Biswanath Saha, Kolkata V. ITO, Wd-52(4), kolkata, Kolkata

ITA 785/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100243 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 29-04-2014
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA PRASAD
• Assessee Lawyers: SOUMITRA CHOW DHURY
• Keywords: Assessment record

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC C BENC H: KOLKATA [BEFORE SHRI MAHAVIR SINGH, JM] I.T.A NO.785/KOL/2014 ASSESSMENT YEAR: 2009-10 BISWANATH SAHA VS. INCOME-TAX OFFICER, WD-52(4) , KOLKATA (PAN: AMAPS2522H) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 07.12.2015 DATE OF PRONOUNCEMENT: 11.12.2015 FOR THE APPELLANT: SHRI SOUMITRA CHOWDHURY, ADVOCA TE FOR THE RESPONDENT: SHRI RAJENDRA PRASAD, JCIT, SR. DR ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XXXIII, KOLKATA VIDE APPEAL NO. 235/CIT(A)-XXXIII/ITO WARD-52(4),KOL/11- 12 DATED 24.01.2014. ASSESSMENT WAS FRAMED BY ITO, WD-52(4), KOLKATA U/S . 143(3)/CASS OF THE INCOME- TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 2009-10 VIDE HIS ORDER DATED 29.12.2011. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE STAT ED THAT HE IS ONLY CONTESTING THE ADDITION CONFIRMED BY CIT(A) IN RESPECT TO DIFFEREN CE IN CLOSING STOCK I.E. THE CLOSING STOCK SUBMITTED TO BANK AND THAT AS PER THE BOOKS O F ACCOUNT OF THE ASSESSEE AT RS.6,01,073/-. 3. I HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND FROM THE ASSESSMENT RECORD THAT THE A O NOTED THAT THE ASSESSEE HAS TAKEN BANK OVERDRAFT FROM INDIAN BANK, WHICH REFLECTS THA T THE CLOSING STOCK DECLARED TO THE BANK IS AT RS.17,58,562/- AS COMPARED TO THE FINAL ACCOUNTS AT RS.11,57,489/-. ACCORDING TO AO, THERE IS DIFFERENCE IN CLOSING STO CK I.E. HIGHER CLOSING STOCK DECLARED TO THE BANK AT RS.6,01,073/- AND ACCORDINGLY, HE AD DED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE BY TREATING THE SAME IT AS UNEXPLAINED . THE CIT(A) ALSO CONFIRMED THE SAME. AFTER HEARING RIVAL SUBMISSIONS, WHEN A QUER Y WAS PUT TO LD. SR. DR, WHETHER THERE IS ANY QUANTITATIVE DIFFERENCE IN STOCK, HE S TATED THAT THE ASSESSEE IS IN THE TRADING OF ELASTIC TAPE AND IT IS NOT KNOWN WHETHER THERE I S A DIFFERENCE IN QUANTITATIVE STOCK OR QUALITATIVE STOCK I.E. THE VALUE. LD. COUNSEL FOR THE ASSESSEE FILED COMPLETE BALANCE 2 ITA NO.785/K/2014 BISWANATH SAHA AY 2009-10 SHEET BEFORE US AND STATED THAT THERE IS NO QUANTIT ATIVE DIFFERENCE IN THE BANK STATEMENT AND HE RELIED ON THE DECISION IN THE CASE OF CIT VS . VEERDIP ROLLERS PVT. LTD.323 ITR 341 (GUJARAT). IN THE SAID CASE THE HONBLE HIGH CO URT HELD THAT NO ADDITION CAN BE MADE ON THE GROUND THAT THE STATEMENT SUBMITTED BY THE ASSESSEE TO THE BANK WAS AT HIGHER VALUE TO AVAIL OF BETTER CREDIT FROM THE BAN K AND THAT THERE IS NO JUSTIFICATION IN MAKING ANY ADDITION. AGAINST THIS JUDGMENT, THE DEP ARTMENT WENT TO THE HONBLE SUPREME COURT AND THE SPECIAL LEAVE PETITION AGAINS T THIS JUDGMENT WAS DISMISSED (2008) 307 ITR (ST.) 3. IT IS ALSO SIGNIFICANT THA T THE AFORESAID JUDGMENT OF HONBLE GUJARAT HIGH COURT WAS RENDERED AFTER CONSIDERING T HE CASE OF CIT VS. DHANSIRAM AGARWAL 201 ITR 192 (GAUHATI) RELIED UPON BY THE A. O. THEREFORE, FOLLOWING THE RATIO LAID DOWN IN THE CASE OF VEERDIP ROLLERS PVT. LTD. CITED SUPRA WHICH HAS BEEN AFFIRMED BY THE HONBLE SUPREME COURT, IT IS HELD THAT THE A SSESSING OFFICER WAS NOT JUSTIFIED IN MAKING THE ADDITION. ACCORDINGLY, THIS ISSUE IS SQ UARELY COVERED BY THE DECISION IN THE CASE OF VEERDIP ROLLERS PVT. LTD., SUPRA AND HENCE, I DELETE THE ADDITION AND ALLOW THIS ISSUE OF ASSESSEES APPEAL. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 5. 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 SHRI BIWANATH SAHA, LALA BAGAN, BID HANGARH, SANTOSHPUR, KOLKATA-700066. 2 RESPONDENT ITO, WD-52(4), KOLKATA. 3. THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .