Chowringhee Holdings (P) Limited, ... vs Assessee

I .T.A . N o. 22 89 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 08 - 20 0 9

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IN THE INCOM E TAX APPELLATE TRIB UNAL, KOLKATA 'SM C' BENCH, KOLKATA

Before Shri George Mathan, Judicial M ember

I.T .A. No . 228 9 /KOL/ 2 01 4 Assess ment year : 2008 -2 00 9

Chowringhe e Hold ing s (P) Limited ,....................................Ap p ella nt 6/7A , A .J.C. Bose Roa d, Kol ka ta -700 017 [PA N : AA BCC 2134 K]

-Vs.-

Income Ta x Offic er,........ .............................. ........ ...................Resp ond e nt Wa rd -7(4), Kolka ta, P-7, C howring hee Squa re, A a ya ka r Bha wa n, Kol ka ta -700 069

Appeara nces by : Shri K. M. R oy, C. A. , f or the as s es s ee Shri Rajesh Ku mar, JCIT, Sr. D.R., for th e Depart ment

Dat e of concluding t he hearin g : Feb ruary 26, 2015 Dat e of pr onouncing th e order : Feb ruary 26, 2015

Per Ge orge M athan:

This is an app eal filed by the assess ee a gain st th e order of ld. Commissioner of Income Ta x (App ea ls)-VII I, Kolk ata in Appeal No. 242/CIT(A)-VII I/Kol/10-11 dated 31.10.2014 fo r the asse ss ment yea r 2008-09.

2. Sh ri K. M. Roy, C.A., rep resented on beh alf of the a ss ess ee and Shri Rajesh Ku ma r, JCIT, Sr. D.R. rep resented on behalf of the Rev enu e.

3. At the time of hea rin g, it was sub mitted by the ld. A.R. th at in the co urs e of ass essment the A ssessin g Officer h ad verifi ed the sundry creditor M/ s. Om Credito r (P) Ltd. an d M/s. Om Credito r (P) Ltd. had repo rted b ack that the closing balan ce for the period of ass ess ment was I .T.A . N o. 22 89 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 08 - 20 0 9

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Rs. 62,208/-, wherea s th e as ses se e-company has sho wn th e clo si ng balance at Rs. 1,19,232/-. It was the submission that co n seq uently the Assessing Officer had treated th e amou nt of Rs.57,024/- as bogus li ability created by the as sessee. It wa s th e submissio n that the sund ry credito r M/s. Om Creditor (P) Ltd. was an ope n ing balan ce. For thi s pu rpos e, he placed before me the copy of the balance-sheet an d p rofit & loss account for the y ear ended 31. 03.2007 and 3 1.03.2008 wherein even fo r the yea r end ed 31.03.200 7 the sundry credito r balance i s sho wn at R s.1,1 9,232/-. It wa s thus the submi ssio n th at the sundry creditor bein g an o penin g balance, no disallowanc e wa s called du rin g the rel evant asse ssm ent yea r. It was the furth er submi ssion that the ass es see had p aid a n amount of Rs. 25,000/- to M/s. Gouridu tt Ish warda s Jalan Ch ari table T rust, which i s a Cha ritable T rust having regi stration under section 12A and 80G of the Incom e Tax Act. It wa s the submi ssion that as the asses see was unable to produce th e receipt b efore th e A ss essin g Offi cer, the s ame h ad b een disallowed. It wa s the submissio n th at this i ssu e may be restored to the file of the A ssessin g Of fice r to grant th e asse ssee ad equate opportunity to produce the receip t to cl aim the d educti on und er section 80G.

4. In reply , ld. Sr. D.R. vehemently su pported th e ord er o f th e Assessing Officer and ld. CIT(Appe als).

5. I have consid ered th e rival submi ssio ns. Admitt ed ly the credit in the case of M/s. Om Credit Pvt. Ltd. for th e relevan t a ssess ment year is an opening bal anc e and th ere i s n o f resh transaction bet ween th e a sse ss ee and M /s. Om Credit Pvt. L td. during the relevant as se ssment yea r. Consequently the di sallowan ce as mad e by the As ses sin g Offi cer canno t be mad e duri ng th e relevan t assessmen t y ear. In any case, the A ssessin g Officer has no t veri fied th e various trans action s between the assessee and M/s. O m Cred it Pvt. Ltd. to hold that it is the a ss ess ee which is claimin g of bo gus su ndry creditor. In th ese circu mstances, the addition I .T.A . N o. 22 89 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 08 - 20 0 9

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mad e by the Asse ssin g Of ficer and as c onfirmed by the ld. CIT(Appeal s) stand s d eleted.

In resp ect o f th e ad dition of Rs. 25,000/- paid to M/s. Gouridutt Ish ward as Jalan Ch arit able Tru st, this i ssu e i s resto red to th e file o f the Assessing Officer for re-adjud ication aft er grantin g the as sessee ad equat e opportunity to substantiat e it s case and produce the receipt in resp ect of the paymen t of R s.25,000/-.

6. In th e result, the appeal fil ed by the asse ss ee is p artly allowed for stati stic al pu rpose s.

Orde r p ronounced in th e open Co urt on 26 t h Feb rua ry, 2015.

Sd/-

George Mathan (Judicial M embe r)

Kolkata, th e 26 t h day of Feb ruary , 2015

Co pies to : (1) Chowringhe e Hold ing s (P) Limite d , 6/7A , A .J.C. Bose Roa d, Kol ka ta -700 017

(2) Income Ta x Office r, Wa rd -7(4), Kolka ta, P-7, C howring hee Squa re, A a ya ka r Bha wa n, Kol ka ta -700 069 (3) Comm iss ioner of Income-tax (Appeal s) (4) Com mis sioner of Incom e Tax (5) The Depar tmental R epr es entative (6) Guard Fil e By order

Assistant Registrar Income Tax App ellate Tribunal Kolkata Ben ch es, Kolkata Laha/Sr. P.S.