Sri Samiran Mitra, Burdwan V. ITO, Ward - 1(4), Durgapur, Durgapur

ITA 1979/KOL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1884 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 06-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHURY AD DL
• Assessee Lawyers: P K ROY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BE NCH : KOLKATA [BEFORE HONBLE SRI N.V.VASUDEVAN, JM I.T.A NO. 1979/KOL/20 17 ASSESSMENT YEAR : 2011-1 2 SRI SAMIRAN MITRA -VS.- I.T.O., WARD-1(4 ) BURDWAN DURGAPUR [PAN : ADDPM 5908 P] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI P.K.ROY , ADVOCATE FOR THE RESPONDENT : SHRI ROBIN CHOUDHURY, AD DL. CIT DATE OF HEARING : 13.12.2017. DATE OF PRONOUNCEMENT : 03.01.2018. ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 22.06.2017 OF CIT(A)- DURGAPUR RELATING TO A.Y.2011-12. 2. THE ASSESSEE IS AN INDIVIDUAL. HE IS A SALARIED EMPLOYEE OF DURGAPUR THERMAL POWER STATION. HIS SOURCE OF INCOME IS UNDER THE HE AD SALARY . 3. THE ASSESSEE HAD TWO BANK ACCOUNTS. ONE WITH UNI TED BANK OF INDIA, MAYA BAZAR BRANCH AND ANOTHER WITH AXIS BANK, DURGAPUR B RANCH. IN THESE ACCOUNTS WHICH IS IN THE SAID JOINT NAMES OF THE ASSESSEE AND HIS WIF E SMT. ANJANA MITRA A SUM OF RS.4,150/- WAS CREDITED TOWARDS INTEREST. SINCE THI S WAS NOT SHOWN IN THE INCOME TAX RETURN THE SAME WAS ADDED TO THE TOTAL INCOME OF TH E ASSESSEE BY THE AO. THE ASSESSEE HAD PLEADED THAT IT WAS THE JOINT ACCOUNT IN THE NA ME OF THE ASSESSEE AND HIS WIFE AND THAT HIS WIFE HAD OFFERED TO TAX THE INTEREST INCOM E IN HER RETURN OF INCOME. THIS PLEA WAS IGNORED BY THE AO ON THE GROUND THAT THE ASSESS EE WAS THE FIRST HOLDER AND THEREFORE INTEREST INCOME IN QUESTION IS LIABLE TO BE ADDED T O HIS TOTAL INCOME. 2 ITA NO.1979/KOL/2017 SHRI SAMIRAN MITRA A.YR.2011-12 2 4. ON APPEAL BY THE ASSESSEE THE CIT(A) CONFIRMED T HE ORDER OF AO. 5. I HAVE HEARD THE RIVAL SUBMISSIONS. I FIND THAT ASSESSEES WIFE SMT.ANJANA MITRA HAD FILED HER RETURN OF INCOME FOR A.Y.2011-12 OFFE RING INTEREST INCOME IN QUESTION. COPY OF THE RETURN OF INCOME FILED BY SMT. ANJANA . MITRA UNDER PAN NO.AQKPM 0859 P ON 30.03.2013 ALONG WITH COMPUTATION OF INCO ME DECLARING INCOME FROM INTEREST OF RS.58,694/- WAS FILED BEFORE ME IN THIS REGARD. IN THESE CIRCUMSTANCES THE ADDITION MADE IN THE HANDS OF THE ASSESSEE WAS NOT JUSTIFIED AND THE SAME IS DIRECTED TO BE DELETED. 6. THE AO ALSO FOUND THAT THERE WERE INVESTMENTS IN KVP AND INTEREST ON KVP OF RS.13,970/- HAD BEEN CREDITED IN THE JOINT BANK ACC OUNT OF THE ASSESSEE AND HIS WIFE. BESIDES THE ABOVE THERE WAS ALSO AN ENTRY OF RECEIP T OF MATURITY PROCEEDS OF KVP OF RS.1,02,916/-. IT WAS THE PLEA OF THE ASSESSEE THAT THE INTEREST INCOME AS WELL AS MATURITY PROCEEDS OF KVP BELONG TO THE WIFE OF THE ASSESSEE AND THE INTEREST INCOME WAS DECLARED BY HER IN HER RETURN OF INCOME FILED. THIS PLEA OF THE ASSESSEE WAS DISREGARDED BY THE AO AS WELL AS CIT(A). 7. AFTER HEARING THE RIVAL SUBMISSIONS I FIND THAT IN THE COMPUTATION OF TOTAL INCOME IN THE RETURN OF INCOME FILED BY THE WIFE OF THE AS SESSEE INTEREST ON KVP IS ALSO INCLUDED. IN THESE CIRCUMSTANCES THE INTEREST ON KV P AS WELL AS THE OWNERSHIP OF KVP CANNOT BE ATTRIBUTED TO THE ASSESSEE. THE ADDITION IS THEREFORE DIRECTED TO BE DELETED. 8. THE AO ALSO FOUND THAT THE ASSESSEE HAD RECURRI NG DEPOSIT ACCOUNT IN WHICH THERE WAS ACCRUAL INTEREST INCOME OF RS.2,380/-. AC CORDING TO THE AO THE ASSESSEE HAD NOT ACCOUNTED FOR THE AFORESAID INTEREST INCOME. TH E SAME WAS BROUGHT TO TAX BY THE AO. ON APPEAL THE CIT(A) CONFIRMED THE ACTION OF TH E AO. 3 ITA NO.1979/KOL/2017 SHRI SAMIRAN MITRA A.YR.2011-12 3 9. IT IS THE PLEA OF THE ASSESSEE THAT INTEREST ON RECURRING DEPOSIT IS SHOWN ONLY AT THE TIME OF MATURITY AND FURTHER THE RECURRING DEPO SIT WAS ALSO IN THE JOINT NAMES OF THE ASSESSEE AND HIS WIFE. I AM OF THE VIEW THAT IN TH E GIVEN CIRCUMSTANCES THE INTEREST ON RECURRING DEPOSIT CANNOT BE BROUGHT TO TAX IN THE P RESENT ASSESSMENT YEAR AND ALSO WHOLLY IN THE HANDS OF THE ASSESSEE. THE ADDITION I S THEREFORE DIRECTED TO BE DELETED. 10. IN THE RESULT THE APPEAL BY THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT 03.01.2018. SD/- [ N.V.VASUDEVAN ] JUDICIAL MEMBER DATED : 03.01.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1. SRI SAMIRAN MITRA, NEW COLONY, QR NO.D-44, DTPS, DURGAPUR-713207, DIST. BURDWAN,(W), WEST BENGAL. 2. I.T.O., WARD-1(4), DURGAPUR. 3. CIT(A)-DURGAPUR 4. C.I.T-DURGAPUR. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECR ETARY HEAD OF OFFICE/ D.D.O., ITAT KOLKATA BENCHES 4 ITA NO.1979/KOL/2017 SHRI SAMIRAN MITRA A.YR.2011-12 4