ACIT, Circle - 2, Jalpaiguri V. Smt. Sheila Kalyani, Jalpaiguri

ITA 2084/KOL/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2484 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2010
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 30-06-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 21-11-2008
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANIK
• Assessee Lawyers: S M SURANA
• Keywords: Set aside
• Section: 68

Judgement Text

, A , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA () BEFORE . . . . . . . . , , , , , !' !' !' !' /AND . .. . . .. .! !! !, , , , # [BEFORE HONBLE SRI D. K. TYAGI, JM & HONBLE SRI C. D. RAO , AM] '$ '$ '$ '$ / ITA NO. 2084 /KOL/2008 %&' !() %&' !() %&' !() %&' !()/ // / ASSESSMENT YEAR : 2005-06 ASSISTANT COMMISSIONER OF INCOME-TAX, -VS- SMT. SH EILA KALYANI, JALPAIGURI CIRCLE-2, JALPAIGURI (PA NO.AFCPK 1132 Q) (+, / APPELLANT ) (-+,/ RESPONDENT ) & '$ '$ '$ '$ / ITA NO. 1736 /KOL/2008 %&' !() %&' !() %&' !() %&' !()/ // / ASSESSMENT YEAR : 2005-06 SMT. SHEILA KALYANI, JALPAIGURI -VS- ASSISTANT C OMMISSIONER OF INCOME-TAX, CIRCLE-2, JALPAIGURI (+, / APPELLANT ) (-+,/ RESPONDENT ) FOR THE DEPARTMENT: : / SRI A. K. PRAMANIK FOR THE ASSESSEE: / SHRI S. M. SURANA . / ORDER PER D. K. TYAGI, JM ( . . . . . . . . , , , , ) THESE CROSS APPEALS PREFERRED BY THE REVENUE AND TH E ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), JALPAIGURI DA TED 25.07.2008 FOR THE ASSESSMENT YEAR 2005-06. FOR THE SAKE OF CONVENIENCE, WE DISP OSE OF BOTH THE APPEALS BY THIS CONSOLIDATED ORDER. 2. THE APPEAL FILED BY THE REVENUE IS DELAYED BY 31 DAYS AND A CONDONATION PETITION HAS BEEN FILED. AFTER HEARING BOTH THE SIDES, WE C ONDONE THE DELAY AND THE APPEAL HAS BEEN ADMITTED FOR HEARING. 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AO FOUND THAT THE ASSESSEE TOOK LOANS WORTH RS.37,00,000/- FROM VARIOUS PERSONS DURING TH E YEAR. OUT OF THE ABOVE LOAN CREDITORS, EXCEPT FOR THE LOAN OF RS.1,50,000/- FRO M SRI PAWAN SANGHAI AND OF RS.2,00,000/- FROM THE HUSBANDS HUF, ALL OTHER LAC K THE CREDITWORTHINESS. HENCE, THE UNSECURED LOANS WORTH RS.33,50,000/- PLUS THE INTER EST PAID THEREON OF RS.1,55,104/- WAS ADDED BACK BY THE AO TO THE RETURNED INCOME OF THE ASSESSEE U/S. 68 OF THE I. T. ACT. IN APPEAL, THE LD. CIT(A) GAVE SOME RELIEF TO THE ASSESSEE. AGGRIEVED BY THE SAID ORDER NOW THE REVENUE IS IN APPEAL BEFORE US AGAINS T SUCH RELIEF AND ASSESSEE HAS FILED THE APPEAL AGAINST THE ADDITION SUSTAINED BY HIM. 2 4. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE AT THE OUT SET SUBMITTED THAT THOUGH DURING THE ASSESSMENT PROCEEDINGS THE A O DEPUTED AN INSPECTOR TO MAKE ENQUIRY ABOUT THE CREDITORS AND THE INSPECTOR DULY SUBMITTED HIS REPORT BUT WHILE PASSING THE ORDER IT WAS NOT AT ALL CONSIDERED BY HIM. THIS ISSUE WAS ALSO RAISED BEFORE THE LD. CIT(A) BUT HE HAS ALSO NOT TAKEN INTO CONSIDERATION THE SAID REPORT. HE, THEREFORE, SUBMITTED THAT SINCE THE INSPECTORS REPORT WAS IN FAVOUR OF THE ASSESSEE THERE WAS NO CASE FOR MAKING THE ADDITIONS AND, THEREFORE, THE A DDITION SHOULD BE DELETED IN FULL. 5. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDE R OF THE AO AND SUBMITTED THAT THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND TH AT OF AO BE RESTORED. 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD INCLUDING THE INSPECTORS REPORT AVAILABLE FROM PA GES 1 TO 6 OF THE PAPER BOOK FILED BY THE ASSESEE, WE FIND FORCE IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT INSPECTORS REPORT SHOULD HAVE BEEN DULY CONSIDERED BY THE LOWER AUTHORITIES. HENCE, THE ORDERS PASSED BY THE LOWER AUTHORITIES ARE HERE BY SET ASIDE. HOWEVER, WE FEEL THAT SOME CONTENTS OF THIS REPORT NEED FURTHER VERIFICAT ION AT THE END OF THE AO AND FOR THIS PURPOSE THE MATTER IS RESTORED BACK TO HIS FILE. N EEDLESS TO MENTION THAT THE AO WILL PASS A FRESH ORDER AFTER PROVIDING OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE BOTH THE APPEALS OF THE REVE NUE AND THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2.7.2010 SD/- SD/- . .. . . .. .! !! !, , , , # . . . . . . . . , , , , (C. D. RAO) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER ( (( (# # # #) )) ) DATED : 2ND JULY, 2010 !/0 %&12 %3! JD.(SR.P.S.) . 4 -%%5 65(7- COPY OF THE ORDER FORWARDED TO: 1. +, /APPELLANT - ACIT, CIRCLE-2, JALPAIGURI 2 -+, / SMT. SHEILA KALYANI, PROP. M/S. NITYA PICTURES, D INBAZAR, PO & DIST. JALPAIGURI. 3. %.&/ THE CIT, JALPAIGURI 4. %.& ()/ THE CIT(A), JALPAIGURI 5. !>% -%& / DR, KOLKATA BENCHES, KOLKATA 5 -%/ TRUE COPY , .&?/ BY ORDER , @ '2 / DEPUTY REGISTRAR .