ITO, Wd-2(2), Coochbehar, Coochbihar V. Sri Arjun Prasad Singh, Coochbihar

ITA 876/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1894 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 28-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P MUKHERJEE
• Assessee Lawyers: P K SANGHAI
• Keywords: Income from undisclosed sources
• Section: 143(3); 148

Judgement Text

, D , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH D KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 876 - 877 / KOL / 20 17 ASSESSMENT YEARS :2010-11& 2011-12 INCOME TAX OFFICER, WARD-2(2), AAYAKAR BHAWAN, DEBIBARI NORTH, RAJBARI COMPLEX, COOCHBEHAR, WEST BENGAL-736101 V/S . SRI ARJUN PRASAD SINGH C/O D.P. SINGH, PARK HOTEL, R.N. ROOD, COOCHBEHAR, W.B. 736101 [ PAN NO.AKSPS 8232 N ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI P. MUKHERJEE, ADDL. CIT-DR /BY RESPONDENT SHRI P.K. SANGHAI, FCA /DATE OF HEARING 14-08-2018 /DATE OF PRONOUNCEMENT 31-08-2018 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THESE TWO REVENUES APPEALS FOR ASSESSMENT YEARS 20 10-11 & 2011- 12 CHALLENGE CORRECTNESS OF THE COMMISSIONER OF INC OME TAX (APPEALS)- JALPAIGURIS COMMON ORDER DATED 27.02.2017, PASSED IN CASE NO.04&05/CIT(A)-7/JAL/WD-2(2)/16-17, REVERSING THE ASSESSING OFFICERS ACTION TREATING ENTIRE CASH DEPOSITS OF 1,10,24,186/- AND 1,13,61,866/- AS UNDISCLOSED INCOME IN THE RESPECTIVE ASSESSMENT ORD ER(S), INVOLVING THE PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT. 2. BOTH THE PARTIES ARE VERY FAIR AT THE OUTSET IS INFORMING US THAT CIT(A)S COMMON ORDER HAS FOLLOWED HIS DISCUSSION IN LATTER ASSESSMENT YEAR 2011-12 MUTATIS MUTANDIS IN FORMER ASSESSMENT YEAR 2010-11 AS FOLLOWS:- ITA NO.876-877/KOL/2017 A.YS . 10-11 & 11-12 ITO WD-2(2), COOCHBEHAR VS. SH ARJUN PR ASAD SINGH PAGE 2 3.2 GROUND NO. 2: THIS GROUNDS OF APPEAL IS AGAINST ADDITION OF RS.1,13,61,866/-. THE FACTS OF THE CASE ARE SUMMARIZED BELOW. GOVERNMENT HAS GIVEN LICENSE TO MONALISA BOTTLING INDUSTRIES PVT. LTD. FOR BOTTLING OF COUNTRY LIQUOR. THE MOTHER OF THE ASSES SEE IS BUYING THE COUNTRY LIQUOR FOR SALE TO THE CONSUMERS UNDER PROPRIETORSH IP CONCERN M/S PRIYAGANNJ, C.S. SHOP. IN THIS CASE REPORT WAS RECEIVED FROM IT XO [I & CI] THAT IN SAVINGS BANK ACCOUNT NO. 11323865809 CASH DEPOSIT OF RS.111 59500/- HAS BEEN MADE. THIS BANK ACCOUNT STANDS IN THE NAME OF ASSES SEE ARJUN PRASAD SINGH. NOTICE U/S. 148 WAS ISSUED. THE ASSESSEE EXP LAINED BEFORE THE ASSESSING OFFICER THAT SINCE HER MOTHER IS VERY OLD THEREFORE ALL THE PROCEEDS OF SALE OF LIQUOR ARE BEING DEPOSITED IN THE BANK A CCOUNT AND FROM THE SAME BANK ACCOUNT CHEQUE IS BEING ISSUED TO THE SUPPLIER MONALISA BOTTLING INDUSTRIES PVT. LTD., THE ASSESSING OFFICER ASKED T HE ASSESSEE TO PRODUCE BOOKS OF ACCOUNT TO M/S MONALISA BOTTLING INDUSTRIE S PVT. LTD., HOWEVER THE ASSESSEE DID NOT PRODUCE HIS BOOKS OF ACCOUNT SINCE AS PER HIM THE ASSESSEE IS NOT REQUIRED TO PRODUCE THE BOOKS OF TH E SAID CONCERN AS THE BUSINESS OF M/S PRIYAGANJ, C.S. SHOP IS FILING ITS RETURN SEPARATELY AND IS ASSESSED SEPARATELY. THE AUTHORIZED REPRESENTATIVE ALSO STATED THAT SMT.LAKHPAT KANWAR IS ASSESSED TO TAX REGULARLY AND NO ADDITION HAS BEEN MADE IN HER HAND IS SECURITY ASSESSMENT FOR AY 2011 -12. HE FURTHER STATED THAT MOTHER HAS GIVEN POWER OF ATTORNEY TO THE ASSE SSEE FOR OPENING AND OPERATING ANY BANK ACCOUNT IN RESPECT OF PRIYAGANJ, C.S. SHOP. 3.3 FINDINGS OF COMMISSIONER OF INCOME-TAX (APPEALS ) I HAVE PERUSED THE ASSESSMENT ORDER, SUBMISSIONS OF THE ASSESSEE. I HAVE ALSO SEEN THE BANK STATEMENT. IT IS SEEN INDUCED CA SH OF MORE THAN RS.1 CRORE HAS BEEN DEPOSITED IN THIS BANK ACCOUNT 11323 865809. IT IS ALSO SEEN FROM THE BANK STATEMENT THAT CHEQUES ARE BEING REGU LARLY ISSUED FORM THIS BANK ACCOUNT IN FAVOUR OF M/S MONALSA BOTTLING INDU STRIES. I HAVE ALSO SEEN THE POWER OF ATTORNEY GIVEN BY SMT. LAKHPATI KANWAR IN FAVOUR OF ASSESSEE FOR OPENING AND OPERATING OF BANK ACCOUNT. FROM THE ABOVE IT IS VERY CLEAR THAT DEPOSITS IN THIS BANK ACCOUNT RELATES TO SALE PROCEEDS OF THE LIQUOR SHOP AND THE CHEQUE HAS BEEN ISSUED TO THE SUPPLIER OF M /S MONALISA BOTTLING INDUSTRIES PVT. LTD., THE OBVIOUS INFERENCE IS THAT RECEIPT IN THIS BANK ACCOUNT RELATES TO SMT. LAKHPATI KANWAR AND ALSO THESE TRAN SACTIONS ARE MOSTLY ACCOUNTED FOR AND RELTES TO THE BUSINESS OF LIQUOR SHOP. IT IS ALSO SEEN THAT THE AO HAS PASSED A SEPARATE ASSESSMENT ORDER FOR AY 20 11-12 FOR SMT. LAKHPATI KANWAR IN VIEW OF THE ABOVE IT IS NEITHER CORRECT ON THE PART OF THE ASSESSING OFFICER TO INSIST ON PRODUCTION OF BOOKS OF ACCOUNT SMT. LAKHPATI KANWAR OR REACH AN INFERENCE THAT ENTIRE DEPOSITED IN BANK ACCOUNT ARE UNACCOUNTED. IN VIEW OF THE ABOVE THE ADDITION IS H EREBY DELETED AND THE GROUNDS OF APPEAL IN RESPECT IS ALLOWED. LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY CONT ENDS DURING THE COURSE OF HEARING THAT ASSESSING OFFICER HAD RIGHTLY MADE THE IMPUGNED TWO ADDITIONS OF UNEXPLAINED CASH DEPOSITS AS THE ASSESSEE HAD FA ILED TO PROVE THE SAME TO BE BELONGING TO HIS MOTHERS COUNTRY SPIRIT BUSINES S. WE FIND NO MERIT IN THE INSTANT SOLE ARGUMENT. THE ASSESSEE HAS FILED DETAI LED PAPER BOOK COMPRISING OF INCOME TAX RETURN OF THE TWO ASSESSMENT YEARS, F ORM 3CB OF SMT. LAKHPATI KANWAR ALONG WITH COPY OF RETURN(S), HIS FATHERS A FFIDAVIT, BANK STATEMENT, ITA NO.876-877/KOL/2017 A.YS . 10-11 & 11-12 ITO WD-2(2), COOCHBEHAR VS. SH ARJUN PR ASAD SINGH PAGE 3 PARTY-WISE DETAILS OF COUNTRY SPIRIT BOTTLES PURCHA SED AS WELL AS STATEMENTS SHOWING TRANSACTIONS WITH SUPPLIERS CONCERNED. HE H AS SUCCESSFULLY PROVED THE IMPUGNED SUMS TO BE RELATED HIS MOTHERS COUNTR Y SPIRIT BUSINESS THEREFORE. LEARNED DEPARTMENTAL REPRESENTATIVE FAIL S TO REBUT THE FACT THAT NO SUCH CORRESPONDING OR TRANSACTIONS HAVE BEEN RECORD ED IN ASSESSEES MOTHERS BOOK. THE ASSESSEES FATHER HAD FILED AN A FFIDAVIT DECLARING THE ASSESSEE TO BE THE AUTHORIZED PERSON FOR CONDUCTING LIQUOR BUSINESS IN HIS MOTHERS NAME. HER PARTY-WISE PURCHASES DETAILS FRO M SUPPLIERS STATEMENT STAND DULY RECONCILED IN ASSESSEES FAVOUR. WE THUS CONCLUDE IN VIEW OF ALL THIS OVERWHELMING FACTUAL EVIDENCE THAT THE CIT(A) HAS RIGHTLY REVERSED THE ASSESSING OFFICERS ACTION ADDING THE CASH DEPOSITS HEREINABOVE TO BE THE ASSESSEES INCOME FROM UNDISCLOSED SOURCES. THE REV ENUES GRIEVANCE RAISED IN THE INSTANT APPEALS FAILS THEREFORE. 3. THIS TWO REVENUES APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 31/08/2018 SD/- SD/- ( %) (' %) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP, SR.P.S (- 31 / 08 /201 8 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ITO WARD-2(2), AAYAKAR BHAWAN, DEBIBARI N ORTH, RAJBARI COMPLEX, COOCHBE HAR, WEST BENGAL-736101 2. /RESPONDENT-SRI ARJUN PRASAD SINGH, C/O D.P. SINGH PARK HO TEL, R.N. ROAD COOCHBEHAR, WEST BENGAL-736101 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5. 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO 3,