Kali Transport Pvt. Ltd., Kolkata V. D.C.I.T.,Circle-10(1), Kolkta

ITA 237/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1582 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-12-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 24-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAUL
• Keywords: Unexplained cash credit; Unexplained expenditure; Income from undisclosed sources; Corroborative evidences; TDS
• Section: 68; 69C; 143(3); 48; 13; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [BEFORE HONBLE SHRI J.S REDDY , AM AND HONBLE SHRI S.S. GODARA, JM I .T . A NO. 2 37/ KOL/20 20 A.Y 20 1 5 - 16 M/S. KALI TRANSPORT PVT. LTD V/S. D.C.I.T, CIR - 10(1), KOLKATA PAN: AADCK3778R (A PPELLANT ) (RESPONDENT) FOR THE APPELLANT/ASSESSEE : SHRI A.K. TIBREWAL, FCA, LD.AR FOR THE RESPONDENT /DEPARTMENT : SHRI SUPRIYO PAUL, ADDL. CIT/DR DATE OF HEARING (VIRTUAL) : 0 3 - 12 - 2020 DATE OF PRONOUNCEMENT : 15 - 12 - 2020 ORDER SHRI S.S. GODARA, JM : 1. TH IS ASSESSEE S APPEAL FOR ASSESSMENT YEAR 20 1 5 - 16 ARISE S AGAINST THE CIT (APPEALS) , 4 , KOLKATA S ORDER DATED 13 - 12 - 2019 PASSED IN CASE NO. 147/CIT(A) - 4/2018 - 19 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT, 1961 IN SHORT THE ACT ) . WE HAVE H EARD BOTH THE PARTIES. CASE FILE PERUSED. 2 . LEARNED AUTHORIZED REPRESENTATIVE SUBMITS DURING THE COURSE OF HEARING THAT THE ASSESSEE ONLY WISHES TO PRESS FOR ITS FROM 6 TO 12 THE SUBSTANTIVE GROUND CHALLENGING CORRECTNESS OF BOTH THE LOWER A UTHORITIES ACTION TREATING IT UNSECURED LOANS OF RS. 1,29,00,000/ - AS UNEXPLAINED CASH CREDIT S U/S. 68 OF THE ACT ( REFERRED TO HEREINAFTER AS THE ACT) AND INTEREST THERE UPON OF RS. 1,13,79,611/ - AS UNEXPLAINED EXPENDITURE U/S. 69C OF THE ACT ; RESPECTIVELY. MR. TIBREWAL VEHEMENTLY ARGUE S THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW IN MAKING BOTH THE ABOVE ADDITIONS THEREBY HOLDING THAT THE ASSESSEE HAD FAILED TO PROVE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE CREDITORS CONCERNED. HE FURTHER INVITED OUR ATTENTION TO ASSESSMENT ORDER DATED 2 ITA NO. 237/KOL/20 AY 2015 - 16 KALI TRANSPORT P.LTD 2 27.12.2017 THAT THE CREDITOR PARTIES HAVE BEEN WRONGLY TREATED AS ACCOMMODATION ENTRY PROVIDERS BY WAY OF PLOUGHING BACK OF ASSESSEES UNACCOUNTED INCOME BEING ROUTED BACK THROUGH PAPERS TRANSACTION ONLY. 3. THE REVENUE S STAND ON THE OTHER HAND RELIES ON BOTH THE LOWER AUTHORIT IES ACTION TREATING THE ASSESSEES UNSECURED LOANS AND INTEREST EXPENDITURE THEREON UNEXPLAINED CASH CREDIT UNEXPLAINED EXPENDITURE (SUPRA) ; RESPECTIVELY. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL SUBMISSIONS. WE FIND THAT THE ASSES SEE HAS FILED BEFORE US VOLUMINOUS PAPER BOOK (S) RUNNING 1 TO 606 PAGES COMPRISING OF L OAN CONFIRMATION S , ITR ACKNOWLEDGEMENTS , TDS CERTIFICATES (FORM 16) , A UDITED ACCOUNTS AS WELL AS MASTER DATA AND COMPILATION OF VARIOUS JUDICIAL PRECEDENTS ; RESPECTIVEL Y. WE NOTICE FROM A PERUSAL OF THE CORRESPONDING DETAILS AT PAGE - 605 OF PB - 4 , THAT THE ASSESSEE HAD AVAILED FRESH UNSECURED LOANS FROM M/S. BLUE CHIP FINANCIAL CONSULTANTS P.LTD (RS. 10,00 , 000/ - ), M/S. LANDMARK COMMODEAL P. LTD . (RS.29,00 , 000/ - ), M/S. ZEVIT COMMOTRADE P.LTD (RS.10,00 , 000/ - ), M/S. RATNANANDAN COMMERCIAL P.LTD (RS.10,00 , 000/ - ), M/S RELIABLE MERCHANDISE P.LTD (RS.50,00,000/ - ) & M/S. ROVER COMMOSALES P.LTD (RS.20,00,000/ - ) ; RESPECTIVELY. IT HAD CLEAR LY MADE RE - PAYMENT OF RS. 57 , 71 , 516 / - , R S. 1 , 38 , 83 , 890 / - , RS. 5 , 48 , 256 / - , RS. 52 , 41 , 772 / - AND RS.4 , 04 , 304 / - TO SAID ENTITIES (EXCEPT THE FIFTY ONE) HAVING OPENING BALANCE (S) OF RS. 1,42,922/ - RS. 92,58,256/ - , RS.61,71,722/ - AND RS.69,09,304/ - ; RESPECTIVELY. CASE FILE ALSO SUGGESTS THAT THE CORRESPONDING CLOSING BALANCE AL SO ACCEPTED BY THE ASSESSING AUTHORITY AS CORRECT AS ON 31/3/2014 AND THE ASSESSEE HAS BEEN ASSESSED U/S. 143(3) OF THE ACT IN AYS 2009 - 10 AND 2012 - 13 AS WELL. THE SAME SUFFICIENTLY INDICATES THAT A SSESSEES HAD BEEN MAINTAINING RUNNING ACCOUNT (S) INVOLVING NOT ONLY FRESH UNSECURED LOANS HAVING CLOSING BALANCE S ALSO THEREFROM SUMS. 5. COUPLED WITH THIS, IT IS NOT IN DISPUTE THAT THE ASSESSEES CASE STAND S ON A VERY MUCH IDENTICAL FOOTING QUA M/S . RELIABLE MERCHANDISE P.LTD SINCE IT HAS PLACED ON RECORD ALL THE CORRESPONDING DETAILS ON THE SAME LINE S ONLY HONBLE JURISDICTIONAL HIGH COURTS DECISION IN CIT VS. DATAWARE P.LTD IN ITAT NO. 263 OF 2011, GA NO. 2856 3 ITA NO. 237/KOL/20 AY 2015 - 16 KALI TRANSPORT P.LTD 3 DATED 21.09.2011 , HOLDS THAT WHY TH E ASSESSEE PLACED ON RECORD ITS EXPENDITURE WITH SUPPORTING EVIDENCE, THE INITIAL ONUS IS ON THE A SSESSING O FFICER TO VERIFY THE NECESSARY DETAILS/PARTY FROM THE CORRESPONDING ASSESSING AUTHORITY HAVING ACCEPTED THE RELEVANT TRANSACTIONS. THE IR LORDSHIP S IN S.K. BOTHRA & SONS,HUF VS. ITO 347 ITR 347 (CAL) ALSO HOLD S THAT IF THE ASSESSEE DISCHARGES HIS/ITS INITIAL ONUS BY FILING DETAILED EXPLANATION ALONG WITH SUPPORTIVE EVIDENCE, IT IS THE DUTY OF THE ASSESSING O FFICER TO CARRY OUT NECESSARY FURTHER INVESTIGATION. CASE LAW IN CRYSTAL NETWORKS P.LTD VS. CIT REPORTED IN 35 3 ITR 171 (CAL) ALSO HOLDS THAT WHEN THE ASSESSEE FILE S ALL NECESSARY EVIDENCES ON RECORD BEFORE THE ASSESSING OFFICER , THEN MERE FAILURE OF THE CREDI T OR PARTY(IES) TO APPEAR CANNOT FORM THE SO BASIS TO INVOKE SEC. 68 OF THE ACT. K EEP ING IN MIND THE DETAILED EVIDENCE AS WELL AS JUDICIAL PRECEDENTS , WE HOLD THAT ONCE THE ASSESSEE HAS DISCHARGED ITS ONUS ON IDENTITY, GENUINENESS AND CREDITWORTHINESS OF RUNNING ACCOUNT & DISCHARGED ITS ONUS QUA CREDIT SIDE OF LOAN AND INTEREST EXPENDITURE THERE UPON BEFORE THE ASSESSING OFFICER, BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN TREATING THE SAME AS UNEXPLAINED CASH CREDITS & UNEXPLAINED EX PENDITURE U/S. 68 & 69C OF THE ACT; RESPECTIVELY . THESE TWO ADDITIONS MADE U/S. 68 & 69C OF THE ACT ARE DIRECTED TO BE DELETED THEREFORE . 6 . THE ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE COURT ON 15 - 12 - 2020 SD/ - SD/ - [ J.SUDHAKAR REDDY ] [ S.S.GODARA ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 15 - 12 - 2020 4 ITA NO. 237/KOL/20 AY 2015 - 16 KALI TRANSPORT P.LTD 4 **PRADIP, SR. PS C OPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/ ASSESSEE: M/S. KALI TRANSPORT PVT. LTD SUITE NO. 835, 8 TH FL., MARSHALL HOUSE, 33/1 NETAJI SUBHAS ROAD, KOLKATA - 1. 2. RESPONDENT/ DEPARTMENT : DEPUTY COMMISSIONER OF INCOME TAX, CIR - 10(1), AAYKAR BHAWAN, P - 7 CHOWRINGHEE SQ., KOLKATA - 69. 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