Sri Manish Bothra, Kolkata V. ITO, Ward-46(2), Kolkata, Kolkata

ITA 1846/KOL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0676 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 14-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PIJUSH MUKHERJEE
• Assessee Lawyers: S M SURANA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : KOLKATA [BEFORE SHRI J.SUDHAKAR REDDY, AM ] I.T.A NO. 1846/KOL/20 17 ASSESSMENT YEAR : 2012-1 3 SHRI MANISH BOTHRA -VS- ITO, WA RD-46(2), KOLKATA [PAN: AMLPB 5827 H] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI S.M.SURANA, ADVOCATE FOR THE REVENUE :SHRI PIJUSH MUKHERJEE, JCIT DATE OF HEARING : 14.11.2017 DATE OF PRONOUNCEMENT : 20.12.2017 ORDER 1. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-14, KOLKATA [ IN SHORT THE LD CITA] DATED 03.07.2017 AGAINST THE ORDER PASSED BY THE ITO, WARD-47(2), KOLKATA [ IN SHORT THE LD AO] UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE A CT) DATED 17.09.2014 FOR THE ASSESSMENT YEAR 2012-13 ON THE FOLLOWING GROUNDS : 2. FOR THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 2,89,066/- ON MERE ASSUMPTION AND HYPOTHETICALLY CALCULATING THE CASH BALANCE AVAILABLE FOR DEPOSITS IN BANK WHEN REGULARLY MAINTAINED CASH BOO K WAS PRODUCED WHEREIN ALL THE DEPOSITS AND WITHDRAWAL WERE INCORPORATED A ND EXAMINED BY THE AO. 2. THE ASSESSING OFFICER IN THIS CASE MADE AN ADDIT ION OF RS. 2,89,066/- BEING 20% OF THE DEPOSITS IN THE BANK ACCOUNT, WHICH AS PER THE LD. AO WAS EXCESS SALES TURNOVER OF THE ASSESSEE. THE SAME HAS BEEN CONFIRMED BY THE LD . CIT(A). AGGRIEVED THE ASSESSEE IS IN APPEAL. 3. AFTER HEARING THE RIVAL CONTENTION, I FIND THAT AS PER THE ASSESSING OFFICER, THE UNEXPLAINED DEPOSITS IN THE BANK ACCOUNT IS RS. 12, 28,029/-. THE ASSESSEE WAS 2 ITA NO.1846/KOL/2017 MANISH BOTHRA A.YR.2012-13 2 MAINTAINING BOOKS OF ACCOUNTS AND THE ASSESSING OFF ICER VERIFIED THESE BOOKS OF ACCOUNTS. ALL THE DEPOSITS AND WITHDRAWALS MENTIONE D IN THE BANK ACCOUNT WERE RECORDED IN THE BOOKS OF ACCOUNTS. THE LD. AO DISPU TED CREDIT SALES OF RS. 23,27,149/- WITHOUT ANY BASIS. WHEN ALL THE TRANSACTIONS IN THE BANK ARE RECORDED IN THE BOOKS OF ACCOUNTS, THE QUESTION OF MAKING AN ADDITION OF AN AMOUNT AS UNEXPLAINED DEPOSIT DOES NOT ARISE. BE AS IT MAY, AN AD HOC ADDITION OF 20% OF RS. 12,28,029/- THE SO-CALLED UNEXPLAINED DEPOSITS CANNOT BE COUNTENANCED. EITHER THE ENTIRE UNEXPLAINED DEPOSIT AS ASCERTAINED BY THE LD. AO HAS TO BE ADDED OR ADDITI ON HAS TO BE MADE BY EVALUATING EACH CREDIT IN THE BANK ACCOUNT. I DO NOT UNDERSTAN D HOW 20% AD HOC ADDITION OF THE TOTAL DEPOSIT MADE IN THE ACCOUNT CAN BE MADE. THUS , THE SAID ADDITION IS HEREBY DELETED AND THE APPEAL OF THE ASSESSEE ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON 20.12.2017 SD/- [J. SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED : 20.12.2017 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. SHRI MANISH BOTHRA, 21,KHETRA MITRA LANE, 7 TH FLOOR, R.NO.7A, SALKIA, HOWRAH- 711106. 2. ITO, WARD-46(2), 3, GOVERNMENT PLACE (WEST), KOL KATA-700001. 3..C.I.T.(A)- , KOLKATA 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHE S