Arijit Dutta, Paschim Medinipur V. Addl. CIT, Range - 1, Midnapore, Paschim Medinipur

ITA 41/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83201 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 01-08-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 09-01-2012
• Court: TRIBUNAL
• Department Lawyers: K K TRIPATHI
• Assessee Lawyers: K L BHOWMICK
• Keywords: Business income
• Section: 143(3); 142(1); 147; 148

Judgement Text

, SM C , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA ( ) BEFORE , ) [BEFORE SHRI MAHAVIR SINGH, JM] / I.T.A NO S . 4 1 & 42 /KOL/20 1 2 / ASSESSMENT YEAR S : 2006 - 07 & 20 0 7 - 0 8 ARIJIT DUTTA (PAN:ADQPD7831B) VS. ADDL. COMMISSIONER OF INCOME - TAX, RANGE - 1, MIDNAPORE ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 2 4 . 11 .201 4 DATE OF PRONOUNCEMENT: 26 . 1 1 .201 4 FOR THE APPELLANT : SHRI K. L. BHOWMICK, ADVOCATE FOR THE RESPONDENT : SHRI K. K. TRIPATHI , JCIT, SR. DR / ORDER BOTH THESE APPEAL S BY ASSESSEE ARE ARI SING OUT OF SEPARATE ORDER S OF CIT(A) - X XXV I , KOLKATA IN APPEAL NO S . 929 & 930 /CIT(A) - XX XVI/KOL/R - 1,MID./09 - 10 BOTH DATED 0 2 . 11 .201 1 . ASSESSMENT S W ERE FRAMED BY ADDL.CIT, RANGE - 1, MIDNAPORE U/S. 14 7/143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR S 2006 - 07 AND 200 7 - 0 8 VIDE HIS SEPARATE ORDER S BOTH DATED 24 .1 2 .20 0 9 . 2 . THE FIRST COMMON ISSUE I.E. LEGAL ISSUE THAT THE ADDL. CIT, RANGE - 1, MIDNAPORE HAS NOT ISSUED NOTICE U/S. 143(2) OF THE ACT TO COMPLETE THE ASSESSMENT U/S. 147 READ WITH SECTION 143(3) OF THE ACT. 3 . BRIEFLY STATED FACTS ARE THAT THE ASSESSEE FOR ASSESSMENT YEARS 2006 - 07 AND 2007 - 08 FILED ITS RETURN OF INCOME ON 18.10.2006 AND 29.10.2007 RESPECTIVELY. THESE RETURNS WERE PROCESSED U/S. 143(1) OF THE ACT AND ASSESSEE WAS DOING BUSINESS UNDER PROPRIETORS HIP CONCERN OF WHOLESALE TRADING OF CONSUMER GOODS AND CIGARETTE UNDER THE NAME AND STYLE OF M/S. G. S. TRADING. SUBSEQUENTLY, FOR BOTH THE YEARS , ASSESSMENT S W ERE REOPENED BY ISSUING NOTICE U/S. 148 OF THE ACT ON 27.05.2008. LATER ON, THE MATTER WAS SEL ECTED FOR SCRUTINY AND NOTICES U/S. 143(2) OF THE ACT DATED 21.07.2008 WERE ISSUED AND DULY SERVED 2 ITA NO S . 41 & 42 /K/2012 ARIJIT DUTTA AY 2006 - 07 & 2007 - 08 ON THE ASSESSEE BY ITO, WD - 1(1), MIDNAPORE. SUBSEQUENTLY, THE JURISDICTION WAS TRANSFERRED U/S. 120 OF THE ACT BY CIT, KOL - XIX VIDE ORDER NO. 151/09 - 10 DATE D 21.01.2010 TO ADDL. CIT, RANGE - 1, MIDNAPORE, WHO BECAME THE AO OF THE ASSESSEE FOR AY 2006 - 07 AND 2007 - 08. ACCORDINGLY, ADDL. CIT, RANGE - 1, MIDNAPORE ISSUED NOTICE U/S. 142(1) OF THE ACT DATED 13.11.2009 AND COMPLETED ASSESSMENT FOR BOTH THE ASSESSMENT YEARS. AT THE FIRST INSTANCE, IT IS TO BE NOTED THAT NOTICES U/S. 143( 2 ) WERE ISSUED IN BOTH THE YEARS BY ITO, WARD - 1(1), MIDNAPORE AND FURTHER NOTICE U/S. 142(1) WAS ISSUED BY THE JURISDICTIONAL AO I.E. ADDL. CIT, RANGE - 1, MIDNAPORE. IN TERM OF THE ABOV E, I FIND NO INFIRMITY IN THE ORDER OF CIT(A) CONFIRMING THE JURISDICTIONAL ISSUE IN FAVOUR OF REVENUE AND AGAINST THE ASSESSEE. WE CONFIRM THE ORDER OF CIT(A) AND THIS ISSUE OF ASSESSEE S APPEAL IS DISMISSED. 4. COMING TO MERIT IN ITA NO. 41/KOL/2012 FOR AY 2006 - 07. BRIEF FACTS ARE THAT THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTICED THAT THE ASSESSEE S WIFE HAS MADE FIXED DEPOSIT JOINTLY WITH HUSBAND FOR AN AMOUNT OF RS.1.5 LAC WITH PNB, MIDNAPORE BRANCH. THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS ACCEPTED THAT THE SOURCE OF FDR IS OUT OF ASSESSEE S BUSINESS INCOME AND ASSESSEE S WIFE HAS NOTHING TO DO WITH THE SAME. ASSESSEE VIDE LETTER DATED 22.12.2009 ACCEPTED THAT THIS INCOME SHOULD BE CLUBBED WITH HIS INCOME FOR THE ASSE SSMENT YEAR CONCERNED. THIS FDR WITH MIDNAPORE BRANCH WAS MADE ON 16.06.2005 VIDE FDR NO.7274 WITH PNB, MIDNAPORE BRANCH. THE ASSESSEE VIDE LETTER DATED 22.12.2009 CLEARLY ADMITTED THAT I HAVE NO OBJECTION IF THE FIXED DEPOSIT NO. 7274 OF RS.1.5 LACS WI TH EFFECT FROM 16.06.2005 IN THE NAME OF MY WIFE MRS. SAMPA DUTTA MAY BE ADDED TO MY RETURN OF INCOME BECAUSE THIS INVESTMENT IS OUT OF MY SOURCE OF INCOME. AS THE ASSESSEE ADMITTED THIS , THE AO MADE ADDITION. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO ALSO CONFIRMED THE ACTION OF THE AO. AGGRIEVED, NOW ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL . I FIND NO INFIRMITY IN THE ORDER OF CIT(A) CONFIRMING THE ADDITION, AS THE ASSESSEE HIMSELF ADMITTED THE ADDITION. HENCE, I CONFIRM THE ORDER OF CIT(A). THIS ISSUE OF ASSESSEE S APPEAL IS DISMISSED. 5. COMING TO MERIT IN ITA NO. 42/KOL/2012 FOR AY 2007 - 08. I HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE AO HAS MADE ADDITION ON ACCOUNT OF LOW HOUSEHOLD WITHDRAWAL OF RS. 1 LAC. THE ASSESSEE S WITHDRAWAL WAS RS.48,000/ - FOR HOUSEHOLD PURPOSES AND NEITHER AO NOR CIT(A) HAS 3 ITA NO S . 41 & 42 /K/2012 ARIJIT DUTTA AY 2006 - 07 & 2007 - 08 BROUGHT ON RECORD WHAT WAS THE EXPENDITURE WHICH PROMPTED HIM TO MAKE THIS ADDITION OF RS. 1 LAC. I FIND THAT THE CIT(A) HA S RESTRICTED THE ADDITION OF LOW HOUSEHOLD WITHDRAWAL AT RS.50,000/ - AS AGAINST R S. 1 LAC MADE BY AO BUT I FIND NO REASON TO CONFIRM THE SAME. ACCORDINGLY, THIS ADDITION IS DELETED. THIS ISSUE OF ASSESSEE S APPEAL IS ALLOWED. 6 . IN THE RESULT, APPEAL O F ASSESSEE IN ITA NO. 41/KOL/2012 IS DISMISSED AND ITA NO. 42/K/2012 IS PARTLY ALLOWED . 7 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 6 . 1 1 . 2 0 1 4 S D / - , (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2 6 T H NOVEMBER , 201 4 JD.(SR.P.S.) - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT SHRI ARIJIT DUTTA, PROP. OF M/S. G. S. TRADING, COLONELGOLA, P.O. MIDNAPORE, DIST PASCHIM MIDNAPORE, PIN - 721 101 2 / RESPONDENT ADDL. CIT, RANGE - 1, MIDNAPORE . 3 . ( )/ THE CIT(A), KOLKATA 4. 5. / A CIT KOLKATA / DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, / BY ORDER, /ASSTT. REGISTRAR .