Sri Karnimata properties and Finance pvt.Ltd., Kolkata V. ITO, Ward 10(1), Kolkata, Kolkata

ITA 784/KOL/2013

• Counselvise Citation: 78423514 RSA 2013
• Duration Of Justice: 1 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 11-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHAWNGTHU
• Assessee Lawyers: P J BHIDE F
• Keywords: Gift

Judgement Text

I.T.A. NO.: 784/ KOL. / 2013 ASSESSMENT YEAR : 2008-2009 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER I.T.A. NO.: 784/ KOL./ 2013 ASSESSMENT YEAR : 2008-2009 SRI KARNIMATA PROPERTIES & FINANCE PVT. LTD.,...... ...APPELLANT 2, MANOOK LANE, 1 ST FLOOR, KOLKATA-700 001 [PAN : AADCS 7934 F] -VS.- INCOME TAX OFFICER,................................ ..............RESPONDENT WARD-10(1), KOLKATA, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI P.J. BHIDE, F.C.A., FOR THE APPELLANT SHRI DAVID Z. CHAWNGTHU, ADDL.CIT, SR. D.R., FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : AUGUST 19, 2014 DATE OF PRONOUNCING THE ORDER : 02.09.2014 O R D E R PER SHRI MAHAVIR SINGH, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS ARISING OUT O F THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XII, KOLKATA I N APPEAL NO. 167/10(1)/10-11 DATED 21.01.2013 FOR THE ASSESSMENT YEAR 2008-09 CONFIRMING THE ADDITION OF RS.2,58,732/- MADE BY TH E ASSESSING OFFICER AS INCOME OF THE ASSESSEE BY INVOKING THE PROVISIONS O F SECTION 41(1) OF THE ACT. 2. BRIEF FACTS RELATING THE ABOVE ISSUE ARE THAT GO VERNMENT OF INDIA IN THE YEAR 1989 ISSUED NRI BONDS, 1992 THROUGH STATE BANK OF INDIA AND THESE BONDS WERE SUBSCRIBED BY NON-RESIDENT INDIANS . A PERSON KNOWN TO THE DIRECTOR OF THE ASSESSEE-COMPANY SHRI GOPAL KOT HARI SUBSCRIBED TO I.T.A. NO.: 784/ KOL. / 2013 ASSESSMENT YEAR : 2008-2009 PAGE 2 OF 3 THESE BONDS AND LATER THE ABOVE STATED APPLICANT TR ANSFERRED THE ABOVE STATED BONDS IN FAVOUR OF THE ASSESESE-COMPANY AS G IFT. ON MATURITY, THE ASSESSEE ENCASHED THESE BONDS AND RECEIVED A SUM OF RS.2,58,732/- AND CREDITED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE UN DER THE HEAD RESERVES & SURPLUS FOR THE YEAR ENDING 31.03.1998. THE ASSE SSING OFFICER REQUIRED THE ASSESSEE TO EXPLAIN THE SOURCES AND MADE THE AD DITION IN THE ASSESSMENT YEAR 2008-09. 3. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE LD. C IT(APPEALS) AND LD. CIT(APPEALS) ALSO COULD NOT UNDERSTAND THE ISSUE AN D CONFIRMED THE ADDITION BY OBSERVING IN PARA 3 AS UNDER:- 3. I HAVE CONSIDERED THE FINDING OF THE A.O. IN HI S ASSESSMENT ORDER DATED 30.09.2001 AND THE WRITTEN SUBMISSION MADE BY THE AR DURING THE APPELLATE PROC EEDING. APPEAL ON GROUND NO. 2 AND 3 ARE AGAINST THE ADDITI ON OF RS.2,58,732/-. THE AO IN HIS ASSESSMENT ORDER HAS M ENTIONED THAT AN AMOUNT OF RS.2.58.732/- IS APPEARING IN THE BALANCE SHEET OF THE ASSESSEE FROM 1997 ONWARDS. THE ASSESS EE COMPANY CLAIMED TO HAVE RECEIVED THIS AMOUNT AS GIF T OF NRI BOND. BUT IN SUPPORT OF THIS CLAIM, THE ASSESSEE-CO MPANY FAILED TO FILE ANY CREDIBLE EVIDENCE SUCH AS DEED I N RESPECT OF GIFT, COPY OF BANK STATEMENT, DETAILS OF THE PERSON , CONCERN FROM WHOM THIS GIFT WAS RECEIVED AND DETAILS OF BAN K CERTIFICATE ETC. SINCE THE AR FAILED TO FILE ANY SU PPORTING EVIDENCE REGARDING THIS ENTRY, THEREFORE, THE AO DI D NOT AGREE WITH THE ASSESESE AND THUS, AN ADDITION OF RS.2,58,732/- WAS MADE. DURING THE APPELLATE PROCEE DING THE A.R. HAS FILED WRITTEN SUBMISSION BUT REGARDING THE ENTRY OF RS.2,58,732/- NO EVIDENCE, DETAILS/DOCUMENTS/PAPERS/GIFT DEED/BANK CERTIFICATE /BOND CERTIFICATE OR NAME OF THE DONOR WITH ADDRESSES ETC . WAS MADE AVAILABLE FOR CONSIDERATION. AS NOTHING HAS BE EN FILED BY THE A.R. IN SUPPORT OF HIS CLAIM THEREFORE, ASSE SSEES APPEAL ON GROUND NO. 2 AND 3 ARE DISMISSED. 4. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE ME. 5. I HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. AT THE OUTSET, IT IS SEE N FROM THE BALANCE SHEET OF THE ASSESSEE-COMPANY AS ON 31.03.1998, WHEREIN T HE GIFT OF NRI I.T.A. NO.: 784/ KOL. / 2013 ASSESSMENT YEAR : 2008-2009 PAGE 3 OF 3 REMITTANCE OF RS.2,58,732/- IS DISCLOSED AND CAPITA L IS INTRODUCED IN THAT YEAR I.E. FINANCIAL YEAR 1997-98. IT IS VERY STRANG E THAT THE ASSESSING OFFICER IS MAKING ADDITION IN 2008-09. I HAVE NO RE ASON TO SUSTAIN THIS ADDITION IN THE ASSESSMENT YEAR 2008-09 WHEN THE CR EDIT TOOK PLACE IN THE ASSESSMENT YEAR 1998-99. IF AT ALL THE ADDITION IS TO BE MADE, IT CAN ONLY BE MADE IN THE ASSESSMENT YEAR 1998-99. IN SUC H CIRCUMSTANCES, I DELETE THE ADDITION AND ALLOW THE APPEAL OF THE ASS ESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DAY OF SEPTEMBER, 2014. SD/- MAHAVIR SINGH (JUDICIAL MEMBER) KOLKATA, THE 2 ND DAY OF SEPTEMBER, 2014 COPIES TO : (1) SRI KARNIMATA PROPERTIES & FINANCE PVT. LTD., 2, MANOOK LANE, 1 ST FLOOR, KOLKATA-700 001 (2) INCOME TAX OFFICER, WARD-10(1), KOLKATA, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) CIT (4) CIT(A) (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.