M/s M.Y.Metal Works, Howrah V. I.T.O Wd - 47(4),kolkata, Kolkata

ITA 534/KOL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83114 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 01-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 14-03-2013
• Court: TRIBUNAL
• Department Lawyers: MD GAYALUDDIN ANSARI JCITSR
• Keywords: Income from undisclosed sources; Source of fund
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH S MC, KOLKATA [BEFORE SHRI MAHAVIR SINGH, JM ] ITA NO.534/KOL/2013 ASSESSMENT YEAR : 2008-09 APPELLANT ) (RESPONDENT) M/S. M Y METAL WORKS . -VERSUS- I.T.O., WARD-47(4) , KOLKATA KOLKATA (PAN:AANFM 4434 H) FOR THE APPELLANT : NONE FOR THE RESPONDENT: MD.GAYALUDDIN ANSARI, JCIT(SR.DR) DATE OF HEARING : 18.08.2014. DATE OF PRONOUNCEMENT : 05.09.2014. ORDER THIS APPEAL OF ASSESSEE IS ARISING OUT OF O RDER OF CIT(A)-XXX KOLKATA IN APPEAL NO.168/CIT(A)-XX/WD-47(4)/2010-11 DATED 21.11.2012. ASSESSMENT WAS FRAMED BY I.T.O. WARD-47 (4), KOLKATA U/S 143(3) OF THE INCOM E TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR A.Y. 2008-09 VIDE ITS ORDER DATED 30.11.2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) IN CONFIRMING THE ACTION OF AO IN MAKING ADDITION OF U NSECURED LOAN OF RS.1,90,000/-, RECEIVED DURING A.Y. 2008-09 FROM LOAN CREDITOR MD. ARIF SHEIKH, TREATING THE SAME AS INCOME FROM UNDISCLOSED SOURCES U/S 68 OF THE AC T. 3. I HAVE HEARD LD. SR DR AND GONE THROUGH FACTS AN D CIRCUMSTANCES OF THE CASE. I FIND THAT AO DURING THE COURSE OF ASSESSMENT PROC EEDINGS NOTICED FROM THE BALANCE SHEET THAT THERE IS A TOTAL LOAN IN THE NAME OF LOA N CREDITOR MD. ARIF SHEIKH AT THE END OF YEAR I.E. 31.03.2008 AT RS.2.90 LAKHS. AO REQUIR ED THE ASSESSEE TO EXPLAIN AND ASSESSEE STATED THAT DURING THE YEAR ONLY LOAN OF R S.1,90,000/- WAS RECEIVED. THE AO MADE ADDITION OF THE SAME AS UNEXPLAINED CASH CREDI T U/S 68 OF THE ACT. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO CONFIR MED THE ACTION OF THE AO AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE. AGGRIEVED, NOW ASSESSEE IS IN APPEAL BEFORE ME. ITA NO.534/KOL/2013 M/S.M Y METAL WORKS A.YR.2008-09 2 4. I HAVE HEARD LD. SR. DR AND GONE THROUGH FACTS A ND CIRCUMSTANCES OF THE CASE. I FIND THAT AO ADDED BACK THIS SUM OF RS.1,90,000/- O UT OF TOTAL SUM OF RS.2,50,000/- RECEIVED DURING THE YEAR. (RS.1,90,000/- ON 28.10.2 007 AND RS.1,00,000/- ON 25.02.2008 PAID BY A/C PAYEE CHEQUES). ACCORDING TO AO, THE LOAN CREDITOR MD. ARIF SHEIKH DEPOSITED CASH JUST PRIOR TO ISSUE OF CHEQUE AND LOAN CREDITOR FAILED TO PROVE SATISFACTORILY THE CASH DEPOSIT IN HIS BANK ACCOUNT . I FIND THAT LOAN CREDITOR APPEARED PERSONALLY BEFORE AO AND FILED COPY OF INCOME TAX P AN CARD, STATEMENT OF INCOME AND BALANCE SHEET AND ALSO FILED INCOME TAX RETURN ACKNOWLEDGEMENT FOR A.Y.2007- 08 IN SUPPORT OF OPENING CASH BALANCE AS ON 01/04/2 007 AT RS.1,61,332/- AND ALSO ASSESSMENT PARTICULAR FOR A.Y.2008-09 LIKE STATEMEN T OF INCOME, BALANCE SHEET AND BANK PASS BOOK. THE ASSESSEE ALSO FILED LOAN CONFIR MATION, SOURCE OF FUND, EVIDENCE OF INCOME EARNED DURING A.Y.2008-09. THE ASSESSEE, AS LOAN CREDITOR, HAS DECLARED TURN OVER BEFORE THE AUTHORITIES BELOW ADMITTING HAVING CASH IN HAND AT RS.1,61,332/- AS ON 31.03.2007 AND ALSO SHOWN JOB WORK RECEIPT IN FINAN CIAL YEAR 2006-07 AT RS.91,109/- AND DRAWINGS TO THE TUNE OF RS.25,420/0. SIMILARLY THERE WAS A DRAWING OF RS.27,384/- DURING FINANCIAL YEAR 2007-08. I FIND THAT THE CIT( A) AS WELL AS AO BOTH HAVE MADE THIS UNSECURED LOAN AS UNEXPLAINED JUST ON THE BASI S OF CONJECTURES AND SURMISES BY DISREGARDING THE EXPLANATION AND FOR THE REASON THA T THIS PERSON MIGHT NOT HAVE ACCUMULATED THE CASH IN HAND FOR DEPOSIT OF RS.1,50 ,000/- IN THE BANK ACCOUNT. I FIND THAT THE TRANSACTION OF RS.1.50 LAKHS IS EXPLAINED FOR THE REASON THAT THE ASSESSEE IS HAVING CASH BALANCE TO THE EXTENT OF RS.1,61,332/-. FOR THE BALANCE AMOUNT OF RS.40,000/- I FIND NO REASON TO DELETE AS ASSESSEE S CASH BALANCE IS TO THE EXTENT OF RS.1,61,332/- ONLY. IN VIEW OF THE ABOVE REASONS, I DELETE THE ADDITION OF RS.1.50 LAKHS ADDED BY AO AS UNEXPLAINED AND SUSTAIN THE BALANCE ADDITION OF RS.40,000/-. 5. IN THE RESULT THE APPEAL OF ASSESSEE IS PARTLY A LLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05.09.2014 SD/- [ MAHAVIR SINGH ] JUDICIAL MEMBER DATE: 05.09.2014. R.G.(.P.S.) ITA NO.534/KOL/2013 M/S.M Y METAL WORKS A.YR.2008-09 3 COPY OF THE ORDER FORWARDED TO: 1. M/S. M Y METAL WORKS, 3, DR. H. K. CHATTERJEE LANE, BELURMATH (HOWRAH) 711202. 2 THE I.T.O.-WARD-47 (4), KOLKATA. 3. THE CIT, 4. THE CIT(A)-XXX, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES