DCIT, CIR-3(1), Siliguri, Darjeeling V. Sri Nanu Shome, Siliguri

ITA 649/KOL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6033 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 18-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR
• Section: 143(3); 154

Judgement Text

1 ITA NO. 649/KOL/2015 NANU SHOME, AY 2011-12 , C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA ( ) BEFORE . , /AND . . , ) [BEFORE SHRI J. SUDHAKAR REDDY, AM & SHRI A. T. VA RKEY, JM] I.T.A. NO. 649/KOL/2015 ASSESSMENT YEAR: 2011-12 DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-3(1), SILIGURI. VS. SHRI NANU SHOME (PAN: AIMPS4409D) APPELLANT RESPONDENT DATE OF HEARING 16.04.2018 DATE OF PRONOUNCEMENT 10.07.2018 FOR THE REVENUE SHRI SAURABH KUMAR, ADDL. CIT, SR. DR FOR THE ASSESSEE/CROSS OBJECTOR SHRI SUBASH AGARWAL, ADVOCATE ORDER PER SHRI A.T.VARKEY, JM THE APPEAL PREFERRED BY THE REVENUE IS AGAINST THE ORDER OF THE LD. CIT(A). SILIGURI DATED 25.03.2015 FOR AY 2011-12. 2. THE ONLY GROUND OF REVENUE IS AGAINST THE ACTION OF LD. CIT(A) IN DELETING THE ADDITION OF RS.47,19,082/-. 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS A CONTRACTOR BY PROFESSION. THE INCOME-TAX RETURN FOR THE A.Y. 2011- 12 WAS FILED BY THE ASSES SEE ON 31.03.2013 DISCLOSING THEREIN TOTAL INCOME OF RS. 59,18,980/-. THE INCOME WAS ASSESSED U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) AT RS. 1,24,93,540/-. IN APPEAL, THE LD. CIT(A) HAS CONFIRMED DISALLOWANCE OF RS. 13,08,285/- AND D ELETED DISALLOWANCE OF RS. 4,63,549/-. REGARDING ADDITION OF RS.47,19,082/- THE LD. CIT(A) DIRECTED THE A.O. TO VERIFY FROM THE RETURNS OF EARLIER YEARS WHETHER THIS INVESTMENT WA S DISCLOSED IN THE BALANCE SHEET OF EARLIER 2 ITA NO. 649/KOL/2015 NANU SHOME, AY 2011-12 YEARS AND IF DISCLOSED, TO DELETE THE ADDITION. AFT ER VERIFICATION THE A.O. PASSED AN ORDER U/S. 154 OF THE ACT DENYING RELIEF TO THE ASSESSEE. HOWE VER, ON APPEAL AGAINST THE ORDER U/S. 154 OF THE ACT THE LD. CIT(A) HAD DELETED THIS ADDITION BY OBSERVING AS UNDER: DURING THE COURSE OF APPELLATE PROCEEDINGS, THE A SSESSEE HAS SUBMITTED THAT, THE AO DID NOT CALL FOR ANY DETAIL BEFORE GIVING EFFECT TO THE CIT (A) ORDER DATED 28.08.2014. THE ASSESSEE FILED THE COPY OF BALANCE SHEET FOR AY 2010-11 & 20 11-12 WHEREIN THE INVESTMENT OF RS.47,19,082/- IN GOLD IS REFLECTED. THE ASSESSEE SUBMITTED THAT THE GOLD WAS PURCHASED FROM AXIS BANK AND IS DULY REFLECTED IN THE BOOKS OF ACC OUNT AND BALANCE SHEET FILED WITH THE RETURN OF INCOME OF THE RELEVANT YEAR. CONCLUSION IT IS SEEN THAT THE INVESTMENT OF RS. 47,19,082/- IN GOLD IS DULY REFLECTED IN THE RETURNS OF INCOME OF EARLIER YEARS FILED WITH THE I NCOME TAX DEPARTMENT. THEREFORE, THIS ADDITION CANNOT BE MADE IN THE AY 2011-12. THE ORD ER U/S. 251/154 DATED 29.01.2015 IS CANCELLED. THE AO IS DIRECTED TO DELETE THE ADDITI ON OF RS.47,19,082/-. APPEAL OF THE ASSESSEE IS ALLOWED. AGGRIEVED, REVENUE IS BEFORE US. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THIS WAS THE SECOND ROUND BEFO RE THE LD. CIT(A). IN THE FIRST ROUND OF APPEAL BEFORE THE LD. CIT(A), THE LD. CIT(A) ON 28. 08.2014 DIRECTED THE AO AS UNDER: REGARDING THE ADDITION OF RS.47,19,082 BEING THE INVESTMENT IN GOLD OUT OF UNDISCLOSED INCOME, THE AO IS DIRECTED TO VERIFY FROM THE RETUR NS OF EARLIER YEARS WHETHER THIS INVESTMENT WAS DISCLOSED IN THE BALANCE SHEET OF EARLIER YEARS , IF IT IS DISCLOSED IN THE BALANCE SHEET THEN THE AO IS DIRECTED TO DELETE THIS ADDITION. THE AO WHILE GIVING EFFECT TO THE ORDER OF LD. CIT( A) HELD AS UNDER: BEFORE PASSING THE ORDER U/S 251 DATED 14/10/2014 , THE DIRECTION OF THE LD. CIT(APPEALS) WERE DULY CARRIED OUT AND VERIFICATIONS WERE MADE W ITH REFERENCE TO THE EARLIER RETURNS. HOWEVER, CLAIM OF THE ASSESSEE THAT THE INVESTMENT IN GOLD IN EARLIER YEARS' RETURNS WERE DISCLOSED, WAS NOT SUPPORTED BY THE RELEVANT DOCUME NTS. HENCE, IT WAS CONSIDERED DECISION NOT TO DELETE THE ADDITIONS OF RS.47,19,082/- MADE IN T HE ORDER U/S. 143(3) DATED 30/03/2014. ACCORDINGLY, RELIEF WAS NOT ALLOWED IN THE ORDER U/ S 251 DATED 14/10/2014 5. ON APPEAL AGAINST THE ACTION OF THE AO, THE LD. CIT(A) TAKING NOTE THAT THE INVESTMENT OF RS.47,19,082/- IN GOLD IS DULY REFLEC TED IN THE RETURN OF INCOME OF EARLIER YEARS FILED WITH DEPARTMENT, ORDERED DELETION OF AD DITION. OUR ATTENTION WAS DRAWN TO PAGE 13 OF PAPER BOOK WHERE INVESTMENT IN GOLD OF RS.47 ,19,082/- IS REFLECTED IN THE BALANCE SHEET AS ON 31.03.2010. IT WAS POINTED OUT THAT WR ONG HEADING CLAIM RECEIVABLE FROM AXIS BANK WAS ERRONEOUSLY TYPED. THE PURCHASE OF GOLD FROM AXIS BANK IS REFLECTED FOR 3 ITA NO. 649/KOL/2015 NANU SHOME, AY 2011-12 AY 2010-11 AND IS IN THE RECORDS OF DEPARTMENT. SO , NO ADDITION CAN BE MADE FOR THIS YEAR 2011-12 AND RIGHTLY DELETED BY LD. CIT(A). THEREFO RE, NO INTERFERENCE IS CALLED FOR AGAINST THE ORDER OF LD. CIT(A) AND THE SAME IS HEREBY CONF IRMED. APPEAL OF REVENUE IS DISMISSED. 9 IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSED . ORDER IS PRONOUNCED IN THE OPEN COURT ON 10/07/201 8 SD/- SD/- (J. SUDHAKAR REDDY) (A. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10TH JULY, 2018 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 APPELLANT DEPUTY COMMISSIONER OF INCOME-TAX, CIRC LE-3(1), SILIGURI. 2 RESPONDENT SHRI NANU SHOME, PROP. M/S. NANU SHOME & CO., OJHA MANSION, HILL CART ROAD, SILIGURI-734001. 3 4 5 CIT(A), SILIGURI (SENT THROUGH E-MAIL) CIT , SILIGURI DR, KOLKATA BENCHES, KOLKATA (SENT THROUGH E-MAIL) / TRUE COPY, BY ORDER, SR. PVT. SECRETARY