M/s. Dynamic Industries Ltd., , Howrah V. ITO, Ward - 1(3), Kolkata , Kolkata

ITA 531/KOL/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5888 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 28-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: IMLIMEREN JAMIR
• Assessee Lawyers: S JHAJHARIA
• Keywords: Unexplained cash credit; Additional evidence
• Section: 234B; 68

Judgement Text

PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC, KOLKATA BEFORE SH.P.M.JAGTAP, ACCOUNTANT MEMBER ITA NO.531/KOL/2018 [ASSESSMENT YEAR: 2009 - 10] APPELLANT BY SH. S.JHAJHARIA, AR RESPONDENT BY SH. IMLIMEREN JAMIR, ADDL. CIT DATE OF HEARING 14.06.2018 DATE OF PRONOUNCEMENT 2 7 .07.2018 ORDER PER P.M.JAGTAP, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER DATED 30 .0 1 .201 8 PASSED BY CIT(A) - 22 , KOLKATA FOR AY 20 09 - 1 0 . 2. THE ISSUE IN GROUND NO.1 RELATES TO THE ADDITION OF RS.4 LA CS MADE BY THE AO AND CONFIRMED BY LD.CIT(A) ON ACCOUNT OF LOAN BY TREATING THE SAME AS UNEXPLAINED CASH CREDIT U/S 68 OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). 3. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF MANUFACT UR ING OF FERROUS ITEMS/ STEELS. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 25.03.2010 DECLARING A TOTAL INCOME OF RS.7,31,579/ - . A S NOTICED BY THE AO DU RING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE COMPANY HAD RECEIVED A FRESH LOAN OF RS.4 LACS FROM M/S. ANJANA RESOURCE PVT. LTD. IN THE YEAR UNDER CONSIDERATION. SINCE THE ASSESSEE COULD NOT F ILE THE LOAN CONFIRMATION OF THE SAID CREDITOR, THE AO TREATED THE LOAN RECEIVED BY DYNAMIC INDUSTRIES LTD., C/O - SALARPURIA JAJODIA & CO., 7, C.R. AVENUE, KOLKATA - 700072. PAN - AAACD8677K VS ITO, WARD - 1(3), AAYAKAR BHAWAN, P - 7, CHOWRINGHEE SQAURE, KOLKATA - 700069. (APPELLANT) (RESPONDENT) ITA NO.531/KOL/2018 [ASSESSMENT YEAR: 2009 - 10] PAGE | 2 THE ASSESSEE FROM M/S. ANJANA R ESOURCE PVT. LTD. A S UNEXPLAINED CASH CREDIT AND MADE ADDITION U/S 68 TO THAT EXTENT. 4. THE ADDITION MADE BY THE AO U/S 68 OF THE ACT WAS CHALLENGED BY THE ASSESSEE IN THE APPEAL FILED BEFORE THE LD.CIT(A). DURING THE COURSE OF APPELLATE PROCEEDINGS BEFO RE LD.CIT(A), THE CONFIRMATION LETTER ISSUED BY THE CONCERNED CREDITOR GIVING ALL THE RELEVANT DETAILS WAS FILED BY THE ASSESSEE. LD.CIT(A), HOWEVER, STILL CONFIRMED THE ADDITION OF RS.4 LACS MADE BY THE AO U/S 68 OF THE ACT BY OBSERVING THAT THE LOAN CO NFIRMATION LETTER FURNISHED BY THE CONCERNED CREDITOR HAD REMAINED UNVERIFIED BY THE AO. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS RIGHTLY CONTENDED BY THE LD. COUNSEL FOR THE ASSESS EE, THE CONFIRMATI ON CERTIFICATE OF THE CONCERNED CREDITOR FILED BY THE ASSESSEE DURING THE APPELLATE PROCEEDINGS FOR THE FIRST TIME SHOULD HAVE BEEN ADMITTED BY LD.CIT(A) AS ADDITIONAL EVIDENCES BEING RELEVANT TO DECIDE THE ISSUE AND AN OPPORTUNITY SHOULD HAVE BEEN GIVEN TO THE AO TO VERIFY THE SAME. EVEN LD. DR HAS NOT DISPUTED THIS POSITION AND CONTENDED THAT THE MATTER MAY BE SENT BACK TO THE AO FOR ALLOWING HIM AN OPPORTUNITY TO VERIFY THE CONFIRMATION CERTIFICATE. THE IMPUGNED ORDER OF LD.CIT(A) ON THIS ISSUE IS AC CORDINGLY SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE AO FOR DECIDING THE SAME AFRESH AFTER VERIFYING THE CONFIRMATION CERTIFICAT E OF THE CONCERNED CREDITOR FURNISHED BY THE ASSESSEE. GROUND NO.1 OF THE ASSESSEES APPEAL IS ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 6. AS REGARDS, GROUND NO.2, IT IS OBSERVED THAT THE ISSUE S INVOLVED THEREIN RELATING TO CHARGING OF INTEREST U/S 234B & 234C OF THE ACT, ARE CONSEQUENTIAL IN NATURE. THE AO IS, ACCORDINGLY, DIRECTED TO ALLOW CONSEQUEN TIAL RELIEF TO TH E ASSESSEE ON THESE ISSUES. ITA NO.531/KOL/2018 [ASSESSMENT YEAR: 2009 - 10] PAGE | 3 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 .07.2018. S D / - (P.M.JAGTAP) ACCOUNTANT MEMBER DATE: - 2 7 . 07.2018 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT - DYNAMIC INDUSTRIES LTD., C/O - SALARPURIA JAJODIA & CO., 7, C . R . AVENUE, KOLKATA - 700072. 2. RESPONDENT - ITO, WARD - 1(3), AAYAKAR BHAWAN, P - 7, CHOWRINGHEE SQAURE, KOLKATA - 700069. 3. CIT - KOLKATA 4. CIT(APPEALS) - KOLKATA 5. DR: ITAT - KOLKATA BENCH SR.P.S./H.O.O ITAT, KOLKATA