MAA Transport Agency, Burdwan V. I.T.O Wd - 2(2),Asansol, Burdwan

ITA 657/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100246 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 26-03-2013
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA PRASAD
• Assessee Lawyers: KANCHAN SADHU
• Keywords: Unexplained expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC B BENC H: KOLKATA [BEFORE SHRI MAHAVIR SINGH, JM] I.T.A NO.657/KOL/2013 ASSESSMENT YEAR: 2005-06 MAA TRANSPORT AGENCY VS. INCOME-TAX OFFICER, WD -2(2), ASANSOL (PAN: AAKFM9822A) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 07.12.2015 DATE OF PRONOUNCEMENT: 11.12.2015 FOR THE APPELLANT: SHRI KANCHAN SADHU, ADVOCATE FOR THE RESPONDENT: SHRI RAJENDRA PRASAD, JCIT, SR. DR ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), ASANSOL VIDE APPEAL NO. 288/CIT(A)/ASL/W-2(2)/ASL/10-11 DATED 24.01.201 3. ASSESSMENT WAS FRAMED BY ITO, WD-2(2), ASNASOL U/S. 143(3)/263 OF THE INCOME -TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2005- 06 VIDE HIS ORDER DATED 03.12.2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN MAKING ADDITION OF R EPAYMENT OF LOAN AMOUNTING TO RS.4,57,135/-. 3. I HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND FROM THE RECORDS THAT THE AO DURING T HE COURSE OF ASSESSMENT PROCEEDINGS NOTICED FROM THE STATEMENT RECEIVED FROM INDUS IND BANK THAT IT HAD RECEIVED AN AMOUNT OF RS.8,57,373/- DURING THE PERIOD 27.09.2004 TO 2 5.03.2005 FALL IN THE RELEVANT FINANCIAL YEAR, BUT THE BALANCE SHEET SHOWS THAT TH E TOTAL REPAYMENT IS MADE BY ASSESSEE AT RS.9,38,281/-. BUT AS PER COPY OF BANK STATEMEN T OF ORIENTAL BANK OF COMMERCE, CURRENT ACCOUNT NO. CD-1661, THE DETAILS OF PAYMENT MADE TO INDUS IND BANK ARE AT RS.7,31,000/- AS AGAINST THE CLAIM OF THE ASSESSEE AT RS.9,38,231/-. BUT THE AO NOTED THAT THE TOTAL REPAYMENT COMES TO RS.4,81,146/-. A CCORDING TO THE AO, THIS QUANTUM OF UNDISCLOSED DEPOSIT OF DRAFT AND CASH FOR REPAYMENT OF UNSECURED LOAN IS AT RS.4,57,135/- AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. SIMILAR WAS THE PLEA BEFORE CIT(A) BUT BEFORE CIT(A) IT WAS FURTHER PLEADED THA T ONCE THE TURNOVER AND THE INCOME WAS ESTIMATED AND PROFIT IS ALSO ESTIMATED AT 5.35% , THIS UNEXPLAINED EXPENDITURE RELATED 2 ITA NO.657/K/2013 MAA TRANSPORT AGENCY AY 2005-06 TO BUSINESS SHOULD NOT HAVE BEEN ASSESSED SEPARATEL Y. I FIND THAT ORIGINALLY THE CIT(A) AFTER REJECTING THE BOOK RESULT ESTIMATED GROSS PRO FIT AT 5.35% ASSESSING THE TOTAL INCOME AT RS.5,72,358/- AGAINST THE GROSS TURNOVER OF RS. 1,06,98,282/-. THIS UNSECURED REPAYMENTS AND UNSECURED LOAN IS A PART OF BUSINESS TRANSACTION AND NO SEPARATE ADDITION CAN BE MADE WITH INCOME AS ASSESSED BY APPLYING GRO SS PROFIT RATE AND AFTER REJECTING THE BOOK RESULT. ACCORDINGLY, WE DELETE THIS ADDITION AND ALLOW THIS ISSUE OF ASSESSEES APPEAL. 3. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 4. ORDER IS PRONOUNCED IN THE OPEN COURT ON 11.12.2 015. SD/- (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 11TH DECEMBER, 2015 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT MAA TRANSPORT AGENCY, C/O SHRI KANCHAN SADHU, ADVOCATE, VIVEKANANDA PARK, P.O. RAMKRISHNA MISSION , PIN-713305, DIST. BURDWAN. 2 RESPONDENT ITO, WD-2(2), ASANSOL. 3 . THE CIT(A), ASANSOL 4. 5. CIT , ASANSOL. DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .