CHITTARANJAN PANJA,KOLKATA vs. I.T.O.,WARD-37(4), KOLKATA

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ITA 1440/KOL/2019Status: DisposedITAT Kolkata15 November 2019AY 2012-133 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that neither the assessee could fully substantiate the loss-making transactions nor the revenue could justify its contradictory approach. Therefore, a lump sum addition of Rs. 1,50,000/- was deemed appropriate to meet the ends of justice.

What were the facts?

The assessee claimed a trading loss of Rs. 14,59,714/- on gold bar sales. The lower authorities disallowed this loss, citing the assessee's failure to book corresponding income for a long duration.

What were the issues?

Whether the disallowance of trading loss on gold bar sales was justified, considering the contradictory approach of the revenue authorities and the assessee's partial substantiation.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA

Before: Sri S. S. Godara]

For Appellant: Shri M. D. Shah, Advocate
Hearing: 11/11/2019Pronounced: 15/11/2019

Appellant by : Shri M. D. Shah, Advocate Respondent by : Shri Dhrubajyoti Ray, JCIT, Sr. DR सुनवाई क" तार"ख/ Date of Hearing : 11/11/2019 घोषणा क" तार"ख/Date of Pronouncement : 15/11/2019 आदेश / O R D E R Per Shri S. S. Godara: This assessee’s appeal for assessment year 2012-13 arises against the Commissioner of Income Tax (A) - 25, Kolkata order dated 08.05.2019 passed in case No.275/CIT(A)-25/Kol/2018-19 involving proceedings u/s 143(3) of the Income Tax Act, 1961 (in short ‘the Act’). Heard both the parties. Case file perused.

2.

The assessee’s sole substantive grievance challenges correctness of both the lower authorities’ action disallowing loss of Rs.14,59,714/- on account of trading in gold bars in certain months. I notice at the outset with the assistance of ld. counsel that the CIT(A)’s order in page no.11 has tabulated the assessee’s losses to be pertaining to August-11, October-11 to December-11 and March-2012 months on cash sales. It is vehemently contended at the Revenue’s behest that both the Chittaranjan Panja lower authorities have rightly disallowed the assessee’s losses more particularly in view of the fact that he had not booked the corresponding sums as income for longer duration of time going by the transaction details. It fails to rebut the clinching fact that both the lower authorities have adopted mutual contradictory approach in accepting the assessee’s sales involving positive figures and disallowed the said five months’ negative figures in issue only. Mr. Agarwal’s case on the other hand is that the assessee had filed all the relevant details in support of his losses on cash sales involved.

3.

After giving my thoughtful consideration to the rival pleadings as well as assessee’s detailed paper book against and in support of the impugned addition, I find no reason to concur with either party’s submissions in entirety. The fact remains that neither the assessee has been able to substantiate the loss making transaction item/customer wise nor the departmental authorities have any explanation in support of their above-stated mutual contradictory approach. I therefore deem it appropriate in these peculiar facts that a lumsum addition of Rs.1,50,000/- would meet the ends of justice with a rider that same shall not be treated as a precedent in any other case. The assessee gets relief to the tune of Rs.13,09,714/-. Necessary computation to follow as per law.

4.

This assessee’s appeal is partly allowed in above terms.

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