Sri Raj Kumar Ghosh, Murshidabad V. I.T.O.,Ward-42(3), Murshidabad

ITA 211/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9717 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 18-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S M SURANA
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3); 263

Judgement Text

ITA NO. 211/KOL/2020 ASS ESSMENT YEAR: 2014-2015 SHRI RAJ KUMAR GHOSH 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT & SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 211/KOL/2020 ASSESSMENT YEAR: 2014-2015 SRI RAJ KUMAR GHOSH,............................... .................................APPELLANT 59, SARULFA COLONY, BARUA, BELDANGA, DIST. MURSHIDABAD-742189, WEST BENGAL [PAN: ALKPG6172A] -VS.- INCOME TAX OFFICER,................................ ...................................RESPONDENT WARD-42(3), MURSHIDABAD, 39, R.N. TAGORE ROAD, BERHAMPORE, MURSHIDABAD-742101 APPEARANCES BY: SHRI S.M. SURANA, ADVOCATE, FOR THE APPELLANT SHRI VIJAY SHANKAR, CIT, D.R., FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : JULY 02, 2020 DATE OF PRONOUNCING THE ORDER : JULY 02, 2020 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. PRINCIPAL COMMISSIONER OF INCOME TAX-14, KOLKATA DA TED 28.02.2019 PASSED UNDER SECTION 263 OF THE INCOME TAX ACT, 196 1. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION O N 28.08.2015 DECLARING TOTAL INCOME OF RS.2,46,630/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS NOTICED BY THE ASSESSING OFFICE R THAT THE TOTAL CASH DEPOSITS MADE BY THE ASSESSEE IN HIS BANK ACCOUNT W ERE MORE THAN THE TURNOVER OF THE ASSESSEES BUSINESS. SINCE THE ASSE SSEE COULD NOT OFFER ANY EXPLANATION AS REGARDS THE EXCESS CASH DEPOSITS OF RS.26,26,335/- FOUND TO BE MADE IN HIS BANK ACCOUNT INSPITE OF SUFFICIEN T OPPORTUNITY AFFORDED ITA NO. 211/KOL/2020 ASS ESSMENT YEAR: 2014-2015 SHRI RAJ KUMAR GHOSH 2 IN THIS REGARD, THE ASSESSING OFFICER TREATED THE S AME AS UNDISCLOSED TURNOVER OF THE ASSESSEES BUSINESS AND AN ADDITION OF RS.2,10,106/- WAS MADE BY HIM TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF 8% PROFIT OF SUCH UNDISCLOSED TURNOVER IN THE ASSESSMENT COMP LETED UNDER SECTION 143(3) VIDE AN ORDER DATED 09.12.2016. 3. THE RECORD OF THE ASSESSMENT COMPLETED BY THE AS SESSING OFFICER UNDER SECTION 143(3) CAME TO BE EXAMINED BY THE CON CERNED LD. PRINCIPAL CIT. ON SUCH EXAMINATION, HE WAS OF THE VIEW THAT T HE ENTIRE EXCESS CASH DEPOSITS OF RS.26,26,335/- FOUND TO BE MADE IN THE BANK ACCOUNT OF THE ASSESSEE REPRESENTED THE UNDISCLOSED INCOME OF THE ASSESSEE AND IN THE ABSENCE OF ANY EXPLANATION OFFERED BY THE ASSESSEE IN THIS REGARD, THE ASSESSING OFFICER WAS NOT CORRECT TO TREAT THE SAME AS UNDISCLOSED TURNOVER OF THE ASSESSEES BUSINESS AND ADD ONLY TH E NET PROFIT CALCULATED AT 8% OF SUCH UNDISCLOSED TURNOVER TO THE TOTAL INC OME OF THE ASSESSEE. HE ACCORDINGLY TREATED THE ORDER PASSED BY THE ASSESSI NG OFFICER UNDER SECTION 143(3) TO BE ERRONEOUS AS WELL AS PREJUDICI AL TO THE INTEREST OF THE REVENUE AND ISSUED A NOTICED UNDER SECTION 263 TO T HE ASSESSEE TO SHOW- CAUSE AS TO WHY THE ENTIRE AMOUNT OF EXCESS CASH DE POSITS FOUND TO BE MADE IN HIS BANK ACCOUNT SHOULD NOT BE TREATED AS H IS INCOME. THE SAID NOTICE, HOWEVER, WAS RETURNED BACK BY THE POSTAL AU THORITIES UN-SERVED WITH THE REMARK NOT KNOWN. EVEN A NOTICE SERVED B Y THE LD. PR. CIT THROUGH INSPECTOR BY AFFIXTURE FAILED TO INVOKE ANY RESPONSE FROM THE ASSESSEE. THE LD. PRINCIPAL CIT, THEREFORE, PROCEED ED TO PASS AN ORDER UNDER SECTION 263 ON 28.02.2019 EX-PARTE SETTING AS IDE THE ASSESSMENT MADE BY THE ASSESSING OFFICER UNDER SECTION 143(3) WITH A DIRECTION TO THE ASSESSING OFFICER TO MAKE THE ASSESSMENT AFRESH ON THE ISSUE POINTED OUT BY HIM AFTER MAKING THE NECESSARY ENQUIRIES AND VERIFICATION. AGGRIEVED BY THE ORDER OF THE LD. PRINCIPAL CIT PAS SED UNDER SECTION 263, THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE T RIBUNAL. ITA NO. 211/KOL/2020 ASS ESSMENT YEAR: 2014-2015 SHRI RAJ KUMAR GHOSH 3 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS SUBMITTED THAT THERE IS NO CHANGE IN THE ADDRESS OF THE ASSESSEE AND IT IS NOT UNDERSTANDABLE AS TO HOW THE NOTICES STATED TO BE ISSUED BY THE LD. PRINCIPAL CIT UNDER SECTION 263 TO THE ASSESSEE BY POST AS WELL AS BY AFFIXTURE COULD NOT BE RECEIVED BY THE ASSESSEE. HE HAS SUBMITTED THAT SINCE NO NOTICE ISSUED BY THE LD. PRINCIPAL CIT WAS RECEIVED BY THE ASSESSEE, THE ASSESSEE COULD NOT COMPLY WITH THE SA ME AND URGED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO PU T FORTH HIS CASE BY SENDING THE MATTER BACK TO THE LD. PRINCIPAL CIT. K EEPING IN VIEW THE SUBMISSION MADE BY THE LD. COUNSEL FOR THE ASSESSEE , WE ARE OF THE VIEW THAT IT WOULD BE FAIR AND PROPER AND IN THE INTERES T OF JUSTICE THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE OF BE ING HEARD BEFORE THE LD. PRINCIPAL CIT. THE IMPUGNED ORDER OF THE LD. PR INCIPAL CIT PASSED UNDER SECTION 263 EX-PARTE IS ACCORDINGLY SET ASIDE AND THE MATTER IS REMITTED BACK TO HIM FOR DECIDING THE SAME AFRESH A FTER GIVING ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AS UNDE RTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE D UE COMPLIANCE BEFORE THE LD. PRINCIPAL CIT AND SHALL EXTEND ALL THE POSS IBLE COOPERATION IN ORDER TO ENABLE THE LD. PRINCIPAL CIT TO DISPOSE OF THE A PPEAL AFRESH EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 02, 2020 . SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER VIC E-PRESIDENT) KOLKATA, THE 2 ND DAY OF JULY, 2020 COPIES TO : (1) SRI RAJ KUMAR GHOSH, 59, SARULFA COLONY, BARUA, BELDANGA, DIST. MURSHIDABAD-742189, WEST BENGAL ITA NO. 211/KOL/2020 ASS ESSMENT YEAR: 2014-2015 SHRI RAJ KUMAR GHOSH 4 (2) INCOME TAX OFFICER, WARD-42(3), MURSHIDABAD, 39, R.N. TAGORE ROAD, BERHAMPORE, MURSHIDABAD-742101 (3) PR. COMMISSIONER OF INCOME TAX-14, KOLKATA ; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.