRI B.R. MITTAL, J.M. & HONBLE SRI AKBER BASHA, A.M.] ! ! ! ! / I.T.A NO. 1596/KOL/2010 '# $% / ASSESSMENT YEAR : 2006-2007 INCOME TAX OFFICER, WARD-1(3), MIDNAPORE -VS.- S RI MADAN MOHAN PATRA, MIDNAPORE (PAN : AEYPP 7195 K) ( &' /APPELLANT ) ( ()&' / RESPONDENT ) FOR THE APPELLANT : SHRI P.P. SARKAR, SR.D.R. FOR THE RESPONDENT : N O N E / ORDER PER SHRI B. R. MITTAL, JUDICIAL MEMBER/ . . , : THE DEPARTMENT HAS FILED THIS APPEAL FOR ASSESSMEN T YEAR 2006-07 AGAINST ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXXVII, KOLKAT A DATED 26.04.2010 DISPUTING THE DELETION OF RS.11,00,000/- MADE BY THE ASSESSING OF FICER TREATING IT AS INCOME OF THE ASSESSEE FROM UNDISCLOSED SOURCES. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF NOTICE SENT BY REGISTERED A/D. NOR THERE IS ANY APPLICATION FOR ADJOURNMENT. WE HAVE D ECIDED TO DISPOSE OF THE APPEAL AFTER CONSIDERING THE SUBMISSION OF THE LD. D.R. AND THE PAPERS PLACED ON RECORD. 3. AT THE TIME OF HEARING, LD. DEPARTMENTAL REPRESE NTATIVE RELIED ON THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE A UTHORITIES BELOW. WE OBSERVE THAT THE ASSESSEE IS A DEALER OF FERTILIZER, PESTICIDES, POT ATO. DURING THE COURSE OF ASSESSMENT ITA NO.1596/KOL./2010 2 PROCEEDINGS, THE ASSESSING OFFICER OBSERVED THAT TH E ASSESSEE CLAIMED TO HAVE TAKEN UNSECURED LOAN AMOUNTING TO RS.11,00,000/- FROM M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD. AS UNDER :- (A) RS.1,00,000/- VIDE CHEQUE NO. 0647508 DATED 2 8.03.2006, (B) RS.5,00,000/- VIDE D.D. NO. 356977 DATED 06.0 8.2005, AND (C) RS.5,00,000/- VIDE D.D. NO. 356978 DATED 06.0 8.2005. IN ORDER TO VERIFY THE GENUINENESS OF THE TRANSACTI ONS, THE ASSESSING OFFICER ISSUED NOTICE UNDER SECTION 133(6) OF THE ACT TO M/S. SPANDAN DIAGONEST IC & RESEARCH CENTRE (P) LTD. IN RESPONSE, M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD. VIDE ITS LETTER DATED 30.11.2008 INFORMED THAT THEY DID NOT GIVE ANY UNSECURED LOAN TO THE AS SESSEE BUT STATED THAT ACTUALLY THEY HAD TAKEN UNSECURED LOAN FROM THE ASSESSEE AND REPAID BACK TH E AMOUNT OF RS.10,00,000/- IN THE ASSESSMENT YEAR UNDER CONSIDERATION. THEREFORE, TH E ASSESSING OFFICER ASKED THE ASSESSEE AS TO WHY THE SAID SUM OF RS.10,00,000/- SHOULD NOT BE AD DED BACK TO HIS TOTAL INCOME AS INCOME FROM UNDISCLOSED SOURCES. ON THE OTHER HAND, THE AS SESSEE STATED THAT THEY HAD NOT GIVEN ANY LOAN EARLIER TO M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD. AS THEY HAD NO CAPACITY TO GIVE LOAN OF SUCH HUGE AMOUNT OF RS.10,00,000/- AND TO ANYBODY IN THE PAST. 5. THE ASSESSING OFFICER AFTER GIVING OPPORTUNITY T O THE ASSESSEE TO CROSS EXAMINE THE OFFICIAL OF M/S. SPANDAN DIAGONESTIC & RESEARCH CEN TRE (P) LTD. AND ALSO CONSIDERING THE ASSESSMENT RECORD OF M/S. SPANDAN DIAGONESTIC & RES EARCH CENTRE (P) LTD. THAT THEY HAD SHOWN THAT AN AMOUNT OF LOAN OF RS.11,00,000/- WAS OUTSTANDING AS ON 31.03.2005, THE ASSESSING OFFICER ADDED THE ENTIRE AMOUNT OF RS.11, 00,000/- TO THE INCOME OF THE ASSESSEE AS INCOME FROM UNDISCLOSED SOURCES. 6. WE OBSERVE THAT THE LD. CIT(APPEALS) AFTER CONSI DERING THE FACTS OF THE CASE AND THE SUBMISSION OF THE LD. REPRESENTATIVE OF THE ASSESSE E HAS STATED THAT THE SAID AMOUNT COULD NOT BE ADDED AS UNEXPLAINED CASH CREDIT IN THE HANDS OF TH E ASSESSEE BECAUSE M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD. ADMITTEDLY P AID RS.11,00,000/- TO THE ASSESSEE DURING THE FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION. M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD. HAD SHOWN TH E SAID AMOUNT AS REPAYMENT OF LOAN AND WHEREAS THE ASSESSEE HAS STATED TO BE AN UNSECURED LOAN FROM M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD.. THE LD. CIT(APPEALS) HAS STATED THAT THE SOURCE OF THE AMOUNT IN THE ITA NO.1596/KOL./2010 3 HANDS OF THE ASSESSEE IS WELL ESTABLISHED THAT THE ASESSEE HAS RECEIVED THE SAID AMOUNT BY CHEQUE AND/OR DRAFT FROM M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD.. HE HAS STATED THAT WITHOUT GOING TO THE DISPUTE BETWEEN THE ASSES SEE AND M/S. SPANDAN DIAGONESTIC & RESEARCH CENTRE (P) LTD., THE SAID AMOUNT OF RS.11, 00,000/- AS APPEARING IN THE ASSESSEES BOOKS OF ACCOUNTS STAND EXPLAINED AND THE SAME COUL D NOT BE CONSIDERED AS INCOME FROM UNDISCLOSED SOURCES. 7. DURING THE COURSE OF HEARING, THE ABOVE FACTS HA VE NOT BEEN DISPUTED BY LD. D.R. WE ARE OF THE CONSIDERED VIEW THAT WHEN THE AMOUNT IS ADMI TTEDLY APPEARING IN THE BOOKS OF ASSESSEE AND IT HAS BEEN RECEIVED ADMITTEDLY FROM M/S. SPAND AN DIAGONESTIC & RESEARCH CENTRE (P) LTD. BY WAY OF ACCOUNT PAYEE CHEQUES AND/OR DRAFTS, THE DETAILS OF WHICH ARE MENTIONED HEREINABOVE, AND THE PAYER HAS ALSO NOT DISPUTED TH E SAID FACT THAT IT HAD PAID RS.11,00,000/- TO THE ASSESSEE, WE AGREE WITH THE LD. CIT(APPEALS) TH AT THE SAID AMOUNT COULD NOT BE CONSIDERED AS UNDISCLOSED INCOME OF THE ASESSEE IN THE ASSESSM ENT YEAR UNDER CONSIDERATION. 8. WE OBSERVE THAT M/S. SPANDAN DIAGONESTIC & RESEA RCH CENTRE (P) LTD. HAS NOT BEEN ABLE TO BRING ANY DOCUMENT ON RECORD TO ESTABLISH T HAT THEY HAD TAKEN UNSECURED LOAN FROM THE ASSESSEE IN THE PAST AND THE SAID AMOUNT HAS BEEN P AID TO THE ASSESSEE TOWARDS REPAYMENT OF OUTSTANDING LOAN. IN VIEW OF THE ABOVE FACTS OF THE CASE, WE HOLD THAT THERE IS NO INFIRMITY IN THE ORDER OF THE LD. CIT(APPEALS). HENCE, WE UPHOLD HIS ORDER AND REJECT THE GROUND OF APPEAL TAKEN BY THE DEPARTMENT. 9. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12.05.2011. SD/- SD/- [AKBER BASHA/ ] [ B.R. MITTAL / . . ] ACCOUNTANT MEMBER/ JUDICIAL MEMBER/ DATED : 12/ 05/ 2011 ITA NO.1596/KOL./2010 4 COPY OF THE ORDER FORWARDED TO: 1. SHRI MADAN MOHAN PATRA, RANGAMATI, P.O. V.S. UNIVER SITY, DIST. PASCHIM MIDNAPORE, 2 ITO, WARD-1(3), MIDNAPORE, 3. COMMISSIONER OF INCOME-TAX (APPEALS)- , KOLKATA 4 CIT, KOLKATA 5 . DR, KOLKATA BENCHES, KOLKATA (TRUE COPY) BY ORDER ASSIS TANT REGISTRAR, I.T.A.T., KOLKATA LAHA, SR. P.S.