Rabindra Kumar Biswal, Bhubaneswar V. ITO, Ward-2(2), Bhubaneswar

ITA 165/CTK/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5431 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 01-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: J M PATNAIK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 165/CTK/2017 ASSESSMENT YEAR :2009 - 2010 RABINDRA KUMAR BISWAL, MIG - 53, UDAYA VIHAR, PATRAPADA, BHUBANESWAR. VS. ITO, WARD 2(2), BHUBANESWAR PAN/GIR NO. AMFPB 4074 P (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI J.M.PATNAIK, AR REVENUE BY : SHRI D.K.PRADHAN , DR DATE OF HEARING : 16 /08 / 2017 DATE OF PRONOUNCEMENT : 18 /08 / 2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAI NST THE ORDER OF CIT(A) - 1, BHUBANESWAR DATED 12.6.2015 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF 4,86,328/ - AS SUPPRESSION OF AS SETS. 3. I HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER FOUND THAT THE EXECUTIVE ENGINEER, CUTTACK PH DIVISION PAID AN AMOUNT OF RS.5,22,830/ - ON 31.3.2009 TO THE ASSESSEE, WHICH WAS CREDITED TO THE BANK ACCOUNT AFTER 31.3.2009. ACCORDING TO HI M , THE EXECUTIVE ENGINEER WAS NOT SHOWN AS THE DEBTOR FOR 2 ITA NO.165/CTK/2017 ASSESSMENT YEAR :2009 - 2010 THE SAID AMOUNT BUT SHOWN AS A DEBTOR ONLY TO THE EXTENT OF RS.36,502/ - . ACCORDINGLY, SUNDRY DEBTOR FOR RS.4,86,328/ - (RS.5,22,830 RS.36,502) WAS NOT REFLECTED IN THE BALANCE SHE ET, WHICH WAS CONS IDERED BY THEA ASSESSING OFFICER AS SUPPRESSION OF ASSETS IN THE BALANCE SHEET AND ADDED TO THE INCOME OF THE ASSESSEE. 4. ON APPEAL BEFORE THE CIT(A), THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAD SUPPLIED MATERIALS ALONGWITH INSTALLING THE SAME IN THE DEP ARTMENT OF EXECUTIVE ENGINEER, PH DIVISION, BHUBANESWAR FOR AN AMOUNT OF RS.5,22,830/ - , WHICH WAS ALREADY REFLECTED IN SALES ACCOUNT AS PART OF THE BUSINESS TRANSACTIONS IN THE AUDITED ACCOUNT. THE PAYMENT HAS BEEN MATERIALISED ON 31.3.2009 AT RS.4,63,927 / - AFTER DUE DEDUCTION OF SECURITY DEPOSIT, VAT, INCOME TAX, SC & E.C. AMOUNTING TO RS.58,903/ - AND BALANCE AMOUNT OF RS.4,63,927/ - WAS CREDITED TO THE ASSESSEES BANK ACCOUNT BY WAY OF DRAFT ON 8.5.2009 FOR RS.4,62,772/ - AFTER DUE DEDUCTION OF COMMISSION OF RS.1155/ - OUT OF TOTAL AMOUNT OF RS.4,63,927/ - . IT WAS FURTHER SUBMITTED THAT THE AFORESAID TRANSACTION WAS ALREADY INCLUDED IN THE BUSINESS TURNOVER OF THE ASSESSEE AS BOOKS OF ACCOUNT OF THE ASSESSEE HAS BEEN MAINTAINED ON MERCANTILE BASIS AND NECESS ARY PROFIT ELEMENT OF THE SAID TRANSACTION WAS ALREADY INCLUDED IN THE GROSS PROFIT AS WELL AS NET PROFIT AND THE BOOKS OF ACCOUNT OF THE ASSESSEE HAS NOT BEEN REJECTED BY THE ASSESSING OFFICER. IT WAS, THEREFORE, SUBMITTED THAT THE ADDITION SHOULD BE DEL ETED. 3 ITA NO.165/CTK/2017 ASSESSMENT YEAR :2009 - 2010 5. THE CIT(A) AFTER CONSIDERING THE SUBMISSION OF THE ASSESSEE HELD THAT HE FOUND NO MERIT IN THE ASSESSEES SUBMISSION. THE SUNDRY DEBTOR HAS NOT BEEN DISCLOSED IN THE BALANCE SHEET AND HENCE, TO THAT EXTENT THE ASSET HAS BEEN SUPPRESSED. 6. BEFORE ME, LD A.R. OF THE ASSESSEE HAS FILED IN THE PAPER BOOK AT PAGE 43 LEDGER ACCOUNT OF SALES FOR THE PERIOD 1.4.2008 TO 31.3.2009. HE POINTED OUT FROM THIS ACCOUNT THAT ON 31.3.200 9 , VIDE JOURNAL ENTRY AND SALES ACCOUNT WAS CREDITED WITH AN AMOUNT OF RS.5,22,830/ - . THEREAFTER, HE REFERRED PAGE 44 OF PB, WHEREIN, LEDGER ACCOUNT OF THE EXECUTIVE ENGINEER OF PH DIVISION IS PLACED FOR THE PERIOD 1.4.2008 TO 31.3.2009. HE SUBMITTED THAT A SUM OF RS.5,10,982/ - WAS DE BITED ON 31.3 .2009 IN THE NAME OF EXECU TIVE ENGINEER, PH DIVISION AND RS.11,898/ - WAS DEBITED TO INCOME TAX DEDUCTED AT SOURCE. HE SUBMITTED THAT NET DEBIT OF RS.36,502 - WAS SHOWN IN THE ACCOUNT AT THE YEAR END ON 31.3.2009 AFTER TAKING INTO ACCOUNT THE OPENING BROUGHT FORWARD DEBIT BALANCE O N 1.4.2008 OF RS.54,74 3/ - AND CREDITS FOR PAYMENT RECEIVED ON 6.5.2008 OF RS.1,99,500/ - AND PAYMENT RECEIVED OF RS.3,29,723/ - ON 1.7.2008. IT WAS THIS HIS SUBMISSION THAT THERE WAS NO SUPPRESSION OF ASSETS BY THE ASSESSEE AS ALLEGED BY THE ASSESSING OFFIC ER AND CONFIRMED BY THE CIT(A) AND, THEREFORE, THE ADDITION MADE SHOULD BE DELETED. 7. LD D.R. RELIED ON ORDERS OF LOWER AUTHORITIES. 4 ITA NO.165/CTK/2017 ASSESSMENT YEAR :2009 - 2010 8. I FIND FROM THE EVIDENCES FILED THAT IT IS ABUNDANTLY CLEARLY THAT THE ASSESSEE HAS SHOWN INCOME OF RS.5,22,830/ - BY CR EDITING THE SALES ACCOUNT ON 31.3.2009 BEING THE AMOUNT OF MATERIALS SUPPLIED ALONGWITH INST ALLING TO THE EXECUTIVE ENGINEER, PH DIVISION, BHUBANESWAR . THE CORRESPONDING NET DEBIT WAS MADE TO THE ACCOUNT OF SR. EX ECUTIVE ENGINEER, PH DIVISION FOR AN AMOUNT OF RS.5,10,982/ - AND RS.11,848/ - WAS INCOME TAX DEDUCTED AT SOURCE ACCOUNT. THE NET BALANCE IN THE LEDGER ACCOUNT OF EXECUTIVE ENGINEER W AS DRAWN AS ON 31.3 .2009 AT RS.36,502/ - , WHICH WAS REFLECTED IN THE BALANCE SHEET WHICH WAS ARRIVED AT TAKI NG INTO CONSIDERATION THE OPENING DEBIT BALANCE ON 1.4.2008 OF RS.54,743/ - AND CREDITS FOR PAYMENT RECEIVED OF AN AMOUNT OF RS.1,99,500/ - ON 6.5.2008 AND RS.3,29,723/ - ON 1.7.2009 THROUGH STATE BANK OF TRAVANCORE. THUS, I AM OF THE CONSIDERED VIEW THAT TH E ASSESSING OFFICER WAS NOT JUSTIFIED IN HOLDING THAT THERE WAS SUPPRESSION OF ASSETS TO THE TUNE OF RS.4,86,328 / - AND LD CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE SAME. HENCE, I SET A SIDE THE ORDER OF THE CIT(A) AND DELETE THE ADDITION OF RS.4,86,328/ - AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNC ED IN THE OPEN COURT ON 18 /08 /2017. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 18 /08 /2017 5 ITA NO.165/CTK/2017 ASSESSMENT YEAR :2009 - 2010 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : RABINDRA KUMAR BISWAL, MIG - 53, UDAYA VIHAR, PATRAPADA, BHUBANESWAR 2. THE RESPONDENT. ITO, WARD 2(2), BHUBANESWAR 3. THE CIT(A) - 1, BHUBANESWAR 4. PR.CIT , - 1, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//