ITO, Ward-2(4), Durgapur, Durgapur V. Smt. Uma Sen, Durgapur

ITA 53/KOL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4177 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2016
• Appeal Filed By: Department
• Bench Allotted: SMC
• Next Hearing Date: 07-09-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 13-01-2015
• Court: TRIBUNAL
• Keywords: Unexplained investment; Unexplained expenditure; Gift
• Section: 69C; 142(1); 144; 69

Judgement Text

ITA NO. 53/KOL/15 SMT. UMA SEN 1 IN THE INCOME TAX APPELLATE TRIBUNAL,D BENCH KOLKATA BEFORE SHRI M.BALAGANESH, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 53/KOL/2015 A.Y: 2009-10 I.T.O WARD-2(4), VS. SMT. UMA SEN DURGAPUR PAN: BOCPS 0637C (APPELLANT) (RESPONDENT) APPEARANCES BY: SHRI SUBHRO DAS, JCIT, SR.DR FOR THE R EVENUE NONE APPEARED FOR THE ASSES SEE DATE OF HEARING : 31-10-2016 DATE OF PRONOUNCEMENT : 07-12-2016 O R D E R SHRI S.S. VISWANETHRA RAVI, JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 15-10-2014 PASSED BY THE COMMISSIONER OF INCO ME TAX(APPEALS), DURGAPUR U/SEC 250 OF THE ACT FOR THE ASSESSMENT YEAR 2009-10. 2. NONE APPEARED FOR RESPONDENT ASSESSEE. THEREFORE , WE PROCEEDED TO DISPOSE OF THE APPEAL AFTER HEARING THE LD. DR OF THE APPELLANT REVENUE AND PERUSING THE MATERIAL AVAILABLE ON REC ORD. 3. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLO WING GROUNDS OF APPEAL:- A. THAT LD CIT(A) FAILED TO APPRECIATE THE FACT OF THE CASE IN ITS PROPER PERSPECTIVE FROM THE POINT THAT ASSESSEE FAI LED TO PUT FORTH ANY CONVINCING EXPLANATION AGAINST DESTINATIO N/UTILISATION OF OUTGOING CASH, BOOKED UNDER THE DISGUISE OF INST ALMENT PAYMENT, PARTICULARLY UNDER THE CIRCUMSTANCES WHEN THE ITA NO. 53/KOL/15 SMT. UMA SEN 2 DATEWISE IMPUGNED CASH GOING OUT OF CASH BOOK WERE NOT DEPOSITED EITHER DIRECTLY IN THE LOAN ACCOUNT NOR I N THE JOINT ACCOUNT MAINTAINED WITH HUSBAND WHEREFROM CHEQUES W ERE ISSUED. B. THAT LD CIT(A) WAS NOT RIGHT IN ALLOWING RELIEF AGAINST ADDITION MADE UNDER THE HEAD OF 'UNEXPLAINED INVEST MENT' UP TO THE EXTENT OF RS.869208 OUT OF TOTAL ADDITION OF RS .976208 RELYING UPON THE GROUND THAT THE SAME SHOULD NOT BE TAXED AS THE PAYMENTS WERE MADE FROM JOINT A/C NO 6620, ALL DEPOSITS OF WHICH WERE TAXED IN THE HAND OF THE HUSBAND, WITHOU T APPRECIATING THE FACT THAT DATEWISE EXODUS OF CASH FROM BOOKS OF WIFE WAS NOT DEPOSITED IN THE SAID A/C AND ISSUE HAD LITTLE RELEVANCE WITH THE POINT OF ADDITION UNDER CONSIDER ATION. C. THAT LD CIT(A) WAS NOT RIGHT IN ALLOWING RELIEF THE ENTIRE ADDITION OF ' UNEXPLAINED EXPENDITURE' AMOUNTING TO RS. 2949272 PARTICULARLY CONSIDERING THE CIRCUMSTANCES THAT BOOKS WERE NOT JECTED IN COURSE OF ASSESSMENT AND NO LOAN /GIFT FROM HUSBAND HAS BEEN SHOWN IN THE BOOKS OF THE ASSESSEE FOR WHICH THE ISSUE DESERVES TO GET SET ASIDE D. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, A MEND, MODIFY, SUBSTITUTE, DELETE AND/OR RESCIND ALL OR ANY GROUND S OF APPEAL ON OR BEFORE FINAL HEARING. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL AND ENGAGED IN THE BUSINESS OF LETTING O UT OF MACHINERY AND FILED RETURN OF INCOME ON 29-03-2010 DECLARING AN AGGREGATE INCOME OF RS. 1,89,984/-. UNDER SCRUTI NY, NOTICES U/SEC 143(2) AND 142(1) OF THE ACT WERE ISSUED. IN RESPONSE TO SUCH NOTICES, THE ASSESSEE WAS REPRESENTED THROUGH HER A R AND FILED BOOKS OF ACCOUNT. DURING SUCH PROCEEDINGS THE AO FOUND THAT THE ASSESSEE MAINTAINED TWO BANK ACCOUNTS ONE WITH HDFC BANK VID E BEARING ACCOUNT NO.6620 WITH HER HUSBAND, SRI KALYAN SEN AND ANOTHE R WITH MR. DEBDURLAV SEN BEARING ACCOUNT NO. 31694. THE AO FURTHER FOUND THAT THE PAYMENTS INVOLVING TO AN EXTENT OF RS.13,03,812/- ARE NOT RE FLECTED IN THE CASH BOOK. ACCORDING TO AO NEITHER THE ASSESSEE NOR HER AR APPEARED BEFORE HIM AND FOR SUCH NON-COMPLIANCE, HE ADDED AN AMOUNT TO AN EXTENT OF RS.9,76,208/- U/S. 69 AS UNEXPLAINED INVESTMENT. ITA NO. 53/KOL/15 SMT. UMA SEN 3 5. BESIDES ABOVE, THE AO FURTHER FOUND THAT THE ASS ESSEE HAS MADE PAYMENTS TOWARDS INSTALMENTS, ACCORDING TO HIM THE SAME WERE ALSO NOT REFLECTED IN THE CASH BOOK AND ADDED TO AN EXTENT O F RS.29,49,272/- U/S. 69C AS UNEXPLAINED EXPENSES AND PASSED ORDER U/SEC 144 OF THE ACT. 6. AGAINST WHICH THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). BEFORE HIM, THE ASSESSEE CONTENDED THAT, SH E WAS HAVING A JOINT ACCOUNT VIDE BEARING NO. 6620 IN HDF C BANK WITH HER HUSBAND, SRI KALYAN SEN AND THE IMPUGNED AMOUNT WAS ADDED BY THE AO IN HER HUSBANDS ASSESSMENT FOR THE AY 2009- 10, BASING ON WHICH, THE CIT-A DELETED THE IMPUGNED ADDITION MADE BY THE AO. RELEVANT PORTIONS OF SUBMISSIONS OF ASSESSEE, REMAND REPORT OF THE AO AND REPLIES OF THE REMAND R EPORT DURING THE COURSE OF 1 ST APPELLATE PROCEEDINGS ARE REPRODUCED HEREIN BELOW:- (I) SUBMISSIONS OF ASSESSEE: 'THE CASH PAYMENT IN RESPECT OF THE INSTALMENT PAYM ENT IN RESPECT OF JCBS I.E1) JS80 2)JS 200 IS PARTLY MADE IN CASH AND PARTLY PAID BY MR. KALYAN SEN (PAN:BDP52803P), THE PAYMENTS MADE IN CASH ARE ALSO REFLECTED IN LEDGERS OF JS-80 AND JS-200, SO THESE PAYMENTS ARE NOT AN UNEXPLAINED ONE, SO TH E ADDITION MADE BY THE LD.ITO AS UNEXPLAINED INVESTMENT IS NO T TENABLE AND LIABLE TO BE DELETED. THE DETAIL EXPLANATION OF THE SAID AMOUNT I.E. RS. 9,76,208/-(I.E. AMOUNT PAID IN CASH IN RESPECT OF ABOVE MACHINERY) IS GIVEN BELOW. A) RS.1,07,000/- DATED 21.05.2008 IS NOT REFLECTED IN HDFCS PAYMENT SCHEDULE FOR JS200, BECAUSE IT IS A DOWN PAYMENT WHICH IS PRE CONDITION FOR AVAILING THE FINANCE FAC ILITY. (TAX INVOICE OF SELLER AND STATEMENT OF HDFC BANK IS ATT ACHED). B) RS.1,44,868/- DATED 22.06.2008 IS A INSTALMENT P AYMENT WHICH IS MADE ON 2 ND JULY 2008, BUT DUE TO MISTAKE OF AN ACCOUNTANT IT IS ENTERED ON 22.06.2008, AS IT IS AL SO APPARENT FROM THE ORDER OF LD. ITO ITSELF THAT THE PAYMENT I S MADE ON 02.07.2008 AND ALSO SHOWN IN THE PAYMENT SCHEDULE O F HDFC BANK. ITA NO. 53/KOL/15 SMT. UMA SEN 4 C) RS.1,44,868/-DATED 06.10.2008 IS ALSO A INSTALME NT PAYMENT OF HDFC FOR JS, 200 WHICH IS MADE ON 03.10.2008 AND IT IS SAME AS (B) ABOVE. D) RS.2,89,736/- DATED 09.12.2008 IT IS ALSO A INST ALMENT PAYMENT FOR THE MONTH OF NOVEMBER AND DECEMBER WHIC H IS MADE ON 03.11.2008 AND 02.12.2009 RESPECTIVELY. AND THESE PAYMENT ALSO REFLECTED IN PAYMENT SCHEDULE OF HDFC BANK., E) RS.1,44,868/- DATED 04.03.2009 IT IS ALSO A INST ALMENT PAYMENT WHICH IS MADE ON 03.03.2009 AND ALSO REFLEC TED IN PAYMENT SCHEDULE'. (II) AOS REMAND REPORT DT: 9.12.2013: 'UNEXPLAINED INVESTMENT: RS.9,76,208/- (PARA NO: B OF ASSESSMENT ORDER): UNDER THIS HEAD, THE A.O. ADDED UP RS.9,76,208/- AS UNEXPLAINED INVESTMENT. DURING THE REMAND PROCEEDIN GS THE A/R OF THE ASSESSEE STATED THAT THE SAID PAYMENTS WERE REFLECTED IN THE BANK LOAN PAYMENT SCHEDULE BUT DATES DEFER DUE TO MISTAKE ON THE PART OF THE ACCOUNTANT. ON PERUSAL OF CASH B OOK AND LEDGER COPY OF RESPECT LOAN ACCOUNTS AND THE SUBMIS SION OF THE A/R, IT IS FOUND THAT OUT OF THE SUM OF RS.9,76,208 /-, AN ACCOUNT OF RS.1,07,000/- WAS PAID AS DOWN PAYMENT TO JAYSHR EE AUTO, FARIDPUR AGAINST LOAN VEHICLE LOAN SHOWN IN THE CAS H BOOK BUT NOT REFLECTED IN THE PAYMENT SCHEDULE AS THE PAYMENT WA S MADE BEFORE PURCHASE OF THE MACHINE. REST OF THE AMOUNT I.E. RS.8,69,208/- WAS PAID A S REPAYMENT OF LOAN ACCOUNT NO. 3216075 OF UMA SEN IN HDFC BANK WHICH WAS FUNDED BY ANOTHER HDFC SAVINGS BANK ACCOUNT NO. 6620 JOINTLY HELD WITH HER HUSBAND SRI KALYAN S EN AND REFLECTED IN THE CASH BOOK'. (III) REPLY OF THE ASSESSEE TO THE REMAND REPORT : 'UNEXPLAINED INVESTMENT: RS.9,76,20B/- (PARA NO.: B OF ASSESSMENT ORDER) AND UNEXPLAINED EXPENSES: RS.29,4 9,272/- (PARA NO.: C OF ASSESSMENT ORDER): SIR THE APPELLANT WAS THE OWNER OF THREE JCES DURIN G THE FINANCIAL YEAR 2008-09 JCB JS 200 (FINANCED BY ICICI) JCB JS 80 (FINANCED BY HDFC) 3. JCB JS 200 (FINANCED BY HDFC) ITA NO. 53/KOL/15 SMT. UMA SEN 5 THE DETAILS OF AMOUNT PAID TOWARDS INSTALMENT IS GI VEN BELOW :- PARTICULARS FINANCED BY LOAN INSTALLMENT PAID DURING THE FY 2008-09AS PER PAYMENT SCHEDULE OF THE FINANCE CO. AMOUNT TAKEN BY THE LD.AO AS INSTALMENT PAYMENT IN HIS ASSESSMENT ORDER JCB JS 200 ICICI 7,41,246 17,72,474 JCB JS 80 HDFC 13,03,812 13,03,812 JCB JS 200 HDFC 7,99,680 7,99,680 AMOUNT PAID DURING THE FY 2008-09 28,44,738 38,75,966 IT IS APPARENT FROM THE ABOVE TABLE THAT THE LD. A. O. HAS CONSIDERED A HYPOTHETICAL FIGURE IN RESPECT OF INST ALMENT PAYMENT OF ICICL, INSTEAD OF TAKING RS. 7,41,246/- AS INSTA LMENT PAYMENT HE HAD TAKEN RS.10,72,474/- AS INSTALMENT PAYMENT. SIR, I WOULD ALSO LIKE TO SAY THAT THE OUT OF THE A BOVE AMOUNT (I. E. RS.28,44,738/-) RS.27,20,792/-IS ALREADY REFLECT ED AND EXPLAINED IN THE BOOKS OF ACCOUNT OF THE APPELLANT, LEDGER OF THE ALL THREE JCBS HAS BEEN ATTACHED. SO, I REQUEST YOU TO PLEASE DELETED THE ADDITION MA DE BY THE LD. A.O. BY INVOKING SEC. 69 AND SEC. 69C AS THERE IS NO UNEXPLAINED INVESTMENT OR UN EXPLAINED EXPENSES ON THE PART OF THE APPELLANT. 7. CONSIDERING THE ABOVE, THE CIT-A WAS OF THE OPIN ION THAT THE ASSESSEE WAS HOLDING A JOINT ACCOUNT WITH HER H USBAND AND FOUND THAT THE DEPOSITS AS FOUND AND ADDED BY THE A O TO THE ASSESSEE WERE ALREADY EXAMINED AND ADDED IN THE HAN DS OF HER HUSBAND AND DELETED THE SAME AND OBSERVATION OF WHI CH IS REPRODUCED HEREIN BELOW: ITA NO. 53/KOL/15 SMT. UMA SEN 6 I HAVE GONE THROUGH THE WRITTEN SUBMISSION OF THE APPELLANT AS WELL AS THE A.O. IN HIS REMAND REPORT. AS PER THE REMAND REPORT OUT OF RS. 9,76,208/-, RS.1,07,000/- HAS BEEN MADE AS DOWN PAYMENT FOR THE PURCHASE OF MACHINERY AND THE SAME IS EXPLAINED IN THE REMAND REPORT. REGARDING T HE BALANCE AMOUNT OF RS. 8,69,208/, IT IS SEEN THAT THIS AMOUN T HAS GONE OUT OF THE JOINT BANK ACCOUNT BEARING NO. 6620 OF H DFC BANK, DURGAPUR BRANCH. THE JOINT ACCOUNT IS IN THE NAMES OF SHRI KALYAN SEN, HUSBAND OF SMT. UMA SEN AND THE APPELLA NT AND THE DEPOSITS IN THIS ACCOUNT HAVE ALREADY BEEN ADDE D IN THE HANDS OF HER HUSBAND I.E. SHRI KALYAN SEN FOR THE A SSESSMENT YEAR 2009-10. HENCE SINCE THE SOURCE OF THE PAYMENT OF RS. 9,76,208/- HAS ALREADY BEEN EXPLAINED, THE A.O. WAS NOT JUSTIFIED IN DISALLOWING AND MAKING ADDITION OF THI S AMOUNT. ACCORDINGLY THE ENTIRE ADDITION OF RS. 9,76,208/- I S HEREBY DELETED. 8. BEFORE US, THE LD.DR RELIED ON THE FACTS OF THE CASE AND ON THE ORDER OF AO. THE ASSESSEE SUBMITTED THAT THE CI T-A CONSIDERED THE REMAND REPORT AS FORWARDED BY THE AO WHEREIN NO ADVERSE CONTENTIONS WERE RAISED BY THE AO AND RE LIED ON THE ORDER OF CIT-A. 9. WE FIND THAT CIT-A DELETED THE SAID ADDITION MAD E ON ACCOUNT OF UNEXPLAINED INVESTMENT ON THE BASIS OF R EMAND REPORT AS SOUGHT BY HIM ON THE SUBMISSIONS AS MADE BY THE ASSESSEE THAT THE DEPOSITS IN THE SAID BANK ACCOUNT WAS VERIFIED IN THE ASSESSMENT OF HER HUSBAND AND ADDED TO HIS A CCOUNT. IN SUCH CIRCUMSTANCES, WE FIND NO MERIT IN THE ISSUE O F REVENUE AND GROUND CONCERNING THE SAME IS DISMISSED. 10. GROUND NO-2 IS THAT THE AO FOUND THAT THE ASSES SEE HAS MADE PAYMENTS TOWARDS INSTALMENTS, ACCORDING TO HIM THE SAME WERE NOT REFLECTED IN THE CASH BOOK AND ADDED TO AN EXTENT O F RS.29,49,272/- U/S. 69C AS UNEXPLAINED EXPENSES. IN CHALLENGE, THE ASSE SSEE DURING THE 1 ST APPELLATE PROCEEDINGS, SUBMITTED AS UNDER: ITA NO. 53/KOL/15 SMT. UMA SEN 7 (I) SUBMISSIONS OF ASSESSEE: 'RS.29/49/272/- AS DESCRIBED AS UNEXPLAINED EXPENSE S U/S. 69C OUT OF WHICH RS.14,27,503/- IS PAID THROUGH THE BAN K ACCOUNT NO. 6620 OF HDFC BANK (AS DISCUSSED IN PARA B OF AS SESSMENT ORDER/THIS IS JOINT ACCOUNT WITH APPELLANTS HUSBAND I. E. MR. KALYAN SEN (BDPS280JP) WHO IS ALSO A INCOME TAX ASS ESSEE, THE SAME HAD ALREADY BEEN ADDED IN THE ASSESSMENT ORDER DATED: 30,12.2011 FOR THE ASSESSMENT YEAR 2009-2010 OF KAL YAN SEN (PAN: BDAPS2803P) SO TO AVOID THE DOUBLE TAXATION O F THE SAME INCOME IT SHOULD ALSO TO BE DELETED FROM THE ASSESS MENT OF APPELLANT' (II) AOS REMAND REPORT DT: 9.12.2013: 'REGARDING ADDITION OF RS.29,49,272/- UNDER THE HEA D 'UNEXPLAINED EXPENSES', THE A/R OF THE ASSESSEE STA TED THAT OUT OF THE SAID SUM/ AN AMOUNT OF RS.14, 27,503/- H AD BEEN PAID AS EMI THROUGH BANK AND AS THE SAID UNDISCLOSE D BANK ACCOUNT HAS BEEN CONSIDERED WHILE MAKING ASSESSMENT OF SRI KALYAN SEN. HUSBAND OF THE ASSESSEE, NO DOUBLE TAXA TION SHOULD BE MADE. ON GOING THROUGH THE RECORDS, IT IS FOUND THAT AN A MOUNT OF RS.14,27,503/- WAS PAID EMI AGAINST VEHICLE LOAN TH ROUGH THE ALLEGED UNDISCLOSED BANK ACCOUNT NO.6620 IN HDFC BA NK JOINTLY MAINTAINED WITH HER HUSBAND SRI KALYAN SEN AS DISCU SSED ABOVE. HENCE THE BALANCE AMOUNT OF RS.15,21,769/- I S REMAINED UNEXPLAINED'. (III) REPLY OF THE ASSESSEE TO THE REMAND REPORT : UNEXPLAINED INVESTMENT : RS. 9,76,208/- ( PARA NO . B OF ASSESSMENT ORDER) AND UNEXPLAINED EXPENSES : RS.29, 49,272/- (PARA NO. C OF ASSESSMENT ORDER) : SIR THE APPELLANT WAS THE OWNER OF THREE JCBS DURIN G THE FINANCIAL YEAR 2008-09 1. JCB JS 200 (FINANCED BY ICICI) 2. JCB JS 80 (FINANCED BY HDFC) 3. JCB JS 200 (FINANCED BY HDFC) ITA NO. 53/KOL/15 SMT. UMA SEN 8 THE DETAILS OF AMOUNT PAID TOWARDS INSTALMENT IS GI VEN BELOW :- PARTICULARS FINANCED BY LOAN INSTALLMENT PAID DURING THE FY 2008-09AS PER PAYMENT SCHEDULE OF THE FINANCE CO. AMOUNT TAKEN BY THE LD.AO AS INSTALMENT PAYMENT IN HIS ASSESSMENT ORDER JCB JS 200 ICICI 7,41,246 17,72,474 JCB JS 80 HDFC 13,03,812 13,03,812 JCB JS 200 HDFC 7,99,680 7,99,680 AMOUNT PAID DURING THE FY 2008-09 28,44,738 38,75,966 IT IS APPARENT FROM THE ABOVE TABLE THAT THE LD. A. O. HAS CONSIDERED A HYPOTHETICAL FIGURE IN RESPECT OF INST ALMENT PAYMENT OF ICICL, INSTEAD OF TAKING RS. 7,41,246/- AS INSTA LMENT PAYMENT HE HAD TAKEN RS.17,72,474/- AS INSTALMENT PAYMENT. SIR, I WOULD ALSO LIKE TO SAY THAT THE OUT OF THE A BOVE AMOUNT (I. E. RS. 28, 44,738/-) RS.27,20,792/- IS ALREADY REFL ECTED AND EXPLAINED IN THE BOOKS OF ACCOUNT OF THE APPELLANT, LEDGER OF THE ALL THREE JCBS HAS BEEN ATTACHED. SO, I REQUEST YOU TO PLEASE DELETED THE ADDITION MA DE BY THE LD. A.O. BY INVOKING SEC. 69 AND SEC. 69C AS THERE IS NO UNEXPLAINED INVESTMENT OR UNEXPLA INED EXPENSES ON THE PART OF THE APPELLANT. 11. CONSIDERING THE ABOVE, THE CIT-A WAS OF THE OPI NION THAT THE ASSESSEE WAS HOLDING A JOINT ACCOUNT WITH HER H USBAND AND FOUND THAT THE DEPOSITS AS FOUND AND ADDED BY THE A O TO THE ASSESSEE WERE ALREADY EXAMINED AND ADDED IN THE HAN DS OF HER HUSBAND AND DELETED THE SAME AND OBSERVATION OF WHI CH IS REPRODUCED HEREIN BELOW: 6.3 I HAVE GONE THROUGH THE FINDINGS OF THE AO. IN HIS ASSESSMENT ORDER AS WELL AS I HAVE GONE THROUGH THE FINDINGS OF THE AO IN THE REMAND REPORT. I HAVE ALSO GIVEN MY S YMPATHETIC CONSIDERATION TO THE SUBMISSION OF THE APPELLANT. I N THIS REGARD, I AM OF THE CONSIDERED OPINION THAT THERE IS SUBSTANT IAL FORCE 'IN THE SUBMISSION OF THE APPELLANT. IN THIS CASE, THE A.O. HAS BROUGHT OUT THE ALLEGED DISCREPANCIES IN THE PAYMEN T OF ITA NO. 53/KOL/15 SMT. UMA SEN 9 INSTALMENTS FOR PURCHASE OF MACHINERY IN A DETAILED CHART WITH THREE COLUMNS AT PAGE 3 OF THE ASSESSMENT ORDER. AS PER THE CHART, IT IS SEEN THAT THE TOTAL AMOUNT OF THE FIRS T COLUMN COMES TO RS. 17,72,474/-, THE TOTAL OF THE SECOND COLUMN COMES TO RS. 7,99,680/- AND THE TOTAL OF THE THIRD COLUMN COMES TO RS. 13,03,812/-. THUS THE TOTAL OF THESE THREE COLUMNS IN THE CHART COMES TO RS. 38,75,966/-. OUT OF THIS TOTAL AMOUNT OF RS.38,75,966/-, THE A.O. HAS DISALLOWED RS. 9,76,20 8/- AS UNEXPLAINED INVESTMENT AND HAS DISALLOWED BALANCE A MOUNT OF RS. 29,49,272/- AS UNEXPLAINED EXPENSES. AS PER THE AO. IN THE FIRST COLUMN, THE TOTAL AMOUNT OF RS. 17,72,474/- H AS GONE OUT OF ICICI BANK. HOWEVER, THE AO. HAS NOT EXAMINED THIS ACCOUNT IN ITS PROPER PERSPECTIVE AS THE VARIOUS CHEQUES ISSUE D FROM THIS ACCOUNT WERE SUBSEQUENTLY BOUNCED AND THE TOTAL OF SUCH BOUNCED CHEQUES COMES TO RS. 10,31,228/- AND THE A. O. HAS INCLUDED THESE BOUNCED CHEQUES IN ARRIVING AT THE F IGURE OF RS. 17,72,474/-. THUS IF THE BOUNCED CHEQUES OF RS.10,3 1,228/- IS EXCLUDED FROM THIS AMOUNT OF RS. 17,72,474/-, THEN THE ACTUAL AMOUNT OF PAYMENT COMES TO RS. 7,41,246/-. IT IS SE EN THAT OUT OF RS. 7,41,246/-, THE PAYMENT OF RS.6,17,330/ WAS MADE FROM THE CASH BOOK OF THE APPELLANT AND FROM M/S.SEN ENT ERPRISE I.E. THE PROPRIETARY CONCERN OF APPELLANT'S HUSBAND, SHR I KALYAN SEN. THE BALANCE AMOUNT OF RS. 1,23,916/- HAS BEEN PAID ON 20.10.2008 FROM THE JOINT ACCOUNT OF SHRI KALYAN SE N AND SMT. UMA SEN IN HDFC BANK. IT IS WORTH MENTIONING THAT T HE DEPOSITS IN THE HDFC BANK ACCOUNT HAVE ALREADY BEEN ADDED IN THE HANDS OF SHRI KALYAN SEN. ACCORDINGLY THERE IS NO FURTHER NEED TO MAKE SUCH FURTHER ADDITION IN THE HANDS OF SMT. UMA SEN. ACCORDINGLY THE AMOUNT OF RS. 17,72,474/- I.E. THE TOTAL AMOUNT OF THE FIRST COLUMN OF THE ASSESSMENT ORDER AT PAGE 3 IS FULLY E XPLAINED. IN THE SECOND COLUMN OF THE CHART AT PAGE 3 OF THE ASSESSMENT ORDER, THE TOTAL AMOUNT HAS BEEN SHOWN A T RS. 7,99,680/-. AFTER EXAMINING THE CASH BOOK AND OTHER DETAILS OF THE APPELLANT, IT IS SEEN THAT RS. 2,66,560/- HAS B EEN PAID OUT OF THE CASH BOOK OF THE APPELLANT AND RS. 5,33,120/- H AS BEEN PAID FROM M/S. SEN ENTERPRISE, I.E. THE PROPRIETARY CONC ERN OF THE HUSBAND OF THE ASSESSEE, SHRI KALYAN SEN. THUS THE TOTAL AMOUNT OF RS. 7,99,680/- AS APPEARING IN THE SECOND COLUMN OF THE CHART AT PAGE 3 OF THE ASSESSMENT ORDER IS HEREBY EXPLAIN ED. NOW COMING TO RS. 13,03,812/- AS APPEARING IN THIRD COLUMN OF THE CHART AT PAGE 3 OF THE ASSESSMENT ORD ER, IT IS SEEN THAT THE SAME AMOUNT HAS BEEN PAID FROM THE CASH BO OK OF THE APPELLANT AND ACCORDINGLY THE SAME IS EXPLAINED. THIS IS FURTHER TO MENTION THAT ONCE THE BOUNCED CH EQUE AMOUNTING TO RS. 10,31,228/- IS TAKEN OUT OF THE TO TAL FIGURE OF RS. 38,75,966/- AS ARRIVED IN THE CHART AT PAGE 3 O F THE ASSESSMENT ORDER, THEN THE ACTUAL AMOUNT OF THE ALL EGED DISCREPANCY MADE BY THE A.O. COMES TO RS. 28,44,738 /-. AS DISCUSSED IN PARA 4 OF THIS ORDER, IT IS SEEN THAT OUT OF RS.28,44,738/-, RS.9,76,208/- HAS ALREADY BEEN EXPL AINED AND DELETED. SIMILARLY THE BALANCE AMOUNT AS DISCUSSED ABOVE IS ALSO FOUND TO HAVE BEEN EXPLAINED, AS THE SOURCE OF SOME PAYMENT IS FOUND IN THE BOOKS OF ACCOUNT OF THE APPELLANT AND SOME PAYMENTS HAD GONE FROM M/S. SEN ENTERPRISE AND THER E ARE ALSO PAYMENTS OUT OF THE JOINT ACCOUNT IN HDFC BANK. SIN CE THE ITA NO. 53/KOL/15 SMT. UMA SEN 10 DEPOSITS OF HDFC BANK ACCOUNT HAS ALREADY BEEN ADDE D IN THE HANDS OF APPELLANTS HUSBAND, SHRI KALYAN SEN, THE FIRST NAME IN THE JOINT ACCOUNT OF THE HDFC BANK, DURGAPUR BRANCH , THERE IS NO NEED FOR FURTHER ADDITION ON THIS ISSUE IN THE CAS E OF THE APPELLANT. ACCORDINGLY THE ADDITION OF RS.29,49,27 2/- BY THE AO, WHICH IS MADE IN A VERY CIRCUITOUS MANNER, IS HEREB Y DELETED. 12. BEFORE US, THE LD.DR RELIED ON THE FACTS OF THE CASE AND ON THE ORDER OF AO. THE ASSESSEE SUBMITTED THAT THE CI T-A CONSIDERED THE REMAND REPORT AS FORWARDED BY THE AO WHEREIN NO ADVERSE CONTENTIONS WERE RAISED BY THE AO AND RE LIED ON THE ORDER OF CIT-A. WE FIND THAT THE CIT-A EXAMINED THE CHART AS PREPARED BY THE AO AND FOUND THAT AS PER THE CHART THE TOTAL PAYMENT OF INSTALMENTS FOR PURCHASE OF MACHINERY OF RS. 38,75,966/- OUT OF WHICH THE AO ALREADY DISALLOWED RS. 9,76,208/- AS UNEXPLAINED INVESTMENT AS DISCUSSED A ND DELETED BY US COVERING GROUND NO-1 ABOVE AND HAS DISALLOWED BALANCE AMOUNT OF RS. 29,49,272/- AS UNEXPLAINED EXPENSES W ITHOUT EXAMINING THE NON-PAYMENT OF VARIOUS CHEQUES ISSUED FROM THE SAID ACCOUNT. WITH REGARD TO THE BALANCE AMOUNT AS DISCUSSED BY THE CIT-A THE SOURCE OF SOME PAYMENT IS FOUND IN THE BOOKS OF ACCOUNT OF THE ASSESSEE AND SOME PAYMENTS WERE F ROM M/S. SEN ENTERPRISE AND THERE ARE ALSO PAYMENTS OUT OF T HE JOINT ACCOUNT IN HDFC BANK. WE FIND THAT CIT-A DELETED TH E SAID ADDITION MADE ON ACCOUNT OF UNEXPLAINED INVESTMENT ON THE BASIS OF REMAND REPORT AS SOUGHT BY HIM ON THE SUBM ISSIONS AS MADE BY THE ASSESSEE THAT THE DEPOSITS IN THE JOINT ACCOUNT OF THE HDFC BANK, DURGAPUR BRANCH WAS VERIFIED IN THE ASSESSMENT OF HER HUSBAND AND ADDED TO HIS ACCOUNT. IN SUCH CIRCUMSTANCES, WE FIND NO MERIT IN THE ISSUE AND GR OUND NO-2 CONCERNING THE SAME IS DISMISSED. ITA NO. 53/KOL/15 SMT. UMA SEN 11 13. IN THE RESULT, THE APPEAL OF REVENUE IS DISMIS SED ORDER PRONOUNCED IN OPEN COURT ON 07 TH DECEMBER,2016 SD/- SD/- M.BALAGANESH S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 07/12/ 2016 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT/ REVENUE: INCOME TAX OFFICER, WARD 2(4), DURGAPUR, AAYKAR BHAWAN, DURGAPUR-16. 2 THE RESPONDENT/ ASSESS EE: SMT. UMA SEN 10/15 AUROBINDO SARANI, A-ZONE, DURGAPUR-713204. 3 4. / THE CIT(A) THE CIT 5 . DR, KOLKATA BENCH 6 . GUARD FILE . **PP/SPS TRUE COPY, BY ORDER, AS STT REGISTRAR ITA NO. 53/KOL/15 SMT. UMA SEN 12