ITO, Ward - 49(4), Kolkata, Kolkata V. Smt. Pratima Rani Basak, Kolkata

ITA 2132/KOL/2010

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87657 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2015
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 26-11-2010
• Court: TRIBUNAL
• Department Lawyers: AMITABH CHAU DHURY
• Assessee Lawyers: S JHAJHARIA
• Keywords: Income from undisclosed sources
• Section: 133A

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOLKATA ( ) BEFORE , /AND , ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI SHAMIM YAHYA , AM ] / I.T.A NO. 2 1 32 /KOL/201 0 / ASSESSMENT YEAR : 200 7 - 0 8 INCOME - TAX OFFICER, WD - 49 ( 4 ), KOLKATA. VS. SMT. PRATIMA RANI BASAK (PAN:A GZPB5203F ) ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 27 .01.2015 DATE OF PRONOUNCEMENT: 27 .01.2015 FOR THE APPELLANT: SHRI AMITABH CHAUDHURY, JCIT, SR. DR FOR THE RESPONDENT: SHRI S . JHAJHARIA, CA / ORDER PER SHRI MAHAVIR SINGH, JM : THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF CIT ( A ) - XX XII , KOLKATA IN APPEAL NO. 95 / CIT (A) - X X XII/09 - 10/49(4)/KOL DATED 16 .0 7 .201 0 . ASSESSMENT WAS FRAMED BY ITO, WARD - 49 ( 4 ) , KOLKATA U/S. 14 3(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 200 7 - 0 8 VIDE HIS ORDER DATED 2 3 . 1 2.20 0 9 . 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGAINST THE ORDER OF CIT(A) DELETING THE ADDITION MADE BY AO ON UNDISCLOSED SALE OF RS.26,54,120/ - . FOR THIS, REVENUE HAS RAISED FOLLOWING TWO GROUNDS: 1. LD. CIT(A) HAS ERRED IN HOLDING THAT RS.2,00,000/ - WAS UTILIZED FOR TOTAL PURCHASE AGAINST UNDISCLOSED SALES OF RS.26,54,129/ - , WITHOUT ANY EVIDENCE. 2. THE LD. CIT(A) ERRED IN CALCULATING G.P. @ 20% ON UNDISCLOSED SALE OF RS.26,54,129/ - WHERE THE ASSESSEE HAS ALREADY CLAIMED ALL HER EXPENSES RELATED TO DISCLOSED UNDISCLOSED BUSINESS. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF JEWELLERY. A SURVEY U/S. 133A OF T HE ACT WAS CONDUCTED ON THE BUSINESS PREMISES OF THE ASSESSEE ON 17.03.2008 AND FROM THERE THE VALUE ADDED TAX REGISTER WAS IMPOUNDED AS BJ - 4. DURING THE COURSE OF SURVEY, ONE DOCUMENT MARKED AS ANNEXURE BJ - 12, WHICH IS A NOTE BOOK CONTAINING THE SALE REC EIPTS INCLUDING THOSE RECEIPTS BY WAY OF CASH, CHEQUES OR CREDIT CARDS RECORDED ON DAILY BASIS FROM THE PERIOD 01.04.2006 TILL THE DATE OF SURVEY WAS FOUND AND IMPOUNDED. ANOTHER DOCUMENT ANNEXURE BJ - 9 WHICH IS IN THE FORM OF KACCHA KHATA WAS ALSO IMPOUNDED. 2 ITA NO. 2132 /K/201 0 PRATIMA RANI BASAK AY 200 7 - 0 8 ACC ORDING TO THE AO, THE TOTAL SALE RECEIPT EVEN RECORDED IN ANNEXURE BJ - 13 AND BJ - 39 WERE TO THE TUNE OF RS.26,54,129/ - , WHICH ARE UNDISCLOSED , APART FROM DISCLOSED TURNOVER OF RS.14,40,039/ - . AO MADE ADDITION OF THIS UNRECORDED TURNOVER/SALES OF RS.26,5 4,129/ - AS ASSESSEE S UNDISCLOSED INCOME. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO RESTRICTED THE ADDITION TO THE EXTENT OF RS.2 LACS AS UNDISCLOSED CAPITAL AND PROFIT ON UNDISCLOSED SALES @ 20%, WHICH COMES TO RS.5,30,526/ - BY OBSERVING A S UNDER: THEREFORE, IT IS HELD THAT ONLY THE GROSS PROFIT ON THE UNACCOUNTED SALES SHALL BE TREATED AS ASSESSEE'S UNACCOUNTED INCOME. THE UNACCOUNTED SALES AS DETERMINED BY THE A.O. IN THE ASSESSMENT ORDER WERE TO THE TUNE OF RS.26,54,129/ - . AFTER REDUC ING RS.1500/ - THERE FROM (AS DISCUSSED ABOVE) THE FIGURE OF UNDISCLOSED SALES COMES TO RS.26,62,629/ - . FOR THE YEAR UNDER CONSIDERATION THE ASSESSEE HAD DISCLOSED GROSS PROFIT @ 20% OF THE TURNOVER, THEREFORE, THE GROSS PROFIT ON THE UNDISCLOSED SALES O F THE ASSESSEE COMES TO RS.5,30,526/ - FOR THE YEAR CONSIDERATION. HOWEVER, I ALSO FEEL THAT IN ORDER TO MAKE THE SALES NOT RECORDED IN THE BOOKS OF ACCOUNT BY THE ASSESSEE, SOME CAPITAL MUST HAVE BEEN REQUIRED TOWARDS PURCHASE OF MATERIAL SO SOLD. SINCE THE ASSESSEE'S BUSINESS IS A GOING CONCERN AND THE UNDISCLOSED SALES HAVE BEEN MADE ON DIFFERENT DATES, I CONSIDER AN AMOUNT OF RS.2,00,000/ - TO BE THE UNDISCLOSED SEED CAPITAL EMPLOYED BY THE ASSESSEE TO ACHIEVE SUCH SALES. ACCORDINGLY, THE ADDITION MAD E BY THE A.O. IS CONFIRMED TO THE TUNE OF RS.5,30,526/ - PLUS RS.2,00,000/ - ON ACCOUNT OF SEED CAPITAL FOR ACHIEVE UNDISCLOSED SALES. THUS, THE TOTAL ADDITION IS CONFIRMED TO THE TUNE OF RS.7,39,526/ - . AGGRIEVED, NOW REVENUE IS IN APPEAL BEFORE US. 4. WHEN THE ORDER OF CIT(A) WAS CONFRONTED TO LD. SR. DR, HE COULD NOT STATE WHAT IS THE MISTAKE IN THE ORDER OF CIT(A) , WHICH REQUIRES MODIFICATION. LD. SR. DR COULD NOT SHOW US HOW THE ENTIRE SALE CAN BE CONSIDERED AS INCOME OF ASSESSEE AND CIT(A) HAS RIGHTLY ESTIMATED THE GP @ 20% ON UNACCOUNTED SALES PLUS THE CAPITAL ESTIMATED AT RS.2 LACS BEING UNDISCLOSED CAPITAL EMPLOYED BY THE ASSESSEE TO ACHIEVE SUCH SALES. WE FIND NO INFIRMITY IN THE ORDER OF CIT(A) AND HENCE, THE SAME IS CONFIRMED. APPEAL O F REVENUE IS DISMISSED. 5. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. 6. ORDER IS PRONOUNCED IN OPEN COURT. S D / - S D / - , , (SHAMIM YAHYA) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 27 TH JANUARY, 2015 JD.(SR.P.S.) 3 ITA NO. 2132 /K/201 0 PRATIMA RANI BASAK AY 200 7 - 0 8 - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT ITO, WARD - 49(4), KOLKATA. 2 / RESPONDENT SMT. PRATIMA RANI BASAK, HD - 32/6, SACHINDRALAL SARANI, BAGUIATI, KOLKATA - 700059. 3 . ( )/ THE CIT(A), KOLKATA 4. 5. / CIT KOLKATA / DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, / BY ORDER, /ASSTT. REGISTRAR .