Ajit Kumar Barat, Bankura V. ITO, Ward - 1, Bankura, Bankura

ITA 34/KOL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62079 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 09-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K R MONDAL
• Assessee Lawyers: SUBHASH CHANDRA SAMANTA
• Section: 40A(3); 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , /AND , . ! . '# ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI C. D. RAO, AM ] $ $ $ $ / I.T.A NO. 34/KOL/2012 %& '( %& '( %& '( %& '(/ // / ASSESSMENT YEAR: 2008-09 AJIT KUMAR BARAT VS. INCOME-TAX OFFICER, WD-1, BANKURA (PAN:ADIPB 9020G) (*+ /APPELLANT ) (,-*+/ RESPONDENT ) DATE OF HEARING: 18.04.2012 DATE OF PRONOUNCEMENT: 18.04.2012 FOR THE APPELLANT: SHRI SUBHASH CHANDRA SAMANTA FOR THE RESPONDENT: SHRI K. R. MONDAL '. / ORDER PER MAHAVIR SINGH, JM ( , , , , ) THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-DURGAPUR IN APPEAL NO. 24/CIT(A)/DGP/2010-11 DATED 28.10.2011. ASSESSMENT WAS FRAMED BY ITO, WARD-1, BANKURA U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTE R REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2008-09 VIDE HIS ORDER DATED 13.07.2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE U/S. 40A(3) OF THE ACT. FOR THIS, ASS ESSEE HAS RAISED FOLLOWING GROUND NO.1: 1. THAT ADDITION OF RS.182,693/- U/S. 40A(3) BY TH E ASSESSING OFFICER IGNORING PAYMENTS MADE EACH TIME BELOW THE PERMISSIBLE LIMIT OF RS.20 ,000/- TO THE REPRESENTATIVE OF THE SUPPLIER CO. HAVING PROPER RECEIPTS ON BACK SIDES O F THE INVOICES SHOULD NOT HAD BEEN MADE AND THE SAME SHOULD NOT HAD BEEN CONFIRMED BY THE HONBLE CIT(A) WHEN DOCUMENTS AND AUTHORITY OF COLLECTION BY THE REPRESENTATIVE W ERE DULY SUBMITTED AND EXAMINED BY HIM AT THE TIME OF HEARING. HENCE, THE ADDITION ON THI S ACCOUNT SHOULD BE DELETED IN FULL. 3. BRIEF FACTS LEADING TO THE ABOVE ISSUE ARE THAT ASSESSEE FILED HIS RETURN OF INCOME ON 22.09.2008 FOR THE RELEVANT ASSESSMENT YEAR 2008-09 . DURING THE COURSE OF SCRUTINY ASSESSMENT, ASSESSING OFFICER ON VERIFICATION OF PU RCHASES MADE FROM JAYA FOOD PRODUCTS THAT SUBSTANTIAL PAYMENTS WERE MADE AGAINST PURCHASE OF GOODS EXCEEDING RS.20,000/- OTHERWISE THAN CROSSED CHEQUE OR CROSSED DEMAND DRAFT IN CONT RAVENTION OF THE PROVISIONS OF SECTION 40A(3) OF THE ACT. THE ASSESSING OFFICER NOTICED T HE FOLLOWING PAYMENTS EXCEEDING RS.20,000/- : SL. NO. PAYMENT DATE NAME OF THE PAYEE AMOUNT PAID PAYMENT MODE 01. 22.05.2007 JAYA FOOD PRODUCTS RS.21944/- CASH 2 ITA 34/K/2012 AJIT KUMAR BARAT. A.Y. 08-09 02. 03. 04. 05. 06. 19.06.2007 21.09.2007 18.12.2007 27.02.2008 20.03.2008 RS.23261/- RS.25000/- RS.63898/- RS.25639/- RS.22951/- RS.182693/- AGGRIEVED AGAINST THE DISALLOWANCE OF RS.1,82,693/- ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONFIRMED THE ACTION OF ASSESSING OFFICER BY STATING THAT ASSESSEE COULD NOT EXPLAIN THAT THIS AMOUNT HAVE BEEN SHOWN TO HAVE BEEN PAID IN ONE DAY BY THE PRINCIPAL OWING TO ITS AUTHORISED REPRESENTATIVES FAILURE TO DEPOSIT IT A T THE PROPER TIME. ACCORDING TO CIT(A), EVEN THE ASSESSING OFFICER HAS NO OPPORTUNITY TO STUDY T HE INVOICE WHICH WERE SUBMITTED BEFORE HIM. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEF FACTS ARE THAT THE ASSESSING OFFICER BASED ON STATEMENT COLLECTED FROM THE SUPPLIER, JAYA FOOD PRODUCTS AND IT WAS ACTUALLY DIFFERENT FROM TH E PAYMENTS COLLECTED BY THEIR AUTHORISED REPRESENTATIVE MR. SUBRATA BHATTACHARJEE BY SIGNING AT THE BACK OF THE INVOICES AND PAYMENTS MADE WERE MUCH BELOW THE PERMISSIBLE LIMIT U/S. 40A (3). XEROX COPY OF THE SAID AUTHORITY GIVEN BY THE SUPPLIER TO MR. SUBRATA BHATTACHARJEE TO COLLECT THE PAYMENTS IN THIS AREA IS SUBMITTED IN ASSESSEES PAPER BOOK. FROM THE DOCUME NTS WE FIND THAT THERE IS ACKNOWLEDGMENT OF COLLECTION OF PAYMENTS DULY GIVEN BY THE SAID RE PRESENTATIVE ON THE BACK SIDES OF THE BILLS AND THE SAME WAS DULY ACCOUNTED BY THE ASSESSEE IN HIS BOOKS OF ACCOUNTS. LEDGER COPY OF THE A/C. OF JAYA FOOD PRODUCTS IS FILED IN ASSESSEE S PAPER BOOK. XEROX COPIES OF THE INVOICES ON THE BACK OF WHICH COLLECTIONS OF PAYMENTS WERE D ULY ACKNOWLEDGED BY THE SAID REPRESENTATIVE ARE ALSO FILED BY ASSESSEE IN HIS PA PER BOOK. THE DETAILS OF AMOUNT IS AS UNDER: DATES OF PAYMENTS INV. NOS. IN BACK OF WHICH PAYMEN TS ACKNOWLEDGED BY THE REPRESENTATIVE AMOUNT 22.05.07 19.06.07 20.06.07 12.07.07 27.08.07 21.09.07 26.09.07 13.10.07 21.11.07 23.11.07 13.12.07 18.12.07 20.12.07 21.12.07 24.12.07 28.12.07 27.02.08 20.03.08 JFP/42 DT. 19.04.07 JFP/101 DT. 05.05.07 JFP/103 DT. 05.05.07 JFP/207DT. 24.05.07 JFP/277 DT. 21.06.07 JFP/362 DT. 21.07.07 JFP/427 DT. 18.08.07 JFP/461 DT. 08.09.07 JFP/515 DT. 19.09.07 JFP/540 DT. 11.10.07 JFP/580 DT. 27.10.07 JFP/633 DT. 19.11.07 JFP/669 DT. 30.11.07 DO JFP/718 DT. 22.12.07 JFP/719 DT. 22.12.07 JFP/837DT. 19.02.08 JFP/963 DT. 25.03.08 17,000.00 11,261.00 15,000.00 15,000.00 17,000.00 18,000.00 10,000.00 16,000.00 15,000.00 9,000.00 8,497.00 16,639.00 19,100.00 18,900.00 15,680.00 19,935.00 18,000.00 19,000.00 279,012.00 3 ITA 34/K/2012 AJIT KUMAR BARAT. A.Y. 08-09 DIFFERENCE IN DATES & AMOUNT OF PAYMENT COLLECTED B Y THE REPRESENTATIVE WITH COS ACCOUNTS STATEMENT MAY BE OCCURRED DUE TO REPRESENTATIVES F AILURE TO DEPOSIT IN HIS CO. DAILY DUE TO DISTANCE. WE FIND FROM THE DETAILS THAT EACH PAYME NT IS BELOW RS.20,000/- AS CLAIMED BY ASSESSEE AND DOCUMENTS FILED BEFORE US. HENCE, WE DELETE THE ADDITION MADE ON THIS ACCOUNT BY INVOKING THE PROVISION U/S. 40A(3) OF THE ACT. ACCO RDINGLY, THE APPEAL OF ASSESSEE IS ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. 5. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- . ! ! ! ! . '# , (C. D. RAO) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( !# !# !# !#) )) ) DATED :18TH APRIL, 2012 /0 %12 3 JD.(SR.P.S.) '. 4 ,5 6'5'7- COPY OF THE ORDER FORWARDED TO: 1 . *+ / APPELLANT SHRI AJIT KUMAR BARAT, KUCHKUCHIA ROAD , P.O. & DT. BANKURA, PIN-722101 2 ,-*+ / RESPONDENT ITO, WARD-1, BANKURA. 3 . .% ( )/ THE CIT(A), KOLKATA 4. 5. .% / CIT KOLKATA 5=> ,% / DR, KOLKATA BENCHES, KOLKATA -5 ,/ TRUE COPY, '.%?/ BY ORDER, 2 /ASSTT. REGISTRAR .