Kashi Nath Panja, Burdwan V. I.T.O Wd - 2(2),Burdwan, Burdwan

ITA 795/KOL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99655 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 12-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAYCUDRA PRASAD J
• Assessee Lawyers: SAUMITRA CHOUDHURY
• Section: 143(3); 131; 68; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.795/KOL/2013 ASSESSMENT YEAR:2006-07 KASHI NATH PANJA PROP. ABANIKANTA ASHUTOSH RICE MILL, VILL & P.O. BOWAICHANDI, DIST. BURDWAN, PIN 713 423 [ PAN NO.AEJPP 4132P ] / V/S . INCOME TAX OFFICER, WARD-2(2)/BWN, AYAKAR BHAVAN, COURT COMPOUND, P.O. & DIST. BURDWAN PIN 713 423 /APPELLANT .. /RESPONDENT /BY APPELLANT SRI SAUMITRA CHOUDHURY, ADVOCATE /BY RESPONDENT SRI RAYCUDRA PRASAD, JCIT-DR /DATE OF HEARING 14-07-2015 /DATE OF PRONOUNCEMENT 07-08/2015 /O R D E R THIS IS APPEAL OF THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEAL)-DURGAPUR IN APPEAL NO.125/CIT(A )/ASL/WD-2(2)/BWN/2008- 09 DATED 15-01-2013. ASSESSMENT WAS FRAMED BY ITO, WARD-2(2), BURDWAN U/S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT) VIDE HIS ORDER DATE 30.12.2008 FOR ASSESSMENT YEAR 2006-07. 2. GROUND NO.1 IS IN REGARD TO DISALLOWANCE OF RS.1 ,03,575/- UNDER THE HEAD DIESEL AND MOBIL ACCOUNT BY LD. CIT(A). LD. AR OF T HE ASSESSEE HAS NOT PRESSED THIS GROUND. HENCE, THIS GROUND OF ASSESSEES APPEAL IS DISMISSED FOR NOT PRESSED. ITA NO. 795/KOL/2013 A.Y. 2006-07 KASHI NATH PANJA V. ITO WD-2(2) BWN. PAGE 2 3. SECOND GROUND RAISED BY ASSESSEE IS IN REGARD TO SUSTAINING OF ADDITION OF LOAN OF RS.5.60 LAKH BY LD. CIT(A). ASSESSEE HAS RAISED THE FOLLOWING GROUND NO.2 AS UNDER:- 2. FOR THAT IN VIEW OF THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE LD. CI.T.(APPEALS), DURGAPUR HAS NOT JUSTIFIED IN S USTAINING ADDITION OF LOAN OF RS.5,60,000.00 TAKEN BY THE APPELLANT FROM PARTIES BY A/CS PAYEE CHEQUES WHO CONFIRMED SUCH LOANS BY SWEARING AFFIDA VITS EXPLAINING SOURCES AT THE TIME OF ADVANCING LOAN AMOUNT TO THE APPELLANT INASMUCH THE LD. CIT(APPEAL) SHOULD NOT HAVE SUSTAIN ADDITIO N OF RS.56000.00 AS TREATING NOT GENUINE ON MERE SURMISE. 4. BRIEF FACTS OF THE CASE IN REGARD TO THIS GROUND OF THIS APPEAL IS THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS SUMMONS U/S. 1 31 OF THE ACT WERE ISSUED BY THE ASSESSING OFFICER TO THE LOAN CREDITORS. AO MADE THE ADDITION OF RS.5.60 LAKHS U/S 68 OF THE ACT FOR THE VERY REASON THAT TH ERE WAS NO COMPLIANCE BY THE LOAN CREDITORS U/S 131 OF THE ACT AND ALSO ASSESSEE FAILED TO PRODUCE THE LONEE CREDITORS AND THE FOLLOWING CASH CREDITS WERE TREAT ED AS UNEXPLAINED BY THE ASSESSEE AND WERE ADDED TO THE TOTAL INCOME OF THE ASSESSEE AS UNDER:- NAME AMOUNT MICHROCHIP RS.2 LAKH KOUSIK GHOSH RS.60,000/- SRIMANTA NAYOK RS.80,000/- BABBAGE COMPECH RS.1.40 LAKH AGGRIEVED BY THIS ORDER OF AO ASSESSEE PREFERRED AP PEAL BEFORE LD. CIT(A) AND ASSESSEES REPRESENTATIVE DURING THE COURSE OF APPE LLATE PROCEEDINGS FILED AFFIDAVITS OF THE LOAN CREDITORS TOGETHER WITH COPY OF THEIR RESPECTIVE BANK ACCOUNT. THESE WERE FORWARDED TO AO FOR VERIFICATIO N AND AO SUMMONED ALL THE FOUR LOAN CREDITORS BUT THERE WAS NO COMPLIANCE ON THE PART OF THEM. LD. CIT(A) THEREFORE CONFIRMED THE ACTION OF AO ON THE VERY GROUND THAT CREDITWORTHINESS AND GENUINENESS OF THE LOAN CREDIT ORS COULD NOT BE PROVED BY THE ASSESSEE. AGGRIEVED BY THIS ORDER OF LD. CIT(A ) NOW ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. ITA NO. 795/KOL/2013 A.Y. 2006-07 KASHI NATH PANJA V. ITO WD-2(2) BWN. PAGE 3 5. ON THE DATE OF HEARING LD. COUNSEL OF ASSESSEE S AID THAT TOTAL LOAN AMOUNT OF RS.5.60 LAKHS BY THE FOUR LOAN CREDITORS HAVE BE EN TAKEN THROUGH ACCOUNT PAYEE CHEQUE AND FURTHER ALL THE FOUR LOAN CREDITOR S HAVE CONFIRMED OF HAVING GIVEN THE LOAN BY SWEARING ON AFFIDAVITS MENTIONING THEIR DECLARATION GIVING THE LOAN TO THE ASSESSEE AS WELL AS THEIR SOURCE OF INC OME AND DETAILES IN THESE AFFIDAVITS HAVING PUT ON RECORD BEFORE ME. LD. AR M ADE A REQUEST THAT ONE MORE OPPORTUNITY MAY BE GIVEN FOR PRODUCING THE LOAN CRE DITORS BEFORE THE AO FOR VERIFICATION TO PROVE THE GENUINENESS AND CREDITWOR THINESS OF THE SAID LOAN CREDITORS. LD. DR ON THE OTHER HAND DOES NOT RAISE ANY OBJECTION. 6. I HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THRO UGH THE FACTS AND CIRCUMSTANCES OF THE CASE. I HAVE ALSO GONE THROUGH THE MATERIALS AVAILABLE ON RECORD ALONG WITH AFFIDAVITS FILED BY AR. ON QUERY FROM THE BENCH, LD. COUNSELS OF BOTH SIDES CONCEDED THAT ISSUE BE RE-EX AMINED AFRESH BY AO AND THE MATTER MAY BE RESTORED TO THE FILE OF AO FOR FR ESH ADJUDICATION. IN TERMS OF ABOVE, I SET ASIDE THE ORDER OF AO AND DIRECT THE A O TO FRAME AFRESH ASSESSMENT AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEAR D TO ASSESSEE. THIS GROUND OF ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOS ES. 7. IN THE RESULT, APPEAL FILED BY ASSESSEE IS PARTLY A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 07/08/2015 SD/- (MAHAVIR SINGH) JUDICIAL MEMBE R KOLKATA, *DKP - 07/08/2015 ITA NO. 795/KOL/2013 A.Y. 2006-07 KASHI NATH PANJA V. ITO WD-2(2) BWN. PAGE 4 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT KASHI NATH PANJA, PROP. ABANIKANTA A SHUTOSH RICE MILL, VILL & P.O. BOWAICHANDI, DIST. BURDWAN, PIN-713 423 2. / RESPONDENT- ITO, WARD-2(2), AYAKAR BHAVAN, COURT COMPOUND, P.O. & DIST. BURDWAN, PIN 713 101 3. ' % / CONCERNED CIT KOLKATA 4. % - / CIT (A) KOLKATA 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORD ER/ , /TRUE COPY / / ',