I.T.O, Ward - 50(4), Kolkata, Kolkata V. Shri Subodh Chandra Kundu, Kolkata

ITA 71/KOL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2530 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2010
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 22-04-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 13-01-2010
• Court: TRIBUNAL
• Department Lawyers: P KOLHE
• Assessee Lawyers: D K BANDYOPADHYAY
• Keywords: Reason to believe
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA [BEFORE HONBLE SRI D. K. TYAGI, JM & HONBLE SRI B. C. MEENA, AM] I.T.A. NOS.71 TO 73/KOL/2010 ASSESSMENT YEARS: 2001-02 TO 2003-04 INCOME-TAX OFFICER, WD-50(4), KOLKATA. VS- SRI SUBODH CHANDRA KUNDU, KOLKATA (PA NO. AFTPK 2265 D) (APPELLANT) (RESPONDENT) APPELLANT BY : SRI P. KOLHE RESPONDENT BY : SRI D. K. BANDYOPADHYAY O R D E R PER D. K. TYAGI, JM : ALL THESE APPEALS PREFERRED BY THE REVENUE ARE DIR ECTED AGAINST THE COMMON ORDER OF THE LD. CIT(A), KOLKATA DATED 24.08.2009 F OR ASSESSMENT YEARS 2001-02 TO 2003-04 HOLDING THE REOPENING OF THE ASSESSMENTS FO R THE YEARS UNDER APPEAL AS IRREGULAR, INVALID AND BAD IN LAW. SINCE FACTS ARE IDENTICAL AND GROUNDS ARE COMMON, WE DISPOSE OF ALL THE APPEALS BY THIS CONSOLIDATED ORD ER FOR THE SAKE OF CONVENIENCE. 2. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE LD. CIT(A) AFTER ANALYZING THE PROVISIONS OF SECTION 147 OF THE ACT AND THE VARIOU S CASE LAWS ON THE ISSUE HAS HELD THAT THE AO HAD REOPENED THE ASSESSMENT FOR THE YEARS UNDER APPEAL ON MERE SUSPICION AND NOT FOR REASONS TO BELIEVE. ACCORDING TO HIM, TH E REASONS FOR WHICH THE ASSESSMENTS WERE REOPENED DID NOT HAVE ANY DIRECT BEARING ON FA CTS OF THE CASE WHICH COULD GIVE REASONS TO THE AO TO BELIEVE THAT THE INCOME OF TH E ASSESSEE HAD ESCAPED ASSESSMENT. AS PER THE ASSESSMENT ORDERS UNDER APPEAL, THE ASSE SSMENTS WERE REOPENED FOR THE FOLLOWING REASONS : ON THE BASIS OF CIB INFORMATION ENQUIRY HAS BEEN C ONDUCTED AND INFORMATIONS HAVE BEEN CALLED FOR FROM VARIOUS BANKS. ON PERUSAL OF BANK STATEMENT (S) AND ON ENQUIRY, IT IS NOTICED THAT HUGE AMOUNT HAVE BEEN INVESTED DURING THE FYS 2000-2001, 2002-03 & 2003-04 WITH ICICI PRU MUTUAL FUND IN THE NAME SM T. ANJANA KUNDU, WIFE OF THE ABOVE NAMED ASSESSEE. AS PER THE LIST SUPPLIED BY THE CIB, THE TOTAL INVESTMENT INDICATED BY DIFFERENT INSTRUMENT NOS. OF INVESTMEN TS WITH ICICI PRU MUTUAL FUND AND ALSO ON INVESTIGATION OF DATA COLLECTED BY THE VARI OUS BANKS, IT IS NOTICED THAT HUGE AMOUNT HAVE BEEN INVESTED BY SMT. ANJANA KUNDU, WI FE OF THE ABOVENAMED ASSESEE ON VARIOUS DATES DURING THE ABOVEMENTIONED PERIOD WHIC H INDICATES THAT SRI SUBODH CHANDRA KUNDU MAY HAVE BEEN DEPOSITED IN THE NAME O F HIS WIFE, WHICH NEEDS INVESTIGATION. IN VIEW OF THE ABOVE, I AM OF THE O PINION THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT IN RESPECT OF THE AYS 2001-0 2, 2002-03 AND 2003-04. IF APPROVED, REOPENING ASSESSMENT PROCEEDINGS U/S. 147 OF THE INCOME TAX ACT, 1961 MAY BE INITIATED. ALL THE NECESSARY DOCUMENTS AND RECORDS ARE PUT UP HEREWITH TO THE JT. CIT, RANGE-50, KOLKATA FOR HIS KIND PERUSAL AND NECESSARY APPROVAL. 2 IT IS CLEAR FROM THE ABOVE THAT ON THE BASIS OF INF ORMATION RECEIVED BY THE AO FROM CIB, ENQUIRIES WERE MADE BY HER AND IT WAS FOUND THAT S MT. ANJANA KUNDU, WIFE OF THE ASSESSEE, MADE HUGE INVESTMENTS IN MUTUAL FUND. ON THE BASIS OF THIS ENQUIRY, ASSESSMENT OF SMT. ANJANA KUNDU WAS REOPENED AND AF TER INVESTIGATION ADDITIONS IN HER HAND WERE MADE AS SHE WAS ALSO A REGULAR INCOME TAX ASSESSEE UNDER THE JURISDICTION OF THE SAME AO. HOWEVER, NEITHER FROM THE INFORMATION RECEIVED FROM CIB NOR FROM THE ENQUIRIES CONDUCTED BY THE AO INVESTMENTS IN THE NA ME OF ASSESSEE WERE FOUND. WE ARE, THEREFORE, OF THE CONSIDERED OPINION THAT WHEN THE ASSESSMENTS OF THE ASSESSEE WERE REOPENED AO HAD NO REASON TO BELIEVE THAT ANY INCOM E OF THE ASSESSEE HAS ESCAPED ASSESSMENT. SUCH REOPENING OF THE ASSESSMENTS BY TH E AO IS NOT SUSTAINABLE IN LAW AND, THEREFORE, LD. CIT(A) HAS RIGHTLY HELD THE REOPENIN G OF THE ASSESSMENT AS IRREGULAR, INVALID AND BAD IN LAW. THE ORDERS PASSED BY THE L D. CIT(A) ARE HEREBY UPHELD. THE REVENUE APPEALS ARE, THEREFORE, DISMISSED. 3. IN THE RESULT, THE APPEALS OF THE REVENUE ARE D ISMISSED. 4. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30. 6.2010 SD/- SD/- (B. C. MEENA) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30 TH JUNE, 2010 PRONOUNCED BY SD/- (CDR) SD/- (DKT) AM JM COPY TO : 1. ITO, WARD-50(4), KOLKATA. 2. SRI SUBODH CHANDRA KUNDU, P-819, LAKE TOWN, BLOCK A , KOLKATA-89. 3. CIT(A), KOLKATA 4. CIT, KOLKATA. 5. D.R., ITAT, KOLKATA. TRUE COPY BY ORDER DEPUTY REGISTRAR JD.(SR.P.S.) I.T.AT., KOLKATA