Sri Subrat Kumar Satpathy, Bhubaneswar V. ITO, Ward-3(5), Bhubaneswar

ITA 452/CTK/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5265 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 22-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: P K MISHRA

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH CUTTACK BEFORE SHRI N.S.SAINI, ACCOUNTANT MEMBER ./ ITA NO. 452 / CTK /20 1 7 ( / ASSESSMENT YEAR : 20 1 3 - 20 1 4 ) SUBRAT KUMAR SATPATHY AT - PLOT N O.183/6, GAJAPATI NAGAR, NEAR PRESS CHHAK, BHUBANESWAR, DIST - KHURDA - 751005 VS. ITO, WARD - 3(5), BHUBANESWAR ./ ./ PAN/GIR NO. : A LMPS 6463 Q ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHR I P. K.MISHRA , AR /REVENUE BY : SHRI D.K.PRADHAN , DR / DATE OF HEARING : 28 / 1 2 /201 7 / DATE OF PRONOUNCEMENT 29 / 12 /201 7 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER O F THE CIT(A) - 2 , B H UBANESWAR , DATED 27 .7.2017 . 2. THE SOLE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS THAT THE CIT(A) IS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 6,15,957/ - TREATING AS INCOME FROM UNEXPLAINED SOURCE S. 3. BRIEF FACTS OF THE CASE ARE THAT THE A O OBSERVED THAT THERE WAS CASH DEPOSIT OF RS. 20,27,910/ - IN THE FOUR BANK ACCOUNT OF THE ASSESSEE AS UNDER : - NAME OF THE BANKS AMOUNT UCO BANK 5,00,000/ - AXIS BANK 6,71,000/ - HDFC BANK 7,36,910/ - KARNATAKA BANK 1,20,000/ - TOTAL 20,27,910/ - ITA NO. 452 /CTK/201 7 2 THE ASSESSEE EXPLAINED THAT IT HAD RECE IVE D TA ADVANCE O F RS.5,47,000/ - FROM M/S A.B. METTALICS PVT. LTD. AND RS.4,34,000/ - FROM M/S A.B. COMMERCIALS AGGREGATING TO RS.9,81,000/ - IN CASH WHICH WAS DEPOSITED IN HIS BANK ACCOUNT. THE AO CALLED FOR CONFIRMATION AND DETAILS FROM THE SAID TWO C ONCERNS OF THE ASSESSEE. M/S AB METTAL ICS PVT. LTD. COULD SUBMIT BILLS , VOUCHERS TICKETS OF AIR FARE AND TRAIN, HOTEL BILLS ETC. OF RS.3,65,403/ - . THE AO, THEREFORE, HELD THAT CASH DEPOSIT OF RS.3,65,403/ - WAS EXPLAINED AND ADDED RS.6, 52 , 507/ - AS UNEXPLAINED INCOME OF THE ASSESSEE. 4. BEFORE THE CIT(A), THE ASSESSEE SUBMITTED THAT THE A O IGNORED THE AUDIT REPORT OF M/S AB COMMERCIAL SUBMITTED BEFORE HIM AT TH E TIME OF ASSESSMENT, IN WHICH THERE ARE CASH WITHDRAWAL S OF RS.17,11,305/ - FROM OPE NING CAPITAL BALANCE OF RS.34,47,831/ - . THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE HELD THAT IT WAS SEEN THAT OUT OF TA ADVANCE OF RS.5,47,000/ - CLAIMED TO HAVE BEEN RECEIVED FROM AB METTALICS (P) LTD., THE ASSESSEE AND THE CO MPANY COULD SUBMIT BILLS & VOUCHERS OF RS.3 , 65,403/ - ONLY., THE REMAINING AMOUNT REMAINED WITH THE ASSESSEE. REGARDING TA ADVANCE OF RS.4,34,000/ - CLAIMED TO HAVE BEEN DRAWN FROM M/S AB COMMERCIAL, NO BILLS & VOUCHERS REGARDING ACTUAL EX PENDITURE HAVE BEEN FURNISHED EITHER BEFORE THE AO OR BEFORE HIM. THEREFORE, HE CONFIRMED THE ADDITION OF RS.6,15,590/ - (RS.9,81,000 RS. 3,65,403) . REGARDING BALANCE CASH DEPOSIT OF RS.10,46,910/ - (RS.20,27,910 - RS.9,81,000), THERE ARE SUFFICIENT CASH WITHDRAWALS FROM M/S.AB COMMERCIAL. T HE OPENING BALANCE IN THE PARTNERS CAPITAL ACCOUNT ITA NO. 452 /CTK/201 7 3 IS OF RS.34,47,831/ - . THE ASSESSEE HAS WITHDRAWN RS.17,11,305/ - AND THE CLOSING BALANCE IS OF RS.17,36, 526/ - . THEREFORE, CASH DEPOSIT OF RS.10,46,910/ - ARE EXPLAINED. THEREFORE, HE CONFIRMED THE ADDITION OF RS.6,15,957/ - AND DELETE D THE BALANCE AMOUNT OF RS.10,46,910/ - . 5. BEING AGGRIEVED AGAINST THIS ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. THE AR OF THE ASSESSEE SUBMITTED THAT IT HAD FILED CERTIFICATES BEFORE THE AO AND THE CIT(A) FROM AB METTALICS PVT. LTD. AND M/S AB COMMERCIAL WHEREIN IT WAS CONFIRMED THAT THE ASSESSEE WAS GIVEN TOUR AND TRAVEL EXPENSES ADVANCE OF RS.5,47,000/ - AND RS.4,34,000/ - , RESPECTIVELY. THE SAME WAS NOT CONSIDERED WHILE ADJUDICATING THE ISSUE BY THE CIT(A ) AND IN VIEW OF SUCH EVIDENCE, THE ADDITION MADE WAS NOT JUSTIFIED. 7. ON THE OTHER HAND, THE DR SUPPORTED THE ORDER OF CIT(A). 8. I HAVE HEARD RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND THE MATERIAL S AVAILABLE ON RE CORD . IN THE INSTANT CASE, IT IS NOT IN DISPUTE THA T THE ASSESSEE HAS CLAIMED THA T IT HAS RECEIVED TOUR AND TRAVEL EXPENSES ADVANCE OF RS.5,47,000/ - FROM M/S AB METTALICS PVT. LTD. AND RS. 4,34,000 / - FROM M/S AB COMMERCIAL AGGREGATING TO RS.9,81,000/ - . THE AO CALLED FOR BILLS AND VOUCHERS OF TRAVEL EXPENSES. M/S AB METTALICS P VT. LTD. COULD PRODUCE BILLS AND VOUCHERS AND TICKETS OF AIR - FARE AND TRAIN TICKETS AND HOTEL BILLS FOR RS.3,65,403/ - AND M/S AB COMMERCIAL DID NOT PRODUCE ANY BILLS, THEREFORE, HE ACCEPTED THE AMOUNT OF RS.3,65,403/ - AS ADVANCE RECEIVED BY THE ASSESSEE FRO M M/S AB M ETTALICS PVT. LTD. AND DID ITA NO. 452 /CTK/201 7 4 NOT ACCEPT THE BALANCE AMOUNT OF ADVANCE OF RS.6,15,957/ - AND ADDED THE SAME TO THE INCOME OF THE ASS ESSEE. IT IS NOT DISPUTE THAT THE ASSESSEE FILED CONFIRMA TION FROM M/S AB METTALICS PVT. LTD. AND FROM M/S AB COMMERCIAL TO THE EFFECT THAT THEY HAVE GIVEN TO THE ASSESSEE TOUR AND TRAVEL ADVANCE EXPENSES OF RS.5,47,000/ - AND RS.4,34,000/ - , RESPECTIVELY. IN MY CONSIDERED VIEW THE ADVANCE GIVEN TO TH E ASSESSEE IS ON AN ESTIMATE BASIS FOR THE EXPENSES WHICH THE ASSESSEE MAY BE REQUIRED TO INCUR. THE ESTIMATE AND THE ACTUAL EXP ENDITURE CANNOT BE EQU AL. THEREFORE, THE CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION ON THE GROUND THAT THE COM PANIES COULD PRODUCE BILLS FOR EXPENSES OF TRAVELLING TO THE EXTENT OF RS.3,65,403/ - . THE AO AFTER MAKING ENQUIRY HAS NOT FOUND THAT THE CERTIFICATE ISSUED TO THE ASSESSEE BY M /S AB METTALICS PVT. LTD. AND BY M/S AB COMMERCIAL ARE NOT CORRECT OR FALSE. THEREFORE, IN MY CONSIDERED VIEW, THE ADDITION OF RS.6,15,957/ - MA DE BY THE AO IS UNSUSTAINABLE IN LAW. I, THEREFORE, SET A SIDE THE ORDER OF CIT(A) AND D ELETE THE ADDITION OF RS.6,15,597/ - AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 / 12 /201 7 . SD/ - (N. S. SAINI) / ACCOUNTANT MEMBER CUTTACK ; DATED 29 / 12 /201 7 . . / PKM , SENIOR PRIVATE SECRETARY ITA NO. 452 /CTK/201 7 5 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. SUBRAT KUMAR SATPATHY AT - PLOT N O.183/6, GAJAPATI NAGAR, NEAR PRESS CHHAK, BHUBANESWAR, DIST - KHURDA - 751005 2. / THE RESPONDENT - ITO, WARD - 3(5), BHUBANESWAR 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//