Smt. Indumati Pradhan, Mayurbhanj V. ITO, Anugul Ward, Angul

ITA 46/CTK/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3787 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-05-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 17-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: P K MISHRA
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.46 /CTK/2016 ASSESSMENT YEAR : 2008 - 09 SMT. INDUMATI PRADHAN, PROP. MAHESWARI FILING STATION, ATHAMALIK, ANGUL VS. ITO, WARD NO.1, ANGUL. PAN/GIR NO. ANEPP 5872 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.K.MISHRA AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 23 /05/ 2017 DATE OF PRONOUNCEMENT : 26 /0 5 /2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, BHUBANESWAR , DATED 28.10.2015 , FOR THE ASSESSMENT YEAR 2008 - 09 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN MAKING ADDITION OF RS.4,56, 551/ - BEING BALA NCE IN S.B. ACCOUNT WITH STATE B ANK OF INDIA, SAVING ACCOUNT NO.8355 AND 3326 AND MINI BANK, RAIRKHOL SAVING ACCOUNT NO. 3410 AS ON 31.3.2009. 3. LD A.R. OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE CARRIES ON TWO SEPARATE BUSINESS, ONE FROM TRADING IN SAL LEAVES AND OTHER FROM RETAIL OUTLET OF HPCL. DURING THE YEAR UNDER APPEAL, THE ASSESSEE FILED THE RETURN OF INCOME FOR THE BUSINESS OF SAL LEAVES W ITH ITO, WARD - 1, BARIPADA AND 2 ITA NO.46/CTK/2016 ASSESSMENT YEAR :2008 - 09 RETURN OF INCOME FROM MAHESWARI FILLING STATI ON, ATHAMALLIK WITH TH E ITO, DHENKANAL. T HE ASSESSEE SHOWED INCOME FROM TRADING OF SAL LEAVES AT RS.1,76,570/ - AND PAID TAX OF RS.6,205/ - ON THE SAID INCOME. THE ASSESSEE SHOWED I NCOME FROM MAHESWARI FILLING STAT ION AT RS.26,342/ - . N OTICE U/S.148 OF THE ACT WAS ISSUED BY THE ITO, DHENKANAL WARD - 1, ON THE GROUND THAT INCOME HAS ESCAPED ASSESSMENT AND THE ASSESSEE FILED THE RETURN OF INCOME IN RESPONSE TO THIS NOTICE, DISCLOSING INCO ME FROM BOTH THE SOURCES FOR RS.2,02,909 (RS.1,76,570/ - + RS.26,342/ - ). IN THE ASSESSMENT MADE UNDER SECTION 147 OF THE ACT DATED 27.11.2011, THE ASSESSING OFFICER MADE ADDITION OF RS.4,56,551/ - BEING SAVING ACCOUNT BALANCE WITH BANKS NOT DISCLOSED BY THE ASSESSEE, DETAILS OF WHICH ARE AS UNDER: SR.NO. NAME OF THE BANK NATURE OF ACCOUNT A/C NO. CLOSING BALANCE AS ON 31.3.2009 1. SBI, ATHAMALIK SAVING A/C. 8355 1,960 2. SBI, RAIRAKHOL - DO - 3326 4,52,119 3. MIBI BANK, RAIRAKHOL - DO - 3410 2,472 TOTAL: 4,56,551 4. LD A.R. SUBMITTED THAT IN THE RETURN OF INCOME FILED BEFORE THE ITO, BARIPADA, THE ASSESSEE HAS DISCLOSED SAVING ACCOUNTS BALANCE OF RS.4,56,551/ - , WHICH RETURN WAS ACCEPTED BY THE DEPARTMENT. IN SUPPORT OF THE CLAIM, HE FILED COPY OF ACKNOWLEDGEMENT OF RETURN TOGETHER WITH STATEMENT OF INCOME AND OTHER PARTICULARS OF THE BANK ACCOUNT. IT WAS THEREFORE, HIS SUBMISSION THAT THE ADDITION MADE BY THE ASSESSING OFFICER FOR RS.4,56,551/ - ON ACCOUNT OF BANK ACCOUNTS NOT DISCLOSED BY THE ASS ESSEE IN THE RETURN OF INCOME WAS NOT JUSTIFIED AND THE CIT(A) WAS NOT CORRECT IN SUSTAINING THE ADDITION. 5. LD D.R. RELIED ON THE ORDERS OF LOWER AUTHORITIES. 3 ITA NO.46/CTK/2016 ASSESSMENT YEAR :2008 - 09 6. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS AVAILABLE ON RECORD, I FIND T HAT THE ASSESSING OFFICER HAS MADE ADDITION ON ACCOUNT UNDISCLOSED SAVING BANK ACCOUNTS WITH THREE BANKS FOR RS.4,56,551/ - FOR THE REASON THAT SAME WERE NOT SHOWN IN THE AUDITED ACCOUNTS OF THE ASSESSEE. 7. ON APPEAL, THE CIT( A) CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER SINCE THE BALANCES IN SAVING BANK ACCOUNTS WERE NOT DISCLOSED IN THE AUDITED BALANCE SHEET OF THE ASSESSEE. I FIND THAT THE ASSESSEE HAS EXPLAINED THAT DUE TO MISTAKEN BELIEF THE RETURN OF INCOME FO R THE BUSINESS OF SAL LEAVES WAS TO BE FILED IN BARIPADA, WHEREAS, FOR THE BUSINESS OF THE ASSESSEE FROM MAHESWARI FILLING STATION WAS FILED WITH ITO, DHENKANAL. THE ASSESSEE FILED TWO SEPARATE RETURNS FOR THE BUSINESS, OF WHICH, THE ASSESSEE WAS THE PRO PRIETOR. IT IS ALSO THE SUBMISSION OF LD A.R. OF THE ASSESSEE THAT IN THE RETURN OF INCOME FILED FOR TRADING OF SAL LEAVES, THE ASSESSEE HAD DISCLOSED THREE BANK ACCOUNTS WHOSE BALANCES AGGREGATED TO RS.4,56,551/ - . IN SUPPORT OF THE SAME, THE ASSESSEE HAD FILED COPY OF ACKNOWLEDGEMENT OF RETURN OF INCOME, STATEMENT OF INCOME TOGETHER WITH CAPITA L ACCOUNT AND OTHER PARTICULARS . 8. LD D.R. COULD NOT CONTROVERT THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE BY BRINGING ANY POSITIVE MATERIAL ON RECORD. 9. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE CONSIDERED VIEW THAT THE ASSESSEE UNDER MISTAKEN BELIEF GOT THE ACCOUNTS OF PETROL PUMP AUDITED AND THE BALANCE SHEET WAS PREPARED FOR THAT BUSINESS, WHICH WAS FILED WITH THE RETURN OF INCOME WI TH ITO, ANGUL. THE 4 ITA NO.46/CTK/2016 ASSESSMENT YEAR :2008 - 09 ASSESSEE FILED SEPARATE RETURN WITH STATEMENT OF INCOME AND BANK BALANCES WITH REGARD TO BUSINESS OF TRADING OF SAL LEAVES WITH ITO, BARIPADA. THE ADDITION MADE BY THE ASSESSING OFFICER ON THE GROUND THAT THREE BANK ACCOUNTS WHOSE AGGRE GATE BALANCE OF RS.4,56,551/ - WAS NOT DISCLOSED IN THE AUDITED BALANCE SHEET OF THE ASSESSEE IS NOT CORRECT. THE SUBMISSION OF THE AR OF THE ASSESSEE THAT THE RETURN OF INCOME FOR BUSINESS OF SAL LEAVE FILED WITH ITO, BARIPADA WAS ACCEPTED BY THE DEPARTME NT W HEREIN, THE THREE BANK ACCOUNT B ALANCES OF RS.4,56,551/ - WAS SHOWN REMAINED UNCONTROVERTED BY THE LD D.R. DURING THE COURSE OF HEARING AND THEREFORE THE CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER. I, THEREFORE, SE T ASIDE THE ORDER OF THE CIT(A) AND DELETE THE ADDITION OF RS.4,56,551/ - AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE . 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 /05/2017 IN THE PRESENCE OF PAR TIES. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 26 /05/2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : SMT. INDUMATI PRADHAN, PROP. MAHESWARI FILING STATION, ATHAMALIK, ANGUL 2. THE RESPONDENT. ITO, WARD NO.1, ANGUL. 3. THE CIT(A) - 2, BHUBANESWAR. 4. PR.CIT - 2, BHUBANESWAR. 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY// 5 ITA NO.46/CTK/2016 ASSESSMENT YEAR :2008 - 09 6 ITA NO.46/CTK/2016 ASSESSMENT YEAR :2008 - 09 DATE INITIAL 1. DRAFT DICTATED ON 23 /05 /17 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 23 /05 /17 (DICTATION PAD HAS BEEN ENCLOSED ALONG WITH ORIGINAL FILE) SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS /PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE H.C. 9. DATE ON WHICH FILE GOES TO THE SPS 10. DATE OF DISPATCH OF ORDER.