Prasanjit Chtterjee, Kolkata V. D.C.I.T Cir - 33,kolkata., Kolkata

ITA 633/KOL/2013

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3233 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 02-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 22-03-2013
• Court: TRIBUNAL
• Department Lawyers: A R R OY JCIT LD
• Assessee Lawyers: VARSHA JALAN S LD ARS
• Section: 143(3); 68

Judgement Text

ITA NO. 633/KOL/2013-C-AM SHRI PRASANJIT CHATTERJEE 1 IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, KOLKATA BEFORE : SHRI MAHAVIR SINGH, JUDICIAL MEMBER, AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER I.T.A NO. 633/KOL/2013 A.Y 2009-10 PRASANJIT CHATTERJEE VS. D.C.I.T, CIR-33, KOL KATA PAN: ACPPC7618H (APPELLANT) (RES PONDENT) FOR THE APPELLANT: SHRI SUBASH AGARWAL & MS. VARSHA JALAN, ADVOCATES, LD.ARS FOR THE RESPONDENT : SHRI A.R R OY, JCIT, LD.SR.DR DATE OF HEARING: 02-02-2016 DATE OF PRONOUNCEMENT: 05 -02-2 016 ORDER SHRI M.BALAGANESH, AM THIS APPEAL OF THE ASSESSEE ARISES OUT OF THE ORDER OF THE LEARNED CIT(A), XIX, KOL IN APPEAL NO. 157/CIT(A)/DCIT, CIR-33, KOL/12 -13 DATED 01-02-2013 FOR THE ASST YEAR 2009-10 AGAINST THE ORDER OF ASSESSMENT F RAMED BY THE LEARNED AO U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT). 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEA L IS AS TO WHETHER THE ADDITION OF RS.39,01,000/-TOWARDS UNEXPLAINED CASH DEPOSITS C OULD BE MADE U/S. 69A OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSES SEE IS A DIRECTOR OF M/S. CHATTERJEE COLD STORAGE (P) LTD. DURING THE COURSE OF ASSESSM ENT PROCEEDINGS U/S. 143(3) OF THE ACT, THE LD. AO FOUND FROM THE ENQUIRY WITH THE I NDIAN BANK, BANKURA BRANCH THAT IN THE SAVINGS BANK ACCOUNT VIDE ACCOUNT BEARING NO. 828857329, CASH OF ITA NO. 633/KOL/2013-C-AM SHRI PRASANJIT CHATTERJEE 2 RS.39,01,000/-WAS DEPOSITED DURING THE PERIOD 24/03 /2009 TO 31/03/2009. THE LD. AO FOUND THAT THE SAID BANK ACCOUNT WAS NOT DISCLOSED BY THE ASSESSEE IN HIS BALANCE SHEET. BEFORE THE LD.AO THE ASSESSEE HAD TRIED TO EXPLAIN THESE CASH RECEIPTS REPRESENT THE MONIES WHICH WERE COLLECTED FROM VARIOUS FARMERS, A GRICULTURISTS, STOCKIESTS, WHO INTENDED TO BOOK THE COLD STORAGE SPACE IN M/S. CHA TTERJEE COLD STORAGE (P) LTD. THE ASSESSEE HAD COLLECTED THE SAID ADVANCES FROM TH ESE PARTIES ONLY IN THE CAPACITY OF THE DIRECTOR OF THE SAID COMPANY, M/S. CHATTERJEE C OLD STORAGE (P) LTD. ON VERIFICATION, THE LD.AO FOUND THAT THE SAID ADVANC ES WERE ALSO NOT REFLECTED IN THE BOOKS OF M/S. CHATTERJEE COLD STORAGE (P) LTD. ACCO RDINGLY, HE DISBELIEVED THE VERSION OF THE ASSESSEE THAT THE SAID RECEIPTS PER TAINED TO M/S. CHATTERJEE COLD STORAGE (P) LTD AND BROUGHT THE SAID CASH DEPOSITS AS U NEXPLAINED CASH CREDIT U/S. 68 OF THE ACT. THIS ACTION OF THE LD.AO WAS CONFIRMED BY THE LD. CIT(A). AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US ON THE FOLLOWING GR OUND:- 1) THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE THE LD.CIT(APPEALS) ERRED IN AFFIRMING THE ADDITION OF RS. 39,01,0001- AS UNEXPLAINED MONEY U/S 69A AND THE ADDITION IS NO T SUSTAINABLE. 4. THE LD.AR ARGUED THAT THE MONIES BELONGED TO M /S. CHATTERJEE COLD STORAGE (P) LTD ONLY AND MONEY WAS RECEIVED BY THE ASSESSEE AS ADVANCES ON BEHALF OF THE SAID COMPANY I.E M/S. CHATTERJEE COLD STORAGE (P) LTD [( P) LTD. TOWARDS BOOKING OF COLD STORAGE SPACE FROM AS MANY AS 97 DIFFERENT FARMERS , AGRICULTURISTS AND STOCKIEST. ACCORDINGLY, THE LD.AR OF THE ASSESSEE ARGUED THAT THE ASSESSEE HAS GIVEN THE NAMES AND ADDRESS OF THE VARIOUS PARTIES FROM WHOM THE SA ID ADVANCES WERE RECEIVED. THUS, SHE PRAYED BEFORE US THAT NO ADDITION ON THIS COUN T COULD BE MADE U/S. 68 OF THE ACT. DURING THE COURSE OF HEARING BEFORE US SHE REFERRED TO PAGE 11 OF THE ASSESSEES PAPER BOOK CONTAINING A CERTIFICATE ISSUED BY THE SENIOR MANAGER, INDIAN BANK, BANKURA BRANCH, WHEREIN IT WAS CERTIFIED THAT THE SAID BANK ACCOUNT [BEARING NO. 828857329] WAS OPENED ON 24-03-2009 IN FAVOUR OF CHATTERJEE CO LD STORAGE (P) LTD., BANKURA. SHE ALSO REFERRED TO PAGE 6 OF THE LD. CIT(A)S ORD ER , WHEREIN VIDE REF NO DATED ITA NO. 633/KOL/2013-C-AM SHRI PRASANJIT CHATTERJEE 3 23-3-2009 A LETTER WAS WRITTEN BY M/S. CHATTERJEE COLD STORAGE (P) LTD ADDRESSED TO DIRECTOR OF MARKETING IN-CHARGE & EX-OFFICIO ADDITI ONAL DIRECTOR OF AGRICULTURE (MARKETING) WEST BENGAL, P-16, EXCHANGE PLACE EXTN (4 TH FLOOR), KOLKATA- 73 REGARDING THE FACT THAT THE COLD STORAGE UNIT WA S CLOSED UNDER COMPELLING CIRCUMSTANCES DUE TO NON AVAILABILITY OF POTATOES. SHE ARGUED THAT BASED ON THIS INCIDENT ONLY, THE ASSESSEE HAD COLLECTED THE ADVA NCES ON BEHALF OF THE SAID COMPANY I.E M/S. CHATTERJEE COLD STORAGE (P) LTD AND DEPOS ITED THE SAME IN THE SAID DESIGNATED BANK ACCOUNT. IN RESPONSE TO THIS THE LD . SR. DR VEHEMENTLY SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD INCLUDING THE DETAILS FILED IN THE PAPER BOO K BEFORE US. WE FIND THAT AT THE OUTSET, WE FIND THAT THE BANK STATEMENT AS FORWARD ED BY THE INDIAN BANK IS IN THE NAME OF SHRI PRASANJIT CHATTERJEE, THE ASSESSEE HE REIN, WHICH IS ENCLOSED FROM PAGES 1-2 OF THE ASSESSEES PAPER BOOK. HOWEVER, FROM PA GE 11 OF THE PAPER BOOK CONTAINING THE CERTIFICATE ISSUED BY SENIOR MANAGER , INDIAN BANK, BANKURA BRANCH, BANKURA, WE FIND THAT THE SAID BANK ACCOUNT [BEAR ING NO. 828857329] WAS OPENED ON 24-03-2009 IN FAVOUR OF CHATTERJEE COLD STORAGE (P) LTD., BANKURA. THIS CREATES A BASIC DISCREPANCY ON THE FACTS AS TO WHETHER THE BANK ACCOUNT WAS OPENED IS IN THE NAME OF THE ASSESSEE OR IN THE NAME OF M/S. CHATT ERJEE COLD STORAGE (P) LTD. THIS REQUIRES VERIFICATION BY THE LD.AO. IN THESE FACTS AND CIRCUMSTANCES, WE DEEM IT FIT AND APPROPRIATE, IN THE INTEREST OF JUSTICE AND FAIR PL AY, TO SET ASIDE THIS ISSUE TO THE FILE OF THE LD.AO TO VERIFY THE DISCREPANCY REGARDING THE F ACT THAT IN WHOSE NAME THE BANK ACCOUNT WAS OPENED AND TO DECIDE THE ISSUE AFRESH. THE ASSESSEE IS DIRECTED TO CO- OPERATE WITH THE SET ASIDE PROCEEDINGS BEFORE THE L D.AO BY PLACING REAL FACTS IN THIS REGARD. IF IT IS PROVED THAT THE BANK ACCOUNT IS IN THE NAME OF THE ASSESSEE, THE ASSESSEE IS DUTY BOUND TO EXPLAIN THE SOURCES FOR THE DEPOSITS MADE IN THE SAID BANK ACCOUNT OF THE ASSESSEE. GROUND NO.1 RAISED BY THE ASSESSEE IN THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 633/KOL/2013-C-AM SHRI PRASANJIT CHATTERJEE 4 6. REGARDING NEXT GROUND, DURING THE COURSE OF HEAR ING THE LD.AR OF THE ASSESSEE HAS STATED BEFORE US THAT SHE IS NOT PRESSING THE GROUND NO.2. THE SAME IS TAKEN AS STATEMENT FROM THE BAR. ACCORDINGLY, GROUND NO.2 AS RAISED BY THE ASSESSEE BEFORE US IS DISMISSED AS NOT PRESSED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE AS STATED ABOVE. THIS ORDER IS PRONOUNCED IN OPEN COURT ON 05 -02 -2016 1.. THE APPELLANT: SHRI PRASANJIT CHATTERJEE 158 LENIN SARANI, KOL-13. 2 THE RESPONDENT- THE DEPUTY COMMISSIONER OF INCOM E TAX OFFICER, CIRCLE-33 , 10B, MIDDLETON ROW, KOLKATA. 3 /THE CIT, 4.THE CIT(A ) 5. DR, KOLKATA BENCH 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT REGISTRAR **PRADIP SPS SD/- ( MAHAVIR SINGH, JUDICIAL MEMBER ) SD/- (M. BALAGANESH, ACCOUNTANT MEMBER) DATE: DATE 05 -02-2016 COPY OF THE ORDER FORWARDED TO:-