Saran Electricals, Kolkata V. ITO, WD-36(3), KOLKATA, Kolkata

ITA 873/KOL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4591 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 04-08-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 15-06-2015
• Court: TRIBUNAL
• Assessee Lawyers: RAKESH DUBEY
• Keywords: Unexplained cash credit; Additional evidence
• Section: 68

Judgement Text

I.T.A. NO. 873/KOL./2015 ASSESSMENT YEAR: 2007-2008 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 873 /KOL/ 2015 ASSESSMENT YEAR: 2007-2008 SARAN ELECTRICALS,................................. ................................APPELLANT 52, EZRA STREET, KOLKATA-700 001 [PAN : AAUFS 2572 F] -VS.- INCOME TAX OFFICER,................................ ...............................RESPONDENT WARD-36(3), KOLKATA APPEARANCES BY: SHRI RAKESH DUBEY, ADVOCATE, FOR THE ASSESSEE SHRI RAJAT KUMAR KUREEL, JCIT, D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : AUGUST 19, 2016 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 02, 2016 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XX, KOLKAT A DATED 04.03.2014 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE ADDITION OF RS.6,41,000/- MADE BY THE ASSESSING OFFICER AND CON FIRMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF UNEXPLAINED CASH CREDITS UNDER SECTION 68 OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHI P FIRM, WHICH IS ENGAGED IN THE BUSINESS OF TRADING OF ELECTRICAL GO ODS. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED B Y IT ON 25.10.2007 DECLARING TOTAL INCOME OF RS.56,622/-. DURING THE C OURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT PRODUCE THE REQ UIRED DOCUMENTARY EVIDENCE IN ORDER TO ESTABLISH THE IDENTITY AND CAP ACITY OF THE CONCERNED CREDITORS AS WELL AS THE GENUINENESS OF THE RELEVAN T TRANSACTIONS REPRESENTING CASH LOANS RECEIVED FROM THE SAID CRED ITORS. THE ASSESSING I.T.A. NO. 873/KOL./2015 ASSESSMENT YEAR: 2007-2008 PAGE 2 OF 3 OFFICER, THEREFORE, TREATED THE SAID LOANS AGGREGAT ING TO RS.6,41,000/- AS UNEXPLAINED CASH CREDITS UNDER SECTION 68 AND MADE ADDITION TO THAT EXTENT TO THE TOTAL INCOME OF THE ASSESSEE. 3. THE ADDITION MADE BY THE ASSESSING OFFICER UNDER SECTION 68 WAS CHALLENGED BY THE ASSESSEE IN THE APPEAL FILED BEFO RE THE LD. CIT(APPEALS) AND SINCE THERE WAS FAILURE ON THE PART OF THE ASSE SSEE TO ESTABLISH ON EVIDENCE THE IDENTITY AND CAPACITY OF THE CONCERNED CREDITORS AS WELL AS THE GENUINENESS OF THE RELEVANT LOAN TRANSACTIONS, THE LD. CIT(APPEALS) CONFIRMED THE ADDITION OF RS.6,41,000/- MADE BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE UNDER SECTION 68. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS FILED THI S APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. DURING THE C OURSE OF PROCEEDINGS BEFORE THE TRIBUNAL, THE ASSESSEE HAS FILED ADDITIO NAL EVIDENCE IN THE FORM OF DECLARATIONS/CONFIRMATIONS OF THE CONCERNED CRED ITORS, THEIR ELECTION CARD/PASSPORT ALONG WITH PERMANENT ACCOUNT NUMBERS IN SUPPORT OF THE ASSESSEES CASE. THE ASSESSEE HAS ALSO MOVED AN APP LICATION SEEKING ADMISSION OF THE SAID ADDITIONAL EVIDENCE UNDER RUL E 29 OF THE APPELLATE TRIBUNAL RULES ON THE GROUND THAT THE SAID EVIDENCE WAS DULY GIVEN BY HIM TO HIS CHARTERED ACCOUNTANT, WHO REPRESENTED TH E CASE BEFORE THE LD. CIT(APPEALS), BUT THE SAID CHARTERED ACCOUNTANT FAI LED TO PRODUCE THE SAME BEFORE THE LD. CIT(APPEALS). KEEPING IN VIEW T HIS REASON GIVEN BY THE ASSESSEE AS WELL AS THE RELEVANCE OF THE DOCUME NTS BEING FILED AS ADDITIONAL EVIDENCE TO DECIDE THE ISSUE INVOLVED IN THE CASE OF THE ASSESSEE RELATING TO THE ADDITION MADE UNDER SECTIO N 68, I FIND THIS CASE TO BE A FIT CASE TO ADMIT THE ADDITIONAL EVIDENCE F ILED BY THE ASSESSEE. EVEN THE LD. D.R. HAS NOT RAISED ANY MATERIAL OBJEC TION IN THIS REGARD. HE, HOWEVER, HAS CONTENDED THAT AN OPPORTUNITY SHOULD B E GIVEN TO THE ASSESSING OFFICER TO VERIFY THIS ADDITIONAL EVIDENC E FILED BY THE ASSESSEE FOR THE FIRST TIME BEFORE THE TRIBUNAL. I FIND MERI T IN THIS CONTENTION OF THE I.T.A. NO. 873/KOL./2015 ASSESSMENT YEAR: 2007-2008 PAGE 3 OF 3 LD. D.R. ACCORDINGLY, THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFIC ER UNDER SECTION 68 IS SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH AFTER VERIFYING THE ADDITI ONAL EVIDENCE FILED BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON SEPTEMBER 02, 2016. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 2 ND DAY OF SEPTEMBER, 2016 COPIES TO : (1) SARAN ELECTRICALS, 52, EZRA STREET, KOLKATA-700 001 (2) INCOME TAX OFFICER, WARD-36(3), KOLKATA (3) COMMISSIONER OF INCOME TAX (APPEALS)-XX, KOLK ATA; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.