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Income Tax Appellate Tribunal, “D”, BENCH KOLKATA
Before: SHRI S.S.VISWANETHRA RAVI, JM & DR. A.L.SAINI, AM
O R D E R
Per Dr. Arjun Lal Saini, AM:
The captioned appeal filed by the assessee, pertaining to assessment year 2010-2011, is directed against an order passed by the ld. Commissioner of Income Tax (Appeals)-19, Kolkata, in Appeal No.92/CIT(A)-19/Kol/2014-15, dated 11.03.2016, which in turn arises out of an assessment order passed by the Assessing Officer (AO) Under Section143(3) of the Income Tax Act 1961, (in short the ‘Act’), dated 28.03.2013.
The brief facts of the case qua the assessee are that the assessee has electronically filed its return of income for the A.Y.2010-11 on 27.06.2010 declaring total income of Rs.4,27,090/-. The return was processed u/s 143(1). Later on, the case was selected for scrutiny through CASS and the AO has completed the assessment by making the addition of Rs.15 lakhs treating the same as unexplained cash credit Md. Faizul Islam u/s.68 of the I.T.Act. Since the assessee did not prove the creditworthiness of the cash deposit, therefore, the AO has added Rs.15 lakhs to the total income of the assessee.
Aggrieved from the order of AO, the assessee filed appeal before the ld. CIT(A), who has confirmed the addition made by the AO observing the followings :-
5. In the appellate proceedings the appellant has chosen not to avail the several opportunities provided. In the absence of any cogent argument or material to overturn the finding of the assessing officer, I am unable to provide the relief prayed for. The action of the assessing officer in making the disallowances is confirmed
Not being satisfied with the order of CIT(A), the assessee is in further appeal before us and has taken the following grounds of appeal :-
1. For that the Ld. CIT(A) erred in dismissing the appeal of the appellant on the alleged grounds.
2. For that the Ld. CIT(A) has erred in observing that the appellant has chosen not to avail the opportunities provided to the appellant.
3. For that the appellant had submitted all relevant details with written submissions before the Ld. CIT(A) and that there was no such default on the part of the appellant that would tantamount to non-availing of opportunity of hearing.
4. For that the Ld. CIT(A) who has noted the facts about the case of the appellant ought to have concluded that the appellant had explained the source of the amount of Rs.15,00,000/- along with relevant evidences and accordingly the Ld. CIT(A) ought to have properly appreciated the facts of the case of the appellant and ought not to have confirmed the order of the A.O.
5. For that the Ld. CIT(A) ought to have accepted the contentions raised by the appellant which were on record and ought to have accepted the source of the amount of Rs.15,00,000/-.
6. For that further grounds of appeal may kindly be allowed to be taken at the time of hearing of the appeal.
Although, in this appeal, the assessee has raised multiple grounds of appeal but at the time of hearing the main grievance of the assessee Md. Faizul Islam has been confined to ground No.4 only and other grounds were not pressed by the assessee.
6. Ground No.4 relates to addition of Rs.15 lakhs (on account of cash deposited by the assessee in bank) U/s.68 of I.T.Act.
6.1. Ld. AR for the assessee has vehemently submitted before us that the assessee has explained the source of Rs.15 lakhs before the AO. The assessee has produced the relevant document before the AO through Md. Nurul Islam, S/o Md. Niaz Hussain, where Md. Nurul Islam (vide para 4.1 of the assessment order) stated that: “I Md. Nurul Islam son of Md. Niaz Hussain of Kaji Para Sekedda, Suri Birbhum do hereby state and declare that I used to supply building materials to M/s Gems Construction, Saldah more Birbhum & that against my dues, I was given an amount Rs.20 lacs by bearer Cheque No.3149 which I encashed and got the amount of Rs.20 lacs from Union Bank of India 09.01.2010. I handed over the said amount to my brother Mr. Faijul Islam for safe custody. I am to state that it is neither a loan nor an advance to my brother. It is kept with him on my behalf for safety. I enclose a copy of identity card, ration card, and a copy of bank account maintained by said gems Constructions with Union Bank of India in support of my withdrawals of Rs. 20 lacs on 09-01-2010.”
Therefore, Ld AR for the assesssee stated that Md.Nurul Islam submitted before the AO, identity card, ration card, and copy of bank account and by submitting these documents the assessee has proved the identity, capacity and creditworthiness of the Lender.