Sett Iron Foundry, Howrah V. ACIT, Circle-48, Kolkata, Kolkata

ITA 1693/KOL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4532 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 11 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 24-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S ALLONG YADEN CIT LD
• Assessee Lawyers: MIRAJ D SHAH FCA LD

Judgement Text

1 IT A NO . 1693/KOL/2016 M/S. SETT IRON FOUNDRY IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOLKATA BEFORE: SHRI J. SUDHAKAR REDDY , ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A NO . 1 693 / K OL/201 6 A.Y: 20 10 - 11 S ETT IRON FOUNDRY VS. A.C.I.T, CIR - 4 8 , KOLKATA PAN: A AMFS 3823K [APPELLANT] [RESPONDENT] FOR THE APPELLANT : SHRI MIRAJ D. SHAH , FCA , LD.AR FOR THE RESPONDENT : SHRI SALLONG YADEN , ADDL.CIT, LD.SR.DR DATE OF HEARING : 1 5 - 05 - 2018 DATE OF PRONOUNCEMENT : 03 - 0 8 - 201 8 ORDER SHRI S.S. VISWANETHRA RAVI, JM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) , 1 4 , KOLKATA DT. 2 4 - 06 - 2016 FOR THE A.Y 20 10 - 11. 2. THE ON LY EFFECTIVE ISSUE IS TO BE DECIDED AS TO WHETHER THE CIT - A IS JUSTIFIED IN CONFIRMING/TREATING THE ADDITION MADE ON ACCOUNT OF EXCESS CASH FOUND DURING SURVEY OPERATION IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. HEARD BOTH THE PARTIES AND PERUSED TH E RECORD. ACCORDING TO AO, CASH FOUND AS ON 26 - 03 - 2010 I.E. THE DATE OF SURVEY AS PER BOOKS IS OF RS.1,88,047/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, A S REGARD S EXCESS CASH OF RS.3 , 37 , 493/ - FOUND , THE ASSESSE STATED THAT PERSONAL CASH BALANCE OF PA RTNERS OF M/S. SUDIPTA & CO., M/S. PUJA FUND BALANCE AND EMPLOYEES LEAVE FUND WERE LYING WITH ASSESSEES BUSINESS PREMISES AND THE AO FOUND THAT THE SUBMISSIONS OF ASSESSE WERE AFTER THOUGHT. ON PERUSAL OF THE IMPUGNED ORDER OF THE CIT - A, WE FIND THAT T HE ASSESSE REITERATED ITS SAME SUBMISSIONS AS MADE BEFORE THE AO. HOWEVER, THE CIT - A DID NOT ACCEPT THE SAME. BEFORE 2 IT A NO . 1693/KOL/2016 M/S. SETT IRON FOUNDRY US THE LD. AR POINTED OUT PAGE - 1 OF THE PAPER BOOK, WHICH IS A COPY OF RECONCILIATION SHOWING CASH AVAILABLE AS PER CASH BOOK AND CASH PHYS ICALLY FOUND ON 26 - 03 - 2010 AND ARGUED THAT EMPLOYEES LEAVE ENCASHMENT OF RS.25,000/ - WAS WITHDRAWN JUST ONE PRIOR DAY TO THE DATE OF SURVEY AND IT WAS SUBSEQUENTLY PAID ON 3 1 - 03 - 2010. REGARDING AN AMOUNT OF RS.2,66,114/ - , IT WAS POINTED OUT BY THE LD. A R THAT THE S A ID CASH WAS BELONG ED TO M/S. SUDIPTA & CO., WHOSE BUSINESS CONCERN IS ALSO IN THE SAME FLOOR AS THAT OF ASSESSE. WE FIND THAT THIS SUBMISSIONS OF ASSESSE MADE BEFORE THE AO AS WELL AS BEFORE THE CIT - A AND WERE NOT CONSIDERED BY BOTH THE AUTHO RITIES BELOW. IT IS SEEN FROM PAGE - 21 OF THE PAPER BOOK, WHICH IS A COPY OF CASH DAILY SUMMARY OF M/S. SUDIPTA & CO. FROM 1 - 4 - 09 TO 31 - 03 - 2010 , WHEREIN IT IS NOTICED CLOSING BALANCE AS ON 26 - 03 - 2010 APPEARS TO BE RS. 2,66,114.41. IT WAS ALSO POINTED OUT T HAT IN RESPECT OF MONEY AS FOUND OF RS.51,072/ - IS OF PARTNERS PERSONAL CASH BALANCE , MR. SUDIPTA K UMAR SETT . WE FIND ALL THESE SUBMISSIONS WERE MADE BEFORE BOTH THE AUTHORITIES BELOW AS COULD BE SEEN FROM PAGE S - 3, 8 OF THE AO AND CIT - A RESPECTIVELY, BUT, HOWEVER, NOT ACCEPTED THE SAME . IN OUR OPINION, THE ASSESSE PLACED EVIDENCES INVOLVING THE EXCESS CASH FOUND DURING THE SURVEY. THEREFORE, WE FIND FORCE IN THE ARGUMENTS OF THE LD. AR. IN VIEW OF ABOVE, WE SET ASIDE THE ORDER OF THE CIT - A AND ADDITION O F RS. 3,37,493/ - IS DELETED. GROUND NOS. 1 & 2 RAISED BY THE ASSESSE ARE ALLOWED. 4 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 03 - 0 8 - 2018 SD/ - SD/ - J. SUDHAKAR REDDY S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 03 - 0 8 - 2018 3 IT A NO . 1693/KOL/2016 M/S. SETT IRON FOUNDRY PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. A PPELLANT /ASSESSEE : M/S. SETT IRON FOUNDRY 15/2 KUMAR PARA LANE, KADAMTALA, HOWRAH - 711101. 2 RESPONDENT /REVENUE : ASSTT. COMMISSIONER OF I NCOME TAX , CIRCLE - 48, KOLKATA , 3 GOVT PL . (W) , KOLKATA - 700 001. 3. THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR.PS/H.O.O ITAT KOLKATA