ITO, Ward - 39(4), Kolkata, Kolkata V. Shri Biman Chandra Pan, Kolkata

ITA 1952/KOL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54716 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2011
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 20-10-2010
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANICK
• Assessee Lawyers: R K PRADHAN
• Keywords: Unexplained cash credit; Peak credit
• Section: 143(3)

Judgement Text

, , , , , ,, , IN THE INCOME-TAX APPELLATE TRIBUNAL, C BENCH: K OLKATA [ . . , ! ! ! ! , ] [BEFORE SHRI S.V. MEHROTRA , AM & SHRI MAHAVIR SINGH, JM] ' ' ' ' / I.T.A NO. 1952/KOL/2010 !#$ %& !#$ %& !#$ %& !#$ %& / ASSESSMENT YEAR: 2007-08 INCOME TAX OFFICER/WARD-39(4) -V- SHRI BIMAN CHANDRA PAN KOLKATA. KOLKATA.[PAN: ALQPP 5323 E] [ '( '( '( '( /APPELLANT ] ]] ] [ *+'( *+'( *+'( *+'(/ // / RESPONDENT ] ] ] ] '( '( '( '( / FOR THE APPELLANT: SHRI A. K. PRAMANICK *+'( *+'( *+'( *+'( / FOR THE RESPONDENT: SHRI R. K. PRADHAN -#. / 0 -#. / 0 -#. / 0 -#. / 0 /DATE OF HEARING: 19.12.2011 1% / 0 1% / 0 1% / 0 1% / 0 /DATE OF PRONOUNCEMENT: 19.12.2011 2 /ORDER ! ! ! ! , ,, , PER MAHAVIR SINGH, J M THIS APPEAL BY REVENUE IS EMANATING OUT OF ORDER OF CIT(A)-IV, KOLKATA IN APPEAL NO. 150/CIT(A)-IV/09-10 DATED 24.03.2010.ASSESSMENT WAS FRAMED BY ITO, WARD 39(4), KOLKATA U/S. 143(3) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REF ERRED TO AS THE ACT] FOR THE ASSESSMENT YEAR 2007-08 VIDE HIS ORDER DATED 22-12-2009. 2. THE ONLY ISSUE IN THIS APPEAL OF THE REVENUE IS AGAINST ORDER OF CIT(A) DELETING THE ADDITION OF UNEXPLAINED CASH DEPOSIT IN THE BANK ACCOUNT MAI NTAINED WITH STANDARD CHARTERED BANK ON THE BASIS OF PEAK. FOR THIS, REVENUE HAS RAISED FOLLOWI NG GROUND NO.1:- THE LD. CIT(A) HAS ERRED IN LAW AS WELL AS IN FACT IN DELETING THE ADDITION OF RS.11,86,200/- MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT AFTER ADMITTING FRESH EVIDENCE WITHOUT PROVIDING ANY OPPORTUNITY TO A.O. IN VIOLATION OF RULE 46A. [ITA NO. 1952/KOL/2010 ] 2 3. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEF FACTS ARE THAT THE ASSESSING OFFICER DURING COURSE OF ASSESSMENT PROCEEDINGS NOTICED FROM AIR INFORMATION RECEIVED THAT THE ASSESSEE HAS DEPOSITE D CASH AMOUNTING TO RS.11,86,200/- ON DIFFERENT DATES UNDER NAME AND PAN OF ASSESSEE. THE ASSESSEE WAS REQUIRED TO EXPLAIN CASH DEPOSITS AND INFORMATION WAS CONFRONTED TO HIM. THE ASSESSEE COU LD NOT EXPLAIN BEFORE THE ASSESSING OFFICER, HENCE, HE MADE ADDITION OF UNEXPLAINED CASH DEPOSIT S. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A), WHO AFTER TAKING THE EXPLANATION FROM A SSESSEE THAT HE HAD AMPLE CASH IN HAND TO MAKE DEPOSITS IN THE BANK ACCOUNT AND ACCORDING TO ASSES SEE, HE MADE FREQUENT DEPOSITS AS WELL AS WITHDRAWALS IN CASH FROM BANK ACCOUNT OF STANDARD C HARTERED BANK MAINTAINED BY HIM. HE DELETED THE ADDITION. WE ARE OF THE VIEW THAT ASSESSING OF FICER SHOULD HAVE TAKEN THE PEAK THEORY OF ASSESSMENT BUT CIT(A) WITHOUT GOING INTO HOW THE AS SESSEE HAS COMPUTED THE PEAK AND WITHOUT GIVING ANY FINDING, SIMPLY ACCEPTED SUBMISSIONS OF THE ASSESSEE AND RESTRICTED THE ADDITION OF RS.31,713/-. AGGRIEVED, NOW THE REVENUE IS IN APPEA L BEFORE US. \ 4. WE FIND THAT THERE IS NO DISPUTE ABOUT GIVING EF FECT TO PEAK THEORY OF DEPOSITS. BUT IT IS A FACT THAT THE PEAK SHOULD BE COMPUTED ON THE BASIS OF WI THDRAWALS AND DEPOSITS AND PEAK OF THE SAME SHOULD HAVE BEEN TAKEN AS BASIS FOR MAKING ADDITION . THE CIT(A) ALSO ERRED IN ACCEPTING PEAK THEORY WITHOUT COMPUTING THE PEAK. THE ASSESSEE SHO ULD COMPUTE THE PEAK AND ASSESSING OFFICER SHOULD VERIFY THE SAME AND AFTER RECORDING REASONS EITHER ACCEPT OR REJECT THE PLEA OF PEAK. IN TERMS OF THE ABOVE, WE SET ASIDE THIS ISSUE OF REVENUES APPEAL TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THIS ISSUE DENOVO. THE APPEAL OF THE REVENUE IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER AND ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 2 - 2 - 2 - 2 - 3 - 3 - 3 - 3 -# 4 5 # 4 5 # 4 5 # 4 5 ORDER PRONOUNCED IN OPEN COURT ON 19.12.2011. SD/- SD/- [ . . , ] [ ! ! ! ! , ] [ S.V.MEHROTRA ] [ MAHAVI R SINGH ] ACCOUNTANT MEMBER JUDICIAL ME MBER DATED : 19 TH DECEMBER, 2011. [ITA NO. 1952/KOL/2010 ] 3 COPY FORWARDED TO THE - 1. INCOME TAX OFFICER, WARD-39(4), 18, RABINDRA SARANI, PODDAR COURT, 8 TH FLOOR, KOLKATA-700 069. 2. SHRI BIMAN CHANDRA PAN, 16, BHIM GHOSH LANE, KOLKATA-700 006. 3. CIT(A)- (4) CIT- 4. D.R., I.T.A.T., KOLKATA. [TRUE COPY] BY ORDER ASSISTANT REGISTRAR (KKC) I.T.A.T., KOLK ATA.