1 ITA NO. 215 /RAN/ 201 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 215 /RAN/201 6 A .Y. : 20 09 - 20 10 SRI BASANT NARAYAN MAHTO, QTR. NO.B - 24/50, RAJRAPPA PROJECT, RAMGARH CA NTT., RAMGARH V S ITO WARD - 2( 3 ), RAMGARH P AN NO. : A MBPM 5114 E (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI S.K.PODDAR & DEVESH PODDAR, ADV. REVENUE BY :SHRI P.K.MONDAL , JCIT DATE OF HEARING : 2 5 . 05 .201 8 DAT E OF PRONOUNCEMENT : 28.05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT ( A ) , HAZARIBAG , DATED 18.03.2016 , FOR THE ASSESSMENT YEAR 20 09 - 2010 . 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE IN THIS APPEAL ARE AS UNDER : - 1 . FOR THAT LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 32,98,224/ - MADE BY LD. AO ON THE GROUND THAT BANK DEPOSITS WERE MORE THAN THE TOTAL SALE DISCLOSED. IN THE REMAND REPORT SUBMITTED BY LD. AO IT WAS POINTED OUT THAT THE TOTAL DEPOSIT IN THE BANK ACCOUNT WAS ACTUALLY 43,92,679/ - . HOWEVER, LD. CIT(A) CONFIRMED THE ORIGINAL FIGURE WHICH HAD A ARITHMETIC MISTAKE. 2 . FOR THAT THE DEPOSITS IN THE BANK ACCOUNT INCLUDE ADVANCE RECEIVED FROM CUSTOMERS AGAIN ST WHICH COAL WAS SUPPLIED IN SUBSEQUENT YEARS. FURTHER, THE DEPOSIT IN THE BANK ACCOUNT WERE MADE FROM SALE PROCEED OF THE COAL AGAINST WHICH PURCHASES WERE MADE, IN OTHER WORDS, DEPOSITS MADE CANNOT BE CONSIDERED AS 2 ITA NO. 215 /RAN/ 201 6 INCOME AT BEST THE TOTAL MAY BE CONSID ERED AS TURNOVER OF THE APPELLANT AND REASONABLE RATE OF PROFIT MAY BE APPLIED. 3 . FOR THAT ADDITION OF THE DEPOSITS MADE BY LD. CIT(A) NEED TO BE MODIFIED AS PER REMAND, REPORT OF THE ASSESSEE. THE DEPOSIT SO MADE IS TO BE REDUCED BY RS.11,51,000/ - BEING NE T ADVANCE RECEIVED FROM CUSTOMERS AND THE BALANCE AMOUNT MAY BE CONSIDERED AS TURNOVER ON WHICH A PROFIT MAY BE ESTIMATED. THIS WE SAY TO AVOID FURTHER LITIGATION AND TO HAVE PEACE OF MIND. 4 . FOR THAT LD. A.O. WAS NOT JUSTIFIED IN CHARGING INTEREST U/S 234A AND 234B ON THE ASSESSED INCOME. INTEREST SHOULD BE CHARGED ON THE RETURNED INCOME FOLLOWING THE DECISION OF HON'BLE JHARKHAND HIGH COURT. 5. FOR THAT OTHER GROUNDS IN DETAIL WILL BE ARGUED AT THE TIME OF HEARING. 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE DERIVES INCOME FROM COAL TRADING AND FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2009 - 2010 ON 31.032010 WITH TOTAL INCOME OF RS. 2,44,282/ - AND THE RETURN OF INCOME WAS DULY PROCESSED U/S.143(1) OF THE ACT AND THE CASE WAS SELECTED FOR SCR UTINY UNDER CASS. SUBSEQUENTLY, NOTICE U/S.143(2) & 142(1) OF THE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE, THE AR OF THE ASSESSEE APPEARED FROM TIME TO TIME AND PRODUCED BANK STATEMENT AND BALANCE SHEET ETC. AND CASE WAS DISCUSSED . THEREAFTER THE AO COMPLETED THE ASS ESSMENT AND MADE VARIOUS ADDITION S ON ACCOUNT OF UNDISCLOSED INCOME AND EXCESS ASSETS OVER LIABILITIES AND ASSESSED TOTAL INCOME AT RS. 36,25,682/ - AND PASSED ORDER U/S.143(3) OF THE ACT, DATED 2 7 .12.2011 . 4 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE SUBMISSIONS MADE BEFORE THE AO. THE 3 ITA NO. 215 /RAN/ 201 6 CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE AND THE FINDINGS OF AO, PARTL Y ALLOWED THE APPEAL OF THE ASSESSEE. 5 . AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 6 . LD. AR BEFORE US ON THE FIRST DISPUTED ISSUE SUBMITTED THAT THE DEPOSITS IN THE BANK ACCOUNT INCLUDE ADVANCE RECEIVED FRO M CUSTOMERS AGAINST WHICH COAL WAS SUPPLIED IN SUBSEQUENT YEARS HOWEVER THE CIT(A) WITHOUT CONSIDERING THE SAME, HAS CONFIRMED THE ADDITION WHICH RESULTED INTO AN ARITHMETIC MISTAKE. ON THE SECOND DISPUTED ISSUE THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE DEPO SIT S SO MADE IS TO BE REDUCED BY RS.11,51,000/ - BEING NET ADVANCE RECEIVED FROM CUSTOMERS AND THE BALANCE AMOUNT MAY BE CONSIDERED AS TURNOVER AND PROFIT MAY BE ESTIMATED AND PRAYED FOR ALLOWING THE APPEAL. 7 . CONTRA, LD.DR RELIED ON THE ORDERS OF L OWER AUTHORITIES. 8 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, ON THE FIRST DISPUTED ISSUE, WE FIND THAT THE CIT(A) HAS OBSERVED THAT THE ASSESSEE HAS FILED DETAILS IN TABULAR FORM IN THE COURSE OF APPEL LATE PROCEEDINGS TO SHOW FROM WHICH BANK ACCOUNT THE AMOUNTS HAVE BEEN WITHDRAWN AND TO OTHER BANK AND ON WHICH DATE THE SAME AMOUNTS HAVE BEEN DEPOSITED, WHEREAS THE CONTENTION OF LD. AR OF THE ASSESSEE BEFORE US IS THAT THE DEPOSIT IN THE BANK ACCOUNT WERE MADE FROM SALE PROCEED S OF THE COAL AGAINST WHICH PURCHASES WERE MADE, IN OTHER WORDS, DEPOSITS MADE CANNOT BE CONSIDERED AS INCOME AT BEST THE TOTAL DEPOSITS 4 ITA NO. 215 /RAN/ 201 6 MAY BE CONSIDERED AS TURNOVER OF THE ASSESSEE AND REASONABLE RATE OF PROFIT MAY BE APPLIED. ON THE SECOND DISPUTED ISSUE THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS SUBMITTED ALL THE RELEVANT DOCUMENTS AS REQUIRED BY THE AO DURING THE ASSESSMENT PROCEEDINGS. FURTHER, LD. AR BEFORE US PRAYED FOR AN OPPORTUNITY TO SUBSTANTIATE ITS CLAI MS BEFORE THE CIT(A). LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE , THE SUBMISSION OF THE ASSESSEE AND IN THE INTEREST OF SUBSTANTIAL JUSTICE AND FAIRPLAY, WE PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM BEFORE THE CIT(A) AN D REMIT THE MATTER BACK TO THE FILE OF CIT(A), WHO SHALL PASS ORDER AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE IN SUBMITTING THE INFORMAT ION BEFORE THE CIT(A). ACCORDINGLY, THE GROUNDS OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 9 . NEXT GROUND IS WITH RESPECT TO CHARGING OF INTEREST U/S.234A AND 234B OF THE ACT, WHICH IS CONSEQUENTIAL, THEREFORE THE AO IS DIRECTED TO CA LCULATE THE INTEREST ACCORDINGLY. 10 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 28 / 05 /201 8 PRAK ASH KUMAR MISHRA , SR. PS 5 ITA NO. 215 /RAN/ 201 6 COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT SRI BASANT NARAYAN MAHTO, QTR. NO.B - 24/50, RAJRAPPA PROJECT, RAMGARH CANTT., RAMGARH 2. THE RESPONDENT ITO WARD - 2(3), RAMGARH 3. THE CIT(A) CONCERNED 4. CIT , CONC ERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.