M/s Raj Hardware, Burdwan V. I.T.O.,Ward-2(4), Burdwan

ITA 2389/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3681 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-02-2020
• Assessment Year: 2010-2011
• Appeal Filed On: 01-11-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Keywords: Peak credit
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER] I.T.A. NO. 2389/KOL/2019 ASSESSMENT YEAR: 2010-11 M/S. RAJ HARDWARE.............................................................................................................APPELLANT [PAN: AADFR 1349 G] VS. ITO, WARD-2(4), BURDWAN...RESPONDENT APPEARANCES BY: SH. SOUMITRA CHOUDHURY, ADV., APPEARED ON BEHALF OF THE ASSESSEE. SH. JAYANTA KHANRA, JCIT, SR. DR, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : FEBRUARY 26 TH , 2020 DATE OF PRONOUNCING THE ORDER : MARCH 4 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), BURDWAN [CIT(A) FOR SHORT] DATED 23.08.2019 U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT) FOR AY 2010-11. 2. AFTER HEARING RIVAL CONTENTIONS, I FIND THAT THE ONLY GRIEVANCE OF THE ASSESSEE IS THE QUANTIFICATION OF THE UNDISCLOSED SALES. THE AO CONSIDERED ALL THE CASH DEPOSITS IN THE BANK ACCOUNT HELD BY THE ASSESSEE WITH CENTRAL BANK OF INDIA, B.C. ROAD, BURDWAN AS UNDISCLOSED SALES/GROSS RECEIPTS FROM BUSINESS. 3. IN OTHER WORDS, THE TOTAL CREDITS/GROSS DEPOSITS IN THIS BANK ACCOUNT WERE HELD AS UNDISCLOSED SALES AND A PERCENTAGE OF THE UNDISCLOSED SALES HAS BEEN BROUGHT TO TAX AS PROFIT. THE CONTENTION OF THE ASSESSEE IS THAT, THE CASH WITHDRAWALS FROM THIS BANK ACCOUNT AMOUNTING TO 16,47,092/- SHOULD BE REDUCED BY THE GROSS DEPOSITS OF 50,32,783/- AND ONLY THE NET FIGURE SHOULD BE TAKEN AS THE UNDISCLOSED SALE FIGURE, AS OTHERWISE IT WOULD GIVE A DISTORTED FIGURE. HE WANTED THE PEAK DEPOSIT TO BE TAKEN AS THE UNDISCLOSED SALES. 2 I.T.A. NO. 2389/KOL/2019 ASSESSMENT YEAR: 2010-11 M/S. RAJ HARDWARE. 4. I DO NOT FIND ANY INFIRMITY IN THE CLAIM OF THE ASSESSEE. IT IS WELL SETTLED THAT THE PEAK CREDIT SHOULD BE TAKEN AS THE UNDISCLOSED CREDIT FIGURE AND SUCH PEAK CREDIT SHOULD BE ARRIVED AT BY DEDUCTING THE GROSS CASH WITHDRAWAL FROM THE GROSS CASH DEPOSITS. THUS, I DIRECT THE AO TO CONSIDER THE NET AMOUNT OF 33,85,692/- AS THE UNDISCLOSED SALES IN PLACE OF 50,32,738/-. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART. KOLKATA, THE 4 TH MARCH, 2020. SD/- [J. SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED: 04.03.2020 BIDHAN COPY OF THE ORDER FORWARDED TO: 1. M/S. RAJ HARDWARE, 80, G.T. ROAD, BURDWAN, WEST BENGAL-713 101. 2. ITO, WARD-2(4), BURDWAN. 3. CIT(A), BURDWAN. 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH E-MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES