M/S Krishna kumar Singh, Daltonganj V. ACIT CIR-3, Ranchi

ITA 200/RAN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8826 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 21-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: RAMAVTAR AGRAWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC) , RANCHI [BEFORE HONBLE S H RI J. SUDHAKAR REDDY ] I.T.A. NO. 200/RAN/2016 ASSESSMENT YEAR : 2005 - 06 M/S. KRISHNA KUMAR SINGH ............................. .......... ................... ...................... APPELLANT GURUDWARA ROAD, BALWATIKA, DALTONGANJ, JHARKHAND 822 101. [PAN : AAFFK 6976 N ] A.C.I.T CIR 3 ................... ......... ............................... RESPONDENT CIT(A) CENTRAL REVENUE BUILDING, MAIN ROAD, RANCHI, JHARKHAND. APPEARANCES BY: SHRI RAMAVTAR AGRAWAL , ADVOCATE APPEARING ON BEHALF OF THE A SSESSEE. NONE APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : FEBRUARY 20, 2018 DATE OF PRONOUNCING THE ORDER : FEBRUARY 28 , 2018 ORDER PER J. SUDHAKAR REDDY, AM THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF CIT (APPEALS) RANCHI DATED 01.03.2016 FOR THE ASSESSMENT YEAR 2005 - 06. 2 . ON CONSIDERING THE THE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE , PERUSING THE PAPERS ON RECORD AND ORDERS OF THE AUTHORITIES BELOW, I FIND THAT THE ASSESSING OFFICER MADE THE ADDITION IN THE CASE OF THE ASSESSEE FIRM ON THE GROUND THAT THE ASSESSEE FIRM MADE CERTAIN INVESTMENT IN THE NAME OF ITS PARTNERS DURING THE ASSESSMENT YEAR 2005 - 06. THE ISSUE IS SUMMARISED IN PARA 2.1.2 AND 2.1.4 OF THE ASSESSM ENT ORDER WHICH IS EXTRACTED FOR THAT REFERENCE: 2.1.2 IT IS AN UNDISPUTED FACT THAT THE ASSESSEE FIRM HAD INVESTED RS. 22,75,000/ - IN THE NAME OF ITS PARTNERS BY WAY OF NSCS DURING THE 2 I.T.A. NO. 200/KOL/2017 A.Y. 2005 - 06 KRISHNA KUMAR SINGH ASSESSMENT YEAR 2005 - 06 (FINANCIAL YEAR 2004 - 05). HOWEVER, THE DATE OF ACQUISITION OF THESE CERTIFICATES IS DIFFERENT WHICH IS AGAIN EVIDENT FROM THE REPLY OF THE POST - MASTER AND THE SUBMISSIONS OF ASSESSEE FIRM. IT IS CLEAR FROM THE TENDER DOCUMENTS SUBMITTED BY THE ASSESSEE THAT THE LAST OF THE TENDER WAS FILED ON 20.09. 2004 FOR WHICH NSC CERTIFICATES OF RS. 22,75,000/ - WERE SUBMITTED AS SECURITY DEPOSIT. HOWEVER, FROM THE SUBMISSIONS OF THE ASSESSEE AND REPLY OF THE POST MASTER IT IS ALSO CLEAR THAT AFTER 20.09.2004, ASSESSEE HAD INVESTED IN NSCS WORTH OF RS. 13,95,000/ - . ON THE BASIS OF ABOVE FACTS IT HAS BEEN ESTABLISHED THAT ASSESSEE WAS ACTUALLY IN POSSESSION OF NSCS WORTH OF RS. 36,70,000/ - (RS. 22,75,000/ - BEFORE 20.09.2004 + RS. 13,95,000/ - AFTER 20.09.2004) ON 31.03.2005. 2.1.4 FROM THE ABOVE MENTIONED SUBMISSIONS OF THE ASSESSEE, MATERIALS GATHERED BY THE UNDERSIGNED AND COUNTER REPLY OF THE ASSESSEE FIRM, UNDERSIGNED IS OF THE VIEW THAT THE ASSESSEE FIRM HAD MADE TOTAL INVESTMENT OF RS. 36,70,000/ - IN THE NAMES OF ITS PARTNERS DURING THE ASSESSMENT YEA R 2005 - 06. OUT OF WHICH INVESTMENT WORTH OF RS. 13,95,000/ - REMAINS UNEXPLAINED AND LIABLE TO BE ADDED IN THE HANDS OF THE ASSESSEE FIRM. 3 . THE ASSESSEE CONTENDED THAT THESE INVESTMENTS WERE MADE BY THE PARTNERS OF THE ASSESSEE FIRM AND ARE RECORDED IN THE INDIVIDUAL RETURNS OF THE PARTNER . BEFORE US, BALANCE SHEET OF KRISHNA KUMAR SINGH AND SHRI KRISHNA NAND AS ON 31.03.2005 HAVE BEEN FILED AS EVIDENCE THESE TRANSACTIONS BEING RECORDED BY THEIR INDIVIDUAL RETURN OF INCOME . IN MY OPINION, THIS CLAIM O F THE ASSESSEE HAS TO BE VERIFIED BY THE ASSESSING OFFICER. THUS I SET ASIDE THIS ISSUE IN THIS APPEAL TO THE FILE OF THE ASSESSING OFFICER FOR VERIFYING AS TO WHETHER THE NSC WAS ACCOUNTED FOR BY THE PARTNERS IN THEIR INDIVIDUAL CAPACITY. IF THEY ARE SO A CCOUNTED, NO ADDITION CAN BE MADE IN THE HANDS OF THE FIRM. OTHERWISE, THE ADDITIONS SUSTAIN . 3 I.T.A. NO. 200/KOL/2017 A.Y. 2005 - 06 KRISHNA KUMAR SINGH 4 . WITH T HESE OBSERVATIONS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2018 . SD/ - ( J. SUDHAKAR REDDY ) ACCOUNTANT MEMBER DATED: 28 /02 /201 8 BISWAJIT , SR. PS COPY OF ORDER FORWARDED TO: 1 . M/S. KRISHNA KUMAR SINGH, GURUDWARA ROAD, BELWATIKA, DALTONGANJ, JHARKHAND 822 101. 2 . ACIT CIR 3, CIT(A) CENTRAL REVENUE BUILDING, MAIN ROAD, RANCHI, JHARKHAND. 3 . THE CIT(A) 4 . THE CIT 5 . DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, RANCHI