Smt. Kartik Mehara, Kolkata V. D.C.I.T CC - XVIII,kolkata, Kolkata

ITSSA 51/KOL/2013

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 0444 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 27-11-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 23-04-2013
• Court: TRIBUNAL
• Department Lawyers: K K TRIPATHI
• Assessee Lawyers: N O N E
• Keywords: Document seized; Documents seized

Judgement Text

, SM C , IN THE INCOME TAX APPELLATE TRIBUNAL SM C BENCH: KOLKATA ( ) BEFORE , ) [BEFORE SHRI MAHAVIR SINGH, JM] / I.T(SS) A NO. 5 1 /KOL/20 1 3 / ASSESSMENT YEAR : 20 0 5 - 0 6 KARTIK MEHRA (PAN:AIDPM7054M) VS. DEPUTY COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE - XVIII, KOLKATA ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 2 5 . 11 .201 4 DATE OF PRONOUNCEMENT: 27 . 1 1 .201 4 FOR THE APPELLANT : N O N E FOR THE RESPONDENT : SHRI K. K. TRIPATHI , JCIT, SR. DR / ORDER THIS APPEAL BY ASSESSEE IS ARI SING OUT OF ORDER OF CIT(A) , CENTRAL - II , KOLKATA IN APPEAL NO. 202 / CC - XVIII/ CIT(A) C - II/10 - 11 DATED 06 . 0 2 .201 3 . ASSESSMENT WAS FRAMED BY DCIT, CENTRAL CIRCLE - XVIII, KOLKATA U/S. 153C/143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 200 5 - 0 6 VIDE HIS ORDER DATED 3 1 .12.20 1 0 . 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE ADDITION MADE BY AO ON ACCOUNT OF SALE OF TARPAULINE AT RS. 1 LAC. FOR THIS, ASSESSEE HAS RAISED FOLLOWING GROUND NO.2: 2. THAT ON THE FACTS BROUGHT ON RECORD, THE LD. CIT(A) CENTRAL - II OUGHT TO HAVE DELETE D THE ADDITION OF RS.1,00,000/ - ON ACCOUNT OF SALE OF TARPAULINE AS UNDISCLOSED INCOME OF THE ASSESSEE MADE BY THE LEARNED ASSESSING OFFICER. 3. I HAVE HEARD LD. SR. DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSEE DURING THE COURSE OF SEARCH OPERATION ON 26/27.03.2009 ON ONE SHRI PRASANT MEHRA MADE A DISCLOSURE IN VIEW OF SEIZED DOCUMENTS ANNEXURE C, C - 1 TO C5 REFLECTED DISCLOSURE OF RS.7,96,291/ - IN THE HANDS OF SRI KARTIK MEHRA OVER THE FINANCIAL YEARS 2003 - 04 TO 2006 - 0 7. THIS DISCLOSURE WAS MADE ON THE BASIS OF SEIZED DOCUMENTS HAVING IDENTIFICATION MARK BK/1 PAGES 8 TO 10, 13, 16, 19, 20 AND SEIZED DOCUMENT NO. BK/8 PAGES 63 AND 64. THE AO ALSO FOUND ONE SEIZED DOCUMENT RELEVANT PAGES BK - 1 AND BK - 2 PAGES 63 AND 64 FROM WHERE IT WAS FOUND THAT AN AMOUNT OF RS. 1 LAC HAS NOT BEEN CONSIDERED IN THE ACCOUNTS PREPARED BY ASSESSEE ON ACCOUNT OF SALE OF TARPAULIN. 2 IT (SS) A NO.51/K/2013 KARTIK MEHRA AY 200 5 - 0 6 ACCORDINGLY, HE MADE ADDITION ON THE BASIS OF SEIZED DOCUMENT BK - 1 PAGE 8 OF RS. 1 LAC. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A), WHO CONFIRMED THE ADDITION BY OBSERVING IN PARA 5 OF HIS APPELLATE ORDER AS UNDER: I HAVE CONSIDERED THE SUBMISSION OF THE APPELLANT AND PERUSED THE ASSESSMENT ORDER. ON CAREFUL CONSIDERATION OF FACTS, I AM NOT INCLINED TO AGREE WITH THE SUBMISSION OF THE APPELLANT. IN SUPPORT OF HIS CLAIM THE APPELLANT DID NOT PRODUCE THE COPIES OF THE SEIZED DOCUMENTS ON THE BASIS OF WHICH ACCOUNTS WERE DRAWN BY HIM FOR THE F.Y. 2003 - 04 AND 2004 - 05. FURTHER, THE APPELLANT DID NOT DISC LOSE THAT WHO IS MR. A. K. JHAWAR, WHO WAS CLAIMED TO HAVE MADE THE PAYMENT OF RS. 1 LAKH ON HIS BEHALF AND AS TO HOW THAT SUM WAS RETURNED TO MR. JHAWAR. UNDER THE CIRCUMSTANCES, I AM OF THE OPINION THAT THE AO WAS JUSTIFIED IN MAKING ADDITION OF RS.1 L AKH ON THE BASIS OF MONEY RECEIPT. THE ADDITION SO MADE IS CONFIRMED. THE GROUND NO.2 IS DISMISSED. 4. I FIND THAT THE ASSESSEE HAS DISCLOSED THE PURCHASE OF MATERIAL WORTH RS. 1 LAC FROM ONE RAM KUMAR BAGRI IN THE FY 2003 - 04 RELEVANT TO AY 2004 - 05 AND THE MATERIAL WAS SOLD FOR RS.1.25 LAC. HOWEVER, THIS PAYMENT OF RS.1 LAC WAS NOT MADE AND IT WAS SHOWN AS SUNDRY CREDITOR IN FY 2003 - 04. THE PAYMENT OF RS.1 LAC WAS GIVEN TO SHRI RAM KUMAR BAGRI DURING FY 2004 - 05 RELEVANT TO AY 2005 - 06 BY CASH. THIS PA YMENT WAS MADE BY ONE SHRI A. K. JHAWAR ON BEHALF OF ASSESSEE AS IS CLEARLY APPEARING FROM SEIZED DOCUMENT FROM PAGE 8 OF BK - 1. I FIND THAT THIS AMOUNT IS EXPLAIN ED AND NOW THIS ADDITION CANNOT BE MADE AGAIN. IN TERM OF THE ABOVE, I DIRECT THE A O TO DELE TE THE ADDITION. 5 . IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED . 6 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 7 . 1 1 . 2 0 1 4 S D / - , (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2 7 T H NOVEMBER , 201 4 JD.(SR.P.S.) - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT SH RI KARTIK MEHRA, 69, GIRISH PARK (NORTH), KOLKATA - 700 006 2 / RESPONDENT D CIT, CC - XVIII, KOLKATA . 3 . ( )/ THE CIT(A), KOLKATA 4. 5. / CIT KOLKATA / DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, / BY ORDER, /ASSTT. REGISTRAR .