ACIT, Circle-2(1), Bhubaneswar V. Tarakanta Sahoo, Nayagarh

MA 4/CTK/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4822 (ITAT-CUTTACK)
• Duration Of Justice: 3 year(s) 3 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 29-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Income from undisclosed sources

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE S/ SHRI ACIT, CIRCLE 2(1), BHUBANESWAR. PAN/GIR NO. AXMPS 0891 A (APPELLANT BY WAY OF THIS MISCELLANEOUS PETITION, THE REVENUE SEEKS TO RECTIFY THE MISTAKE IN ORDER DATED 9.8.2017 PASSED BY THE TRIBUNAL IN ITA NO. 458/CTK/2015 FOR THE ASSESSMENT 2. THE MISTAKE AS POINTED OUT BY THE REVENUE IN THE ORDER OF THE TRIBUNAL IS AS UNDER: IN THE INSTANT CASE, THERE IS EXCESS OF ASSETS OVER LIABILITY, ARISING FROM THE DEPOSITS MADE IN THE BANK ACCOUNT IN THE CASE OF THE ASSESSEE. AS PER NO CONSTITUTE/REPRESENTS INCOME IN THE CASE OF AN ASSESSEE. THUS, IT MAY KINDLY BE NOTICED THAT BY SIMPLE LOGIC, THE ENTIRE AMOUNT OF RS.14,14,000/ IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK SMC BENCH, CUTTACK SHRI CHANDRA MOHAN GARG, JUDICIAL M.A.NO.04/CTK/2018 (IN ITA NO.458/CTK/2015) ASSESSMENT YEAR : 2011-12 ACIT, CIRCLE 2(1), VS. SRI TARAKANTA SAHOO, AT/PO: SATPATNA, PS: DASPALA, DIST: NAYAGARH AXMPS 0891 A (APPELLANT ) .. ( RESPONDENT ASSESSEE BY : SHRI S.K.AGARWAL, AR REVENUE BY : SHRI S.C.MOHANTY, DR DATE OF HEARING : 01 /4/ 202 1 DATE OF PRONOUNCEMENT : 11 /5 /20 O R D E R BY WAY OF THIS MISCELLANEOUS PETITION, THE REVENUE SEEKS TO RECTIFY THE MISTAKE IN ORDER DATED 9.8.2017 PASSED BY THE TRIBUNAL IN ITA NO. 458/CTK/2015 FOR THE ASSESSMENT YEAR 2011-12. THE MISTAKE AS POINTED OUT BY THE REVENUE IN THE ORDER OF THE TRIBUNAL IS AS UNDER: IN THE INSTANT CASE, THERE IS EXCESS OF ASSETS OVER LIABILITY, ARISING FROM THE DEPOSITS MADE IN THE BANK ACCOUNT IN THE CASE OF THE ASSESSEE. AS PER NO RMAL PARLANCE, EXCESS OF ASSET OVER LIABILITY CONSTITUTE/REPRESENTS INCOME IN THE CASE OF AN ASSESSEE. THUS, IT MAY KINDLY BE NOTICED THAT BY SIMPLE LOGIC, THE ENTIRE AMOUNT OF RS.14,14,000/ - CONSTITUTE INCOME IN THE HANDS OF THE ASSESSEE BEING P A G E 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER SRI TARAKANTA SAHOO, AT/PO: SATPATNA, PS: DASPALA, DIST: RESPONDENT ) DR 1 /20 21 BY WAY OF THIS MISCELLANEOUS PETITION, THE REVENUE SEEKS TO RECTIFY THE MISTAKE IN ORDER DATED 9.8.2017 PASSED BY THE TRIBUNAL IN ITA NO. THE MISTAKE AS POINTED OUT BY THE REVENUE IN THE ORDER OF THE IN THE INSTANT CASE, THERE IS EXCESS OF ASSETS OVER LIABILITY, ARISING FROM THE DEPOSITS MADE IN THE BANK ACCOUNT IN THE CASE OF THE RMAL PARLANCE, EXCESS OF ASSET OVER LIABILITY CONSTITUTE/REPRESENTS INCOME IN THE CASE OF AN ASSESSEE. THUS, IT MAY KINDLY BE NOTICED THAT BY SIMPLE LOGIC, THE ENTIRE AMOUNT OF CONSTITUTE INCOME IN THE HANDS OF THE ASSESSEE BEING M.A.NO.04/CTK/2018 (IN ITA NO.04/CTK/2018) ASSESSMENT YEAR : 2011-12 P A G E 2 | 3 LIABLE FOR TAXATION FOR THE A.Y. 2011-12. SECONDLY, IT MAY KINDLY BE NOTICED THAT SUCH EXCESS AMOUNT OF RS.14,40,000/- ARISING FROM BANK DEPOSITS IN THE CASE OF THE ASSESSEE, AMOUNTS TO UNEXPLAINED MONEY U/S.69A OF THE INCOME TAX ACT, 1961 AND HENCE, THE ENTIRE SUCH AMOUNT IS LIABLE FOR TAXATION IN THE HANDS OF THE ASSESSEE TREATING THE SAME AS UNACCOUNTED INCOME IN THE HANDS OF THE ASSESSEE FOR F.Y2010-11 RELEVANT TO A.Y. 2011-12. 3. THE MAIN CONTENTION OF THE REVENUE IN THIS PETITION IS THAT THE EXCESS AMOUNT ARISING FROM BANK DEPOSITS OF RS.14,14,000/- IN THE ACCOUNT OF THE ASSESSEE AMOUNTS TO UNEXPLAINED MONEY OF THE ASSESSEE, WHICH SHOULD BE ADDED U/S.69A OF THE ACT. LD D.R. SUBMITTED THAT WITHOUT TREATING THE AMOUNT AS UNACCOUNTED INCOME IN THE HANDS OF THE ASSESSEE, THE TRIBUNAL HAS ESTIMATED THE PROFIT @ 5% ON RS.14,14,000/- DEPOSITED IN THE BANK ACCOUNT, WHICH IS MISTAKE APPARENT FROM RECORD. 4. REPLYING TO ABOVE, LD A.R. OF THE ASSESSEE SUBMITTED THAT THERE IS NO MISTAKE IN THE ORDER OF THE TRIBUNAL INASMUCH AS THE ENTIRE DEPOSIT IN THE BANK ACCOUNT CANNOT BE TREATED AS INCOME OF THE ASSESSEE AND THE INCOME EMBEDDED IN THE RECEIPTS CAN ONLY BE ASSESSED IN THE HANDS OF THE ASSESSEE. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDER OF THE TRIBUNAL. IN THE PRESENT CASE, THE ASSESSEE HAD DISCLOSED THE TURNOVER OF RS.3,94,24,798/-, ON WHICH THE ASSESSEE HAS SHOWN NET PROFIT OF RS.7,88,496/-, WHICH WORKS OUT TO 2% OF THE TOTAL TURNOVER. THE CLAIM OF THE ASSESSEE THAT THE RECEIPT OF RS.14,40,000/- IS THE SALE OF IMFL AND BEER, WHICH FACT WAS ALSO NOT IN DISPUTED BY THE REVENUE. THE ONLY DISPUTE M.A.NO.04/CTK/2018 (IN ITA NO.04/CTK/2018) ASSESSMENT YEAR : 2011-12 P A G E 3 | 3 IS THAT THERE IS DIFFERENCE OF RS.14,40,000/- BETWEEN THE BANK STATEMENT AND AUDITED CLOSING BALANCE SHEET FURNISHED BY THE ASSESSEE. WHILE DECIDING THE ISSUE, THE TRIBUNAL HAS DETERMINED THE PROFIT @ 5% ON THE DIFFERENTIAL AMOUNT OF RS.14,14,000/- BASED ON THE DECISION OF THE TRIBUNAL IN THE CASE OF R.R.CARRYING CORPORATION, 30 DTR 569. IT IS NOT LIKE THAT THE TRIBUNAL HAS NOT CONSIDERED THE DIFFERENTIAL AMOUNT POINTED OUT BY THE REVENUE. IN VIEW OF THESE DISCUSSIONS, AS ALSO BEARING IN MIND ENTIRETY OF THE CASE, I SEE NO MERITS IN THE RECTIFICATION PETITION OF THE ASSESSEE. I, THEREFORE, REJECT THE SAME. 6. IN THE RESULT, M.A. FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 11 /5/2021. SD/- (CHANDRA MOHAN GARG) JUDICIAL MEMBER CUTTACK; DATED 11 /5/2021 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR.PVT.SECRETARY ITAT, CUTTACK 1. THE APPELLANT : ACIT, CIRCLE 2(1), BHUBANESWAR. 2. THE RESPONDENT. SRI TARAKANTA SAHOO, AT/PO: SATPATNA, PS: DASPALA, DIST: NAYAGARH 3. THE CIT(A) - 1 , BHUBANESWAR 4. PR.CIT - 1 , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//