Bhaskar Sen, Kolkata V. ITO, WD-16(4), KOLKATA, Kolkata

ITA 852/KOL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1441 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 28-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KALYAN NATH
• Assessee Lawyers: K M ROY
• Keywords: Unexplained cash credit; Unexplained expenditure; Salary income
• Section: 143(3); 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI N.V. VASUDEVAN, JM & SHRI M. BALAGANESH, AM ] I.T.A NO. 852/KOL/201 6 ASSESSMENT YEAR : 2009-1 0 BHASKAR SEN -VS- ITO, WARD-16(4), KOL KATA [PAN: ABDPS 7579 L] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI K.M. ROY FOR THE RESPONDENT : SHRI KALYAN NATH, ADDL. CIT DATE OF HEARING : 18.08.2017 DATE OF PRONOUNCEMENT : 20.09.2017 ORDER PER M.BALAGANESH, AM 1. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE O RDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -XIV, KOLKATA [ IN SHORT THE L D CITA] IN APPEAL NO. 979/CIT(A)-XIV/2011-12 DATED 11.03.2014 AGAINST TH E ORDER PASSED BY THE ITO, WARD-16(4), KOLKATA [ IN SHORT THE LD AO] UNDER SEC TION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 26.12.2011 FOR THE ASSESSMENT YEAR 2009-10. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LEARNED CIT(A) IS NOT JUSTIFIED IN SUST AINING ADDITION OF UNEXPLAINED CASH DEPOSIT OF RS. 17,55,000/- WITHOUT CORRELATING FROM CORRESPONDING CASH WITHDRAWALS. 2 ITA NO.852/KOL/2016 BHASKAR SEN A.YR.2009-10 2 2. THAT THE LEARNED CIT(A) IS NOT JUSTIFIED IN CONF IRMING ADDITION OF UNEXPLAINED EXPENDITURE OF RS. 9,70,975/-. 3. THAT THE LEARNED CIT(A) IS NOT JUSTIFIED IN SUST AINING DISALLOWANCES OF EXEMPTION OF RS. 19,56,800/- AS PER THE TAX DEDUCTI ON CERTIFICATE ISSUED BY EMPLOYER. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, A MEND ALL OR ANY OF THE GROUNDS OF APPEAL. 3. THE BRIEF FACTS OF THIS ISSUE IS THAT THE ASSESS EE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2009-10 ON 09.03.2010 DECLARING TOT AL INCOME OF RS. 3,32,930/-. THE ASSESSEE IS A DIRECTOR OF M/S B.C.C.SHIPPING & SHIP BUILDING LTD. (IN SHORT BCCSSBL) AND HAD RECEIVED SALARY INCOME FROM THE SAID COMPAN Y. THE ASSESSEE CLAIMED EXEMPTION FOR AN AMOUNT OF RS. 19,56,800/- U/S 10 O F THE ACT IN FORM NO. 16 FILED ALONG WITH RETURN OF INCOME. THE LD. AO OBSERVED THAT PUR SUANT TO AIR INFORMATION REFLECTING CASH DEPOSITS OF RS. 17,55,000/- DURING THE PREVIOU S YEAR 2008-09 IN THE SAVING BANK ACCOUNT NO. 045010100183116 MAINTAINED BY THE ASSE SSEE WITH AXIS BANK, TOLLYGUNGE BRANCH, HE SOUGHT TO SEEK EXPLANATION FROM THE ASSE SSEE REGARDING THE SOURCE OF THESE CASH DEPOSITS. IN RESPONSE TO THE SAME, THE ASSESSE E PRODUCED PHOTOCOPIES OF BANK STATEMENT IN RESPECT OF BANK ACCOUNT NO. 0450102000 12591 MAINTAINED WITH AXIS BANK, TOLLYGUNJE BRANCH, KOLKATA IN THE NAME OF M/S BCCSS BL, THE EMPLOYER OF THE ASSESSEE. THE ASSESSEE STATED THAT THE CASH WAS WIT HDRAWN FROM THIS BANK ACCOUNT ON VARIOUS DATES AND DEPOSITED IN THE BANK ACCOUNT MAI NTAINED BY THE ASSESSEE. THE LD. AO FURTHER OBSERVED THAT THE EXPLANATION GIVEN BY THE ASSESSEE WAS NOT SATISFACTORY AND HENCE, RESORTED TO MAKE AN ADDITION TOWARDS CASH DE POSITS IN THE SUM OF RS. 17,55,000/- AS UNEXPLAINED CASH CREDIT IN THE ASSESSMENT. 3 ITA NO.852/KOL/2016 BHASKAR SEN A.YR.2009-10 3 4. THE AIR INFORMATION FURTHER REFLECTED THAT DURIN G THE PREVIOUS YEAR, THE ASSESSEE HAD INCURRED TOTAL EXPENDITURE AMOUNTING TO RS. 9,70,97 5/- (4,81,099 + 4,49,876) DURING THE PREVIOUS YEAR 2008-09 THROUGH TWO CREDIT CARDS. THE SAME WAS ADDED AS UNEXPLAINED EXPENDITURE BY THE LD. AO FOR WANT OF EXPLANATION BY THE ASSESSEE. 5. ON PERUSAL OF FORM 16 SUBMITTED BY THE ASSESSEE , THE LD. AO OBSERVED THAT THE ASSESSEE HAD CLAIMED EXEMPTION U/S 10 OF THE ACT FO R AN AMOUNT OF RS. 19,56,800/- UNDER THE HEAD REIMBURSEMENT OF OFFICE EXPENSES. FOR WANT OF EXPLANATION FROM THE ASSESSEE IN THIS REGARD, THE LD. AO DISALLOWED THE EXEMPTION CLAIMED BY THE ASSESSEE AND BROUGHT TO TAX A SUM OF RS. 19,56,800/- IN THE ASSESSMENT. THIS ACTION OF THE LD. AO WAS UPHELD BY THE LD. CIT(A). AGGRIEVED, THE ASSESS EE IS IN APPEAL BEFORE US. 6. THE LD. AR ARGUED THAT WITH REGARD TO GROUND NO. 3 ON THE CLAIM OF EXEMPTION U/S 10 UNDER REIMBURSEMENT OF OFFICE EXPENSES IN THE SUM OF RS. 19,56,800/-, SIMILAR ISSUE HAD CROPPED UP IN ASSESSEES OWN CASE FOR THE ASSES SMENT YEAR 2008-09 BEFORE THIS TRIBUNAL, WHEREIN THIS TRIBUNAL HAD REMANDED THE IS SUE TO THE FILE OF THE LD. AO AND ACCORDINGLY HE PRAYED FOR THE SAME DIRECTION FOR TH IS ASSESSMENT YEAR ALSO. HE ALSO STATED THAT THERE IS NO NEED FOR MAKING ANY SEPARAT E ADDITION TOWARDS CASH DEPOSITS OF RS. 17,55,000/- AS THE SAME WAS ALREADY INCLUDED IN THE SUM OF RS. 19,56,800/- SEPARATELY ADDED BY THE LD. AO. HE ALSO ARGUED THAT OUT OF TOTAL MONIES AVAILABLE IN THE BANK ACCOUNT THE ASSESSEE HAD INCURRED EXPENDITURE TO THE TUNE OF RS. 9,70,975/- THROUGH CREDIT CARDS FOR AND ON BEHALF OF EMPLOYER M/S BCCS SBL. HE PRAYED FOR REMANDING ALL THESE ISSUES TO THE FILE OF THE LD. AO AS THEY ARE INTERCONNECTED. IN RESPONSE TO THIS, THE LD. DR FAIRLY AGREED FOR REMANDING THESE ISSUES TO THE FILE OF THE LD. AO. 4 ITA NO.852/KOL/2016 BHASKAR SEN A.YR.2009-10 4 7. WE HAVE HEARD THE RIVAL SUBMISSIONS. IN VIEW OF THE AFORESAID ARGUMENTS OF LD. AR AND LD. DR, WE DEEM IT FIT AND APPROPRIATE, TO REM AND THESE ISSUES TO THE FILE OF THE LD. AO FOR DE NOVO ADJUDICATION. ACCORDINGLY, THE GROU NDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 20.09.2017 SD/- SD/- [N.V.VASUDEVAN] [ M.BALAGANESH ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 20.09.2017 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. BHASKAR SEN, 16A, LAKE VIEW ROAD, KOLKATA-29 2. ITO, WARD-16(4), 169, A.J.C. BOSE ROAD, KOLKATA- 14 3..C.I.T.(A)-XIV, KOLKATA 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHE S