Anita Dalmia, Kolkata V. I.T.O., Ward - 34(2), Kolkata, Kolkata

ITA 2057/KOL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2614 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2010
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 29-04-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 03-12-2009
• Court: TRIBUNAL
• Department Lawyers: O P AGARWAL
• Assessee Lawyers: V SURANA
• Keywords: Income from undisclosed sources; Opportunity of being heard

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL : A BENCH : KOLKATA [ BEFORE SHRI D.K.TYAGI, J.M. & SHRI B.C. MEENA, A.M. ] I.T.A.NO. 2057 (KOL) OF 2009 ASSESSMENT YEAR 2005-06 SMT. ANITA DALMIA, -VS- INCOME-TAX OFFICER, WARD-34(2), KOLKATA (PAN-ADJPD0120G) KOLKATA. ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SRI V. SURANA RESPONDENT BY : SRI O.P.AGARWAL. O R D E R PER SRI B.C.MEENA, A.M. : THIS IS THE APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 03.09.2009 OF C.I.T.(A)-XX, KOLKATA, PERTAINING TO ASSESSMENT YEAR 2005-06. IN THIS APPEAL, THE ASSESSEE HAS RAISED S EVERAL GROUNDS WHICH ARE ALL DIRECTED AGAINST ADDITION OF RS.2,51,634/- CONFIRMED B Y THE C.I.T.(A) UNDER THE HEAD INCOME FROM UNDISCLOSED SOURCES. 2. THE ASSESSEE IS THE PROPRIETOR OF M/S. S.D.PACKAGING C O. AS PER THE AIR INFORMATION WITH THE A.O., THE ASSESSEE HAD MADE INVESTMENT OF RS.2,51,634/- ON 16-7-2004 IN FRANKLIN TEMPLETON MUTUAL F UND WHICH WAS NOT REFLECTED IN THE BALANCE SHEET OF THE ASSESSEE OR H ER PROPRIETORSHIP CONCERN. THE A.O. REQUIRED THE ASSESSEE TO EXPLAIN THE SOURCE OF THIS INVESTMENT AND ACCORDING TO THE A.O., THERE WAS NEITHER A NY COMPLIANCE NOR ANY MATERIAL FILED BY THE ASSESSEE EXPLAINING THE INVESTMEN T. HE, THEREFORE, MADE THE ADDITION OF RS.2,51,634/- ON ACCOUNT OF INVESTMEN T FROM UNDISCLOSED SOURCES. 3. ON APPEAL, THE C.I.T.(A) HELD THAT THE ASSESSEE HAS SIM PLY DENIED THE INVESTMENT IN FRANKLIN TEMPLETON MUTUAL FUND, WHEREAS THE A.O. HAS BROUGHT ON RECORD POSITIVE MATERIAL TO JUSTIFY THE ADDITIO N MADE BY HIM. HE, THEREFORE, UPHELD THE ADDITION MADE BY THE A.O. HENCE THIS APPEAL BY THE ASSESSEE. 4. WE HAVE HEARD THE PARTIES AND GONE THROUGH THE MA TERIAL PLACED BEFORE US. IN THE PAPER BOOK THE ASSESSEE HAS FURNISHED, INTER ALIA, A CHART SHOWING 2 INVESTMENTS MADE ON DIFFERENT DATES WITH FRANKLIN TEMPLETON MUTUAL FUND, ACCOUNT STATEMENTS WITH THEM, BALANCE SHEETS & P/L ACC OUNT OF THE ASSESSEE AND HER PROPRIETARY CONCERN FOR EARLIER AS WELL AS ASSESS MENT YEAR UNDER CONSIDERATION, LETTERS FROM FRANKLIN TEMPLETON INVESTMENT E XPLAINING THE INVESTMENT MADE BY THE ASSESSEE WITH THEM, ETC. REFERRIN G TO PAGES 18 & 19 OF THE PAPER BOOK, WHICH IS A LETTER DATED 19/11/2009 WR ITTEN BY FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) P. LTD. TO THE ASSESS EE, THE LEARNED COUNSEL POINTED OUT THAT THE ASSESSEE DID NOT MAKE ANY FRESH INVESTMENT IN THE SAID MUTUAL FUND, RATHER THE AMOUNT WAS SWITCHED FROM ONE ACCOUNT TO ANOTHER ACCOUNT OF FRANKLIN TEMPLETON INVESTMENT. IN TH E SAID LETTER, IT HAS ALSO BEEN CONFIRMED THAT DUE TO A TECHNICAL ERROR, A PART OF THE CONSOLIDATED AMOUNT PERTAINING TO SWITCH TRANSACTION DATED 16-7-2004 WAS REPORTED IN THEIR AIR 2004-05, WHEREAS THE ACCOUNT STATEMENT HAS REFLECTED THE CONSOLIDATED AMOUNT AND THE TOTAL UNITS SWITCHED-IN. THE REFORE, THE ADDITION MADE ALLEGING INVESTMENT OUT OF UNDISCLOSED SOURCES WAS UN CALLED FOR. HOWEVER, IT HAS BEEN ADMITTED BY THE LEARNED COUNSEL THA T ALTHOUGH THE ASSESSEE HAS BEEN CLAIMING THAT THERE WAS NO FRESH INVES TMENT IN THE YEAR UNDER APPEAL, BUT THIS LETTER FROM FRANKLIN TEMPLETON INVES TMENT WAS NOT BEFORE THE AUTHORITIES BELOW. IN OUR OPINION, THE CONTEN TS OF THE LETTER DATED 19/11/2009 OF M/S. FRANKLIN TEMPLETON ASSET MANAGEMENT (I NDIA) P. LTD. NEED VERIFICATION AT THE END OF THE A.O. WE, THEREFORE, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW ON THIS ISSUE AND REMAND THE MATTE R BACK TO THE FILE OF A.O., WHO IS DIRECTED TO VERIFY THE EVIDENCE AND MATERIAL T HAT MAY BE SUBMITTED BY THE ASSESSEE DURING SET ASIDE PROCEEDING B EFORE HIM AND READJUDICATE THE MATTER IN ACCORDANCE WITH LAW AFTER ALLOW ING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURP OSES. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- [D.K.TYAGI] [B.C. MEENA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 29-04-2010 3 COPY FORWARDED TO : 1. SMT. ANITA DALMIA, C/O/ S.D.PACKAGING, P-36, INDIA EXCHANGE PLACE, KOLKATA-700 001. 2. I.T.O., WARD-34(2), KOLKATA 3. C.I.T.(A)-XX, KOLKATA 4. THE C.I.T., KOL- 5. THE DEPARTMENTAL REPRESENTATIVE, ITAT, KOLKATA. TRUE COPY, BY ORDER [DKP] DY. REGISTRAR.