Apurba Kumar Dey, Burdwan V. ITO, Ward - 1(3) , Burdwan

ITA 1782/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7408 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-01-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 29-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 22; 69

Judgement Text

ITA NO. 1782/KOL/2019 ASSESSMENT YEAR: 2014-2015 APURBA KUMAR DEY 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A(SMC) BENCH, KOLKATA BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A. NO. 1782/KOL/2019 ASSESSMENT YEAR: 2014-2015 APURBA KUMAR DEY,.................................. ..........................................APPELLANT C/O. S.N. GHOSH & ASSOCIATES, ADVOCATES, SEVEN BROTHERS LODGE, P.O. BUROSHIBTALA, P.S. CHINSURAH, DIST. HOOGHLY-712105 [PAN:ACWPD6113B] -VS.- INCOME TAX OFFICER,.............................,.. .............................................RESPON DENT WARD-1(3), BURDWAN, AAYAKAR BHAWAN, BURDWAN, KACHARI ROAD, COURT COMPOUND, P.O. & P.S. BURDWAN, PURBA BARDHAMAN-713101 APPEARANCES BY: N O N E, FOR THE APPELLANT SMT. RANU BISWAS, ADDL. CIT, SR. D.R., FOR THE RESP ONDEN T DATE OF CONCLUDING THE HEARING : JANUARY 27, 2020 DATE OF PRONOUNCING THE ORDER : JANUARY 31, 2020 O R D E R THE ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15, ARISES AGAINST THE LD. COMMISSIONER OF INCOME TAX (APPEALS), BURDW ANS ORDER DATED 17.06.2019 PASSED IN THE CASE NO. 78/CIT(A)/BWN/ITO , WD- 1(3),BWN/2016-17, INVOLVING PROCEEDINGS UNDER SECTI ON 14(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE WHEN THE MATTER WAS CALLED FOR HEARING. I, THEREFORE, DECIDED TO DISPOS E OF THE APPEAL AFTER HEARING THE LD. D.R. AND PERUSING THE RELEVANT MATE RIAL AVAILABLE ON RECORD. 3. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES FINDINGS MAKING ADDITION UNDER SECTION 69 OF RS.5,84,454/-. DURING THE COURSE OF ITA NO. 1782/KOL/2019 ASSESSMENT YEAR: 2014-2015 APURBA KUMAR DEY 2 ASSESSMENT PROCEEDINGS, THE A.O. MADE THE ADDITION, WHICH WAS UPHELD BY THE LD. CIT(APPEALS) IN HIS DETAILED DISCUSSION, WH ICH READS AS UNDER:- 3. ASSERTION OF ASSESSING OFFICER: THE RELEVANT EXCERPTS OF THE ASSESSMENT ORDER ARE A S UNDER: 3.1. ON EXAMINATION OF THE BALANCE SHEET OF THE TA X AUDIT REPORT IT IS FOUND THAT THE LIABILITY AGAINST CREDITORS IS RS.L,09,554/-. BUT ON VERIFICATION, THE LIABILITY AGAINST SUNDRY CREDI TORS WAS FOUND ACTUALLY RS.18,32,832/- AND THE A.R. OF THE ASSESSE ADMITTED THIS FACT OF DISCREPANCY IN HIS WRITTEN SUBMISSION ON 22 .11.2016. THE A.R. ALSO ADMITTED THAT THE LIABILITY AGAINST SUNDR Y CREDITORS WAS UNDERSTATED FOR RS.17,23,278/-. THE A.R. CLAIMED TH AT THE LIABILITY AGAINST THE SAME CREDITORS WAS ALREADY DISALLOWED F OR THE A.Y.2012-13 FOR AN AMOUNT OF RS.11,38,825/-. 3.2. THE LIABILITY AS PER BALANCE SHEET AS ON 31.0 3.2014 IS RS.L,09,554/-. THE AMOUNT AGAINST THE LIABILITY AGA INST THE SAME PARTIES AS ADDED BACK IN THE ASSESSMENT ORDER FOR T HE A.Y.2011-12 FOR AN AMOUNT OF RS.11,38,825/- IS ALLOWED FOR EXCL USION FROM THE TOTAL LIABILITY. THEREFORE, THE AMOUNT OF UNEXPLAIN ED LIABILITY AGAINST THE CREDITORS FOR THE YEAR UNDER CONSIDERAT ION COMES TO RS.[18,32,833-(1,09,554,+11,38,825)]=RS.5,84,454/-. ACCORDINGLY RS.5,84,454/- IS ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. 4. OBSERVATION AND DECISION: THE APPELLANT IS A ME DICINE RETAILER. 4.1. GROUNDS OF APPEAL NO.L,2 & 3 ARE SIMILAR IN NA TURE AND ARE TAKEN UP TOGETHER. THESE GROUNDS PERTAIN TO THE ADD ITION OF RS.5,84,454/- MADE BY THE A.O. 4.2 THE OBSERVATION OF THE A.O. IS THAT THE LIABILI TY AGAINST SUNDRY CREDITORS IS RS.L,09,554/- BUT ON VERIFICATION, THE LIABILITY AGAINST SUNDRY CREDITORS WAS FOUND ACTUALLY TO BE RS.18,32, 832/-. THE A.O. HAS FURTHER OBSERVED THAT THE LIABILITY AGAINST THE SAME CREDITORS WAS ALREADY DISALLOWED FOR THE A.Y.2012-13 FOR AN A MOUNT OF RS.11,38,825/-. THE A.O. HAS FURTHER OBSERVED THAT THE AMOUNT OF UNEXPLAINED LIABILITY AGAINST THE CREDITORS FOR THE YEAR UNDER CONSIDERATION COMES TO RS.5,84,454/- WHICH WAS ADDE D BACK TO THE INCOME OF THE APPELLANT. I 4.3. DURING THE COURSE OF THE APPELLATE PROCEEDINGS , THE APPELLANT WAS GIVE VARIOUS OPPORTUNITIES TO RECONCI LE THE DIFFERENCE OF RS.5,84,454/-. HOWEVER, NO EXPLANATION WHATSOEVE R HAS BEEN FURNISHED BY THE APPELLANT TO RECONCILE THE DIFFERE NCE IN HIS BOOKS OF ACCOUNT VISA-S-VIS THE BALANCE PAYABLE AS SHOWN IN THE BOOKS OF ACCOUNT OF VARIOUS PARTIES. 4.4. KEEPING IN VIEW THE ABOVE MENTIONED FACTS AND CIRCUMSTANCES, THE ADDITION OF RS.5,84,454/- MADE B Y THE A.O. IS CONFIRMED AND THE GROUND OF APPEAL NO.1, 2 & 3 IS D ISMISSED. GROUND OF APPEAL NO. 4 IS GENERAL NATURE. ITA NO. 1782/KOL/2019 ASSESSMENT YEAR: 2014-2015 APURBA KUMAR DEY 3 4. IT IS THUS CLEAR FROM THE PERUSAL OF THE ABOVE E XTRACTED DETAILED DISCUSSION AS WELL AS GOING BY THE REVENUES STAND THAT THIS IS A CLEAR-CUT CASE OF LACK OF RECONCILIATION INVOLVING THE AMOUNT IN DISPUTE OF RS.5,84,454/- FORMING THE SUBJECT MATTER OF ADDITIO N. I, THEREFORE, REMIT IT BACK TO THE ASSESSING OFFICER FOR PROPER ADJUDICATI ON AFRESH IN THE LARGER INTEREST OF JUSTICE IN VIEW OF THE ASSESSEES BOOKS OF ACCOUNT AND OTHER DETAILED EVIDENCE IN SUPPORT OF THE IMPUGNED RECONC ILIATION WITHIN EFFECTIVE OPPORTUNITIES OF HEARING. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 31, 2 020. SD/- (SATBEER SINGH GODARA) JUDICIAL MEMBER KOLKATA, THE31ST DAY OF JANUARY, 2020 COPIES TO : (1) SHRI APURBA KUMAR DEY, C/O. S.N. GHOSH & ASSOCIATES, ADVOCATES, SEVEN BROTHERS LODGE, P.O. BUROSHIBTALA, P.S. CHINSURAH, DIST. HOOGHLY-712105 (2) INCOME TAX OFFICER, WARD-1(3), BURDWAN, AAYAKAR BHAWAN, BURDWAN, KACHARI ROAD, COURT COMPOUND, P.O. & P.S. BURDWAN, PURBA BARDHAMAN-713101 (3) COMMISSIONER OF INCOME TAX (APPEALS), BURDWAN ; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.