Gupta Transformer Pvt. Ltd, Kolkata V. ITO,Ward-10(1), Kolkata

ITA 204/KOL/2023

AI Insights

Gupta Transformer Pvt. Limited appealed against the order of the Commissioner of Income Tax (Appeals), which confirmed an addition of Rs.1,00,666 to their income for the assessment year 2012-2013. The addition was initially made by the Assessing Officer under section 68 of the Income Tax Act, alleging that the company had unexplained credits from purchases made from a concern involved in providing accommodation entries. The Tribunal, after reviewing the case, found that the Assessing Officer's conclusion was based on assumptions without any concrete evidence or analytical examination, leading to the decision to delete the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129039 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 12-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 68; 143(1)

Judgement Text

ITA No. 204/KOL/2023 A.Y. 2012-2013 Gupta Transformer Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President & Shri Rajesh Kumar, Accountant Member I.T.A. No. 204/KOL/2023 Assessment Year: 2012-2013 Gupta Transformer Pvt. Limited,...........Appellant 28/B/1A, Jheel Road, Dhakuria, Kolkata-700031 [PAN: AACCG0542L] -Vs.- Income Tax Officer,..............................Respondent Ward-10(1), Kolkata, 3, Government Place, Kolkata-700001 Appearances by: Shri Swapan Nandi, Staff, appeared on behalf of the assesseee Smt. Ranu Biswas, Addl. CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing : April 26, 2023 Date of pronouncing the order : May 23, 2023 O R D E R Per Shri Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 12 th January, 2023 passed for assessment year 2012-13. ITA No. 204/KOL/2023 A.Y. 2012-2013 Gupta Transformer Pvt. Limited 2 2. The assessee has taken two grounds of appeal, out of which Ground No. 2 is general in nature, which does not call for recording of any finding. In Ground No. 1, the assessee has pleaded that the ld. CIT(Appeals) has erred in confirming the addition of Rs.1,00,666/-. 3. Brief facts of the case are that the assessee has filed its return of income on 18.09.2012 declaring total income of Rs.2,24,610/-. According to the ld. Assessing Officer, this return was processed under section 143(1) on 17.05.2013. He further observed that subsequently an information has been received from ITO (Investigation), Unit-5, Kolkata in the case of Mr. Samrjit Jain and related beneficiary entities. He narrated some information and then observed that notice under section 148 was issued on 30.03.2019. In an ex-parte order, he made an addition of Rs.1,00,666/- under section 68 of the Income Tax Act on the ground of unexplained credit. His finding met the approval of the ld. CIT(Appeals). 4. With the assistance of ld. Representatives, we have gone through the record carefully. A perusal of the assessment order would indicate that there is no head & tail to the circumstances considered by the ld. Assessing Officer, vis-a-vis the addition made under section 68. His observations are that one Mr. Samrjit Jain, Proprietor of M/s. Snigdha Trading, was indulged in providing ITA No. 204/KOL/2023 A.Y. 2012-2013 Gupta Transformer Pvt. Limited 3 accommodation entries namely accepting the cheque giving the money in cash or vice-versa. Hence, the assessee has shown purchases of Rs.1,00,666/- from this concern. Therefore, it is to be treated as unexplained credit. We fail to appreciate this logic of making addition. The assessee has not received any cash in its books, rather it has made purchases. The ld. Assessing Officer has nowhere disallowed the expenditure for making purchases. He just assumed that since the assessee has made purchases and it made payment through account payee cheque, therefore, it will take back the money from M/s. Snigdha Trading in cash and, therefore, it is unexplained credit. We find that it is only imagination of the ld. Assessing Officer without any analytical examination of the record. Therefore, this ground of appeal is allowed and addition deleted. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on May 23, 2023. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the 23 rd day of May, 2023 Copies to : (1) Gupta Transformer Pvt. Limited, 28/B/1A, Jheel Road, Dhakuria, Kolkata-700031 ITA No. 204/KOL/2023 A.Y. 2012-2013 Gupta Transformer Pvt. Limited 4 (2) Income Tax Officer, Ward-10(1), Kolkata, 3, Government Place, Kolkata-700001 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) Commissioner of Income Tax , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.