New Hotel Samrat, Kolkata V. ITO, Ward - 1(3), Durgapur, Durgapur

ITA 196/KOL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59630 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2012
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 07-02-2012
• Court: TRIBUNAL
• Department Lawyers: V N PUROHIT
• Assessee Lawyers: D J MEHTA
• Keywords: Capital asset; Capital expenditure
• Section: 40A(3); 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA ( ) BEFORE , /AND . . , ) [BEFORE SRI MAHAVIR SINGH, JM & SHRI C. D. RAO, AM] / I.T.A NO. 196/KOL/2012 ! ! ! ! '# '# '# '# / ASSESSMENT YEAR: 2008-09 NEW HOTEL SAMRAT VS. INCOME-TAX OFFICER, WD-1 (3), DURGAPUR (PAN: AACFN5143P) ( $% /APPELLANT ) ( &'$% / RESPONDENT ) DATE OF HEARING: 12.03.2012 DATE OF PRONOUNCEMENT: 12.03.2012 FOR THE REVENUE: SHRI V. N. PUROHIT FOR THE RESPONDENT: SHRI D. J. MEHTA ( / ORDER PER MAHAVIR SINGH, JM ( , ) THIS APPEAL BY ASSESSEE IS ARISING OUT OF O RDER OF CIT(A), DURGAPUR IN APPEAL NO.108/CIT(A)/DGP/2010-11 DATED 29.11.2011. ASSESSM ENT WAS FRAMED BY I.T.O., WARD-1(2), DURGAPUR U/S. 143(3) OF THE INCOME TAX ACT, 1961 (H EREINAFTER REFERRED TO AS THE ACT) FOR A.Y. 2008-09 VIDE HIS ORDER DATED 24.12.2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING DISALLOWANCE MADE BY AO BY INVOKING THE PROVISION OF SECTION 40A(3) OF THE ACT FOR AN AMOUNT OF RS.2,20,000/-. FOR THIS, A SSESSEE HAS RAISED THE FOLLOWING GROUND: 1. THAT THE FACTS AND CIRCUMSTANCES OF THE CASE TH E AO HAS ERRED IN APPLYING PROVISIONS OF SEC. 40A(3) OF THE I. T. ACT, AND THE REBY MAKING AN ADDITION OF RS.2,20,000/- PAID FOR PURCHASING MATERIALS FOR CRE ATION OF A CAPITAL ASSET. 3. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUG H FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT AO MADE DISALLOWANCE AS THE ASSE SSEE HAS VIOLATED PROVISION OF SECTION 40A(3) OF THE ACT AND BY MAKING CASH PAYMEN T FOR THE FOLLOWING AMOUNTS :- ITA 196/K/2012 NEW HOTEL SAMRAT, A.Y.08-09 2 SL.NO. TRANSACTION DATE PARTICULARS CHEQUE NO. MODE OF PAYMENT AMOUNT 1. 02.01.2008 BISWANATH GHOSH 148045 CASH 55,000/- 2. 07.02.2008 B.GHOSH 148073 CASH 30,000/- 3. 09.02.2008 M.MONDAL 148076 CASH 30,000/- 4. 15.02.2008 B.GHOSH 148078 CASH 50,000/- 5. 06.03.2008 B.N.GHOSH 148093 CASH 55,000/- AS THERE WAS NO EXPLANATION BY ASSESSEE HE MADE THE ADDITION. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONSIDERED THE ISSUE RAISED IN THE GROUNDS OF APPEAL. WE FIND THAT ASSESSEE BEFORE CIT(A) RAISED THE ISSUE THAT THIS IS A CAPITAL EXPENDITURE AND PURCHASE MADE OF BUILDING MATERIAL AMOUNTING TO RS.1,90,000/- AND RS.30,000/- FROM SRI BISWANATH GHOSH AND FROM SHRI M.MONDAL RESPECTIVELY ARE ON ACCOUNT OF CAPITAL EXPENDITURE. ACCORDING TO ASSESS EE, THESE ARE MATERIAL SUPPLIED FOR ACQUIRING CAPITAL ASSET. SINCE THIS ISSUE IS NOT AD JUDICATED BY CIT(A), WE REMIT BACK THIS ISSUE TO HIS FILE FOR FRESH ADJUDICATION. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- [ .. , ] [ , ] [ C.D.RAO ] [ MAHAVIR SINGH ] ACCOUNTANT MEMBER JUDICIAL MEMBER ( (( ( ) )) ) DATE: 12.03.2012. R.G.(.P.S.) ( . &/ 0/'1- COPY OF THE ORDER FORWARDED TO: 1 . NEW HOTEL SAMRAT, C/O V.N.PUROHIT & CO., CHARTERED ACCOUNTANTS, DIAMOND CHAMBER, SUIT NO.AG.4 TH FLOOR, UNIT-III,4, CHOWRINGHEE LANE, KOLKATA-700016. 2 THE I.T.O.-WARD-1(3), DURGAPUR. 3 . THE CIT, 4. CIT(A)-DURGAPUR. 5 . DR, KOLKATA BENCHES, KOLKATA ' / &/ TRUE COPY, ( 8 / BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES