Khanpur Cold Storage P Ltd, Hooghly V. A.C.I.T Cir - 1,Hooghly, Hooghly

ITA 896/KOL/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7917 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 22-04-2013
• Court: TRIBUNAL
• Department Lawyers: A P ROY
• Keywords: Unexplained cash credit
• Section: 143(3); 69

Judgement Text

, C , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA () BEFORE , /AND , ! ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI SHAMIM YAHYA, AM] ' / I.T.A NO.896/KOL/2013 #$ %&/ ASSESSMENT YEAR: 2007-08 KHANPUR COLD STORAGE PVT. LTD. VS. ASSISTANT COM MISSIONER OF INCOME-TAX, (PAN:AABCK2877P) CIRCLE-1, HOOGHLY (() /APPELLANT ) (*+()/ RESPONDENT ) DATE OF HEARING: 15.09.2014 DATE OF PRONOUNCEMENT: 14.10.2014 FOR THE APPELLANT: SHRI SOMNATH GHOSH, ADVOCATE FOR THE RESPONDENT: SHRI A. P. ROY, SR. DR / ORDER PER SHRI MAHAVIR SINGH, JM : THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XXXVI, KOLKATA IN APPEAL NO. 871/CIT(A)-XXXVI/KOL/CIRCLE-1/HG/2009-10 DATED 22.02.2013. ASSESSMENT WAS FRAMED BY ACIT, CIRCLE-1, HOOGHLY U/S. 143(3) OF THE INCOM E-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2007-08 VIDE HIS ORD ER DATED 30.12.2009. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION MADE BY AO ON ACCOUNT OF UNEXPLAINED CASH CREDIT, WHICH WERE ACTUALLY OUTSTANDING SUNDRY CREDITOR AT RS.1,06,245/-. 3. BRIEFLY STATED FACTS ARE THAT THE AO NOTICED FRO M THE SUNDRY CREDITORS DISCLOSED IN THE BALANCE SHEET THAT THE ASSESSEE HAS FILED COMPLETE DETAILS IN RESPECT TO THE SUNDRY CREDITORS EXCEPT FOR AN AMOUNT OF RS.1,06,245/- AND HENCE, HE TREATED THE SUM OF RS.1,06,245/- AS UNEXPLAINED CASH CREDIT VIDE PARA 5 OF HIS ASSESSME NT ORDER AS UNDER:- 5. FROM THE BALANCE SHEET ASSESSEE IT IS SEEN THAT SUNDRY CREDITOR AMOUNT WAS CLAIMED FOR RS.29,64,635/-. DETAILS ABOUT THE SUNDRY CREDI TORS RELATED FOR SUNDRY CREDITOR AMOUNT RS.28,58,390/- WAS FILED. HOWEVER NO DETAIL ADDRES S FOR THE REMAINING SUNDRY CREDITORS THE JALANDHAR COOPERATIVE POTATO SEED GROWERS SOCIE TY LTD. WAS FILED; RENDERING IT IMPOSSIBLE TO VERIFY THE GENUINENESS OF ASSESSEES CLAIM. THEREFORE, THE AMOUNT OF RS.1,06,245/- IS TREATED AS UNEXPLAINED CASH CREDI T AND IS ADDED TO THE TOTAL INCOME OF THE ASSESSEE U/S. 69 OF THE I. T. ACT. 4. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT( A), WHO ALSO CONFIRMED THE ACTION OF AO BY OBSERVING THAT THE ASSESSEE ITSELF WAS AT FAU LT IN NOT DISCLOSING THE ADDRESS OF THE SUNDRY 2 ITA NO. 896/K/2013 KHANPUR COLD STORAGE PVT. LTD. AY 2007-08 CREDITOR. HE REFUSED TO ADMIT THE ADDITIONAL EVIDE NCE UNDER RULE 46A OF THE I. T. RULES, 1962. ACCORDING TO HIM, THE CASH MEMO, CONFIRMATION AND L EDGER ACCOUNT OF THE SUNDRY CREDITOR I.E. JALANDHAR COOPERATIVE POTATO SEED GROWERS SOCIETY L TD. ARE NEW EVIDENCE AND SAME CANNOT BE ADMITTED AS THE SAME ARE NOT IN ACCORDANCE WITH LAW . ACCORDINGLY, HE CONFIRMED THE ADDITION. AGGRIEVED, NOW ASSESSEE IS IN APPEAL BEFORE TRIBUNA L. 5. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE CASH MEMOS OF JALANDHAR COOPERATI VE POTATO SEED GROWERS SOCIETY LTD. WHICH ARE FILED IN ASSESSEES PAPER BOOK AT PAGE 34 CLEARLY REVEALS THE ADDRESS OF THE SUNDRY CREDITOR I.E. AT 125, NEW JAWAHAR NAGAR, JALANDHAR- 144001 (INDIA), WHICH WAS BEFORE THE AO. FROM THE CERTIFICATE GIVEN BY ASSESSEE IN RESPECT T O THIS DOCUMENT ENCLOSED AT ASSESSEES PAPER BOOK AT PAGE 34 CLEARLY REVEALS THAT THIS WAS AVAIL ABLE BEFORE AO. WHEN THIS WAS CONFRONTED TO LD. SR. DR, HE FAIRLY CONCEDED THAT YES THIS WAS AVAILABLE BEFORE THE AO. ONCE THIS WAS AVAILABLE AND COMPLETE ADDRESS IS MENTIONED IN CASH MEMO ISSUED BY THAT COMPANY, IT CLEARLY REVEALS THAT THE PARTICULAR EVIDENCE WAS AVAILABLE BEFORE AO. AS REGARDS TO CREDITWORTHINESS OF CREDITOR, IT WAS NOT IN DOUBT. HENCE, WE DELETE TH E ADDITION AND THE APPEAL OF ASSESSEE IS ALLOWED. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 7. ORDER IS PRONOUNCED IN THE OPEN COURT ON 14.10.2 014 SD/- SD/- , ! , (SHAMIM YAHYA) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 14TH OCTOBER, 2014 ,- #./ 0 JD.(SR.P.S.) 1 *2 3 2%4- COPY OF THE ORDER FORWARDED TO: 1 . () / APPELLANT KHANPUR COLD STORAGE PVT. LTD., C/O S. N. GHOSH & ASSOCIATES, ADVOCATES, SEVEN BROTHERS LODGE, PO BUROSHIBTALA, P.S. CHINSURAH, DIST, HOOGHLY, PIN 712 105. 2 *+() / RESPONDENT ACIT, CIRCLE-1, HOOGHLY. 3 . # ( )/ THE CIT(A), KOLKATA 4. 5. # / CIT KOLKATA 2:; *# / DR, KOLKATA BENCHES, KOLKATA +2 */ TRUE COPY, #