Shri Ashok Daulatramani, Kolkata V. ITO, Ward - 29(2), Kolkata, Kolkata

ITA 1739/KOL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48311 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2011
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 06-09-2010
• Court: TRIBUNAL
• Department Lawyers: S K ROY
• Assessee Lawyers: R SALARPURIA
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE . . , ! '# '# '# '# /AND ' # , ! ) [BEFORE HONBLE SHRI S. V. MEHROTRA, AM & HONBLE S RI MAHAVIR SINGH, JM] #$ #$ #$ #$ / I.T.A NO. 1739/KOL/2010 %& ''( %& ''( %& ''( %& ''(/ // / ASSESSMENT YEAR: 2004-05 SRI ASHOK DAULATRAMANI VS. INCOME-TAX OFFICER, WD-29(2), KOLKATA (PAN-ADGPD 9567 N) (*+ /APPELLANT ) (,-*+/ RESPONDENT ) FOR THE APPELLANT: SHRI R. SALARPURIA FOR THE RESPONDENT: SHRI S. K. ROY . / ORDER ( (( (' # ' # ' # ' #) )) ), , , , ! PER SHRI MAHAVIR SINGH, JM THIS APPEAL OF ASSESSEE IS DIRECTED A GAINST ORDER OF CIT(A)-XVI, KOLKATA IN APPEAL NO.47/CIT(A)-XVI/IT/29(2)/09-10 DATED 07.07. 2010. ASSESSMENT WAS FRAMED BY ITO, WARD-29(2), KOLKATA U/S. 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2004- 05 VIDE HIS ORDER DATED 29.12.2009. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING ADDITION ON UNDISCLOSED INCOME MADE BY ASSESSING OF FICER. FOR THIS, ASSESSEE HAS RAISED FOLLOWING GROUND NO.1. 1. FOR THAT IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE THE AO WAS WHOLLY WRONG AND UNJUSTIFIED IN INCLUDING A SUM OF RS.3,00 ,000/- AS UNDISCLOSED INCOME AND THE LD. CIT(A) WAS WHOLLY WRONG AND UNJUSTIFIED IN CONFIRMING THE ADDITION. EVEN OTHERWISE AND WITHOUT PREJUDICE THE ADDITION MADE W AS HIGHLY EXCESSIVE AND WHOLLY UNREASONABLE. 3. WE HAVE HEARD RIVAL CONTENTIONS AND GONE T HROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THAT ASSESSEE DURING THE YEAR UNDER CONSIDERATION MADE I NVESTMENT OF RS.58 LAKHS IN MUTUAL FUNDS AND INVESTMENT TO THE EXTENT OF RS.3 LAKHS WAS MADE OUT OF CASH DEPOSIT IN THE BANK ACCOUNT. ASSESSING OFFICER REQUIRED ASSESSEE TO EXPLAIN THE SOURCES OF CASH DEPOSIT IN THE BANK. ASSESSEE EXPLAINED THAT HE HAS SOLD JEWELLERY TO VA RIOUS INDIVIDUALS AGGREGATING TO RS.3 LAKHS IN CASH, WHICH WAS DEPOSITED IN BANK ACCOUNT AND UT ILIZED THE SAME IN INVESTMENT IN MUTUAL 2 FUNDS. ASSESSEE PRODUCED LIST OF SUCH INDIVIDUALS A LONG WITH THEIR ADDRESSES AND PAN. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF ASSESSEE. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO CONFIRMED ACTION OF ASSES SING OFFICER VIDE PARA 9 OF HIS APPELLATE ORDER AS UNDER:- 9. I HAVE CONSIDERED THE SUBMISSION OF THE APPEL LANT AND PERUSED THE ASSESSMENT ORDER. THE APPELLANT HAS DEPOSITED CASH OF RS.3,00, 000/- ON 05.09.2003 IN STANDARD CHARTERED BANK. THE CASH SO DEPOSITED WAS UTILIZED TO MAKE INVESTMENT IN THE MUTUAL FUND. ACCORDING TO THE APPELLANT, THE SOURCE OF CAS H DEPOSITED WAS SALE PROCEEDS OF THE JEWELLERY. THE APPELLANT HAS SUBMITTED THE DETA ILS OF PURCHASERS OF JEWELLERY AS UNDER :- ASHOK DAULATRAMANI ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH, 2004 DETAILS OF SALE JEWELLERIES OF RS.3,00,000/- IN CAS H ON 01.09.2003. SL.NO. NAME AND ADDRESS PAN DESCRIPTION OF JEWELLERIES AMOUNT RUPEES 1. SUSHIL KUMAR BIHANI 48A,CANEL STREET KOLKATA 700048. AEJPB3029H 1 CARAT RING 49000 2. SOURAV BIHANI 48A, CANEL STREET KOLKATA 700048 ANVPB5726C 1 CARAT RING 48000 3. MITHU PAUL SUKANTO NAGAR, JESSORE ROAD, KOLKATA-700123 BDKPP3517R 1 CARAT RING 41000 4. ASIT PAUL SUKANTO NAGAR, JESSORE ROAD, KOLKATA-700123 AOCPP4844C 1 CARAT RING 45000 5. MALATI PAUL 24, B.P.DEY STREET, SREERAMPORE, HOOGHLY AMIPP5121H 1 CARAT RING 36000 6. DIWAKAR MANTRI 23, SANATAN MISHRI LANE, HOWRAH-711106. AJFPM8504M 1 CARAT RING 36000 7. SHILA KANDOI 40/4, STRAND ROAD, KOLKATA-700001. AESPK2142K 1 CARAT RING 45000 9.1. THUS, IT MAY BE OBSERVED THAT THE APPELLANT HA S CLAIMED THAT HE HAS SOLD SEVEN 1 CARAT RING TO SEVEN DIFFERENT INDIVIDUALS FOR AMOU NTS RANGING FROM RS.36,000/- TO RS.49,000/- AND RECEIVED AMOUNT OF RS.3,00,000/-. H OWEVER, I AM NOT INCLINED TO AGREE WITH THE SUBMISSION OF THE APPELLANT. THERE I S NO EVIDENCE ON RECORD TO PROVE THAT THE APPELLANT WAS HAVING SEVEN 1 CARAT RING. THE DESCRIPTION OF THE JEWELLERY IS VAGUE AND IT IS NOT KNOWN AS TO WHETHER THESE RI NGS UNDER QUESTION WERE OF 1 CARAT SOLITAIRE OR HAVING NUMBER OF DIAMOND PIECES WEIGHI NG ONE CARAT. IF AT ALL THESE RINGS WERE IN EXISTENCE, THERE WAS NO NEED TO SELL THEM T O SO CALLED SEVEN INDIVIDUALS AND ALL THE RINGS COULD VERY WELL BE SOLD TO ANY OF THE REP UTED JEWELER. THE APPELLANT MAY ARGUE THAT IT WAS HIS DECISION TO WHOM HE SHOULD HA VE SOLD THE JEWELLERY, IT IS TRUE, BUT 3 THE MANNER, IN WHICH HE HAS CLAIMED THE SALE OF JEW ELLERY, IS NOT FREE FROM THE DOUBT. FIRST OF ALL, HE AHS TO PROVE WITH DOCUMENTARY EVID ENCES AND RECORD THAT, IN ACTUAL, HE WAS OWNING SEVEN 1 CARAT RING. HE HAS ALSO NOT DE CLARED ANY CAPITAL GAIN ON SALE OF JEWELLERY. UNDER THE CIRCUMSTANCES, I AM OF THE OPINION THAT THE AO WAS JUSTIFIED IN MAKING ADDITION OF RS.3,00,000/- AS UNEXPLAINED CAS H CREDIT. THE ADDITION MADE BY HIM IS CONFIRMED. THE GROUND NO.3 IS DISMISSED. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE US. 4. WE FIND THAT NEITHER ASSESSING OFFICER NOR CIT(A ) HAS EXAMINED SUCH INDIVIDUALS WHO HAVE PURCHASED JEWELLERY FROM ASSESSEE AND THIS ISS UE BE EXAMINED AND THEN A DECISION BE TAKEN. HENCE, THIS ISSUE IS SET ASIDE TO THE FILE O F ASSESSING OFFICER TO RE-DECIDE THIS ISSUE. 5 IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.07.2011. SD/- SD/- [ .'., ! ] [ ' #, ! ] [ S.V.MEHROTRA ] [ MAHAVIR SI NGH ] ACCOUNTANT MEMBER JUDICIAL MEMBER ( (( (/ / / /) )) ) DATE: 28.07.2011. R.G.(.P.S.) . 0 ,1 21'3- COPY OF THE ORDER FORWARDED TO: 1 . SHRI ASHOK DAULATRAMANI, C/O SALARPURIA JAJODIA & CO, 7, C.R.AVENUE, KOLKATA - 700072. 2 THE I.T. O., WAR D - 29(2 ), KOLKATA 3 . THE CIT, 4. THE CIT(A) - XIV , KOLKATA 5 . DR, KOLKATA BENCHES, KOLKATA -1 ,/ TRUE COPY, .%9/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES