Sri Narendra Kumar Bahal, Howrah V. ITO, Wd-48(3), kolkata, Kolkata

ITA 894/KOL/2014

• Counselvise Citation: 89423514 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2014
• Court: TRIBUNAL
• Department Lawyers: MD GHAYASUDDINJCITSR
• Assessee Lawyers: V N PUROHITFCA
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC KOLKATA [BEFORE HON BLE SHRI J. SUDHAKAR REDDY, AM ] ITA NO .894 /KOL/2014 ASSESSMENT YEAR : 2009 - 10 ( A PPELLANT ) (RESPONDENT) SHRI NARENDRA KUMAR BAHAL - VERSUS - I.T.O., WARD - 48(3 ) , KO LKATA KOLKATA (PAN: ADWPB 9492 Q) FOR THE APPELLANT: SHRI V.N.PUROHIT,FCA FOR THE RESPONDENT: MD.GHAYASUDDIN,JCIT,SR.DR DATE OF HEARING : 19.08 .2015 . DATE OF PRONOUNCEMENT : 27.08.2015. ORDER THIS APPEAL OF ASSESSEE ARISE S FROM THE ORDER OF LD. CIT(A) - XXX , KOLKATA IN APPEAL NO . 333/CIT(A) - XXX/WD - 48(3 )/ 2011 - 12 DATED 31.12.2013 . ASSESSMENT WAS FRAMED BY I.T.O., WARD - 48(3 ), KOLKATA U/S 143(3 ) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT ) FOR A.YR . 2009 - 10 V IDE ITS ORDER DATED 30.12.2011. 2. THE FIRST ISSUE RAISED BY THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN UPHOLDING THE ORDER OF THE LD. AO , WHEREIN AN ADDITION OF RS.3,04,910/ - U/S 69 OF THE ACT WAS MADE IN RESPECT OF INVESTMENT IN LAND . 3. BRIEFLY STATED FACTS ARE , THE ASSESSEE IS AN INDIVIDUAL AND HAS INCOME FROM THE BUSINESS OF TRADING OF CLOTH AND SHARE S . DURING THE YEAR UNDE R CONSIDERATION , THE ASSESSEE HAS FILED HI S BALANCE SHEET , DISCLOSING THE INVESTMENT IN SHARES AND MUTUAL FUN DS AMOUNTING TO RS.5,87,744/ - . THE ANNEXURE TO THE BALANCE SHEET SHOW S THE LAND AMOUNTING TO RS.3,04,910/ - , UNDER THE HEAD INVESTMENT IN SHARES AND MUTUAL FUNDS . DUE TO THE DIFFERENCE IN THE NOMENCLATURE OF THE HEAD OF THE ACCOUNTS IN THE BALANCE SHEET AND ITS ANNEXURE , THE LD. AO TREATED THE INVESTMENT IN LAND AS MADE FROM UNDISCLOSED SOURCE AND MADE AN ADDITION OF THE AMOUNT U/S 69 OF THE ACT. ITA NO. 894/KOL/2014 SRI NARENDRA KUMAR BAHAL . A.YR. 2009 - 10 2 4. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO UPHELD THE ACTION OF THE LD. AO BY OBSERVING THAT THE ASSESSEE HAS NOT PROVED THE INVESTMEN T IN LAND WITH EVIDENCE SUCH AS CONVEYANCE DEED ETC. 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. 6 . SHRI V.N.PUROHIT, FCA, THE L D. AR APPEARED ON BEHALF OF THE ASSESSEE AND SUBMITTED THAT THE ASSESSEE HAS BEEN SHOWING THE INVESTMENT IN LAND UNDER THE HEAD FIXED ASSETS IN THE EARLIER YEARS. HOWEVER, IN THE RELEVANT YEAR UNDER CONSIDERATION THE ASSESSEE HAS SHOWN THE INVESTMENT IN LAND UNDER THE HEAD INVESTMENT IN SHARES AND MUTUAL FUNDS AND THAT THIS IS ONLY A CLERICAL ERROR. IN SUPPORT OF HIS CLAIM , THE LD. AR SUBMITTED THE AUDITED BALANCE SHEET OF THE EARLIER YEAR I.E. FOR THE PREVIOUS YEAR ENDING 31/03/2008 AND ALSO FURNISHED A COPY OF THE CONVEYANCE DEED. ACCORDINGLY, HE PRAYED FOR DELETION OF ADDITION ON THIS ISSUE MADE BY THE AO AND CONFIRMED BY LD. CIT(A). 7 . MD.GHAYASUDDIN, JCIT,SR.DR, THE LD. DR APPEARING ON BEHALF OF THE REVENUE RELIED ON THE ORDERS OF THE AUTHORI TIES BELOW. 8 . I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I AM OF THE VIEW THAT THERE WAS A CLERICAL ERROR IN THE GROUPING AND DISCLOSURE OF INVESTMENT IN LAND. IN THE EARLIER YEAR THE ASSESSEE HAS DECLARED THE LAND UNDER THE HEAD FIXED ASSETS AND IN THE YEAR UNDER APPEAL , IT IS WRONGLY CLASSIFIED AND DISCLOSED UNDER THE HEAD INVESTMENT IN SHARES AND MUTUAL FUNDS . AS THIS IS A SIMPLE CLERICAL ERROR I DELETE THE ADDITION MADE BY THE AO AND ALLOW THE APPEAL ON THIS ISSUE. 9 . AT THE TIME OF HEARING, THE ASSESSEE HAS RAISED THE FOLLOWING ADDITIONAL GROUND : THAT THE A.O. HAS ERRED IN MAKING AN ADDITION OF RS.11,138/ - BEING INTEREST INCOME WHICH IS ALREADY INCLUDED IN NET PROFIT OF RS.1,94,635/ - AS PER P ROFIT & LOSS ACCOUNT INCLUDED BY A.O. IN HIS COMPUTATION THEREBY TAXING THE SAID SUM OF R S.11,138/ - TWICE. ITA NO. 894/KOL/2014 SRI NARENDRA KUMAR BAHAL . A.YR. 2009 - 10 3 10 . IN THIS CASE IT IS APPARENT THAT INCOME HAS BEEN TAXED TWICE . THIS IS ALSO A CLERICAL ERROR. HENCE I ALLOW THE ADDITIONAL GROUND IN FAVO UR OF THE ASSESSEE. 11 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNC ED IN TH E COURT . SD/ - [ SUDHAKAR REDDY ] ACCOU NTANT MEMBER DATE: 27.08.2015. R.G.(.P.S.) COPY OF THE ORDER FORWARDED TO : 1 . SRI NARENDRA KUMAR BAHAL, C/O V.N.PUROHIT & CO., CHARTERED ACCOUNTANTS, DIAMOND CHAMBERS, UNIT - III, 4 TH FLOOR, SUIT NO.4G, 4, CHOWRINGHEE LANE, KOLKATA - 700016. 2 I.T.O. , WARD - 48(3 ), KOLKATA. 3 . THE CIT - XVI , KOLKATA 4. THE CIT(A) - XXX , KOLKATA. 5 . DR, KOLKATA BENCHES, KOLKATA TRUE COPY , BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES