Pralipta Kumar Nanda, Bhubaneswar V. ITO, Ward-2(4), Bhubaneswar

ITA 427/CTK/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5435 (ITAT-CUTTACK)
• Duration Of Justice: 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 08-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: A K ROY
• Keywords: Principle of natural justice; Additional evidence
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 427 /CTK/2016 ASSESSMENT YEAR :2010 - 11 PRALLILPTA KUMAR NANDA, PLOT NO.472, GANDAMUNDA, KHANDAGIRI, BHUBANESWAR. VS. ITO WARD 2(4), BHUBANESWAR. PAN/GIR NO. AAFPN 4304 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI A.K.ROY, AR REVENUE BY : SHRI D.K.PRADHAN , DR DATE OF HEARING : 08 /08 / 2017 DATE OF PRONOUNCEMENT : 10 /08 / 2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, BHUBANESWAR , DATED 23.8.2016 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.21,50,000/ - U/S.68 OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT DURING THE YEAR THE ASSESSEE HAD MADE DEPOSIT OF RS.21,50,000/ - IN THE BANK ACCOUNT WITH ING VY A SYA BANK LTD. HE OBSERVED THAT THERE ARE CASH DEPOSIT OF RS.11,50,000/ - AND CHEQUE DEPOSIT OF RS.10,00,000/ - AGGREGATING TO RS.21,50,000/ - . THE ASSESSEE CLAIMED THAT THESE ARE CONTRACT RECEIPTS AND ONLY 8% OF RS.21,50,000/ - AMOUNTING TO 2 ITA NO.427/CTK/2016 ASSESSMENT YEAR :2010 - 11 RS.1,72,000/ - IS CH ARGEABLE TO TAX. THE ASSESSING OFFICER DID NOT ACCEPT THE EXPLANATION OF THE ASSESSEE AND BROUGHT TO TAX RS.21,50,000/ - U/S.68 OF THE ACT. 4. ON APPEAL BEFORE THE CIT(A), THE ASSESSEE CONTENDED THAT IT HAD RECEIPTS BY CHEQUE OF RS.10,00,000/ - FROM SHRI AK HAYA KUMAR PATRA, WHO CONFIRM ED HAVING PAID THE SUM OF RS.10 LAKHS IN RESPONSE TO NOTICE 133 OF THE ACT. FURTHER, RS.11,50,000/ - WAS RECEIVED FROM 14 PERSONS IN CASH AS UNDER: SI. NO. NAME & ADDRESS AMOUNT DATE OF RECEIPT BY THE APPELLANT. 1. BALUNKESWAR DAS. AT/PO - DATATOTTA SAHI, DIST - PURI 77,000 15/04/2009 2. JAYANTA PATTNAYAK PLOT NO. - 125, BAPUJI NAGAR, BHUBANESWAR 81,200 21/04/2009 3. SURESH DAS SB1 COLONY, KESHURA, JHARAPARA, BHUBANESWAR 92,400 16/05/2009 4 JAYANTA PATTNAYAK PLOT NO. - 125, BAPUJI NAGAR, BHUBANESWAR 81,200 27/05/2009 5 JAYANTA PATTNAYAK PLOT NO. - 125, BAPUJI NAGAR, BHUBANESWAR 81,200 27/05/2009 6 SOMANATH MISHRA AT/PO - DATATOTTA SAHI, DIST - PURI 77,000 29/05/2009 7 JAYANTA PATTNAYAK PLOT NO. - 125, BAPUJI NAGAR, BHUBANESWAR 81,200 04/06/2009 8 I( J.NDRA SATPATHY, 'SHOP NO. 12, KRISHNA HOMEO CLINIC, SIRIPUR, BHUBANESWAR. 92,400 23/06/2009 9 NAMITA SAHOO PLOT NO - 69, DUMDUMA HOUSING BOARD COLONY, BHUBANESWAR - 19 77,000 03/07/2009 10 MANJULATA SAHU PLOT NO.69, DUMUDUMA, H.B. COLONY, BHUBANESWAR. 81,200 21/08/2009 11 ROHIT BHANJ, AT - AIGINIA, PO: DUMUDUMA, KHANDAGIRI, BHUBANESWAR. 80,000 26/08/2009 12. BHOBANI PUHAMN & PRAHULLA BEHERA, AT: 75,000 20.10.2009 3 ITA NO.427/CTK/2016 ASSESSMENT YEAR :2010 - 11 MAECHHELI, PO: MAHIPUR, NAYAGARH 13. KHIRABDHI TANAYA PRADHAN, AT/PO: GANDA - MUNDA, SIRIPUR, BBSR 85,000 28.10.2009 14. ARUP MOHANTY, LABOUR COLONY, UNIT - 3, BBSR 96,000 15.11.2009 5. HE SUBMITTED THAT OUT OF 14 PERSONS, FOUR PERSONS APPEARED BEFORE THE ASSESSING OFFICER, NAMELY SMT. MANJULATA SAHU FROM WHOM RS.81,200/ - WAS RECEIVED, SMT. NAMITA SAHU FROM WHOM RS.77,000/ - WAS RECEIVED, SHR ROHIT BHANJ FROM WHOM RS.80,000/ - WAS RECEIVED AND SHRI INDRA SATPATHY FROM WHOM RS.92,400/ - WAS RECEIVED WHO CONFIRMED HAVING GIVEN THE AMOUNT TO THE ASSESSEE FOR THE CONSTRUCTION OF BOUNDARY WALL AND THEY WERE INCOME TAX ASSESSEE AND PAN NUMBERS WERE SUBMITTED. IT WAS HIS SUBMISSION THAT THE ADDITION SHOULD BE DELETED. 6. THE CIT(A), HOWEVER CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT CREDITWORTHINESS AND GENUINENESS OF ABOVE PERSONS WERE NOT PROVED. 7. BEFORE ME, LD A.R.OF THE ASSESSEE SUBMITT ED THAT HE HAS FILED ADDITIONAL EVIDENCE BEFORE THE TRIBUNAL IN THE PAPER BOOK IN THE FORM OF BANK STATEMENT OF SHRI AKHSHYA KUMAR PATRA, COPY OF CONFIRMATION OF SHRI A.K.PATRA AND PRAYED THAT THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION OF THE ISSUE AFRESH IN THE LIGHT OF THE EVIDENCE NOW FILED BEFORE THE TRIBUNAL. FURTHER, HE SUBMITTED THAT WITH REGARD TO FOUR PERSONS WHO APPEARED BEFORE THE ASSESSING OFFICER AND CONFIRMED HAVING ADVANCED MONEY TO THE ASSESS EE AND ALSO FILED 4 ITA NO.427/CTK/2016 ASSESSMENT YEAR :2010 - 11 THEIR PAN NUMBERS, THEREFORE, THE ADDITION SHOULD BE DELETED . LD A.R. SUBMITTED THAT WITH REGARD TO BALANCE 10 PERSONS FROM WHOM THE ASSESSEE HAD RECEIVED RS.8,90,400/ - SHOULD BE CONFIRMED AS THE ASSESSEE COULD NEITHER PRODUCE THEM BEFOR E THE ASSESSING OFFICER NOR FILE CONFIRMATION FROM THEM 8. LD D.R. SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 9. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE CONSIDERED VIEW THAT SINCE THE ASSESSEE HAS FILED ADDITIONAL EVIDENCE BEFORE THE TRIBUNAL IN THE FORM OF BANK STATEMENT OF STATE BANK OF INDIA, DUMDUMA BRANCH CONFIRMING THE LOAN ETC, BY SHRI A.K.PATRA, IN THE INTEREST OF NATURAL JUSTICE, THE MATTER SHOULD BE RESTORED BACK TO THE ASSESSING OFFICER FOR FRESH ADJUDICATION OF LOAN OF RS.1 0 LAKHS AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 9.1 AS REGARDS TO THE AMOUNT RECEIVED FROM FOUR PERSONS IN CASH, WHO APPEARED BEFORE THE ASSESSING OFFICER AND CONFIRMED HAVING GIVEN MONEY TO THE ASSESSEE AND ALSO FILED THEIR PAN N UMBERS, I AM OF THE CONSIDERED OPINION THAT NO MATERIAL HAS BEEN BROUGHT ON RECORD BY THE ASSESSING OFFICER AFTER EXAMINING THOSE PERSONS TO SHOW THAT THEY COULD NOT HAVE ADVANCED MONEY TO THE ASSESSEE OR THAT THE ADVANCES GIVEN ARE NOT GENUINE. THEREFORE, I DELETE THE ADDITION OF RS.3,30,600/ - FROM FOUR PERSONS. 5 ITA NO.427/CTK/2016 ASSESSMENT YEAR :2010 - 11 9.2 WITH REGARD TO BALANCE AMOUNT OF RS. .8,90,4 00/ - , RECEIVED FROM 10 PERSONS, THE A.R. OF THE ASSESSEE VERY FAIRLY CONCEDED THAT IT SHOULD BE ADDED TO THE INCOME OF THE ASSESSEE. THEREFORE,I CONFIRM THE ADDITION OF RS.8,90,400/ - UNDER SECTION 68 OF THE ACT. 10 . IN THE RESULT, APPEAL FILED BY THE ASSE SSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNC ED IN THE OPEN COURT ON 10 /08 /2017. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 10 /08 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY I TAT, CUTTACK - 1. THE APPELLANT : PRALLILPTA KUMAR NANDA, PLOT NO.472, GANDAMUNDA, KHANDAGIRI, BHUBANESWAR 2. THE RESPONDENT: ITO WARD 2(4), BHUBANESWAR. 3. THE CIT(A) - 2, BHUBANESWAR 4. PR.CIT - 2, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//