Santosh Kumar Sahoo, Nayagarh V. ITO, Khurda Ward, Khurda

ITA 19/CTK/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4906 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-08-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 12-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K AGRAWALLA
• Section: 142(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PA V AN KUMAR GADALE, JM . / ITA NO. 19 /CTK/201 7 ( [ [ / ASSESSMENT YEAR : 20 1 0 - 20 1 1 ) SANTOSH KUMAR SAHOO, C/ O - RATNAKAR JEWELLERY AT/PO - RAJSUNAKHALA, DIST: - NAYAGARH, ODISHA VS. INCOME TAX OFFICER, KHURDA WARD, KHURDA ./ ./ PAN/GIR NO. : AXFPS 2477 K ( / APPELLANT ) .. ( / RESPONDENT ) [ /AS SESSEE BY : SHRI S.K.AGRAWALLA , AR /REVENUE BY : SHRI SUBHENDU DATTA , DR / DATE OF HEARING : 0 9 / 0 8 /201 8 / DATE OF PRONOUNCEMENT 10 / 0 8 /201 8 / O R D E R PER SHRI PA V AN KUMAR GADALE, JM : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 1 , BHUBANESWAR , DATED 05.10.2016 PASSED IN I.T.APPEAL NO. 0536 / 1 4 - 1 5 FOR THE ASSESSMENT YEAR 201 0 - 1 1 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1. THAT, THE LD. ASSESSING OFFICER IS NOT CORRECT IN TREATING THE STOCK OF GOLD JEWELLERY, SILVER ARTICLE AND IMITATION ITEM AMOUNTING TO RS. 48,29,507 AS INVESTMENT FROM UNDISCLOSED SOURCE AND THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS WRONG IN ALLOWING THE PART RELIEF AMOUNTING TO ? 12,28 ,560 IN VIEW OF THE FACT THAT THE 'KARIGAR KHATA' WAS IMPOUNDED BY THE REVENUE AT THE TIME OF SURVEY AND THE CUSTOMERS HAD CONFIRMED THE TRANSACTIONS IN RESPONSE TO NOTICE ISSUED U/S 133(6). THEREFORE THE BALANCE ADDITIONS OF? 36,00,947 IS LIABLE TO BE DEL ETED. 2. THAT, THE LD. AUTHORITIES BELOW ARE WRONG IN VALUING THE GOLD, SILVER AND IMITATION ITEMS AT DIFFERENT RATES WHILE MAKING THE ADDITIONS IN COMPARISON TO GIVING OF CREDIT OF CLOSING STOCK. THEREFORE THE ADDITIONS ARE ILLEGAL AND LIABLE TO BE DE LETED. 3. FOR THESE AMONG OTHER GROUNDS IF ANY TO BE ARGUED AT THE TIME OF HEARING. ITA NO. 19 /CTK/201 7 2 3. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 201 0 - 201 1 ON 18.02.2011 DISCLOSING TOTAL INCOME AT RS. 3,49,590/ - . SUBSE QUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AND NOTICES U/S.143(2) & 142(1) OF THE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE, LD. AR OF THE ASSESSEE APPEARED AND THE CASE WAS DISCUSSED. THEREAFTER THE AO COMPLETED THE ASSESSMENT U/S.14 4 OF THE ACT MAK ING ADDITION AND PASSED ORDER DATED 21.03.2013 . 4. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). IN THE APPELLATE PROCEEDINGS, LD. AR OF THE ASSESSEE REITERATED THE SUBMISSIONS AS WAS MADE BEFORE THE AO AND THE CIT(A) CONSID ERING THE SUBMISSION OF THE ASSESSEE AND FINDINGS OF AO, HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE . 5. AGAINST THE ORDER OF CIT(A), THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 6. LD. AR IN THE COURSE OF HEARING PROCEEDINGS MENTIONED THAT THE KARIGARS WERE PRESENT IN THE COURT AND AS PER THE DIRECTION THE REVENUE HAS TO RECORD THE STATEMENTS AND PRAYED THAT THE ADDITION MADE BY THE AO IS TO BE DELETED. 7. CONTRA, LD. DR RELIED ON THE ORDER OF THE CIT(A) AND SUBMITTED THAT THE STATEMENT CAN BE RECORDED BY THE AO ON PRODUCTION OF THE KARIGARS BEFORE THE REVENUE AUTHORITIES. 8. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. LD. AR IN THE COURSE OF HEARING PROCEEDINGS IN RESPECT OF DISPUTED ISSUE OF ADDITION CONFIRMED BY THE CIT(A) SUB MITTED THAT THE KARIGARS WHOSE STATEMENT WAS NOT AVAILABLE AND THE AO HAS TO RECORD THESE ITA NO. 19 /CTK/201 7 3 EVIDENCES, THEREFORE, AS PER THE EARLIER DIRECTIONS, THEY ARE PRESENT IN THE COURT, WHEREAS LD. DR SUBMITTED THAT THE ITO IS TO RECORD THE STATEMENT AND, THEREFORE, P RAYED FOR RESTORATION OF THE CASE TO THE FILE OF AO. WE FIND THAT THE KARIGARS STATEMENT HAVE TO BE RECORDED AND THE AO BASED ON THE EVIDENCE AND THE DEPOSITION STATEMENTS HAS TO TEST CHECK THE STATEMENTS MADE BY THE ASSESSEE IN RESPECT OF STOCK OF JEWELL ER Y , WHEREAS LD. AR SUBMITTED THAT THE CIT(A) HAS GRANTED PART RELIEF WITHOUT CONSIDERING THE FACT THAT THE STOCK INCLUDES KARIGARSS STOCK. WE CONSIDERING THE FACTS AND CIRCUMSTANCES AND ALSO THE IMPORTANCE OF THE STATEMENTS OF KARIGARS WHICH THE ASSESSEE HAS B EEN RELYING AND THE KARIGARS NEED TO BE EXAMINED. THEREFORE, CONSIDERING THE TIME FRAME AND ALSO THE NUMBER OF KARIGARS, WE RESTORE THIS ISSUE TO THE FILE OF THE AO, WHO SHALL EXAMINE AND RECORD THE STATEMENTS FROM THE KARIGARS IN RESPECT OF STOCK OF JEWEL LER Y AND FURTHER WE MAKE IT CLEAR THAT THE AO SHALL COMPLETE THE EXAMINATION AND RECORDING OF STATEMENT WITHIN A PERIOD OF TWO MONTHS FROM THE DATE OF RECEIPT OF THE ORDER AND PASS THE ORDER . FURTHER THE ASSESSEE SHALL COOPERATE IN SUBMITTING THE INFORMATION AND ALSO PRODUCE TH E KARIGARS FOR RECORDING THE STATEMENTS. WE ORDER ACCORDINGLY. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 10 / 0 8 / 201 8 . SD/ - ( N.S.SAINI ) SD/ - ( PAVAN KUMAR GADALE ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK ; DATED 10 / 0 8 /201 8 . . / PKM , SENIOR PRIVATE SECRETARY ITA NO. 19 /CTK/201 7 4 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - SA NTOSH KUMAR SAHOO, C/O - RATNAKAR JEWELLERY AT/PO - RAJSUNAKHALA, DIST: - NAYAGARH, ODISHA 2. / THE RESPONDENT - INCOME TAX OFFICER, KHURDA WARD, KHURDA 3. ( ) / THE CIT(A) 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. [ / GUARD FILE. //TRUE COPY//