Smt. Sarla Sethia , Alipurduar V. ITO, Ward - 1(4), Jalpaiguri , Jalpaiguri

ITA 1679/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1413 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 06-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANKAR HALDER
• Keywords: Peak credit
• Section: 44AD; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA [BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER] I.T.A. NO. 1679/KOL/2018 ASSESSMENT YEAR: 2013-14 SMT. SARIA SETHIA......................APPELLANT C/O HANUMAN SETHIA HATKOLA FALAKATA DIST.-ALIPURDUAR 735 211 [PAN : AKLPS 0227 N] INCOME TAX OFFICER, WARD-1(4), KOLKATA...........................................................RESPONDENT APPEARANCES BY: SHRI ANIL KOCHAR, A/R, APPEARED ON BEHALF OF THE ASSESSEE. SHRI SANKAR HALDER, JCIT D/R, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : MARCH 11 TH , 2019 DATE OF PRONOUNCING THE ORDER : MARCH 15 TH , 2019 O R D E R PER J. SUDHAKAR REDDY :- THIS APPEAL FILED BY THE ASSESSE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - JALPAIGURI, KOLKATA, (HEREINAFTER THE LD. CIT (A)), PASSED U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 03/05/2018, FOR THE ASSESSMENT YEAR 2013-14. 2. BEFORE ME, THIS APPEAL WAS FILED WITH A DELAY OF 28 DAYS AND THE ASSESSEE FILED AN AFFIDAVIT STATING REASONS. ON PERUSAL OF THE SAID FACTS AND HEARING BOTH THE PARTIES, WE FIND THE REASONS STATED THEREIN ARE BONAFIDE AND, THEREFORE, THE DELAY OF 28 DAYS IN FILING OF THE APPEAL ARE CONDONED AND THE APPEAL IS ADMITTED. 3. THE SHORT POINT FOR CONSIDERATION IS WHETHER THE ASSESSING OFFICER WAS RIGHT IN ADDING THE AMOUNT OF RS.4,56,522/-, AS PEAK CREDIT WHEN THE TOTAL RECEIPTS IN THE BANK ACCOUNT WERE TREATED AS TURNOVER AND TAXED U/S 44AD OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT THE OPENING BALANCE IN THE BANK ACCOUNT IS AROUND RS.2,00,000/- AND HENCE THE CAPITAL INVESTED SHOULD BE RESTRICTED TO THIS AMOUNT. 2 I.T.A. NO. 1679/KOL/2018 ASSESSMENT YEAR: 2013-14 SMT. SARIA SETHIA 3.1. THE LD. D/R SUBMITS THAT PEAK CREDIT IS THE INVESTMENT MADE BY THE ASSESSEE WHICH REMAINED UNEXPLAINED AND HENCE THE ADDITION WAS CORRECT. 4. WE AGREE WITH THE SUBMISSIONS OF THE LD. D/R. IN ADDITION TO THE PROFIT ON TURNOVER, THE SEED CAPITAL OR INVESTMENT, IS CORRECTLY ADDED. THE PEAK CREDIT IS TAKEN AS THE SEED CAPITAL. IN MY VIEW THERE IS NO ERROR IN THE SAME. ACCORDINGLY THIS APPEAL OF THE ASSESSEE IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. KOLKATA, THE 15 TH DAY OF MARCH, 2019. SD/- [ J. SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED : 15.03.2019 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. SMT. SARIA SETHIA C/O HANUMAN SETHIA HATKOLA FALAKATA DIST.-ALIPURDUAR 735 211 2. INCOME TAX OFFICER, WARD-1(4), KOLKATA 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES 3 I.T.A. NO. 1679/KOL/2018 ASSESSMENT YEAR: 2013-14 SMT. SARIA SETHIA