M/s. Champion Car Rental (P) Ltd., , Kolkata V. ITO, Ward - 2(2), Kolkata , Kolkata

ITA 1602/KOL/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6767 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 25-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C J SINGH JCITSRDR
• Section: 143(3); 201; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.1602/KOL/2018 ASSESSMENT YEAR:2014-15 M/S CHAMPION CAR RENTAL (P) LTD., AK-262, SALT LAKE CITY, SECTOR-II, KOLKATA-91 [ PAN NO.AAECC 7722 N ] / V/S . INCOME TAX OFFICER, WARD-2(2), AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKAT-69 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SUBASH AGARWAL, ADVOCATE /BY RESPONDENT SHRI C.J. SINGH, JCIT-SR-DR /DATE OF HEARING 20-02-2019 /DATE OF PRONOUNCEMENT 28-02-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, KOLKATAS O RDER DATED 27.06.2018 PASSED IN CASE NO.11198/CIT(A)-1/WARD-2(2)/2016-17, INVOLVIN G PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES FORMER SUBSTANTIVE GROUND CHALLEN GES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING DISCOUNT CLAI M OF 1,32,740/- AS PROVIDED TO ITS CLIENTS IN CAR HIRE SERVICE BUSINESS. LEARNED COUNS EL VEHEMENTLY CONTEND DURING THE COURSE OF HEARING THAT THIS ASSESSEE HAS ADMITTEDLY PROVIDED ALL THE RELEVANT DETAILS TO BOTH THE LOWER AUTHORITIES WHO HAVE ERRED ON FACTS AND IN LAW IN DISALLOWING THE SAME. MR. SINGH VEHEMENTLY SUPPORTS BOTH THE LOWER AUTHOR ITIES ACTION MAKING THE IMPUGNED DISALLOWANCE. HE FAILS TO DISPUTE THAT SUC H DISCOUNT SUPPORTED BY ALL THE ITA NO.1602/KOL/2018 A.Y. 201 4-15 M/S CHAMPION CAR RENTAL (P) LTD. VS. ITO WD -2(2), KOL. PAG E 2 RELEVANT PARTICULARS IS VERY MUCH A COMMON PRACTICE IN CAR HIRE SERVICE BUSINESS. I FIND DURING THE COURSE OF HEARING THAT ASSESSEE HAS ALSO NOT BEEN ABLE TO PROVIDE FOR RELEVANT DETAILS OF THE BENEFICIARIES FOR VERIFICAT ION IN THIS REGARD. I TAKE INTO ACCOUNT ALL THESE FACTS AND CIRCUMSTANCES TO RESTRICT THE I MPUGNED DISALLOWANCE TO 32,740/- ONLY. THE ASSESSEE GETS PART RELIEF TO THE TUNE OF 1 LAC. ITS INSTANT FORMER SUBSTANTIVE GROUND IS PARTLY ALLOWED. 3. NEXT COMES CASH DEPOSITS ADDITION OF 17,47,927/- TREATED AS UNDISCLOSED INCOME U/S 69A OF THE ACT IN BOTH THE LOWER PROCEED INGS. I FIND THAT NEITHER THE ASSESSEE HAS BEEN ABLE TO PROVE EACH AND EVERY DEPO SITS INSTANCE IN ITS PAPER BOOK RUNNING INTO 155 PAGES NOR THE REVENUE HAS BEEN ABL E TO JUSTIFY THAT THE LOWER AUTHORITIES HAVE ADDED ALL CONTRA ENTRIES AS WELL D URING THE COURSE OF HEARING. I THEREFORE HOLD IN THESE PECULIAR FACTS AND CIRCUMST ANCES THAT A LUMP SUM ADDITION OF 2,47,927/- INSTEAD OF THE ENTIRE DEPOSIT SUMS OF 17,47,927/- WOULD BE JUST AND PROPER. THE ASSESSING OFFICER SHALL FINALISE NECESS ARY COMPUTATION. I MAKE IT CLEAR THAT INSTANT DIRECTION BOTH THE ISSUES SHALL NOT BE TREATED AS A PRECEDENT. 4. THIS ASSESSEES APPEAL IS PARTLY ACCEPTED IN ABO VE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 28/02/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 28/02/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S CHAMPION CAR RENTAL (P) LTD. AK-262, SALT LAKE CITY SECTOR-II, KOLKAT-91 2. /RESPONDENT-ITO WARD-2(2), AAYAKAR BHAWAN, P-7 CHOW RINGHEE SQ. KOL-69 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ',