Sri Kalyan Kumar Paul, Kolkata V. I.T.O.,Ward-28(1), Kolkata

ITA 215/KOL/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2400 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-06-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 07-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S ANKAR HALDER JCIT LD
• Assessee Lawyers: HARSH BARDHAN BHARDWAJ FCA LD
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : KOLKATA [BEFORE HONBLE SHRI S.S. GODARA, JM ] I .T . A NO. 21 5 /KOL/201 9 A.Y 20 12 - 13 KALYAN KUMAR PAUL V/S. I.T.O., WARD 2 8 (1) , KOLKATA PAN: A FSPP0696J (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI HARSH BARDHAN BHARDWAJ, FCA, LD.AR FOR THE RESPONDENT : SHRI SANKAR HALDER, J CIT, LD. SR. DR DATE OF HEARING : 20 - 06 - 2019 DATE OF PRONOUNCEMENT: 21 - 06 - 2019 ORDER SHRI S.S. GODARA, JM : 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 20 1 2 - 13 ARISE S AGAINST THE CIT(A) , 09 , KOLKATA S ORDER DATED 11 - 12 - 2018 PASSED IN CASE NO . 80/CIT(A) - 9/WD - 28(1)/2014 - 15/KOL INVOLVING PROCEEDINGS U/S 143(3) OF THE I.T ACT , 1961 (IN SHORT ACT) . HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE A SSESSEES SOLE SUBSTANTIVE GRIEVANCE IN THE INSTANT APPEAL SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION S ADDING BROKERAGE INCOME OF RS. 2 , 45 , 587/ - IN SHARE BUSINESS. IT TRANSPIRES AT THE OUTSET THAT ASSESSEE HAS ALREADY DECLARED HIS INCOME IN THE IMMEDIATE A/Y 2013 - 14 . THE RELEVANT CASE I S THAT THE IMPUGNED AMOUNT HAS RIGHTLY BEEN ASSESSED IN THE IMPUGNED ASSESSMENT YEAR 2012 - 13 ON ACCRUAL BASIS. I PROCEED IN THIS BACKDROP OF FACTS TO NOTICE THE ASSESSEES CASE IS THROUGHOUT FROM BROKER, M/S. EUREKA STOCK & SHARE BROKING SERVICES LTD IN F/Y 2012 - 13 RELEVANT TO A/Y 2013 - 14. 2 ITA NO. 21 5 /KOL/2019 SRI KALYAN KUMAR PAUL 2 ITA NO. 215/KOL/2019 SRI KALYAN KUMAR PAUL THE ASSESSEE IS NOT TO RECOGNIZE THE IMPUGNED BROKERAGE INCOME ON ACCRUAL BASIS. I DEEM IT APPROPRIATE TO QUOTE THE HONBLE APEX COURTS LANDMARK DECISION IN THE CASE OF CHAINRUP SAMPATRAM V. CIT REPORTED IN (1953) 24 ITR 481 (S.C) HELD THAT NO PROFITS ARE TO BE TREATED AS INCOME UNTIL THE SAME ARE REALIZED , AND , AT THE SAME TIME AN ANTICIPATED LOSS CAN BE DEDUCTED FROM COMMERCIAL PROFITS GOING BY CONSERVATISM, PRINCIPLE. I CONCLUDE THEREFORE THAT THE ASSESSING OFFICER AS WELL AS THE LEARNED CIT(A) HAVE ERRED IN ASSESSING THE ASSESSEES BROKERAGE INCOME IN THE IMPUGNED ASSESSMENT YEAR ON MERE ACCRUAL PRINCIPLES . THE IMPUGNED ADDITION ACCORDINGLY IS DELETED. 3 . TH IS ASSESSEES APPEAL IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 21 - 0 6 - 2019 SD/ - [ S.S.GODARA ] JUDICIAL MEMBER DATED : 21 - 06 - 2019 **PRADIP, SR. PS C OPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/ ASSESSEE: SHRI KALYAN KUMAR PAUL, 92 PURNA CHANDRA MITRA PLACE, TOLLYGUNGE, KOLKATA - 33. 2 . RESPONDENT/ DEPARTMENT: INCOME TAX OFFICER, WARD 2 8 (1), AAYKAR BHAWAN DAKSHIN, 2 GARIAHAT ROAD (SOUTH), KOLKATA - 68. 3..C.I.T (A) . - 4. C.I.T. - KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSISTANT REGISTRAR H.O.O/D.D.O KOLKATA