M/s Bagrecha Investments, Howrah V. I.T.O.,Ward-34(1), Kolkata

ITA 2209/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5175 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 26-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 143(1); 147; 68; 148

Judgement Text

ITA NO. 2209/KOL/2019 ASSESSMENT YEAR: 2011-2012 M/S. BAGRECHA INVESTMENTS 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 2209/KOL/2019 ASSESSMENT YEAR: 2011-2012 M/S. BAGRECHA INVESTMENTS,......................... ...................................APPELLANT FLAG 8G, B BLOCK, GOKUL APARTMENT, 14, WATKINS LANE, HOWRAH-711101 [PAN: AAHFB5496L] -VS.- INCOME TAX OFFICER,................................ ..........................................RESPONDEN T WARD-34(1), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTIPALLY, E.M. BYEPASS, KOLKATA-700107 APPEARANCES BY: SHRI M.D. SHAH, ADVOCATE, FOR THE APPELLANT SHRI JAYANTA KHANRA, JCIT, SR. D.R., FOR THE RESPON DEN T DATE OF CONCLUDING THE HEARING : JANUARY 14, 2020 DATE OF PRONOUNCING THE ORDER : FEBRUARY 19, 2020 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-10, KOLKATA DA TED 22.07.2019 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE ADDITION OF RS.3,25,332/- MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF UNEXPLAINED CASH CREDIT UNDER SECTION 68 OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHI P FIRM, WHICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATI ON ORIGINALLY ON 16.07.2011 DECLARING ITS TOTAL INCOME AT NIL. ALT HOUGH THE SAID RETURN ITA NO. 2209/KOL/2019 ASSESSMENT YEAR: 2011-2012 M/S. BAGRECHA INVESTMENTS 2 WAS INITIALLY ACCEPTED UNDER SECTION 143(1) OF THE ACT ON 31.12.2011, THE ASSESSMENT WAS SUBSEQUENTLY REOPENED BY THE ASSESSI NG OFFICER UNDER SECTION 147 ON THE BASIS OF INFORMATION RECEIVED FR OM THE DGIT(INV.), KOLKATA SHOWING THAT THE ASSESSEE HAD TRANSACTED IN THE SHARES BY MISUSING THE NMCE PLATFORM. ACCORDINGLY A NOTICE UN DER SECTION 148 WAS ISSUED BY THE ASSESSING OFFICER ON 23.03.2018 AFTER RECORDING THE REASONS. IN RESPONSE TO THE SAID NOTICE, A FRESH RE TURN OF INCOME WAS FILED BY THE ASSESSEE ON 11.04.2018. IN THE ASSESSMENT CO MPLETED UNDER SECTION 143(3)/147 OF THE ACT VIDE AN ORDER DATED 1 2.12.2018, THE ASSESSING OFFICER HELD THAT THE TRANSACTIONS OF COM MODITIES TRADING SHOWN BY THE ASSESSEE WERE NOT REAL AND THE PROFIT FROM COMMODITIES TRADING AS DISCLOSED BY THE ASSESSEE IN THE RETURN OF INCOME AMOUNTING TO RS.3,25,332/- WAS LIABLE TO BE TREATED AS UNEXPLAIN ED CASH CREDIT UNDER SECTION 68. ON APPEAL, THE LD. CIT(APPEALS) UPHELD THE ORDER OF THE ASSESSING OFFICER ON THIS ISSUE. AGGRIEVED BY THE O RDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 3. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THE NIL INCOME DECLARED BY THE ASSESS EE IN ITS RETURN OF INCOME WAS INCLUSIVE OF THE PROFIT OF RS.3,25,332/- FROM COMMODITIES TRADING AND ALTHOUGH THE SAME WAS SHOWN AS REDUCED BY THE ASSESSING OFFICER FROM NIL INCOME IN THE COMPUTATION OF TOT AL INCOME BEFORE MAKING ADDITION OF THE SIMILAR AMOUNT UNDER SECTION 68, THE AMOUNT OF GROSS TOTAL INCOME WAS WRONGLY TAKEN BY HIM AT RS.3 ,25,332/- INSTEAD OF A LOSS OF RS.3,25,332/-. HE HAS INVITED MY ATTENTION TO THE COMPUTATION OF TOTAL INCOME GIVEN BY THE ASSESSING OFFICER AT PAGE 4 OF THE ASSESSMENT ORDER TO POINT OUT THIS MISTAKE AND EVEN THE LD. D. R. HAS NOT DISPUTED THE FACT THAT THERE IS AN ADVERTENT MISTAKE COMMITTED B Y THE ASSESSING OFFICER WHILE COMPUTING THE TOTAL INCOME AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESSEE. I ACCORDINGLY DIRECT THE ASSESSING OFFICE R TO RE-COMPUTE THE ITA NO. 2209/KOL/2019 ASSESSMENT YEAR: 2011-2012 M/S. BAGRECHA INVESTMENTS 3 TOTAL INCOME OF THE ASSESSEE AFTER MAKING THE SAID CORRECTION AND ALLOW THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 19, 2020. SD/- (P.M. JAGTAP) VICE-PR ESIDENT) KOLKATA, THE 19 TH DAY OF FEBRUARY, 2020 COPIES TO : (1) M/S. BAGRECHA INVESTMENTS, FLAG 8G, B BLOCK, GOKUL APARTMENT, 14, WATKINS LANE, HOWRAH-711101 (2) INCOME TAX OFFICER, WARD-34(1), KOLKATA, AAYAKAR BHAWAN POORVA, 110, SHANTIPALLY, E.M. BYEPASS, KOLKATA-700107 (3) COMMISSIONER OF INCOME TAX (APPEALS)-10, K OLKATA; (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.