ITO, Ward - 3, Nadia, Nadia V. Gobinda Dutta, Nadia

ITA 520/KOL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62120 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2012
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 31-03-2011
• Court: TRIBUNAL
• Department Lawyers: K R MONDAL
• Assessee Lawyers: S P CHOWDHURY; SOUMITRA CHOW

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH B, KOLKATA () BEFORE , ,, , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. .!' !'!' !'. .. . , #$ SHRI C.D.RAO, ACCOUNTANT MEMBER % % % % / ITA NO . 520/KOL/2011 &' ()/ ASSESSMENT YEAR : 2007-08 (+, / APPELLANT ) I.T.O., WARD-3, NADIA (-.+,/ RESPONDENT ) GOBINDA DUTTA, NADIA (PAN:AFZPD 4898 P) +, / 0 #/ FOR THE APPELLANT: SHRI K.R.MONDAL -.+, / 0 #/ FOR THE RESPONDENT: SHRI S.P.CHOWDHURY & SHRI SOUMITRA CHOWDHURY 1&2 / '$ /DATE OF HEARING : 07.06.2012. 3( / '$ /DATE OF PRONOUNCEMENT : 07.06.2012. #4 / ORDER . .. .!' !'!' !'. .. . , #$ PER SHRI C.D.RAO, AM THE ABOVE APPEAL IS FILED BY REVENUE AGAINST ORDER DATED 12.01.2011 OF THE LD. CIT-(A)-XXXVI, KOLKATA PERTAINING TO A.YR. 2007-08 . 2. THE ONLY GROUND RAISED BY THE REVENUE IN THIS AP PEAL IS AS UNDER :- IN THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING RS.59,49,947/- ADDED ON ACCOUNT OF INFLATED OPENING STOCK BROUGHT FORWARD ON 01.04.2006. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT WHILE DO ING THE SCRUTINY ASSESSMENT THE AO HAS DISALLOWED AND AMOUNT OF RS.59,49,947/- BY OBSE RVING AS UNDER :- AS THE ASSESSEE NEITHER APPEAR BEFORE ME NOR PRODU CED BOOKS OF ACCOUNTS, DOCUMENT BILL VOUCHERS ETC. PROPER VERIFICATION COULD NOT BE DONE. BUT ON VERIFICATION OF RETURN AND 2 COPY OF DOCUMENTS SUBMITTED BY THE ASSESSEE ALONG W ITH THE RETURN, OF THE A.Y. 2007-08 AND A.Y.2006-07 IT IS FOUND THAT THE ASSESSEE DISCL OSED CLOSING STOCK OF RS.57,73,370/- AS ON 31.03.2006 FOR THE F.Y.2005-06. WHEREAS THE ASSESSEE DISCLOSED OPENING STOCK OF RS. 1,17,23,317/- AS OPENING STOCK AS ON 01.04.2006 FOR THE F.Y. 2006-07 RELEVAN T TO A.Y.2007-08. THUS THE ASSESSEE REDUCED GROSS PROFIT BY RS.59,49,947/-. THE ASSESSE E NEVER DISCLOSED AGRICULTURAL INCOME IN HIS RETURN OF INCOME FOR THE A.Y.2006-07. 3.1. ON APPEAL THE LD. CIT(A) AFTER TAKING INTO CON SIDERATION OF THE ASSESSEES SUBMISSIONS HAS DELETED THE SAME BY OBSERVING AS UN DER :- 5.1. AFTER CONSIDERING THE SUBMISSION OF THE APPEL LANT AND EXAMINING THE COPY OF THE RETURN AND THE RELEVANT BALANCE SHEETS, I AM INCLIN ED TO ACCEPT ARS VERSION THAT DUE TO INADVERTENT CLERICAL MISTAKE OPENING STOCK HAS BEEN SHOWN AT RS.1,17,23,317/- INSTEAD OF CORRECT FIGURE OF RS.57,73,370/- AND PURCHASE HA S BEEN SHOWN AS RS.23,31,13,344/- INSTEAD OF CORRECT FIGURE OF RS.23,90,63,291/- IN T HE RETURN OF INCOME. THE TOTAL FIGURE OF OPENING STOCK AND PURCHASE AS PER THE RETURN AND AS PER BALANCE SHEET AS ON 31.03.2007 IS ALIKE I.E. RS.24,48,36,661/-. THE IMPUGNED ADDIT ION OF RS.59,49,947/- IS THEREFORE, DELETED. 3.2. AGGRIEVED BY THIS NOW REVENUE IS IN APPEAL BEF ORE US. 4. AT THE TIME OF HEARING THE LD. DR APPEARING ON B EHALF OF THE REVENUE RELIED ON THE ORDER OF AO. 5. ON THE OTHER HAND, THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE LD. CIT(A) WHICH WAS RE CORDED IN PARA-5 OF THE ORDER OF LD.CIT(A) AND SUBMITTED THAT THE AO SHOULD HAVE RE JECTED THE AUDITORS REPORT AND AUDITED ANNUAL ACCOUNTS BEFORE ARRIVING AT THE CONC LUSION OR AGGRAVATING OPENING STOCK AND REDUCING GROSS PROFIT. IT IS EVIDENT THAT THE CLERICAL MISTAKE HAS INADVERTENTLY OCCURRED AT THE TIME OF FILLING ITR-4 AND SHOULD HAVE BEEN CONSIDERED AS HUMANLY ARITHMETICAL ERROR. IN SUPPORT OF THIS HE R ELIED ON THE AUDITED BALANCE SHEET AS ON 31.03.2006 AND AS ON 31.03.2007 WHICH WAS ALR EADY INCORPORATED BY THE LD. CIT(A) IN THE IMPUGNED ORDER. THEREFORE, HE REQUES TED TO UPHELD THE ACTION OF LD. CIT(A). 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIALS AVAILABLE ON RECORD, KEEPING IN VIEW OF THE FACT TH AT THIS IS ACTUALLY A CLERICAL MISTAKE 3 THAT HAS OCCURRED INADVERTENTLY AT THE TIME OF FILL ING ITR-4 AS CONTENDED BY THE LD. COUNSEL FOR ASSESSEE. THE FACT IS CLEAR FROM THE AU DITED BALANCE SHEET AS ON 31.03.2006 AS WELL AS 31.03.2007. THEREFORE, WE FIN D NO INFIRMITY IN THE ORDERS OF LD. CIT(A) TO BE INTERFERED WITH. WE CONFIRM THE SAME A ND DISMISS THE APPEAL OF REVENUE. 7. IN THE RESULT THE APPEAL OF REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE COURT ON 07.06.2012. SD/- SD/- , ,, , MAHAVIR SINGH, JUDICIAL MEMBER . .. .!' !'!' !'. .. . , , , , #$ #$ #$ #$ , C.D.RAO, ACCOUNTANT MEMBER. ( (( ('$ '$ '$ '$) )) ) DATE: 07.06.2012. R.G.(P.S.) #4 / -5 6#5(7- COPY OF THE ORDER FORWARDED TO: 1. GOBINDA DUTTA, PROP. OF M/S.DUTTA TIMBER MART, P.O. & VILL.RAUTARI, SIMURALI CHOWMATHA N.H.-34, DIST. NADIA (WB). 2 I.T.O., WARD-3, NADIA 3. THE C.I.T. 4. CIT(A)-XXXVI, KOLKATA. 5. THE CIT(DR), KOLKATA BENCHES, KOLKATA .5 -/ TRUE COPY, #4&1/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES