Bimal Kumar Agarwal, Delhi V. I.T.O., Ward-45(1), Kolkata Now Ward - 44(2), Kolkata, Kolkata

ITA 605/KOL/2022

AI Insights

The case involves an appeal by Bimal Kumar Agarwal against the order of the National Faceless Appeal Centre (CIT(A)), which was passed under section 250 of the Income Tax Act. The primary issue in the appeal was the addition of Rs. 56,00,539 by the Assessing Officer, treating the amount as unexplained cash credits under the head of sundry creditors. The assessee contended that he had provided sufficient evidence to prove the identity, creditworthiness, and genuineness of the transactions with the creditors, which the Assessing Officer failed to consider. The CIT(A) dismissed the appeal without a detailed examination, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128263 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 15-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 31-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 133(6); 250

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘बी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी मनीष बोरड, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Dr. Manish Borad, Accountant Member I.T.A No.605/Kol/2022 Assessment year: 2014-15 Bimal Kumar Agarwal.............................................................................Appellant 1039, Gandhi Gali, Fatehpuri, Delhi-110006. [PAN: ADAPA7127P] vs. ITO, Ward-45(1), Kolkata..............................................................Respondent Appearances by: Shri Anil Kr. Agrawal, FCA, appeared on behalf of the appellant. Shri P. P Barman, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : February 16, 2023 Date of pronouncing the order : May 01, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 05.09.2022 of the National Faceless Appeal Centre (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The ld. counsel for the assessee has submitted that the issue involved in this appeal is relating to addition made by the Assessing Officer of Rs.56,00,539/- on account of sundry creditors treating the same as bogus and thereby treating the said amount as unexplained cash credits. 3. At the outset, the ld. counsel for the assessee has invited our attention to the impugned order of the Assessing Officer to submit that I.T.A No.605/Kol/2022 Assessment year: 2014-15 Bimal Kumar Agarwal 2 the Assessing Officer has noted that despite several opportunities, the assessee had not furnished the details of the sundry creditors for the purpose of verification of identity and creditworthiness of the creditors and the genuineness of the transaction. The ld. counsel has further invited our attention to the paper-book page 5 to 9 to submit that the assessee had duly furnished before the Assessing Officer the list of sundry creditors and their address. That even in one case, the notice served by the Assessing Officer u/s 133(6) of the Act was duly responded by the said sundry creditors namely “Shri Ram Enterprise”. The ld. counsel has further submitted the copy of the profit and loss account and balance sheet. The assessee had also furnished the details of purchases and other evidences to prove the identity and creditworthiness of the creditors as well as the genuineness of the transaction. However, the Assessing Officer failed to take note of the various documents and evidences furnished by the assessee. The ld. AR has further invited our attention to the impugned order of the CIT(A) to submit that the ld. CIT(A) has dismissed the appeal of the assessee by one line order stating that the assessee has failed to appear on the date of hearing. The ld. counsel has submitted that both the lower authorities have failed to apply their mind to the submissions made by the assessee. The ld. counsel has therefore requested that the issue may be restored to the file of the Assessing Officer with a direction to verify and consider the details and evidences furnished by the assessee to prove the identity and creditworthiness of the creditors and the genuineness of the transaction. 4. We find force in the above contention of the ld. counsel for the assessee. The assessee has given a certificate and copies of the documents to submit that the same were duly furnished before the I.T.A No.605/Kol/2022 Assessment year: 2014-15 Bimal Kumar Agarwal 3 Assessing Officer. We further find that the ld. CIT(A) has dismissed the appeal of the assessee without considering any factual aspect of the case. In view of this, the impugned orders of both the lower authorities are set aside and the matter is restored to the file of the Assessing Officer with a direction to decide the issue afresh. Needless to say that the Assessing Officer will give proper opportunity to the assessee to present his case. 5. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Kolkata, the 1 st May, 2023. Sd/- Sd/- [डॉÈटर मनीष बोरड /Dr. Manish Borad] [संजय गग[ /Sanjay Garg] लेखा सदèय /Accountant Member ÛयाǓयक सदèय /Judicial Member Dated: 01.05.2023. RS Copy of the order forwarded to: 1. Bimal Kumar Agarwal 2. ITO, Ward-45(1), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches