Balaram Cold Storage P. Ltd., Hooghly V. A.C.I.T.,Circle-23(1), Hooghly

ITA 372/KOL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7771 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 27-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.372/KOL/2019 ASSESSMENT YEAR:2015-16 BALARAM COLD STORAGE P. LTD., C/O S.N.GHOSH &ASSOCIATES, ADVOCATES SEBEN BROTHERSLODGE P.O. BUROSHIBTALA, P.S. CHINSURAH, DIST. HOOGHLY- 712105 [ PAN NO.AABCB 3224 F ] / V/S . ACIT, CIRCLE-23(1), AAYAKAR BHAWAN, HOOGHLY, G.T. ROAD, KHADINA MORE, P.O. CHINSURAH, P.S. CHINSURAH, DIST. HOOGHLY-712101 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SOMNATH GHOSH, ADVOCATE /BY RESPONDENT SHRI SHANKAR HALDER, JCIT,SR-DR /DATE OF HEARING 15-07-2019 /DATE OF PRONOUNCEMENT 24-07-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-15 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-6, KOLKATAS O RDER DATED 10.01.2019 PASSED IN CASE NO.CITA,KOL-6/10230/2017-18, INVOLVING PRO CEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE ISSUE RAISED IN THE INSTANT APPEAL SEEKS TO CHALLENGES BOTH THE LOWER AUTHORITIES IDENTICAL AC TION TREATING THE ASSESSEES UNSECURED LOAN LIABILITY TO THE TUNE OF 14.44 LAC IN CASE OF TWENTY ONE PARTIES CLAIMED AS OUTSTANDING IN THE TAXPAYERS BOOKS TO BE AN INS TANCE OF CESSATION OF LIABILITY U/S. 41(1) OF THE ACT. THERE IS HARDLY ANY DISPUTE THAT THE ASSESSING OFFICER HAD OBSERVED ITA NO.372/KOL/19 A.Y. 2 015-16 BALARAM COLD STORAGE P. LTD. VS. ACIT, C IR-23(1), KOL PAG E 2 IN HIS ASSESSMENT ORDER DATED 26.11.2017 THAT ALL T HE CORRESPONDING CREDITORS AMOUNT(S) HAVE BEEN OUTSTANDING IN THE TAXPAYERS B OOKS FOR MORE THAN FIVE YEARS AND THEREFORE, THE IMPUGNED PROVISION U/S. 41(21) R.W.S . 68 OF THE ACT ARE CLEARLY ATTRACTED. I FIND THAT THERE IS NO EVIDENCE OF ANY CESSATION F ORTHCOMING EITHER FROM ASSESSEES DETAILED PAPER BOOK RUNNING INTO 90 PAGES OR THE AS SESSING OFFICER HAS NOT TAKEN ANY EXERCISE TO OBSERVE THAT THE BOOKS IN ISSUE HAVE ST ATED ANY CESSATION OR REMISSION OF LIABILITYPART OF THE CONCERNED CREDITORS. I QUOTE H ON'BLE APEX COURTS DECISION IN CIT VS. SUGAULI SUGAR WORKS (P) LTD. (1999) 236 ITR 518 (SC) IN THIS BACKDROP TO DELETE THE IMPUGNED CESSATION OF LIABILITY ADDITION U/S. 41(1) OF THE ACT FOR THIS PRECISE ALONE. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 24/07/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 24/07/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-BALARAM COLD STORAGE PVT. LTD., C/O. S.N .GHOSH & ASSOCIATES SEBEN BROTHRS LODGEP.O. BUROSHIBTALA, P.S. CHINSURAH, DIST. HOOGHLY -712105 2. /RESPONDENT-ACIT, CIR-23(1), AAYKAR BHAWAN, HOOGHY G.T. ROAD, KHADINA MORE, P.O. & P.S . CHINSURAH, DIST. HOOGHLY-712101 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ ',