Smt. Mira Shaw, Howrah V. ITO, Ward - 46(2), Kolkata , Kolkata

ITA 1721/KOL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1569 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 25-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Keywords: Unexplained cash credit; Unexplained expenditure; Rectification of order
• Section: 69C; 143(3); 68; 154

Judgement Text

1 ITA NO. 1721/KOL/2017 ASSESSMENT YEAR: 2009-2010 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 1721/KOL./2017 ASSESSMENT YEAR: 2009-2010 SMT. MIRA SHAW,.................................... ................................APPELLANT HOWRAH AMTA ROAD, MAKALI INDUSTRIAL ESTATE, BALTIKURI, HOWRAH-711 402 [PAN: ARRPS 2943 N] -VS.- INCOME TAX OFFICER,................................ .......................RESPONDENT WARD-46(2), KOLKATA, 3, GOVT. PLACE (WEST), KOLKATA-700 001 APPEARANCES BY: SHRI SANJAY BHATTACHARYA, FCA, FOR THE ASSESSEE SHRI P.K. MONDAL, ADDL. CIT, D.R., FOR THE DEPARTME NT DATE OF CONCLUDING THE HEARING : FEBRUARY 19, 2018 DATE OF PRONOUNCING THE ORDER : FEBRUARY 23, 2018 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-14, KOLKATA DA TED 28.04.2017, WHEREBY HE CONFIRMED THE TWO ADDITIONS OF RS.3,53,0 92/- AND RS.2,79,992/- MADE BY THE ASSESSING OFFICER UNDER S ECTIONS 68 AND 69C RESPECTIVELY BY WAY OF RECTIFICATION UNDER SECTION 144. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND RE-SELLING OF H.T . AND I.T. LINE MATERIAL. THE RETURN OF INCOME FOR THE YEAR UNDER C ONSIDERATION WAS FILED BY HER ON 30.09.2009 DECLARING TOTAL INCOME OF RS.4 ,41,656/-. IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN O RDER DATED 15.11.2011, THE TOTAL INCOME OF THE ASSESSEE WAS DE TERMINED BY THE ASSESSING OFFICER AT RS.5,90,620/- AFTER MAKING CER TAIN ADDITIONS AGGREGATING TO RS.1,25,950/-. THEREAFTER THE ASSESS ING OFFICER NOTICED 2 ITA NO. 1721/KOL/2017 ASSESSMENT YEAR: 2009-2010 CERTAIN MISTAKES IN THE FIGURES OF PURCHASES AND SA LES AS DECLARED BY THE ASSESSEE IN THE RETURN OF INCOME. HE FOUND FROM THE RECORDS THAT AS PER THE DETAILS FURNISHED BY THE ASSESSEE DURING THE CO URSE OF ASSESSMENT PROCEEDINGS, TOTAL PURCHASES AND SALES WERE TO THE TUNE OF RS.1,20,85,991/- AND RS.1,53,32,018/-, WHEREAS THE PURCHASES AND SALES SHOWN IN THE RETURN WERE TO THE EXTENT OF RS.1,23,6 5,983/- AND RS.1,49,78,926/-. HE, THEREFORE, ISSUED A NOTICE UN DER SECTION 154 POINTING OUT THE SAID MISTAKES TO THE ASSESSEE AND CALLING FOR HER EXPLANATION IN THE MATTER. THE ASSESSEE, HOWEVER, D ID NOT OFFER ANY EXPLANATION. THE ASSESSING OFFICER, THEREFORE, PROC EEDED TO PASS RECTIFICATION ORDER UNDER SECTION 154 ON 31.03.2014 , WHEREIN HE TREATED THE DIFFERENCE IN SALES AMOUNTING TO RS.3,53,092/- AS UNEXPLAINED CASH CREDITS UNDER SECTION 68 AND THE DIFFERENCE IN PURC HASES AMOUNTING TO RS.2,79,992/- AS UNEXPLAINED EXPENDITURE UNDER SECT ION 69C. HE ACCORDINGLY ADDED THE SAID TWO AMOUNTS TO THE TOTAL INCOME OF THE ASSESSEE. ON APPEAL, THE LD. CIT(APPEALS) CONFIRMED THE SAID TWO ADDITIONS MADE BY THE ASSESSING OFFICER. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS RIGHTLY C ONTENDED BY THE LD. COUNSEL FOR THE ASSESSEE, THE FIGURE OF SALES OF RS .1,53,32,018/- TAKEN BY THE ASSESSING OFFICER WAS MORE THAN THE SALES OF RS .1,49,78,926/- DECLARED BY THE ASSESSEE. THE DIFFERENCE AMOUNT OF RS.3,53,092/- THUS WAS NOT RECORDED IN THE BOOKS OF ACCOUNT OF THE ASS ESSEE AS PER THE CASE MADE OUT BY THE ASSESSING OFFICER HIMSELF AND THE S AME, THEREFORE, COULD NOT BE TREATED AS UNEXPLAINED CASH CREDIT UNDER SEC TION 68. SIMILARLY, THE FIGURE OF PURCHASES OF RS.1,23,65,983/- AS DECLARED BY THE ASSESSEE WAS MORE THAN THE PURCHASES OF RS.1,20,85,991/- TAKEN B Y THE ASSESSING OFFICER FOR MAKING RECTIFICATION. THE EXPENDITURE I NCURRED BY THE ASSESSEE ON PURCHASES AS DECLARED BY HER THUS WAS MORE AND I FIND MERIT IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE DIFFERENCE OF RS.2,79,992/- CANNOT BE TREATED AS UNEXPLAINED EXPE NDITURE UNDER 3 ITA NO. 1721/KOL/2017 ASSESSMENT YEAR: 2009-2010 SECTION 69C AS THE SAME WAS DULY SHOWN BY THE ASSES SEE IN HER RETURN OF INCOME. I, THEREFORE, FIND THAT BOTH THE ADDITIONS MADE BY THE ASSESSING OFFICER UNDER SECTIONS 68 AND 69C AND CONFIRMED BY THE LD. CIT(APPEALS) ARE NOT SUSTAINABLE ON MERIT AND DELETING THE SAME, I ALLOW THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD DAY OF FEBRUARY, 2018. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 23 RD DAY OF FEBRUARY, 2018 COPIES TO : (1) SMT. MIRA SHAW, HOWRAH AMTA ROAD, MAKALI INDUSTRIAL ESTATE, BALTIKURI, HOWRAH-711 402 2) INCOME TAX OFFICER, WARD-46(2), KOLKATA, 3, GOVT. PLACE (WEST), KOLKATA-700 001 (3) CIT(APPEALS)-14, KOLKATA, (4) CIT- , KOLKATA, (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/DDO, INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.