Chowringhee Holdings (P) Limited, Kolkata V. ITO, Ward-7(4), Kolkata, Kolkata

ITA 2289/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87685 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 31-12-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: K M ROY
• Keywords: Charitable institution
• Section: 80G; 12A

Judgement Text

I.T.A. NO . 2 289 / KOL ./201 4 ASSESSMENT YEAR: 200 8 - 20 0 9 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 2 2 89 / KOL / 20 1 4 ASSESSMENT YEAR : 200 8 - 20 0 9 CHOWRINGHEE HOLDINGS (P) LIMITED, ........... ..... ........... .. .APP ELL ANT 6/7A, A.J.C . BOSE ROAD, KOLKATA - 700 0 17 [ PAN : A ABCC 2134 K ] - VS. - INCOME TAX OFFICER , ........................... ................... ... . RESPONDENT WARD - 7 ( 4 ), KOLKATA , P - 7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, KOLKATA - 700 0 6 9 APPEARANCES BY: SHRI K.M. ROY , C.A. , FOR THE ASSESSEE S HRI RAJESH KUMAR , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : FEBRUARY 2 6 , 2 01 5 DATE OF PRONOUNCING THE ORDER : FEBRUARY 2 6 , 201 5 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESS E E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - VI I I , KOLKATA IN APPEAL NO. 242 / CIT(A) - VIII/KOL/10 - 11 D ATED 3 1 . 10 .201 4 FOR THE ASSESSMENT YEAR 200 8 - 0 9 . 2 . SHRI K.M. ROY, C.A., REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI RAJESH KUMAR , J CIT, SR. D.R. REPRESENTED ON BEHALF OF THE REVENUE. 3 . AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. A .R. THAT IN THE COURSE OF ASSESSMENT THE ASSESSING OFFICER HAD VERIFIED THE SUNDRY CREDITOR M/S. OM CREDITOR (P) LTD. AND M/S. OM CREDITOR (P) LTD. HAD REPORTED BACK THAT THE CLOSING BALANCE FOR THE PERIOD OF ASSESSMENT WAS I.T.A. NO . 2 289 / KOL ./201 4 ASSESSMENT YEAR: 200 8 - 20 0 9 PAGE 2 OF 3 RS.62,208/ - , WHEREAS THE ASSESSEE - COMPANY HAS SHOWN THE CLOSING BALANCE AT RS.1,19,232/ - . IT WAS THE SUBMISSION THAT CONSEQUENTLY THE ASSESSING OFFICER HAD TREATED THE AMOUNT OF R S.57,024/ - AS BOGUS LIABILITY CREATED BY THE ASSESSEE. IT WAS THE SUBMISSION THAT THE SUNDRY CREDITOR M/S. OM CREDITOR (P) LTD. WAS AN OPENING BALANCE. FOR THIS PURPOSE, HE PLACED BEFORE ME THE COPY OF THE BALANCE - SHEET AND PROFIT & LOSS ACCOUNT FOR THE YE AR ENDED 31.03.2007 AND 31.03.2008 WHEREIN EVEN FOR THE YEAR ENDED 31.03.2007 THE SUNDRY CREDITOR BALANCE IS SHOWN AT RS.1,19,232/ - . IT WAS THUS THE SUBMISSION THAT THE SUNDRY CREDITOR BEING AN OPENING BALANCE, NO DISALLOWANCE WAS CALLED DURING THE RELEVANT ASSESSMEN T YEAR. IT WAS THE FURTHER SUBMISSION THAT THE ASSESSEE HAD PAID AN AMOUNT OF RS.25,000/ - TO M/S. GOURIDUTT ISHWARDAS JALAN CHARITABLE TRUST, WHICH IS A CHARITABLE TRUST HAVING REGIST R ATION UNDER SECTION 12A AND 80G OF THE INCOME TAX ACT. IT WAS THE SUBMISSI ON THAT AS THE ASSESSEE WAS UNABLE TO PRODUCE THE RECEIPT BEFORE THE ASSESSING OFFICER, THE SAME HAD BEEN DISALLOWED. IT WAS THE SUBMISSION THAT THIS ISSUE MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER TO GRANT THE ASSESSEE ADEQUATE OPPORTUNITY TO P RODUCE THE RECEIPT TO CLAIM THE DEDUCTION UNDER SECTION 80G. 4. IN REPLY, LD. SR. D.R. VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND LD. CIT(APPEALS). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. ADMITTEDLY THE CREDIT IN THE CASE OF M/S. OM CREDIT PVT. LTD. FOR THE RELEVANT ASSESSMENT YEAR IS AN OPENING BALANCE AND THERE IS NO FRESH TRANSACTION BETWEEN THE ASSESSEE AND M/S. OM CREDIT PVT. LTD. DURING THE RELEVANT ASSESSMENT YEAR. CONSEQUENTLY THE DISALLOWANCE AS MADE BY THE ASSESSING OFFICER CANNOT BE MADE DURING THE RELEVANT ASSESSMENT YEAR. IN ANY CASE, THE ASSESSING OFFICER HAS NOT VERIFIED THE VARIOUS TRANSACTIONS BETWEEN THE ASSESSEE AND M/S. OM CREDIT PVT. LTD. TO HOLD THAT IT IS THE ASSESSEE WHICH IS CLAIMING OF BOGUS SUNDRY CREDITOR. IN THESE CIRCUMSTANCES, THE ADDITION I.T.A. NO . 2 289 / KOL ./201 4 ASSESSMENT YEAR: 200 8 - 20 0 9 PAGE 3 OF 3 MADE BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LD. CIT(APPEALS) STANDS DELETED. IN RESPECT OF THE ADDITION OF RS.25,000/ - PAID TO M/S. GOURIDUTT ISHWARDAS JALAN CHARITABLE TRUST, THIS ISSUE IS RESTORED TO THE F ILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE ITS CASE AND PRODUCE THE RECEIPT IN RESPECT OF THE PAYMENT OF RS.25,000/ - . 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 6 TH FEBRUARY , 201 5 . SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 2 6 TH D AY OF FEBRUARY , 201 5 COPIES TO : (1) CHOWRI NGHEE HOLDINGS (P) LIMITED, 6/7A, A.J.C. BOSE ROAD, KOLKATA - 700 017 (2) INCOME TAX OFFICER, WARD - 7(4), KOLKATA, P - 7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, KOLKATA - 700 069 (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA B ENCHES, KOLKATA LAHA/SR. P.S .