Mr.Swarup Dutta, Howrah V. I.T.O.,Ward-48(4), Kolkata

ITA 2031/KOL/2008

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9871 (ITAT-KOLKATA)
• Duration Of Justice: 10 year(s) 10 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 1999-2000
• Appeal Filed On: 14-11-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANKAR HALDER
• Assessee Lawyers: JOYDEEP CHAKRABORTY
• Keywords: TDS
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENCH KOLKATA BEFORE SHRI S. S. GODARA, JM & DR. A. L. SAINI, AM ITA NO.2031/KOL/2008 ( [ [ / ASSESSMENT YEAR: 1999-2000) MR. SWARUP DUTTA PROP: DUTTA CLEARING AGENCY, 136, SARAT CHATTERJEE ROAD, HOWRAH-14. VS. ITO, WARD-48(4), KOLKATA ./ ./PAN/GIR NO.: AGKPD9230B (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI SOUMITRA CHOUDHURY, ADVOCATE & JOYDEEP CHAKRABORTY, ADVOCATE RESPONDENT BY : SHRI SANKAR HALDER, JCIT, SR. DR / DATE OF HEARING : 20/08/2019 /DATE OF PRONOUNCEMENT : 30/09/2019 / O R D E R PER SHRI S. S. GODARA: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 1999-00 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (A) - XXXI, KOLKATA ORDER DATED 30.03.2007 PASSED IN CASE NO.CIT(A)-XXXI/WD-48(4)/2006-07/43 INVOLVING PROCEEDINGS U/S 147/143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES ONLY GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGES THE CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION MAKING UNDISCLOSED RECEIPT INCOME ADDITION OF RS.19,98,442.76/- ON ACCOUNT OF DIFFERENCE BETWEEN THE CORRESPONDING TDS DETAILS AND HIS INCOME TAX RETURN. CASE FILE SUGGESTS THAT THIS ASSESSEE IS A CLEARING AGENT RUNNING BUSINESS IN THE NAME AND STYLE OF M/S DUTTA CLEARING AGENCY. THE DETAILS AS PER TDS CERTIFICATE STATED GROSS RECEIPTS OF RS.1,28,76,711.24 IN CASE OF M/S CALCUTTA MARINE ENGG. (P) LTD. AND M/S MARSHALL CORPN. LTD.; RESPECTIVELY. THE ASSESSEES RETURN ADMITTEDLY HAD DISCLOSED INCOME OF RS.1,08,78,262.48/-. BOTH THE LEARNED LOWER AUTHORITIES PROCEEDED TO ADD THE DIFFERENTIAL AMOUNT OF RS.19,98,442.76 AS UNDISCLOSED RECEIPTS THEREOF DURING THE ASSESSMENT AS WELL AS IN THE LOWER APPELLATE PROCEEDINGS. ITA NO.2031/KOL/2008 MR. SWARUP DUTTA PAGE | 2 3. WE HAVE HEARD RIVAL CONTENTIONS AGAINST AND IN SUPPORT OF THE IMPUGNED ADDITION. WE FIND THAT THE ASSESSEES REPLY DATED 26.12.2006 SUBMITTED TO THE ASSESSING OFFICER IN FURTHERANCE TO SECTION 142(1) NOTICE DATED 11.09.2006 HAD EXPLAINED THE DIFFERENCE BETWEEN THE ALLEGED GROSS RECEIPTS AS PER TDS RECORD AND INCOME TAX RETURN AS UNDER: IT IS RELEVANT TO INCOME FOR THE YEAR PLEASE BE APPRISE THAT A SUM OF RS. 1,08,78,262.48 HAS BEEN CREDITED TO PROFIT & LOSS A/C WHICH IS GROSS VALUE OF BILLS RAISED TOWARDS MATERIAL HANDLING CHARGES DURING THE YEAR THOUGH THE AMOUNT RECEIVED FROM DEBTORS AS IMPARTED IN OUR BOOKS OF ACCOUNTS IS INCLUDING THE BALANCES B/F FROM PRECEDING YEARS AS DEPICTED HEREUNDER: PARTICULARS OP. BAL. AS ON 01.04.98 BILL RAISED DURING THE YEAR TDS DEDUCTED @ 1% TOTAL (2+3- 4) RECEIVED DURING THE YEAR BALANCE AS ON 31.03.99 (5-6) CALCUTTA MARINE & ENGG. CO. PVT. LTD. 3409,519.67 4776,711.24 47,767.00 8138,463.91 8119,000.00 19,463.91 MARSHALL CORP. LTD. 385,782.15 4776,711.24 47,767.00 5114,726.39 3081,900.00 2032,826.39 VISHNU COTTON MILLS 584,220.00 97,500.00 680,745.00 260,000.00 421,720.00 OTHERS 1227,340.00 1227,340.00 1227,340.00 TOTAL 10878262.48 AS REVEALED IN ABOVE COLUMN WE WOULD LIKE TO DRAW YOUR KIND ATTENTION TO THE FACT THAT TDS CERTIFICATE HAS BEEN ISSUED BY CALCUTTA MARINA & ENGG. CO. PVT. LTD. IN FAVOUR OF US ON PAYMENT BASIS I.E. ON RS. 8100,000/- WHICH IS ABSOLUTELY INCLUDING OUR OUTSTANDING BALANCE OF PRECEDING YEARS WHICH HAS ALREADY BEEN EFFECTED IN EARLIER RELEVANT YEARS, STATEMENT OF DEBTORS FOR THE AY 1998-99 IS CITED BELOW AND COPIES OF A/CS ENCLOSED FOR YOUR READY REFERENCE: PARTICULARS OP. BAL. AS ON 01.04.97 BILL RAISED DURING THE YEAR TDS DEDUCTED @ 1% TOTAL (2+3-4) RECEIVED DURING THE YEAR BALANCE AS ON 31.03.98 (5-6) CALCUTTA MARINE & ENGG. CO. PVT. LTD. 1736,952.90 2351,481.77 23,515.00 4064,919.67 655,400.00 3409,519.67 MARSHALL CORP. LTD. 404,979.38 2351,481.77 23,515.00 2732,946.15 2347,164.00 385,782.15 VISHNU COTTON MILLS 584,220.00 584,220.00 584,220.00 260,000.00 584,220.00 SRESTHA COTTON P. LTD. 1260,542.44 6,250.00 1254,292.44 743,750.00 510,542.44 TOTAL 5287,183.54 ITA NO.2031/KOL/2008 MR. SWARUP DUTTA PAGE | 3 4. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT NEITHER THE ASSESSING OFFICER NOR THE CIT(A) HAVE REBUTTED THE ASSESSEES CLINCHING PLEA THAT THE ISSUE IN QUESTION IN RESPECT OF ABOVE-STATED TWO ENTITIES PERTAINS TO BILL RAISED DURING THE YEAR AND THE TAXPAYER HAD DISCLOSED HIS OUTSTANDING BALANCES OF EARLIER YEARS AS INCOME. WE THEREFORE HOLD THAT THE IMPUGNED ADDITION OF RS.19,98,442.76/- CANNOT BE SUSTAINED. THE SAME IS DIRECTED TO BE DELETED. THE ASSESSEE SUCCEEDS IN HIS SOLE SUBSTANTIVE GROUND. 5. THIS ASSESSEES APPEAL IS ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 30.09.2019. SD/- ( A. L. SAINI ) SD/- (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER /KOLKATA; / DATE: 30/09/2019 (RS, SR.PS) / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT - MR. SWARUP DUTTA 2. THE RESPONDENT- ITO, WARD-48(4), KOLKATA 3. ( ) / THE CIT(A) [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.