Sandhya Rani Das, Purba Medinipur V. ACIT, Circle - 27, Haldia, Purba Medinipur

ITA 1677/KOL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1586 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 18-07-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJOY MUKHERJEE
• Assessee Lawyers: MIHIR BANDYOPADHYAY
• Keywords: Unexplained investment; Gift
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, AM] I.T.A. NO. 1677/KOL/2017 ASSESSMENT YEAR: 2010-11 SANDHYA RANI DAS.........................................APPELLANT RAMPUR, CHAITANYAPUR, SUTAHATA, PURBA MEDINIPUR 721 645. [PAN : ACRPD 5818 N] A.C.I.T., CIR 27 HALDIA...............................RESPONDENT PURBA MEDINIPUR 721 602. APPEARANCES BY: SHRI MIHIR BANDYOPADHYAY, AR APPEARING ON BEHALF OF THE ASSESSEE. SHRI SANJOY MUKHERJEE, ADDL. CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JANUARY 29, 2018 DATE OF PRONOUNCING THE ORDER : JANUARY 31, 2018 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS) -7, KOLKATA DATED 16.05.2017 AND THE ONLY ISSUE ARISING OUT OF THE SAME RELATES TO THE ADDITION OF RS. 11,00,000/- MADE BY THE A.O. AND CONFIRMED BY THE LD. CIT(A) ON ACCOUNT OF INVESTMENT MADE BY THE ASSESSEE IN CASH IN THE SHARES OF M/S. M.S. PROJECTS PVT. LTD. BY TREATING THE SAME AS UNEXPLAINED. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUAL WHO IS ENGAGED IN THE BUSINESS OF TRADING AND CONTRACTING. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY HER ON 31.03.2011 DECLARING A TOTAL INCOME OF RS. 4,48,580/-. AS NOTED BY THE A.O., SHARE APPLICATION MONEY OF RS. 20,90,000/- WAS PAID BY THE ASSESSEE TO M/S. M.S. PROJECTS PVT. LTD. DURING THE YEAR UNDER CONSIDERATION. THE SOURCE OF THE SAME WAS EXPLAINED BY THE ASSESSEE AS SALE PROCEEDS OF 2 I.T.A. NO. 1677/KOL/2017 A.Y. 2010-11 SANDHYA RANI DAS GOLD ORNAMENTS AMOUNTING TO RS. 8,98,809/- AND TWO GIFTS RECEIVED FROM HER MOTHER AND DAUGHTER AGGREGATING TO RS. 11,00,000/-. THE SAID SOURCE EXPLAINED BY THE ASSESSEE, HOWEVER, WAS NOT ACCEPTED BY THE A.O. AND ADDITION OF RS. 19,98,809/- WAS MADE BY HIM TO THE TOTAL INCOME OF THE ASSESSEE IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 28.03.2013. 3. AGAINST THE ORDER PASSED BY THE A.O. UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE AS WELL AS THE MATERIAL AVAILABLE ON RECORD, THE LD. CIT(A) FOUND NO MERIT IN THE CASE OF THE ASSESSEE ON THIS ISSUE AND CONFIRMED THE ADDITION OF RS. 19,98,809/- MADE BY THE A.O. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LEARNED REPRESENTATIVES OF BOTH THE SIDES, THE SOLITARY ISSUE INVOLVED IN THIS APPEAL OF THE ASSESSEE RELATING TO THE ADDITION MADE ON ACCOUNT OF UNEXPLAINED INVESTMENT MADE IN THE SHARES OF M/S. M.S. PROJECTS PVT. LTD. IS INTERLINKED WITH THE ISSUE OF ADDITION MADE UNDER SECTION 68 IN THE CASE OF M/S. M.S. PROJECTS PVT. LTD. ON ACCOUNT OF UNEXPLAINED SHARE APPLICATION MONEY WHICH INCLUDES THE AMOUNT IN QUESTION ADDED IN THE CASE OF THE ASSESSEE. AS FURTHER SUBMITTED BY THEM, THE OUTCOME IN THE CASE OF M/S. M.S. PROJECTS PVT. LTD. WILL HAVE A DIRECT BEARING ON THE ISSUE INVOLVED IN THIS APPEAL OF THE ASSESSEE AND SINCE THE MATTER INVOLVED IN THE CASE OF M/S. M.S. PROJECTS PVT. LTD. HAS BEEN RESTORED BY THE TRIBUNAL TO THE FILE OF THE A.O. VIDE ITS ORDER OF EVEN DATE PASSED IN ITA NO. 1275/K/2016, THE ISSUE INVOLVED IN THE 3 I.T.A. NO. 1677/KOL/2017 A.Y. 2010-11 SANDHYA RANI DAS PRESENT CASE MAY ALSO BE RESTORED THE FILE OF THE A.O. FOR FRESH CONSIDERATION. I FIND MERIT IN THESE ARGUMENTS RAISED BY THE LEARNED REPRESENTATIVES OF BOTH THE SIDES. THE IMPUGNED ORDER OF THE LD. CIT(A) ON THE ISSUE UNDER CONSIDERATION IS ACCORDINGLY SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE A.O. FOR CONSIDERING THE SAME AFRESH AFTER TAKING INTO CONSIDERATION THE OUTCOME OF THE CASE OF M/S. M.S. PROJECTS PVT. LTD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY, 2018. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER DATED: 31/01/2018 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. SANDHYA RANI DAS, RAMPUR, CHAITANYAPUR, SUTAHATA, PURBA MEDINIPUR 721 645. 2. ACIT, CIR-27, HALDIA, PURBA MEDINIPUR 721 602. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA