Mr. Rupak Mitra., Kolkata V. A.C.I.T Cir - 39,kolkata., Kolkata

ITA 208/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100008 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 31-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S ALAM JCITSRDR
• Assessee Lawyers: NILRATAN DUTTA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA NO. 208 / KOL / 2013 ASSESSMENT YEAR :2007-08 MR. RUPAK MITRA C/O. ANAND ADVERTISING, 35, CHITTARANJAN AVENUE, KOLKATA 700 012 [ PAN NO.AEPPM 3993 P ] V/S . ACIT, CIRCLE-39, 18, RABINDRA SARANI, KOLKATA 700 001 /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI NILRATAN DUTTA, FCA /BY RESPONDENT SHRI S.S.ALAM, JCIT-SR-DR /DATE OF HEARING 29-10-2015 /DATE OF PRONOUNCEMENT 13-11-2015 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF ORDE R OF COMMISSIONER OF INCOME TAX (APPEALS)-IV, KOLKATA IN APPEAL NO.140/C IT(A)-IV/2009-10 DATED 10.12.2012. ASSESSMENT WAS FRAMED BY ACIT, CI RCLE-39 KOLKATA U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT) VIDE HIS ORDER DATED 16.12.2009 FOR ASSESSMENT YEAR 2007 -08. 2. ISSUE IS TO BE DECIDED IN THIS APPEAL OF ASSESSE E WHETHER LD. CIT(A) WAS JUSTIFIED IN SUSTAINING THE ADDITION OF CLOSING BALANCE OF SUNDRY CREDITORS OF 1,54,546/- MADE BY ASSESSING OFFICER. ITA NO.208/KOL/2013 A.Y. 2007-08 MR. RUPAK MITRA V. ACIT CIR-39 KOL. PAGE 2 3. BRIEFLY STATED FACTS ARE THAT ASSESSEE IS AN IND IVIDUAL AND HAS EARNED INCOME FROM BUSINESS OF ADVERTISING AGENCY IN THE N AME OF M/S ANAND ADVERTISING. DURING THE COURSE OF ASSESSMENT PROCEE DINGS, ASSESSING OFFICER ADDED CERTAIN CREDITORS FOR A VALUE OF 67,07,258/- DUE TO NON PRODUCTION OF SUPPORTING DOCUMENTS AND DETAILS SUCH AS CONFIRMATI ONS FROM CREDITORS, PAN OF THE SAID CREDITORS, ADDRESSES OF THE CREDITORS, TRANSACTION HELD WITH THE CREDITORS BY ASSESSEE. ACCORDINGLY, AO COULD NOT GA THER THE REQUIRED INFORMATION U/S.133(6) OF THE ACT. THEREFORE AO HAS ADDED THOSE CREDITORS WHICH WERE NOT VERIFIED. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A). 4. BEFORE LD. CIT(A) AR OF ASSESSEE HAS SUBMITTED R EQUISITE DETAILS OF THE CREDITORS WITH PAN, ADDRESS AND CONSIDERING THE SAM E LD. CIT(A) HAS GIVEN PARTLY RELIEF TO ASSESSEE EXCEPT THE FOLLOWING:- NAME OF PARTY AMOUNT (RS) ABP PVT. LTD. 73,768 BARTAMAN PVT. LTD. 23,564 TIMES OF INDIA 2,558 SANMARG PVT. LTD. 28,862 PRATIDIN 25,794 TOTAL 1,54,546 IN THE ABOVE LIST OF THE CREDITORS LD. CIT(A) FOUND THE DIFFERENCE BETWEEN VALUE SHOWN BY ASSESSEE AND THE CONFIRMATION GIVEN BY THE PARTIES. SINCE THE LD AR COULD NOT RECONCILE THE DIFFERENCE SO LD. CIT(A) CONFIRMED THE ABOVE DISALLOWANCE. AGGRIEVED, ASSESSEE PREFERRED SECOND APPEAL BEFORE US. SHRI NILRATAN DUTTA, LD. AUTHORIZED REPRESENTATIVE APPEARING ON BEHALF OF ASSESSEE AND SHRI S.S.ALAM, LD. DEPARTMENTAL REPRES ENTATIVE APPEARING ON BEHALF OF DEPARTMENT. ITA NO.208/KOL/2013 A.Y. 2007-08 MR. RUPAK MITRA V. ACIT CIR-39 KOL. PAGE 3 5. WE HAVE HEARD BOTH THE SIDE OF THE PARTIES AND P ERUSED THE MATERIALS AVAILABLE ON RECORD. BEFORE US LD. AR SUBMITTED PAP ER BOOK CONTAINING PAGES 1 TO 13 AND STATED THAT THE ACCOUNT OF ASSESSEE WAS DULY AUDITED BY A QUALIFIED CHARTERED ACCOUNTANT AND THERE WAS NO DIF FERENCE FOUND IN THE AUDIT REPORT IN RELATION TO THE OUTSTANDING CREDITORS AS APPEARING AT THE YEAR END. IT WAS ALSO FURTHER SUBMITTED THAT MOST OF THE CREDITO RS ARE OF THE EARLIER YEAR. THEREFORE LD. CIT(A) HAS ERRED IN DISALLOWED THE SA ME. FROM THE AFORESAID DISCUSSION, WE FIND THAT AO HAS DISALLOWED THE CRED IT FOR A VALUE OF 67,07,258/- AND SAME WAS REDUCED TO 1,54,546/- AT THE APPELLATE STAGE AND TOTAL CREDITS CLAIMED BY ASSESSEE FOR A VALUE OF 1,84,25,664/- OUT OF WHICH ONLY THE AFORESAID AMOUNT HAS BEEN DISALLOWED. WE F URTHER FIND THAT THE ACCOUNT OF ASSESSEE WAS DULY AUDITED BY A QUALIFIED CA AND NO AMBIGUITY IN THE ACCOUNT OF ASSESSEE WAS REPORTED IN TAX AUDIT. IT IS ALSO PERTINENT TO NOTE THAT AO IS SILENT IN HIS ORDER ABOUT THE EXPENSES I NCURRED BY ASSESSEE IN RELATION TO AFORESAID CREDITORS. THE AO HAS JUST DI SALLOWED THESE CREDITORS DUE TO NON-PRODUCTION OF DOCUMENTARY EVIDENCE WITHOUT M AKING ANY REFERENCE TO THE RELATED EXPENSES. WE ALSO FURTHER FIND THAT ASS ESSEE IS STILL SHOWING THE CREDITORS IN HIS BOOKS OF ACCOUNT AND SAME HAS NOT BEEN REVERSED. IN VIEW OF THE ABOVE DISCUSSION, WE ARE INCLINED TO DELETE THE ADDITION MADE BY AO AND CONFIRMED BY LD. CIT(A) AND REASON FOR DELETION IS THAT THE CREDITORS ARE VERY MUCH REFLECTING IN HIS BOOKS OF ACCOUNT AND WHICH W AS DULY AUDITED AND SUCH CREDITORS HAVE NOT REVERSED BY ASSESSEE IN HIS BOOK S OF ACCOUNT. IN TERMS OF ABOVE, WE ALLOW THE ISSUE RAISED BY ASSESSEE. 6. IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 13/ 11/2015 SD/- SD/- (MAHAVIR SINGH) (WASEEM AHMED) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA, *DKP !- 13 /1 1 /2015 ITA NO.208/KOL/2013 A.Y. 2007-08 MR. RUPAK MITRA V. ACIT CIR-39 KOL. PAGE 4 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-MR. RUPAK MITRA, C/O ANAND ADVERTISING, 35, CHITTRANJAN AVEN.KOL-12 2. /RESPONDENT-ACIT, CIR-39, 18, RABINRA SARANI, KOLKA TA 01 3. * +, - - . / CONCERNED CIT KOLKATA 4. - - .- / CIT (A) KOLKATA 5. 012 33+,, - +, , / DR, ITAT, KOLKATA 6. 267 89 / GUARD FILE. BY ORDER/ - , /TRUE COPY/ / - +, ,