Smt. Monalisa Das, Sambalpur V. D.C.I.T, Central Circle, Sambalpur

ITA 256/CTK/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0933 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-10-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 30-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SANJOY CHATTERJEE
• Keywords: Unexplained investment
• Section: 69

Judgement Text

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ु मार, ऱेखा सदस्य के समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.256/C TK/2023 (ननधाारण वषा / Asses s m ent Year : 2017-2 018) Smt. Monalisa Das, Sambal Bhumi Colony, NH-6, Dhankauda, Sambalpur-768101 Vs DCIT, Central Circle, Sambalpur PAN No. :AAUPD 0253 G (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri Sanjoy Chatterjee, CA राजस्व की ओर से /Revenue by : Shri Charan Dass, Sr. DR स ु नवाई की तारीख / Date of Hearing : 09/10/2023 घोषणा की तारीख/Date of Pronouncement : 09/10/2023 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A)-2, Bhubaneswar, dated 31.05.2023, passed in I.T.Appeal No.: Sambalpur/10151/2018-19, for the assessment year 2017-2018. 2. It was the submission by the ld. AR that the assessee is an individual, who is wife of Shri Braja Kishore Das. It was the submission that a search and seizure operation was conducted on M/s BKD Infrastructure Pvt. Ltd., Sambalpur on 03.02.2017. In the course of search, jewellery having value of Rs.38,75,026/- was found in locker No.72 maintained with Allahabad Bank, Sambalpur, which was in the joint name of assessee and Shri Braja Kishore Das. Shri Braja Kishore Das had disclosed an investment in jewellery in the course of search in the ITA No.256/CTK/2023 2 hands of the assessee Smt. Monalisa Das. It was the submission that subsequently, Monalisa Engicon, a partnership firm in which Shri Braja Kishore Das (HUF) and Smt. Monalisa Das had filed an application u/s.245 of the Act on 29.11.2018. It was the submission that the Settlement Commission, Kolkata admitted the said application and passed a final order on 24.09.2019, wherein in para 6.2, the Commission has held as follows :- 6.2 Unaccounted investment in land & jewellery “In this case, the amount of undisclosed investment in land (Rs.45 Lakh) and jewellery (Rs.38 Lakh) and treatment thereof in the cash flow statement in the outflow side having been accepted by the Department in the Rule- Report of the PCIT, Vizag, no further discussion in this respect is considered necessary. The relevant pages in the Rule-9 Report of the PCIT are 28 (paragraph 3.B) and 31 (paragraph 3.D) respectively. 3. It was the submission that the AO when passing the assessment order had recognized that the issue was of the jewellery valued at Rs.38,75,026/- was before the Settlement Commission but on the ground that only an order u/s.245D(4) of the Act had been passed and made addition in the hands of the assessee. Ld. AR drew our attention to page 3 of the assessment order, wherein in the last paragraph, the AO has held as follows :- “An amount of Rs.38,75,026/- was offered for taxation under the head undisclosed investment in jewelry in the hands of the assessee Smt. Monalisa Das in the disclosure statement filed on 5.2.2017 by the key person Sri Braja Kishore Das, which was seized from locker No.72 maintained with Allahabad Bank, Sambalpur which was jointly in the name of the assessee and in the name of Sri Braja Kishore Das. Now same investment has been shown as application of fund/outflow of fund in the hands of Sri Braja Kishore Das in the application made u/s.245C dated 29,.11.2018 which has been admitted to be proceeded with vide order u/s.245D(1) dated 5.12.2018. But it is seen that though the application filed before the Hon’ble Settlement Commission has ITA No.256/CTK/2023 3 been admitted so far no final has been passed u/s.245D(4) of I.T.Act, 1961. In view of this, the undisclosed investment in jewellery of Rs.38,75,026/- is added though shown in the hands of Sri Braja Kishore Das as application of fund in the hands of the assessee for A.Y. 2017-18 by invoking provisions of section 69 of I.T.Act, 1961.” 4. It was the submission that the assessment order was passed on 27.12.2018 on which date admittedly the final order of the Settlement Commission was not available. The said value of the jewellery had been disclosed before the Settlement Commission and the same has also been accepted by the Settlement Commission. It was further submitted that on appeal, the ld. CIT(A) did not consider the submission of the assessee though the assessee very much brought to the attention of the ld. CIT(A). It was the prayer that the addition as made by the AO and as confirmed by the ld. CIT(A) is liable to be deleted. 5. In reply, ld. Sr. DR vehemently supported the orders of the ld. AO and ld. CIT(A). 6. We have considered the rival submissions. A perusal of the assessment order as extracted above, clearly shows that the ld. AO had recognized that the amount of Rs.38,75,026/- representing the value of the jewellery found and seized from the locker No.72 maintained with Allahabad Bank, Sambalpur in the joint name of the assessee and Shri Braja Kishore Das, has been offered by showing the same as application of money/outflow of fund in the application made u/s.245C of the Act before the Income Tax Settlement Commission in the hands of Shri Braja Kishore Das. A perusal of the order of the Settlement Commission at para 6.2 shows that the same has also been accepted by the department ITA No.256/CTK/2023 4 under Rule-9 Report of the Pr.CIT, Vizag and the same has also been accepted by the Settlement Commission, which is evident from the extract as made above. Thus, clearly the value of jewellery representing the addition of Rs.38,75,026/- having been offered in the hands of Shri Braja Kihosre Das as application of funds before the Settlement Commission and the same having been accepted by the Settlement Commission, the addition no more survives in the hands of the assessee. Consequently, the addition made by the AO and as confirmed by the ld. CIT(A) stands deleted. 7. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 09/10/2023. Sd/- (राजेश क ु मार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 09/10/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- Smt. Monalisa Das, Sambal Bhumi Colony,NH-6, Dhankauda, Sambalpur-768101 2. प्रत्यथी / The Respondent- A DCIT, Central Circle, Sambalpur 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यावऩत प्रयत //True Copy//