Jayant Masrani(HUF), Kolkata V. ITO, Kolkata

ITA 349/KOL/2023

AI Insights

The case involves an appeal by Jayant Masrani (HUF) against the order of the National Faceless Appeal Centre (NFAC), Delhi, which had upheld the addition of Rs.1,29,347/- to the assessee's income for the Assessment Year 2011-12. The addition was initially made during re-assessment proceedings under section 148 of the Income-tax Act, 1961, following the assessee's declaration of income from other sources, which included commodity and speculation profits. The assessee argued that these profits had already been considered in the revised computation filed during the re-assessment. The Tribunal agreed with the assessee, noting that the income had been duly offered to tax and thus, the addition was redundant.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132682 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-05-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 10-04-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Source of fund; Set aside
• Section: 148; 250

Judgement Text

| आयकर अपीलीय अिधकरण ᭠यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE SHRI SANJAY GARG, HON’BLE JUDICIAL MEMBER & DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 349/Kol/2023 Assessment Year: 2011-12 Jayant Masrani (HUF) 410, Darpan Apartment, Golpark 50A, Purna Das Road Kolkata - 700029 [PAN : AAFHJ4906F] Vs Income Tax Officer, Ward-30(2), Kolkata अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : Shri S. Sadhu, Advocate Revenue by : Shri Vijay Kumar, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 25/05/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 06/06/2023 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This is the appeal preferred by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the ld. CIT(A)”], passed u/s 250 of the Income-tax Act, 1961 (hereinafter the ‘Act’), dated 13/02/2023 for the Assessment Year 2011-12. 2. Though the assessee has raised two grounds, but the effective grievance of the assessee is that the ld. CIT(A) has erred in not deleting the addition of Rs.1,29,442/- without considering the fact that profit from commodities and speculation profit of Rs.1,29,347/- has already been considered as income. 3. At the outset, the ld. Counsel for the assessee submitted that in the re- assessment proceedings carried out after issuing notice u/s 148 of the Act against the returned income of Rs. 1,63,290/-, an addition was made for commodity profit of Rs.1,25,427/- and speculation profit of Rs. 3,967/-. It I.T.A. No. 349/Kol/2023 Assessment Year: 2011-12 Jayant Masrani (HUF) 2 was further submitted that in the original computation of income under the head income from other sources, income was offered at Rs.1,00,489/- which included interest income of Rs.1,124/- and others, gross earning of Rs.99,365/- and this other income comprised of the commodity profit and speculation profit. However, since the last amount was offered to tax, therefore, revised computation was filed and total speculation amount as observed by the Assessing Officer i.e., Rs. 1,29,347/- was offered to tax and, therefore, no addition is called for. 3.1. The ld. D/R vehemently argued and supported the order of the lower authorities. 4. We have heard rival contentions and perused the material placed before us. 5. We notice that the assessee filed the return of income on 31/03/2012, declaring total income of Rs.1,63,290/- which comprised of short term capital gain amounting to Rs.62,801/- and income at Rs.1,00,489/- (interest income of Rs.1,124/-) and other income of Rs.99,365/-. We further notice that subsequent to the information received by the ld. Assessing Officer, notice u/s 148 of the Act was issued and case of the assessee was re- assessed and the assessee was showcaused as to why not the income towards commodity profit of Rs.1,25,427/- and speculation profit of Rs.3,967/- to be not added to the income of the assessee. The assessee filed a revised computation of income but the claim was not accepted by the ld. Assessing Officer and thereafter by the ld. CIT(A). Before us, assessee has drawn our attention to the various details filed before the lower authorities placed in the paper book containing 17 pages. From perusal of these details, I.T.A. No. 349/Kol/2023 Assessment Year: 2011-12 Jayant Masrani (HUF) 3 we notice that in the original return of income, the assessee has shown the income from other sources (other than interest) at Rs.99,365/-. There was no specific head attached with this other income. Thereafter during the course of re-assessment proceedings when the assessee was confronted with the alleged sum of Rs.1,29,442/-, he revised the computation of income and in place of the income from other sources at Rs.99,365/-, speculation amount of Rs.1,29,347/- was offered and due taxes were paid thereon. Under these given facts and circumstances, and considering that the assessee did not state any specific sources of income for Rs.99,365/- in the original return and thereafter included the same as a part of speculation amount of Rs.1,29,347/-, we do not find it justified that the addition of Rs.1,29,347/- is again made in the hands of the assessee when it has already been offered to tax. Hence, we set aside the finding of the ld. CIT(A), delete the addition and allow the ground raised by the assesse. 6. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 6 TH June , 2023 at Kolkata. Sd/- Sd/- (SANJAY GARG) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 06/06/2023 *SC SrPs I.T.A. No. 349/Kol/2023 Assessment Year: 2011-12 Jayant Masrani (HUF) 4 आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent 3. संबंिधत आयकर आयुᲦ / Concerned Pr. CIT 4. आयकर आयुᲦ)अपील (/ The CIT(A)- 5. िवभागीय ᮧितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाडᭅ फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata