ETI Rani Dey, Hooghly V. ACIT, CIR-1, BWN, Burdwan

ITA 450/KOL/2015

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1334 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 21-04-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SOURAV KUMAR CITSRDR
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 450 / KOL / 20 15 ASSESSMENT YEAR :2009-10 ETI RANI DEY C/O S.N. GHOSH & ASSOCIATES, ADVOCATES SEVEN BROTHERS LODGE, P.O. BUROSHIBTALA, P.S. CHINSURAH, DIST. HOOGHLY, PIN 712105 [ PAN NO.AHLPD 4812 D ] V/S . ACIT, CIRCLE-1, AAYAKAR BHAWAN, COURT COMPOUND, KACHARI ROAD, P.O. BURDWAN SADAR, P.S & DIST. BURDWAN PIN-713101 /APPELLANT .. / RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI SOURAV KUMAR, ADDL. CIT-SR-DR /DATE OF HEARING 14-01-2019 /DATE OF PRONOUNCEMENT 15-03-2019 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-BURDWANS ORDE R DATED 25.02.2015 PASSED IN CASE NO.296/CIT(A)/ASL/ACIT/CIR-1/BWN/111 2, INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES BEHES T. WE THUS PROCEED EX PARTE AGAINST THE ASSESSEE IN THE INSTAN T CASE. 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND RAISED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIE S ACTION ADDING HER ENTIRE ITA NO.450/KOL/2015 A.Y. 200 9-10 ETI RANI DEY VS. ACIT, CRI-1,BWN PAGE 2 CASH DEPOSITS AMOUNTING TO 45.15 LAC AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT. 3. THERE IS NO DISPUTE ABOUT THE BASIC FACT THAT TH E ASSESSEE HAD INDEED MADE THE IMPUGNED CASH DEPOSIT IN HER BANK ACCOUNT. THE SOLE QUESTION BEFORE US AS TO WHETHER SHE HAS SATISFIED THE THREE FOLDED USE OF IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE SAID SEVENT EEN PARTIES AS SOURCE THEREOF OR NOT. THIS ASSESSEE HAS ADMITTEDLY DERIVE D INCOME FROM A PARTNERSHIP FIRM. SHE EXPLAINED BEFORE THE ASSESSIN G OFFICER THAT THE IMPUGNED SUM HAD COME FROM SHRI UTTAM KUMAR DAS, T ANUSI DEY, SK. HASNAT ALI, MANAB ADHIKARY, ASIS GHOSH, JYOTIPRAKAS H DEY, DEBASIS KUNDU, MANORANJAN KUNDU, MANORANJAN KUNDU, ASIT CHOUDHURY, ANONTO GUIN, SK. MOZAFFAR, JOYDEB SOO, OHAB MONDAL, SUSANTA KARMAKAR , RAMESH CHANDRA DAS, PROSANNA SOME, LAXMI NARAYAN MONDAL, BALASH BA NERJEE & ANSAR ALI SEKH; INVOLVING VARIOUS AMOUNTS. WE FIND FROM ASSES SMENT ORDER DATED 27.12.2011 THAT THE ASSESSEE COULD PRODUCE ALMOST A LL OF SAID PARTIES BEFORE THE ASSESSING OFFICER FOR NECESSARY FACTUAL VERIFIC ATION. THE SAID CREDITORS CONFIRMED THE ASSESSEES VERSION REGARDING THE SUM INVOLVED IN THEIR RESPECTIVE CASES. THE ASSESSING OFFICER DECLINED TH E SAID EXPLANATION ON THE GROUND THAT ALMOST ALL OF THEM HAD BEEN ENGAGED IN POTATO BROKERAGE COMMISSION BUSINESS. THEY DID NOT HAVE MEANS TO LEN D SO MUCH MONEY ON CREDIT TO THE ASSESSEE. HE THEREFORE TREATED ASSESS EES CASH DEPOSITS AS UNEXPLAINED LIABLE TO BE ASSESSED U/S. 68 OF THE AC T. THE CIT(A) HAS CONFIRMED THE IMPUGNED IN HIS LOWER APPELLATE PROCE EDINGS. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL CONTENTIONS. LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY CONT ENDS IN SUPPORT OF BOTH THE LOWER AUTHORITIES ACTION TREATING ASSESSEES C ASH DEPOSITS TO BE ENTIRELY UNEXPLAINED. WE FIND NO REASON TO DISAGREE WITH THE IMPUGNED ADDITION IN ENTERITY. BOTH PARTIES PLEADINGS IN THE CASE FILE SUGGEST THAT THIS ASSESSEE HAS BEEN ABLE TO PRIMA FACIE PROVE TO BE ENGAGED IN POTATO BONDS TRANSACTIONS ITA NO.450/KOL/2015 A.Y. 200 9-10 ETI RANI DEY VS. ACIT, CRI-1,BWN PAGE 3 AND SIMULTANEOUS BUSINESS DEALINGS WITH VARIOUS CRE DITORS ENGAGED IN POTATO BROKERAGE BUSINESS. ALL THIS IS SUFFICIENTLY INDICA TIVE OF THE FACT THAT ASSESSEES CASH DEPOSITS ARE IN THE NATURE OF POTATO DEALING T RANSACTIONS ONLY. WE THEREFORE ARE OF THE VIEW THAT ASSESSEES ENTIRE CA SH DEPOSITS CANNOT BE TREATED AS INCOME SINCE THE SAME MAY ALSO INVOLVE C OST COMPONENT IN HIGHLY UNORGANIZED POTATO BROKERAGE BUSINESS. WE NOTICE FR OM THE CIT(A)S ORDER IN PAGE 15 THAT ASSESSEE HAD FILED SUFFICIENT DETAILS IN THE LOWER PROCEEDINGS REGARDING GATE PASS, ENTRY STORAGE BONDS ETC., OF T HE CORRESPONDING POTATO PRODUCE. WE CONCLUDE IN THESE PECULIAR FACTS AND CI RCUMSTANCES THAT LUMP SUM ADDITION OF THE ESTIMATED PROFIT ELEMENT @ 10% OF 4,51,500/- WOULD MEET THE ENDS OF JUSTICE. WE ACCORDINGLY DIRECT TH E ASSESSING OFFICER TO DELETE THE BALANCE REMAINING ADDITION OF 40,63,500/- WITH A RIDER THAT OUR INSTANT ESTIMATION SHALL NOT BE TREATED AS A PRECED ENT IN ANY OTHER CASE OR ASSESSMENT YEAR; AS THE CASE MAY BE. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN THE OPEN COURT 15/ 03/2019 SD/- SD/- ( %) (' %) (DR.A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP, SR.P.S (- 15 / 03 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ETI RANI DEY, C/O S.N.GHOSH & ASSOCIATES , ADVOCATES SEVEN BROTHERS LODGE, P.O.BUR OSHIBTALA, P.S.CHINSURAH, DIST.HOOGHLY PIN 712105 2. /RESPONDENT-ACIT, CIR-1, AAYAKAR BHAWAN, COURT COMP OUND, KACHARI ROAD, P.O. BURDWAN. SADAR, P.S & DIST BURDWAN PIN-713101 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5. 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ / 3,