Unichem Industries, Kolkata V. ITO, Ward - 36(4), Kolkata, Kolkata

ITA 2157/KOL/2010

• Counselvise Citation: 215723514 RSA 2010
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2011
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 07-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 02-12-2010
• Court: TRIBUNAL
• Department Lawyers: V A RAJU LD
• Assessee Lawyers: A C GANERIWALA LD ARFCA

Judgement Text

ITA NO.12157/KOL/2010 (SMC-B-MVS) 1 , SMC( B ) IN THE INCOME TAX APPELLATE TRIBUNAL, SMC ( B ) BENCH : KOLKATA BEFORE HONBLE SRI MAHAVIR SINGH, JM () , / I.T.A NO. 2157/KOL/2010 !' / ASSESSMENT YEAR : 2006-07 UNICHEM INDUSTRIES VS. INCOME-TAX OFFICER, PAN:AAAFU6660J WARD 34(3), KOLKATA ($% /APPELLANT ) (&'$%/ RESPONDENT ) $% / FOR THE APPELLANT: ( / SHRI A.C GANERIWALA, LD.AR/FCA &'$% / FOR THE RESPONDENT: ( / SHRI V.A RAJU, LD.DR )* / ORDER , SHRI MAHAVIR SINGH, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE O RDER OF CIT(A)-XX, KOLKATA IN APPEAL NO.386/CIT(A)-XX/WD-34(3)/2008-09/KOL VIDE D ATED 27 TH AUGUST 2010. THE ASSESSMENT WAS FRAMED BY THE ITO, WARD 34(3), KOL KATA FOR THE AY 2006-07 U/S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED T O AS THE ACT) VIDE HIS ORDER DATED 08- 12-2008. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS TH AT THE AO AND CIT(A) HAVE ERRED IN SUSTAINING THE ADDITION MADE BY THE AO U/S.69B ON A CCOUNT OF ALLEGED DIFFERENCE IN THE ASSESSEES SALE ACCOUNT WITH M/S KUNJAL ENTERPRISES & JAYASHREE TEA & INDUSTRIES LTD AT RS.2,11,066/-. FOR THIS ASSESSEE HAS RAISED FOLLOWI NG TWO EFFECTIVE GROUNDS:- 1. THE LD. C. I. T. ) ERRED IN SUSTAINING ADDITIO N U/A 69D RE. 2,11,066/_ REPRESENTING ALLEGED DIFFERENCE IN ASSES SEES SALE ACCOUNT WITH KUNJAL ENTERPRISES & JAYASHREE TEA & INDUSTRIES LTD. ALTHOUGH THERE WAS NO DIFFERENCE AND THE ALLEGED DI FFERENCE WAS FULLY EXPLAINED VIDE DOCUMENTARY EVIDENCES ALREADY ON REC ORD WITH THE AO END THE CXT(A) ERRONEOUSLY REJECTED THE AESEESEE S CONTENTION OF VERIFIABILITY AND RECONCILIATION OF THE ACCOUNT OF THE AECEESEE WITH THE SAID PARTIES ACCOUNTS PROCURED BY AO U/S. 133(6). ITA NO.12157/KOL/2010 (SMC-B-MVS) 2 2. THAT THE LD CIT(A) AND THE AO ERRED IN NOT APPLY ING THEIR MIND RATIONALLY TO THE FACTS END EVIDENCE ON RECORD END HURRIEDLY ASSUMING THAT THE ALLEGED DIFFERENCE OF RS.2,11,866 / REPRESENTED UNDISCLOSED INVESTMENT LIABLE TO ADDITION U/S.69B. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE AS W ELL AS LD.SR. DR AGREED THAT IT IS NOT M/S. JAYSHREE TEA & INDUSTRIES LTD RATHER IT IS THE JAY SHREE CHEMICALS & FERTILIZERS I.E. THE PARTY AND THE AO HAS GONE INTO THE DETAILS OF M /S. JAYSHREE TEA & INDUSTRIES LTD. 4. IN RESPECT OF ANOTHER PARTY, M/S.KUNJAL ENTERPRI SES, LD. COUNSEL FOR THE ASSESSEE STATED THAT ACTUALLY THE PURCHASE OF RS.11,88,034/- MADE BY ASSESSEE FROM THIS PARTY WAS RECORDED IN ITS BOOKS OF ACCOUNT ON 4-4-05 WHEREAS M/S. KUNJAL ENTERPRISES RECORDED SALES AND CORRESPONDING ENTRY WAS MADE IN BOOKS OF ACCOUNT OF THE ASSESSEE IN MAR05 AND ALSO PAID ADVANCE OF RS. 5 LAKH. THIS STATEMENT WAS MADE BY SHRI A.C GANERIWALA, LD.AR/FCA AT BAR. HE STATED THAT THIS DIFFERENCE OF RS.6,88,034/- SHOULD HAVE BEEN CONSIDERED BY THE AO WHILE ADJUDICATING THE ISSUE. WE FIND THAT THIS ISSUE WAS NEVER CONSIDERED BY THE AO I.E. PURCHASE RECORDED BY THE ASSESSEE ON 4-4-05 AT RS.11,88,034/- AND ADVANCE PAYMENT OF RS. 5 LAKH. LD. COUNSEL FOR THE ASSESSEE FAIRLY ADMITTED THAT LET THIS BE EXAMINED BY THE AO AFRESH. ACCORDINGLY, WE SET ASIDE THIS ISSUE TO THE FILE OF AO, WITH THE AGREEMENT OF BOTH THE PARTIES. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSE. )* +,) - , . / 0+ 14-06-2011 ORDER PRONOUNCED IN THE OPEN COURT ON 14-06-2011 SD /- [ , ] MAHAVIR SINGH JUDICIAL MEMBER (0+) DATED :14-06-2011 ITA NO.12157/KOL/2010 (SMC-B-MVS) 3 *PP 12 34 5 /SR.P.S. )* 6 &7 8)7!9- COPY OF THE ORDER FORWARDED TO: 1. $% /APPELLANT- UNICHEM INDUSTRIES 514 MARSHALL HOUSE 33/1 N.S ROAD, KOL-1. 2 &'$% / RESPONDENT : I.T.O WARD 34(3) 18 RABINDRA SARANI , KOL. 3. */ THE CIT, 4. * ()/ THE CIT(A), KOLKATA. 5. A. &/ DR, KOLKATA BENCHES, KOLKATA '7 &/ TRUE COPY , )*,/ BY ORDER , 4 /ASSTT. REGISTRAR