M/s. M.K. Enterprises, Kolkata V. ITO, Ward-3(1), Asansol, Asansol

ITA 1671/KOL/2014

• Counselvise Citation: 167123514 RSA 2014
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 14-08-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: H V BHARDWAJ A
• Keywords: Unexplained cash credit; Gift

Judgement Text

I.T.A. NO . 1671 / KOL ./201 4 ASSESSMENT YEAR: 200 8 - 20 0 9 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 1 671 / KOL / 20 1 4 ASSESSMENT YEAR : 200 8 - 20 0 9 M/S. M.K. ENTERPRISES,......... ..................... . ............. .. .APP ELL ANT C/O. V.N. PUROHIT & CO., CHARTERED ACCOUNTANTS, DIAMOND CHAMBERS, UNIT - III, 4 TH FLOOR, SUIT NO. 4G, 4, CHOWRINGHEE LANE, KOLKATA - 700 016 [PAN : A AGFM 2510 B ] - VS. - INCOME TAX OFFICER, .. ............................................ . RESPONDENT WARD - 3 (1), ASANSOL 54, G.T. ROAD, APKAR GARDEN, ASANSOL - 713 304 APPEARANCES BY: SHRI H.V. BHARDWAJ, A.C.A. , FOR THE ASSESSEE S MT. RANU BISWAS , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : NOVEMBER 2 7 , 2 01 4 DATE OF PRONOUNCING THE ORDER : NOVEMBER 2 7 , 201 4 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) , ASANSOL IN APPEAL NO. 389 / CIT(A) /ASL/WD - 3(1)/ASL/10 - 11 DATED 13 . 0 6 .201 4 FOR THE ASSESSMENT YEA R 200 8 - 0 9 . 2. SHRI H.V. BHARDWAJ, A.C.A. , REPRESENTED ON BEHALF OF THE ASSESSEE AND SMT. RANU BISWAS, JCIT, SR. D.R. REPRESENTED ON BEHALF OF THE REVENUE. I.T.A. NO . 1671 / KOL ./201 4 ASSESSMENT YEAR: 200 8 - 20 0 9 PAGE 2 OF 3 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. A.R. THAT THE ISSUE WAS AGAINST THE ACTION OF THE LD. CIT(APPEALS) IN CONFIRMING THE ADDITION OF RS.4,45,000/ - MADE BY THE ASSESSING OFFICER BY TREATING THE GIFTS FROM FIVE RELATIVES OF THE PARTNERS TO THE PARTNERS WHO HAD USED THE SAID AMOUNTS FOR CAPITAL INTRODUCTION IN THE PARTNERSHIP FIRM. IT W AS THE SUBMISSION THAT THE ASSESSING OFFICER HAD HELD THAT THE CREDITWORTHINESS OF THE DONORS WAS NOT ESTABLISHED AND CONSEQUENTLY HAD TREATED THE GIFTS RECEIVED BY THE VARIOUS PARTNERS AS UNEXPLAINED CASH CREDITS IN THE HANDS OF THE FIRM AS THE PARTNERS H AD INTRODUCED THE SAID AMOUNTS FOR INTRODUCING FRESH CAPITAL INTO THE FIRM. LD. A.R. DREW ATTENTION TO PAGE 1 OF THE PAPER BOOK, WHICH WAS THE STATEMENT SHOWING THE GIFTS RECEIVED BY THE PARTNERS, WHICH WERE INTRODUCED BY THE PARTNERS TOWARDS THEIR RESPECT IVE CAPITAL ACCOUNTS. IT WAS THE SUBMISSION THAT THE GIFTS HAVE BEEN RECEIVED FROM THE PARENTS, GRAND - PARENT, IN LAWS, AND CLOSE RELATIVES. LD. A.R. DREW ATTENTION TO THE BALANCE - SHEET AND PROFIT & LOSS ACCOUNT AND COPIES OF THE RETURNS OF ALL THE DONEES. IT WAS THE SUBMISSION THAT THE GIFTS HAD ALSO BEEN DISCLOSED IN THE ACCOUNTS OF THE DONEES. IT WAS THE SUBMISSION THAT EVEN THE DECLARATION OF GIFTS WAS PRODUCED BEFORE THE ASSESSING OFFICER AND LD. CIT(APPEALS). IT WAS THE SUBMISSION THAT THE ADDITION MAY BE DELETED. 4 . IN REPLY, IT WAS THE SUBMISSION BY THE LD. SR. D.R. THAT THE RETURN OF INCOME, BALANCE - SHEET, AND PROFIT & LOSS ACCOUNT FOR THE ASSESSMENT YEAR 2007 - 08 IN RESPECT OF THE DONORS HAD NOT BEEN PRODUCED BEFORE THE ASSESSING OFFICER. IT WAS THE SUBMISSION THAT THE ISSUE COULD BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION. 5 . I HAVE CONSIDERED THE SUBMISSIONS. AS IT IS NOTICED THAT ALL THE EVIDENCES RELIED UPON BY THE LD. A.R. HAD NOT BEEN PRODUCED BEFORE THE ASSESSING OFF ICER AND THERE ARE FRESH EVIDENCES PRODUCED BEFORE THE TRIBUNAL FOR CLAIMING THE GENUINENESS OF THE GIFTS AND THE CREDITWORTHINESS OF THE DONORS, THE ISSUES IN THIS APPEAL ARE RESTORED TO I.T.A. NO . 1671 / KOL ./201 4 ASSESSMENT YEAR: 200 8 - 20 0 9 PAGE 3 OF 3 THE FILE OF THE ASSESSING O FFICER FOR RE - ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE IT S CASE. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 TH NOV EMBER , 2014. SD/ - GEO RGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 2 7 TH D AY OF NOVE MBER , 201 4 COPIES TO : (1) M/S. M.K. ENTERPRISES, C/O. V.N. PUROHIT & CO., CHARTERED ACCOUNTANTS, DIAMOND CHAMBERS, UNIT - III, 4 TH FLOOR, SUIT NO. 4G, 4, CHOWRINGH EE LANE, KOLKATA - 700 016 (2) INCOME TAX OFFICER, WARD - 3(1), ASANSOL 54, G.T. ROAD, APKAR GARDEN, ASANSOL - 713 304 (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S .