Appeal details
Counselvise Citation
[2024] 100 COUNSELVISE.COM (IT) 0586 (ITAT-KOLKATA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
9 month(s) 22 day(s)
Appellant
Respondent
Appeal Type
Income Tax (Search & Seizure) Appeal
Pronouncement Date
30-07-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
C
Next Hearing Date
04-06-2024
Assessment Year
2017-2018
Appeal Filed On
08-10-2023
Judgement Text
आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘सी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Rakesh Mishra, Accountant Member I.T.(SS)A. Nos.164&165/Kol/2023 Assessment Years: 2017-18 & 2018-19 Lakhotia Diagnostic Service Pvt. Ltd..............................................Appellant 93/C/A Block-E Vivek Bihar, G T Road (South), Shibpur, Howrah, W.B – 711102. [PAN: AAACO6522G] vs. ACIT, Central Circle-3(2), Kolkata................................................... Respondent Appearances by: Shri Miraj D. Shah, AR, appeared on behalf of the assessee. Shri Rakesh Kr. Das, CIT- DR, appeared on behalf of the Revenue. Date of concluding the hearing : June 05, 2024 Date of pronouncing the order : July 31, 2024 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: The captioned two appeals have been preferred by the assessee for different assessment years against the separate orders dated 08.08.2023 & 09.08.2023 of the Commissioner of Income Tax (Appeals)- 21, Kolkata [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’) respectively. Since common issues are involved in both the appeals, therefore, both the appeals have been heard together and are being disposed of by this common order. Assessee’s appeal in IT(SS)A No.164/Kol/2023 is taken as lead case for narration of facts. 2. IT(SS)A No.164/Kol/2023 – The assessee in this appeal has taken the following ground of appeal: I.T.(SS)A. Nos.164&165/Kol/2023 Assessment Years: 2017-18 & 2018-19 Lakhotia Diagnostic Service Pvt. Ltd 2 “1. FOR THAT the CIT(A) erred in law in upholding in imaginary addition being Interest & Brokerage paid on alleged Cash Loan to the tune of Rs.9,70,000/- without considering the fact that the Cash Loan, as alleged, in the Order of Assessment was imaginary and not based upon any credible evidence and therefore. the penalty proceedings u/s 269SS initiated on that score was dropped by the Ld. Jurisdictional JCIT, Central Circle and accordingly, and when the foundation of Cash Loan is eliminated, the edifice build upon such foundation in form of imaginary interest and brokerage paid of Rs.9,70,000/- on alleged cash loan cannot stand in the eyes of law and the addition sustained by the Ld. CIT(A) on that score is liable to be deleted at this forum. 2. FOR THAT the Ld. Authority below erred in law in upholding the imaginary addition to the tune of Rs. 9,90,000/- on account of Commission and Brokerage paid on non-existent of "cash loan", taken by the Company. 3. FOR THAT the legal maxim "sublato fundamento cadit opus" is directly applicable in this case, and accordingly the addition sustained by the CIT(A)-21 is liable to be deleted. Your appellant craves leave to add supplement or amend further ground or grounds at the time of hearing.” 3. The issue raised by the assessee in this appeal is relating to the confirmation of addition of Rs.9,90,000/- made by the Assessing Officer on account of alleged unaccounted interest and brokerage expenses paid by the assessee on cash loans of Rs.75,00,000/-. 4. The ld. counsel for the assessee has invited our attention to the relevant part of the assessment order to submit that the allegation of the Assessing Officer was that the assessee had received cash loans in violation of provisions of section 269SS of the Act, for which the proceedings u/s 271D were initiated against the assessee. However, the assessee has demonstrated in the said proceedings that the assessee did not receive any such cash loans as alleged in the assessment order. Thereafter, the proceedings carried out u/s 271D were dropped against the assessee. Since the assessee did not receive any cash loans and the said fact stands accepted by the department and therefore, the alleged I.T.(SS)A. Nos.164&165/Kol/2023 Assessment Years: 2017-18 & 2018-19 Lakhotia Diagnostic Service Pvt. Ltd 3 payment of interest & brokerage on such non-existed cash loans, does not arise at all. 5. In view of the above, the impugned additions in respect of alleged unaccounted interest and brokerage are not sustainable and the same are accordingly ordered to be deleted. 6. IT(SS)A No.164/Kol/2023 – The issue involved in this appeal is identical to that has been discussed in IT(SS)A No.164/Kol/2023 and our findings given above will mutatis mutandis apply to this appeal also and the impugned additions in this appeal are ordered to be deleted. 7. In the result, both the appeals of the assessee stand allowed. Kolkata, the 31 st July, 2024. Sd/- Sd/- [Rakesh Mishra] [Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 31.07.2024. RS Copy of the order forwarded to: 1. Assessee - 2. Respondent - 3.CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches
