ITO, Khurda Ward, Khurda V. Subhransu Sekhar Prusty, Nayagarh

ITA 482/CTK/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5626 (ITAT-CUTTACK)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 04-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Keywords: Unexplained investment
• Section: 144

Judgement Text

1 ITA NO. 482/CTK/2017 ASSESSMENT YEAR : 2013 - 2014 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 482 /CTK/201 7 ASSESSMENT YEAR : 201 3 - 2014 INCOME TAX OFFICER, KHURDA WARD, KHURDA VS. SHRI SUBRANSU SEKHAR PRUSTY, C/O. PRUSTY TRADING CO., KHANDAPADA ROAD, NAYAGARH. PAN/GIR NO. AHHPP 9528 J (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI D.K.PRADHAN , DR DATE OF HEARING : 1 7 / 0 5 / 201 8 DATE OF PRONOUNCEMENT : 17 / 0 5 / 201 8 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) - 1 BHUBANESWAR DATED 24.8.2017 FOR THE ASSESSMENT YEAR 2013 - 14. 2. NONE APPEARED ON BEHALF OF THE RESPONDENT - ASSESSEE WHEN THE CASE WAS CALLED FOR HEARING. 3 . THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN DELETING THE ADDITION OF RS.52,56,250/ - TOWARDS UNEXPLAINED INVESTMENT ACCEPTING THE REMAND REPORT OF THE ASSESSING OFFICER. 2 ITA NO. 482/CTK/2017 ASSESSMENT YEAR : 2013 - 2014 4. THE FACTS IN BRIEF ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE FAILED TO PUT IN APPEARANCE DESPITE GIVING VARIOUS OPPORTUNITIES. THEREFORE, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 144 OF THE ACT. 5. THE ASSESSIN G OFFICER FOUND THAT THE ASSESSEE HAS MADE CASH DEPOSIT OF RS.1,10,35,620/ - ON VARIOUS DATES DURING THE PREVIOUS YEAR IN ACCOUNT NO.911010047667785 MAINTAINED WITH AXIS BANK, NAYAGARH AND CASH DEPOSIT OF RS.2,09,000/ - IN STATE BANK OF INDIA, NAYAGARH, ADB AGGREGATING TO RS.1,12,44,620/ - . AS THE ASSESSEE FAILED TO APPEAR BEFORE THE ASSESSING OFFICER TO EXPLAIN THE CASH DEPOSITS, THE ASSESSING OFFICER AFTER ANALYSING THE CASH DEPOSITS AND WITHDRAWALS, MADE AN ADDITION OF RS.52,56,250/ - AS UNEXPLAINED INVEST MENT U/S.69 OF THE ACT. 6. ON APPEAL, BEFORE THE CIT(A), THE ASSESSEE FILED A WRITTEN SUBMISSION WITH NUMEROUS DOCUMENTS AND CONTENDED THAT THE CASH DEPOSITS IN HIS BANK ACCOUNTS REPRESENTED THE SALE PROCEEDS OF THE FIRM M/S. ANNAPURNA DISTRIBUTORS AND THE MAJOR PORTION OF THE CASH DEPOSITS IN THE ASSESSEES BANK ACCOUNTS HAD BEEN SUBSEQUENTLY TRANSFERRED TO THE ACCOUNTS OF THE FIRM BY WAY OF TRANSFER. THEREFORE, THE CIT(A ) CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER FOR EXAMINATION AND REPORT IN COMPLIANCE WITH RULE 46A OF I.T.RULES. THE ASSESSING OFFICER SUBMITTED HIS REPORT VIDE LETTER DATED 4.8.2017. THE COPY OF THE REMAND REPORT WAS GIVEN TO THE ASSESSEE FOR HIS RESPONSE AND THE ASSESSEE FILED WRITTEN SUBMISSION ON THE REMAND REPORT. 3 ITA NO. 482/CTK/2017 ASSESSMENT YEAR : 2013 - 2014 7. AF TER CONSIDERING THE REMAND REPORT OF THE ASSESSING OFFICER AND THE WRITTEN SUBMISSION OF THE ASSESSEE ON THE REMAND REPORT, THE CIT(A) DELETED THE ADDITION BY OBSERVING AS UNDER: I HAVE PERUSED THE FACTS AND MATERIALS ON RECORD, THE REMAND REPORT SUBMITTED BY THE AO AND ALSO THE WRITTEN RESPONSE OF THE ASSESSEE TO THE REMAND REPORT. FROM THE REMAND REPORT, IT IS CLEAR THAT THE ASSESSEE HAS BEEN ABLE TO ESTABLISH THAT THE CASH DEPOSITS IN HIS BANK ACCOUNTS REPRESENTED CASH COLLECTIONS FROM THE DEBTO RS OF THE FIRM M/S. ANNAPURNA DISTRIBUTORS WHEREIN THE ASSESSEE IS A PARTNER. THE FINDING OF THE AO IN THIS REGARD IS QUITE CLEAR AFTER EXAMINATION OF THE RELEVANT DOCUMENTS AND BOOKS OF ACCOUNT OF THE ASSESSEE FIRM. THE ONLY OBJECTION OF THE AO IS THAT FO R THE AMOUNTS DEPOSITED BY THE ASSESSEE IN THE ACCOUNTS OF THE FIRM, THE FIRM HAS NOT ISSUED ANY RECEIPTS SINCE IN THE COURSE OF REMAND PROCEEDING, NO SUCH RECEIPTS COULD BE PRODUCED BY THE ASSESSEE FOR VERIFICATION. THIS OBJECTION OF THE AO IS NOT QUITE R ELEVANT AND LARGELY INCONSEQUENTIAL. THE FACT AS HAS B EEN REPORTED BY THE AO IS THAT THE CASH DEPOSITS IN THE ACCOUNTS OF THE ASSESSEE HAVE COME FROM THE SALE PROCEEDS OF THE ASSESSEE FIRM. THIS BEING SO, THE AMOUNT OF IMPUGNED DEPOSIT OF RS.52,56,250/ - CA NNOT BE TREATED AS INCOME OF THE ASSESSEE . I N THIS VIEW OF THE MATTER, THE ADDITION OF RS.52,56,250/ - IS DELETED. 8. BEFORE US, LD D.R. COULD NOT CONTROVERT THE FINDING OF FACT GIVEN BY THE CIT(A) THAT T HE ONLY OBJECTION OF THE AO IS THAT FOR THE AMOUNTS DEPOSITED BY THE ASSESSEE IN THE ACCOUNTS OF THE FIRM, THE FIRM HAS NOT ISSUED ANY RECEIPTS SINCE IN THE COURSE OF REMAND PROCEEDING, NO SUCH RECEIPTS COULD BE PRODUCED BY THE ASSESSEE FOR VERIFICATION. THIS OBJECTION OF THE AO IS NOT QUITE RELEVANT AND L ARGELY INCONSEQUENTIAL. THE FACT AS HAS B EEN REPORTED BY THE AO IS THAT THE CASH DEPOSITS IN THE ACCOUNTS OF THE ASSESSEE HAVE COME FROM THE SALE PROCEEDS OF THE ASSESSEE FIRM. THIS BEING SO, THE AMOUNT OF IMPUGNED DEPOSIT OF RS.52,56,250/ - CANNOT BE TREAT ED AS INCOME OF THE ASSESSEE . 4 ITA NO. 482/CTK/2017 ASSESSMENT YEAR : 2013 - 2014 9. WE ALSO FIND THAT THE CIT(A) HAS DELETED THE ADDITION AFTER CALLING A REMAND REPORT FROM THE ASSESSING OFFICER. HENCE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A), WHICH IS HEREBY CONFIRMED AND GROUND OF APPE AL OF THE REVENUE IS DISMISSED. 10. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 17 / 0 5 /201 8 . SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 17 / 0 5 /201 8 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : INCOME TAX OFFICER, KHURDA WARD, KHURDA 2. THE RESPONDENT. SHRI SUBRANSU SEKHAR PRUSTY, C/O. PRUSTY TRADING CO., KHANDAPADA ROAD, NAYAGARH 3. THE CIT(A) - 1, BHUBANESWAR 4. PR.CIT - 1, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//