CIT v. Shri Vardhman Overseas Ltd.

Das Enterprise, Kolkata vs. ITO, WD-49(3), Kolkata

Bench: Sri J. Sudhakar Reddy) Assessment Year: 2011-12 Das Enterprise……………….……...............….……...........…………..……………….…...……..….…….......Appellant 22 & 23, Feeder Road P.O. & P.S. Belghoria Kolkata – 700 056 [Pan : Aaepd 8027 G ] Vs. Income Tax Officer, Ward-49(3), Kolkata.……......……….........…………..………….…............Respondent Appearances By: Shri Arun Kumar Dubey, Ca, Appeared On Behalf Of The Assessee. Shri Nicholas Murmu, Jcit D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : November 27Th, 2018 Date Of Pronouncing The Order : January 9Th , 2019 Order Per J. Sudhakar Reddy, Am :- This Appeal Filed By The Assessee Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-15, Kolkata, (Hereinafter The ‘Ld. Cit(A)’), Dt. 08/03/2016, Passed U/S 250 Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Relating To Assessment Year 2011-12. 2. The Assessee Is A Partnership Firm & Is In The Business Of Trading In Rice. It Filed Its Return Of Income On 30/09/2011 For The Assessment Year 2011-12, Declaring Total Income Of Rs.44,650/-. A Survey Was Conducted U/S 153A Of The Act, On 15/03/2011. Thereafter Assessment Was Completed U/S 143(3) Of The Act, On 18/03/2014, Determining Total Income At Rs.40,45,850/- Interalia Making Additions On Account Of Undisclosed Investment In Stock U/S 69 Of The Act, Unexplained Money Being Difference In Cash Balance, Suppression Of Sales, Cessation Of Liabilities & Disallowance U/S 40(A)(Ia) Of The Act, Of Carriage Inward. Aggrieved, The Assessee Carried The Matter In Appeal Before The Ld. First Appellate Authority. The Ld. First Appellate Authority, Granted Part Relief.

…ion can be made of any sundry creditor or loan brought forwarded from the earlier year, just because the assessee has not been able to furnish the required details as held by the Hon'ble Delhi High Court in the case of CIT vs Shri Vardman Overseas Ltd. (2012) 343 ITR 408. 4. The Hon''ble ITAT 'A 'Bench of Bangalore Tribunal in ITA No.1078/Bang/2014 for A.Y.2009-10 in the case of Glen Williams vs ACIT order dated 07.08.2015 analyses section 41(1) and held as follows :- "14. As far as applicability of section 41 (1) of the Act is concerned, the question before us is limited to the applicability of Section 41 (1) of…

ITO, Ward - 3(3), Kolkata vs. M/S. C D Steel Pvt. Ltd., Kolkata

Appeal is dismissed

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2013 14

…view of the matter the deeming provisions of Section 41(1) could not be invoked on the premise that the liability had become time-barred. 10. I further note that in another decision of the Hon'ble Delhi High Court in the case of CIT Vs Vardhaman Overseas Ltd (343 ITR 408) facts involved were similar to one involved in the appellant's case. Facts involved in this case were; the liabilities in question were trading liabilities and not workmen dues. Before the AO, the assessee was unable to furnish confirmations from the creditors which appeared to be old and the assessee was unable to furnish the complete addresses…

ACIT, Circle-36, Kolkata vs. M/S Soorajmull Nagarmull, Kolkata

Appeal is dismissed

Bench: Shri S.S.Godara & Shri, M. Balaganeshassessment Year :2001-02 Acit, Cicle-36, Aayakar V/S. M/S Soorajmull Nagarmull, Bhawan, Poorva, 8Th 8 B.B.D. Bag (East), Floor, 110, Shantipally, Kolkata-700001 Kolkata-107 [Pan No.Aaaab 0601 N] .. अपीलाथ" /Appellant ""यथ"/Respondent Md. Usman Cit-Dr अपीलाथ" क" ओर से/By Appellant Shri Akkal Dudhwewal, Fca ""यथ" क" ओर से/By Respondent 26-06-2018 सुनवाई क" तार"ख/Date Of Hearing 20-07-2018 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per S.S.Godara:- This Revenue’S Appeal For Assessment Year 2001-02 Calls Into Question Correctness Of The Commissioner Of Income Tax (Appeals)-10, Kolkata’S Order Dated 08.07.2016, Passed In Case No.142/Cit(A)/10/Cir-36/15-16/Kol, Reversing Assessing Officer’S Action Invoking Section 41(1) After Treating The Assessee’S Liability Amount Of ₹12,97,47,322/- To Be A Case Of Cessation Of Liability Assessment Order Dated 30.03.2015, Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. 2. We Notice At The Outset That Cit(A)’S Detailed Discussion On The Above Sole Issue Of Cessation Of Liability U/S 41(1)(A) Of The Act Reads As Follows:- “06. Decision: 1. I Have Carefully Considered The Action Of The Ld.Ao In Adding An Amount Of Rs.12,97,47,322/- U/S. 441(1) Of The Income Tax Act, 1961, On Grounds That There Was A Cessation Of Liability On The Part Of The Assessee For The Impugned Amount & That Therefore It Would Constitute Part Of The Income Of The Assessee-Firm. It Is To Be Observed That This Is The 2Nd Round Of The Assessment Order For The A.Y 2001-02, And

…view of the matter the deeming provisions of Section 41(1) could not be invoked on the premise that the liability had become time-barred. 10. I further note that in another decision of the Hon'ble Delhi High Court in the case of CIT Vs Vardhaman Overseas Ltd (343 ITR 408) facts involved were similar to one involved in the appellant's case. Facts involved in this case were; the liabilities in question were trading liabilities and not workmen dues. Before the AO, the assessee was unable to furnish confirmations from the creditors which appeared to be old and the assessee was unable to furnish the complete addresses…

Jashojit Mukherjee, Kolkata vs. ACIT, Cir-50, Kolkata

In the result, the appeal of the assessee is allowed

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A No. 403/Kol/2017 Assessment Year : 2012-13 Jashojit Mukherjee -Vs- Acit, Circle-50, Kolkata [Pan: Afapm 7208 R] (Appellant) (Respondent)

…e that, the liability has ceased to pay the amount of the creditor. 6. In his submission, the decision of Delhi High Court which has been referred to by the Tribunal in case of CIT v. Shri Vardhman Overseas Ltd. [2011] 16 taxmann.com 350/[2012] 204 Taxman 524/343 ITR 408 cannot be applied to the facts of the present case since in the said decision, it was not a case where the party/creditor was not verifiable or that the address was not changed. He therefore, submitted that Court may consider the present appeal. 7. As in the above referred order of the Tribunal, the relevant portion of Section 41 is reproduced, w…

Vijay Kumar Daga, Kolkata vs. ITO, Ward-6(4), Kolkata, Kolkta

In the result the appeal of the assessee is allowed in part

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am] Assessment Year : 2008-09 Vijay Kumar Daga -Versus- I.T.O., Ward-6(4), Kolkata Kolkata (Pan: Afupd 5201 K) (Appellant) (Respondent)

…t forwarded from the earlier year, just because the ITA No.1837/Kol/2017 Vijay Kumar Daga A.Y.2008-09 2 assessee has not been able to furnish the required details as held by the Hon’ble Delhi High Court in the case of CIT vs Shri Vardman Overseas Ltd. (2012) 343 ITR 408 . 4. The Hon’ble ITAT ‘A ‘Bench of Bangalore Tribunal in ITA N.1078/Bang/2014 for A.Y.2009-10 in the case of Glen Williams vs ACIT order dated 07.08.2015 analyses section 41(1) and held as follows :- “14. As far as applicability of section 41 (1) of the Act is concerned, the question before us is limited to the applicability of Section 41 (1) of…

Shree Shankar Steels, Kolkata vs. ITO, WD-44(3), Kolkata

In the result the appeal of the assessee is allowed

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am] Assessment Year : 2008-09

…ion can be made of any sundry creditor or loan brought forwarded from the earlier year, just because the assessee has not been able to furnish the required details as held by the Hon’ble Delhi High Court in the case of CIT vs Shri Vardman Overseas Ltd. (2012) 343 ITR 408. 4. The Hon’’ble ITAT ‘A ‘Bench of Bangalore Tribunal in ITA No.1078/Bang/2014 for A.Y.2009-10 in the case of Glen Williams vs ACIT order dated 07.08.2015 analyses section 41(1) and held as follows :- “14. As far as applicability of section 41 (1) of the Act is concerned, the question before us is limited to the applicability of Section 41 (1) of…