Dipu Chakraborty, Howrah V. ITO, Ward - 46(3), Kolkata

ITA 2664/KOL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5178 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 24-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MIRAJ D SHAH AR SH SUP
• Keywords: Peak credit; Set aside
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA C BENCH, KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI ABY. T. VARKEY, JUDICIAL MEMBER] I.T.A. NO. 2664/KOL/2018 ASSESSMENT YEAR: 2010-11 DIPU CHAKRABORTY...............................................................................................................APPELLANT [PAN: AFAPC 1987 M] VS. ITO, WARD-46(3), KOLKATA..............................................RESPONDENT APPEARANCES BY: SH. MIRAJ D. SHAH, A/R, APPEARED ON BEHALF OF THE ASSESSEE. SH. SUPRIYOPAL, JCIT, SR.DR APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JANUARY 16 TH , 2020 DATE OF PRONOUNCING THE ORDER : FEBRUARY 19 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)-14, KOLKATA [CIT(A) FOR SHORT] DATED 25.10.2018 U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT) FOR AY 2010-11. 2. AFTER HEARING RIVAL CONTENTIONS WE FIND, THAT THE ONLY ISSUE THAT ARISES FOR ADJUDICATION, IS THE CALCULATION OF PEAK CREDIT. THE LD. CIT(A) HAS BROUGHT OUT THE CALCULATION AS SUBMITTED BY THE ASSESSEE AS FOLLOWS: CALCULATION OF PEAK CREDIT :- PEAK BALANCE FOR THE YEAR - RS. 29,84,190/- LESS: OPENING BALANCE - RS. 7,04,083/- PEAK FOR THE YEAR - RS. 22,80,107/- INCOME DISCLOSED IN IDS - RS. 19,91,000/- INCOME DISCLOSED IN ITR - RS. 4,12,864/- RS. 24,03,864/- 3. THEREAFTER HE ARRIVED AT A PEAK CREDIT, WITHOUT GIVING ANY CREDIT TO THE OPENING BALANCE OF 7,04,083/-. 4. THE CLOSING CASH BALANCE OF THE PREVIOUS YEAR IS THE OPENING BALANCE OF THE CURRENT YEAR AND THIS HAS TO BE DEDUCTED FROM THE CALCULATION OF PEAK CREDIT FOR THE CURRENT YEAR. THIS HAS NOT BEEN DONE. HENCE, WE HOLD THAT THE AMOUNT OF 7,04,083/-, 2 I.T.A. NO. 2664/KOL/2018 ASSESSMENT YEAR: 2010-11 DIPU CHAKRABORTY. WHICH IS THE OPENING BALANCE AS ON 01.04.2019 HAS TO BE DEDUCTED FROM THE PEAK BALANCE CALCULATED FOR THE YEAR OF THE AXIS BANK ACCOUNT. THE ASSESSEE SUBMITTED THE FOLLOWING CALCULATION OF PICK CREDIT: CALCULATION OF PEAK CREDIT PEAK BALANCE FOR THE YEAR IN THE AXIS BANK ACCOUNT 29,84,190/- LESS: OPENING BALANCE AS AT 01.04.2009 7,04,083/- PEAK FOR THE YEAR OF THE AXIS BANK ACCOUNT 22,80,107/- 5. WE SET ASIDE THIS CASE TO THE FILE OF THE AO WITH THE DIRECTION TO ADOPT THE ABOVE 22,80,107/- AS PEAK CREDIT AFTER VERIFICATION. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. KOLKATA, THE 19 TH FEBRUARY, 2020. SD/- SD/- [ABY T. VARKEY] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 19.02.2020 BIDHAN COPY OF THE ORDER FORWARDED TO: 1. DIPU CHAKRABORTY, VILL.-KHALORE, P.O. BAGNAN, HOWRAH-700 303. 2. ITO, WARD-46(3), KOLKATA. 3. CIT(A)-14, KOLKATA. (SENT THROUGH E-MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH E-MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES