SATBIR MAHATO,HOOGHLY V. I.T.O., WARD - 24(3), KOLKATA, KOLKATA

ITA 1128/KOL/2024

AI Insights

This case involves an appeal by Satbir Mahato against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which confirmed an addition made by the Assessing Officer during the assessment for the year 2010-2011. The addition represented 8% of the cash deposits in the assessee's bank account, which were considered accommodation entries. The CIT(A) had previously estimated the income from these deposits at 0.75%. However, a coordinate bench of the Tribunal had earlier deleted a similar addition for the assessment year 2009-2010, leading to the current appeal. The Tribunal, finding no difference in facts, decided to delete the addition, aligning with the earlier decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314034 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Other Referred Cases: ITA No.1155/Kol/2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANAS MONDAL
• Assessee Lawyers: SOMNATH GHOSH
• Keywords: Set aside; Accommodation entries
• Section: 147; 143(3); 131

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.1128/KOL/2024 (निर्धारण वर्ा / Assessment Year : 2010-2011) Satbir Mahato, C/o. S.N.Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No.203, Off Hare Street, Kolkata-01 Vs ITO, Ward-24(3), Hooghly PAN No. :AWKPM 4651 K (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Somnath Ghosh, Advocate रधजस्व की ओर से /Revenue by : Shri Manas Mondal, Sr. DR सुनवाई की तारीख / Date of Hearing : 05/05/2025 घोषणा की तारीख/Date of Pronouncement : 05/05/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 12.03.2024, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1062450159(1), for the assessment year 2010-2011. 2. Shri Somnath Ghosh, Advocate appeared on behalf of the assessee. Shri Manas Mondal, Sr. DR appeared on behalf of the revenue. 3. It was the submission of the ld. AR that in the course of assessment, the Assessing Officer had made an addition of Rs.81,39,504/- representing 8% of the cash deposits in the bank account of the assessee. It was the submission that in the appeal, the ld. CIT(A) had followed the decision of ITA No.1128/KOL/2024 2 his predecessor in assessee’s own case for A.Y.2009-2010 and held that 0.75% was liable to be treated as income of the assessee. It was the submission that the ld. CIT(A) also observed that the cash deposit in the bank account were in the nature of accommodation entries and the assessee has earned commission income thereon. Consequently, in the impugned assessment year the ld. CIT(A) has followed the decision in assessee’s own case for A.Y.2009-2010 by the earlier CIT(A) and directed the Assessing Officer to estimate the income of the assessee at 0.75%. It was the submission that for the earlier assessment year the assessee has filed an appeal before the coordinate bench of the Tribunal and the coordinate bench of the Tribunal in ITA No.1155/Kol/2023, order dated 17.03.2025 deleted the addition holding as under :- 04. In the appellate proceedings, the Id. CIT (A) after following the decision of the various co-ordinate Benches partly allowed the appeal by deleting the addition to the tune of ₹1,35,93,750/- and sustaining the addition to the extent of ₹14,06,250/- at 0.75% of total accommodation entries provided. Now, the assessee is in appeal before us challenging the part confirmation of the order of the Id. Assessing Officer. 05. After hearing the rival contentions and perusing the materials available on record, we find that undisputedly the cash was deposited in the assessee's bank account in ICICI bank account which belonged to Shri Devesh Upadhyaya, who opened the bank account In assessee's name by using his PAN and operated the same for providing accommodation entries. Mr. Devesh Upadhyaya, deposited 18.75 cores cash in the said bank account and the same was given to various parties as accommodation entries. We have also examined the statement recoded u/s 131 of the Act by the Id. AO of the said person and while answering to question no.11 to 18, Shri Devesh Upadhyaya admitted that the cash deposited in the assessee's bank account belonged to him and he used the bank account for giving accommodation entries. We even note that in his( Shri Devesh Upadhyaya) assessment framed u/s 143(3) of the Act, a copy of which is available at page no. 14 to 16 of the paper book, his Income was assessed by the Id. AO at the rate of 0.10% of the total cash deposits in the order dated 16.03.2016, passed u/s 143(3) read with section 147 of the Act. Considering these facts and ITA No.1128/KOL/2024 3 circumstances, we are of the view that the addition is partly confirmed by the Id. CIT (A) in the hands of the assessee to the tune of ₹1,06,250, is uncalled for and unwarranted and cannot be sustained as this income has been assessed in the hands of Shri Devesh Upadhyaya. Accordingly, we set aside the order of the Id. CIT (A) on this issue and direct the Id. AO to delete the deletion. 4. It was the submission that as the coordinate bench of the Tribunal has for the assessment year 2009-2010, deleted the addition on similar grounds, therefore, the addition made in the year under consideration should also be deleted. 5. In reply, ld. Sr. DR vehemently supported the orders of the ld. Assessing Officer and ld. CIT(A). 6. We have considered the rival submissions. A perusal of the facts of the present case clearly shows that the ld. CIT(A) has followed his predecessor’s order for assessment year 2009-2010, thereby directing the Assessing Officer to estimate the addition at 0.75%. The order of the ld. CIT(A) for A.Y.2009-2010 was a subject matter of appeal before the coordinate bench of the Tribunal in ITA No.1155/Kol/2023 and the Tribunal vide order dated 17.03.2025 has categorically deleted the addition for the assessment year 2009-2010. As no difference in the facts have been shown, respectfully following the decision of the coordinate bench of this Tribunal in assessee’s case for the assessment year 2009-2010, the addition as made by the Assessing Officer and as confirmed by the ld. CIT(A) for the impugned year, stands deleted. ITA No.1128/KOL/2024 4 7. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 05/05/2025. Sd/- (SANJAY AWASTHI) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 05/05/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "