Chitto Ranjan Ghosh, Hooghly V. A.C.I.T Cir - 1,Hoogly., Hooghly

ITA 248/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87689 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 06-02-2013
• Court: TRIBUNAL
• Department Lawyers: N O N E
• Assessee Lawyers: ALAKESH KUNDU
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI M. BALAGANES H, AM] I.T.A NO.248/KOL/2013 ASSESSMENT YEAR: 2009-10 CHITTO RANJAN GHOSH VS. ASSISTANT COMMISSIONER OF INCOME-TAX, (PAN: ADIPG4556E) CIRCLE-1, HOOGHLY. ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 03.12.2015 DATE OF PRONOUNCEMENT: 03.12.2015 FOR THE APPELLANT: SHRI ALAKESH KUNDU, ADVOCATE FOR THE RESPONDENT: N O N E ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CWT(A)-XXXVI, KOLKATA VIDE APPEAL NO. 554/CIT(A)-XXXVI/KOL/2011-12/1886 DATED 17.12.2 012. ASSESSMENT WAS FRAMED BY ACIT, CIRCLE-1, HOOGHLY U/S. 143(3) OF THE INCOME T AX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2009-10 VIDE HIS ORD ER DATED 30.12.2011. 2. WE HAVE HEARD THIS MATTER EX PARTE BECAUSE NONE IS PRESENT FOR AND ON BEHALF OF THE REVENUE. REVENUE HAS FILED A PETITION FOR ADJOURNME NT ASKING FOR ADJOURNMENT IN TEN MATTERS. THE REASON GIVEN BY REVENUE IN ITS PETITION DATED 0 2.12.2015 READS AS UNDER: IT MAY KINDLY BE NOTED THAT THE FOLLOWING CASES H AVE BEEN FIXED FOR HEARING ON 03.12.2015 BEFORE THE HONBLE A BENCH OF THE INCOME TAX APPELLATE T RIBUNAL AND THE UNDERSIGNED HAS BEEN NOMINATED AS THE DEPARTMENTAL REPRESENTATIVE FOR TH E CASES. HOWEVER, THE UNDERSIGNED IS NOT IN A POSITION TO RE PRESENT THE CASES BEFORE THE HONBLE TRIBUNAL FOR SOME UNFORCED REASON. THEREFORE, IT IS REQUESTED THAT A SUITABLE ADJOURNM ENT MAY KINDLY BE ALLOWED IN THE INSTANT CASES. WE FIND THAT THE REVENUE IS SEEKING ADJOURNMENT ON FRIVOLOUS GROUND AND THIS IS A REGULAR FEATURE. HENCE, WITHOUT GIVING ADJOURNMENT, AS THE APPEAL IS PENDING SINCE 2013, WE PROCEEDED TO DECIDE IT EX PARTE. 3. GROUND NOS. 1, 2 AND 3 WERE NOT PRESSED. HENCE , THE SAME ARE DISMISSED BEING NOT PRESSED. 2 ITA NO.248/KOL/2013 CHITTO RANJAN GHOSH, AY 2009-10 2 4. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN MAKING ADDITION OF SUNDRY CREDITORS U/S. 68 OF THE ACT. FOR THIS, ASSESSEE HAS RAISED FOLLOWING GROUND NO.4: 4. THAT ADDITION ON ACCOUNT OF SUNDRY CREDITORS U /S. 68, RS.20,55,177/- IS UNLAWFUL, UNTENABLE AND UNJUSTIFIED AS THE ASSESSEE SUPPLIED CONFIRMATION I N LETTER PAD OF PARTIES, BILLS AND ADDRESS DETAILS AND PAYMENTS MADE IN ACCOUNT PAYEE CHEQUE. 5. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS EN GAGED IN THE BUSINESS OF TRADING OF TIMBER. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSEE SUBMITTED A LIST OF SUNDRY CREDITORS AMOUNTING TO RS.20,55,177/- (THIS LIST IS AVAILABLE IN THE ASSESSMENT ORDER AT PAGE 2). ACCORDING TO AO, THE VERIFICATION LETTER ISSUED TO THESE PART IES RETURNED UNSERVED HENCE, HE PRESUMED THAT THESE ARE UNEXPLAINED CASH CREDITS/SUNDRY CREDITORS AND ACCORDINGLY, HE MADE ADDITION. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONFIRMED THE ACTION OF AO IN TREATING THE TRADE CREDITORS AS BOGUS. 6. WE HAVE HEARD LD. COUNSEL FOR THE ASSESSEE AND G ONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THESE ARE SIMPLY TRADE CRED ITORS AND FROM THE VERY NATURE OF FIRMS AND CONCERNS, WHO ARE TRADE CREDITORS, THAT ALL THESE A RE CONSTRUCTION COMPANIES OR TIMBER TRADERS FROM WHOM THE ASSESSEE HAS MADE PURCHASES AND THESE ARE DECLARED AS SUNDRY CREDITORS. THE AO HAS NOT DOUBTED THE PURCHASE DESPITE THE FACT TH AT THE COMPLETE BOOKS OF ACCOUNT AND BILLS AND VOUCHERS WERE PRODUCED BEFORE HIM. THE ASSESSE E PRODUCED COMPLETE BILLS FOR PURCHASE, CONFIRMATION FROM THE PARTIES, LEDGER COPIES, ADDRE SS OF THE CREDITORS, LEDGER COPY OF CREDITORS AND ALSO ALL THE PAYMENTS WERE MADE BY ACCOUNT PAYE E CHEQUES. THE AO HAS NEVER TRIED TO MAKE ANY ENQUIRY INSPITE OF A PLETHORA OF INFORMATION WA S SUPPLIED TO HIM. IN VIEW OF THESE FACTS, WE FIND THAT THE SUNDRY CREDITORS ARE GENUINE AND CANN OT BE ADDED. ACCORDINGLY, WE DELETE THE ADDITION AND ALLOW THIS GROUND OF APPEAL OF ASSESSE E. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 03 RD DECEMBER, 2015 JD. SR. P.S 3 ITA NO.248/KOL/2013 CHITTO RANJAN GHOSH, AY 2009-10 3 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT SHRI CHITTO RANJAN GHOSH, RAMESWARGHAT, NICHUPATTY, PO CHANDANNAGORE, DIST. HOOGHLY, PIN-712136.. 2. RESPONDENT ACIT, CIR-1, HOOGHLY. 3. CIT(A) , KOLKATA 4. CIT , KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .