M/s Shree Gita Saw Mill, Kolkata V. I.T.O Wd - 42(3), Kolkata

ITA 1970/KOL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83095 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 19-06-2013
• Court: TRIBUNAL
• Department Lawyers: MD GAYASUDDIN ANSARI
• Assessee Lawyers: M C GOPE
• Section: 143(3)

Judgement Text

` , SMC(B) , IN THE INCOME TAX APPELLATE TRIBUNAL SMC(B) BENCH : KOLKATA () BEFORE , ) [BEFORE SHRI MAHAVIR SINGH, JM] / I.T.A NO.1970/KOL/2013 !'/ ASSESSMENT YEAR: 2004-05 M/S. SHREE GITA SAW MILL VS. INCOME-TAX OFFICER, WD-42(3), KOLKATA (PAN: AAVFS3066R) ($% /APPELLANT ) (&'$%/ RESPONDENT ) DATE OF HEARING: 20.08.2014 DATE OF PRONOUNCEMENT: 02.09.2014 FOR THE APPELLANT: SHRI M. C. GOPE, ADVOCATE FOR THE RESPONDENT: MD. GAYASUDDIN ANSARI, JCIT, SR. DR () / ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XII, KOLKATA IN APPEAL NO. 325/CIT(A)-XII/41(1)/07-08 DATED 05.02.2013. ASSES SMENT WAS FRAMED BY ITO, WARD-42(3), KOLKATA U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HE REINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2004-05 VIDE HIS ORDER DATED 26.12 .2006. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN ASSESSING THE DISCREPANCY OF CREDIT BALANCE AT RS.2,26,171/- AND ADDING THE SAME TO THE RETURNED INCOME. 3. I HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE AO VERIFIED THE TRANSACTIONS OF CREDI T BALANCES AND FOUND THAT THERE IS DISCREPANCY IN THE BALANCE TO THE EXTENT OF RS.2,26,171/- IN RE SPECT TO THE FOLLOWING TWO PARTIES: NAME OF THE PARTIES CLOSING BALANCE AS PER ASSESSEES BOOKS CLOSING BALANCE AS SHOWN IN THE INFORMATION RECEIVED FROM PARTY AMOUNT OF DISCREPANCY M/S. SINGH BROS. EXIM PVT. LTD. SHRI KRISHNA TIMBER RS.8,99,125/- RS.1,19,018/- RS.7,22,956/- RS.1,69,020/- RS.1,76,169/- RS. 50,002/- 2 ITA NO.1970/K/2013 SHREE GITA SAW MILL, AY 04-05 COMPANY PVT. LTD. TOTAL DISCREPANCY : RS.2,26,171/ - AS THE ASSESSEE COULD NOT EXPLAIN OR RECONCILE, AO ADDED DIFFERENTIAL AMOUNT OF RS.2,26,171/-. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONFIRMED THE ACTION OF AO VIDE PARA 4 OF HIS APPELLATE ORDER AS UNDER: 4. APPEAL ON GROUNDS NO. 2, 3, 4, 5, 6 AND 7 ARE A GAINST THE ADDITION OF RS.2,26,171/- ON ACCOUNT OF SUNDRY CREDITORS. IN THE ASSESSMENT ORDER THE A.O. HAS GIVEN HIS FINDING THAT SOME DISCREPANCIES WERE FOUND IN TRANSACTIONS OF THE ASSESSEE WITH TWO PARTIES NO. 1 M/S. SINGH BROS. EXIM PVT. LTD. AND NO. 2, SHREE KRISHNA TIMBER CO. PVT. LTD. THE A.O. ASKED THE ASSESSEE TO RECONCILE THE DISCREPANC IES BUT THE ASSESSEE/AR COULD NOT DO SO TO THE SATISFACTION OF THE A.O. THEREFORE, THE A O MADE AN ADDITION OF RS.176169/- IN RESPECT OF DISCREPANCY FOUND WITH M/S. SINGH BROS. EXIM PVT. LTD. AND RS.50,002/- WITH SHREE KRISHNA TIMBER CO. PVT. LTD. DURING THE APPE LLATE PROCEEDING THE A.R. SUBMITTED THAT M/S. SINGH BROS. EXIM PVT. LTD. BECAME A PRIVA TE LIMITED COMPANY ON 03.02.2004. BEFORE THAT IT WAS A PARTNERSHIP FIRM IN THE NAME O F M/S. SINGH BROS. & COMPANY. THE A.R. FURTHER SUBMITTED THAT DUES OF RS.255480/- OF THE SAID FIRM WHICH WAS TAKEN OVER BY THE COMPANY WAS NOT CONSIDERED IN THE STATEMENT FUR NISHED BY THE ABOVE COMPANY AND FOR THAT REASON THE DISCREPANCY NOTED BY THE ITO AR OSE. REGARDING ADDITION OF RS.50,002/- ON ACCOUNT OF CREDITOR M/S. SHREE KRISH NA TIMBER CO. PVT. LTD. THE A.R. SUBMITTED THAT THERE IS A PARTNERSHIP FIRM IN THE N AME OF SHREE KRISHNA TIMBER CO. ALSO WHICH OPERATES FROM THE SAME ADDRESS AND IS CLOSELY ASSOCIATED WITH EACH OTHER. BY MISTAKE A PAYMENT OF RS.50,000/- IN FAVOUR OF M/S. SHREE KRISHNA TIMBER CO. WAS WRONGLY CREDITED IN THE ACCOUNT OF SHREE KRISHNA TI MBER CO. PVT. ALTHOUGH THE A.R. BROUGHT THIS FACTS ON RECORD BUT A.R. COULD NOT SUB MIT APPROPRIATE DOCUMENT TO PROVE HIS CLAIMS. THEREFORE, ASSESSEES APPEAL ON GROUND S NO. 2, 3, 4, 5, 6 AND 7 ARE DISMISSED. AGGRIEVED, ASSESSEE CAME IN APPEAL BEFORE ME. 4. I FIND THAT EVEN NOW BEFORE ME, ASSESSEE COULD N OT PRODUCE ANY EVIDENCE IN RESPECT TO THE DIFFERENCE OF SINGH BROS. EXIM PVT. LTD. AT RS. 1,76,169/- IN RESPECT OF DISCREPANCY FOUND WITH THE ACCOUNTS OF THE ASSESSEE. ON QUERY FROM T HE BENCH, THE LD. COUNSEL FOR THE ASSESSEE MERELY STATED THAT LET THE ISSUE BE ADJUDICATED AFR ESH BY THE AO BUT ON FURTHER QUERY WHAT IS THE EVIDENCE WITH THE ASSESSEE WHICH RECONCILES FIGURES , HE FAILED TO GIVE ANY PLAUSIBLE EXPLANATION. HE ONLY EXPLAINED THAT SINGH BROS. EXIM PVT. LTD. I S NOW A PRIVATE LTD. CO. AND IN VIEW OF THAT THE FIRM WAS TAKEN OVER BY THE COMPANY, WHEREIN TH ERE WAS DUES TO THE EXTENT OF RS.2,55,480/- WAS NOT CONSIDERED. I FIND THAT THE ASSESSEE COULD NOT SUBSTANTIATE BY ANY EVIDENCE THAT THERE ARE DUES TO THE EXTENT OF RS.2,55,480/-, WHICH WAS NOT CONSIDERED. SIMILAR IS THE POSITION IN REGARD TO THE DIFFERENCE OF RS.50,000/- IN THE CRED IT OF SHREE KRISHNA TIMBER CO. RATHER THE POSITION IS WORSE WHEREIN ASSESSEE ADMITTED BEFORE CIT(A) THAT THIS IS A MISTAKEN PAYMENT OF RS.50,000/- IN FAVOUR OF CREDITOR M/S. SHREE KRISHN A TIMBER CO. WRONGLY CREDITED. THIS IS 3 ITA NO.1970/K/2013 SHREE GITA SAW MILL, AY 04-05 MERELY AN ASSERTION AND NOT SUBSTANTIATED BY ANY EV IDENCE. IN VIEW OF THE ABOVE, I FIND NO REASON TO INTERFERE IN THE ORDER OF CIT(A). APPEAL OF ASSESSEE IS DISMISSED. 5. IN THE RESULT, APPEAL OF ASSESSEE IS DISMISSED. 6. ORDER PRONOUNCED IN OPEN COURT ON 02.09.2014. SD/- , (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2 ND SEPTEMBER, 2014 *+ ,- . JD.(SR.P.S.) () / &0 1(0!2- COPY OF THE ORDER FORWARDED TO: 1 . $% / APPELLANT M/S. SHREE GITA SAW MILL, 6, PAUL STREE T, SHYAMBAZAR, KOLKATA-700 004. 2 &'$% / RESPONDENT ITO, WARD-42(3), KOLKATA 3 . ) ( )/ THE CIT(A), KOLKATA 4. 5. ) / CIT KOLKATA 089 & / DR, KOLKATA BENCHES, KOLKATA '0 &/ TRUE COPY, ():/ BY ORDER, - /ASSTT. REGISTRAR .