Income Tax Appellate Tribunal - Kolkata
D.C.I.T Cc - Vii,Kolkata, Kolkata vs M/S Dabriwal Investment & Financiers ... on 8 May, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA BENCH "A", KOLKATA
BEFORE SH. P.M.JAGTAP, VICE PRESIDENT &
SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER
ITA No.515 TO 517/Kol/2013
(ASSESSMENT YEAR-2006-07 TO 2008-09)
DCIT, vs M/s. Dabriwal Investment &
Central Circle-VII, Financiers Pvt.Ltd., 39,
Aayakar Bhawan, Kalikrishna Tagore Street,
Poorva, 110, Kolkata-700007.
Shantipally, PAN-AAACD9089K
Kolkata-700107.
(Appellant) (Resondent)
Appellant by Sh. A.K.Nayak, CIT DR
Respondent by Sh.Subhas Agarwal, Adv.
Date of Hearing 25.03.2019
Date of Pronouncement 08.05.2019
ORDER
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER
These three appeals filed by the Revenue against the order dated 31.12.2012 passed by CIT(A)-1, Kolkata for AY 2006-07 to 2008-09 respectively.
First we take up ITA No.515/Kol/2013 for AY 2006-07.
ITA No.515/Kol/2013(ASSESSMENT YEAR-2006-07)
2. Heard both parties and perused material available on record. We find that ITAT, Kolkata Benches decided similar and identical issue raised by the Revenue in ITA No.524 & 525/Kol/2014 and ITA No.1866/Kol/2013 in the case of DCIT vs Topgrain Management Pvt.Ltd. For better understanding, the relevant portion is extracted herein below for ready-reference:-
2. " T h e as se s se e i n the p r e s e n t c ase i s a C o m p any . T he i n ve sti g a ti o n c ar r ie d o ut by t he D e p ar t me n t of In co m e T ax ITA No.515 TO 517/Kol/2013 (ASSESSMENT YEAR-2006-07 TO 2008-09) ( In ve sti g a t i on ) , K o l ka t a r eve al e d th at s o m e e n t i ti e s we r e i nv o l v ed i n pr o v i di n g a c c o mmo d a ti o n e ntr i e s t o v ar io us c o mp ani e s bas e d i n M um b ai , wh i c h i n t ur n h ad use d th e s ai d f unds f o r p aym e nt s to M ad hi p ur a M e r c a n ti l e C oo pe r ati ve B an k at M u mb ai , wh i c h was c o n tro l l ed b y S h ri K e tan P ar e kh. Si nc e t he a ss e s s e e - c o m p an y was o n e of su c h e n ti t i e s, t he s t ate me nt of i ts D i r e c tor Shri P r am o d S h ar m a wa s r ec o r de d un de r s e c ti o n 1 31 by th e D D IT ( In v e st i g a ti o n) , K o l k a ta on 1 5. 1 2. 2 0 0 6. In the s ai d st a t e me nt g iv e n o n o ath , S hri Pr a m od Sh a r ma ac c e p te d that he had go t c as h of equiv al e nt a m o u n t f r om th e M u m b ai b a sed C o m p an i e s be l o ng i ng t o S h r i Ke t an P ar e k h G ro up a n d af ter d e po si t i ng t he s ai d c a s h i n to th e B ank ac c o un t of th e as s es se e- c o m p a n y, c heq ue s we r e i s su ed t o the s ai d Co mp an i e s.
H e al so f u rn i s he d a l i st of c he q ue s so i s sue d ag ai ns t c as h th a t had be e n r ec e iv e d b y hi m . Al tho u g h S hr i Pr am o d S h ar m a s ub s e q ue ntl y f il e d a n af f i d av i t r e t r ac t i ng hi s s t ate me nt, th e A ss e s s i ng Of f ic er d i d no t ac c e p t th e s a me on the b as i s of th e e nq ui r ie s c o nd u c te d b y the In v e sti g at i o n W i n g o n a t e st - c he c k b asi s , wh i c h re ve al e d th at c as h was d ep o s i te d i n v ar io us B an k ac c o un ts i n dif f e re nt s t ag e s . A c c or d i ng to t he A s s e s si ng Of f ic er, th i s f ac tu al p o si ti o n s u b s t an t i a te d t h e s t a te m e n t of Shr i P r a mo d S har m a, D ir ec t o r of the as s es se e- co m pa n y t h a t c ash was i nd e e d re c e i ve d by the as s e ss ee - c o mp any i n l i e u of che q u e s g i v e n to v ar i ou s c o m p ani e s be l on g i ng to K e t an P ar e k h G ro u p . H e ac c o rd i ngl y hel d t h a t ac co m m o dati o n e n tr i e s we r e giv en b y the as se sse e- c o mp an y t o v ar i o us M um b ai b ase d c om p a ni e s b e l o ng i ng to Ke tan Pa re kh G ro up and s i nc e t he ac c o mm o d a ti o n e n tr i es so g ive n d ur i n g th e pr e v i o u s y e ar r el e v an t to A . Y . 2 0 0 7- 0 8 ag gr eg a te d to R s. 2 3, 4 8,4 5, 84 7/ - , he adde d the c o mm i s si o n i n co m e @ 2% amo un ti ng t o R s. 4 6, 9 6, 9 07/ - t o t h e t o tal i n co me of the as se ss ee i n t h e ass es s m e nt c o mp l e t e d f o r A .Y. 2 00 7- 0 8 u n de r s ec ti o n 1 4 3( 3) v id e an o r de r da t e d 2 9. 1 2. 20 09. In the as s es sm e n t so m ad e , he al so m ad e an ad di t io n of R s . 2 3 , 4 8 , 45 , 8 4 7 /- i n t he h an ds of the as s es se e o n p r o t e c tiv e b asi s o b ser v i n g t h at th e u ne x pl ai n ed i nc o me t o th a t e x te nt i n t h e f o r m of c as h g i v en b y t h e M u m bai ba se d co m p anie s was as se s s a bl e o n s u b s t an t i v e b a si s i n the h an d s of the s ai d c o m p an i e s . T he A s se ssi n g O f f ic er al s o r e op e ned th e as s e s s me nts f or A .Y s . 200 5- 0 6 an d 2 00 6- 0 7 a nd i n t h e as se ss m e n ts m ade un de r s ec ti o n 1 4 3( 3 ) / 1 4 7 vi d e o r d e r s d ate d 31. 12 . 200 8, he m ade si m il ar add i ti o n o n ac co un t of c o m mi ss io n i nc om e a t th e r ate of 2% amo un ti ng to R s . 8 3 , 7 4 , 76 0/- a nd R s. 3 7, 4 3, 8 40/- to the t o t al i nc o m e of t he as s es se e f o r A .Y. 2 0 0 5- 06 an d 20 07- 0 8 r e sp e c tiv el y . H e al so m ade ad d i ti o n s of Rs .4 1 , 8 7, 38 , 00 0/ - and R s. 1 8, 7 1 , 92, 00 0/ - s i m il arl y o n pr o t e c tiv e b a s i s i n the asse ss me n ts c o m pl e te d un de r sec ti o n 1 4 3( 3 ) / 1 4 7 f or A .Y s. 2 00 5- 06 an d 20 06- 07 re s pe c ti ve l y f o r the to t al a m o u n t of ac c o m mo d a ti o n e ntr ie s p ro v i de d by t he as s e s s ee - c o mp any to the M u m b ai base d C o m p ani e s b e l on gi n g t o Ke t an P are k h G ro up o b s e rv i n g th a t u ne xp l ai ne d i nc o m e to th at e x te n t wa s l i abl e to b e as s e s se d o n su b s t anti v e b asi s i n the h and s of th e sai d c o mp ani e s f or t he c as h g i v e n to th e as s e ss ee - c o m p an y . T he A s se ssi n g Of f ic e r m ad e f ur ther add i ti o ns of R s. 3, 06 , 62, 000 /- an d R s . 3 2 , 8 5 , 00 0/- t o t h e to tal i nc o m e of the as s e s se e f o r A . Y . 200 5- 0 6 an d 2 0 06 - 07 r e sp ec t iv el y on ac c o un t of une x p l ai ne d c as h de p o si ts f ound to be m ad e i n the B an k ac c o un t s of the as s e s se e .
Page | 2 ITA No.515 TO 517/Kol/2013 (ASSESSMENT YEAR-2006-07 TO 2008-09)
3. A g ai n st th e o r de r s p as se d b y the A s se s s i n g O f f ic er u nd e r s ec ti o n 1 4 3( 3 ) / 1 4 7 f or A. Y. 20 05- 06 and 200 6- 0 7 and u nde r s ec ti o n 1 4 3( 3 ) f or A .Y. 20 0 7- 0 8, ap pe al s we re pref e rr e d b y the as s e s ee - c o mp any b ef ore t he l d. C IT( Appe al s) and af te r co ns i de r i ng t he s u b mi ss i o n s m a de by the as se ss e e a s we l l as t h e m at e r i al av ail abl e o n re c o r d , th e l d. C IT ( A pp e al s) de l e te d t h e ad di ti o n made by t he A s se ssi n g Of f ic er to th e t o t al i n co m e of the as s e s s e e f o r A . Y. 2 00 5- 0 6 o n ac c o u n t of th e al l eg e d ac co m mo da t i o n e nt r i e s gi ve n t o the M um b ai b a se d C o mp an i e s i n th e f o r m of co m m i s s i o n i nc o me at t he r at e of 2% as wel l as f ur the r ad di ti o n o n ac c o un t of p ro t e c ti v e basi s f or t h e f o l l o wi n g re a s o ns g iv e n i n par ag r ap h no . 6 of hi s i m p ug ne d o r d e r: -
" 6. I h av e pe r u s e d t he re l e v ant o r de r s an d c o ns id er e d th e m ate ri al pl ac e d o n re c o rd . I f ind f r om t he ap pe al f ol de r th at i n c o ur se of the ap pe l l ate p ro c ee di n g s , m y l ear ne d p r ed ec e s s o r tr ie d to asc e r t ai n ab o ut th e c as e s whe r e su b st a n ti v e a dd i t i o n s we r e m ad e c or re spo n di ng to th e pr o tec tiv e add i ti o n i n the pr e se nt c a se ; an d al so , ab o u t th e f a te of th e ap pe al s i n tho se c ase s . T he L d C IT ( A ) c al l ed f or the re po rt v id e h i s l e t te r date d 2 3- 07-
2 0 0 9 wh i c h wa s f ol l o we d by re mi nde r s da te d 1 7- 08- 2 0 1 0, 1 3- 0 7- 2 011, 30- 1 0- 2 01 3 an d 19- 1 1- 2 013 . H o we v e r, t h o u g h a s ub s t an t i al pe r io d of 4 & 1/ 2 y e ars h a s el ap s e d, n o th i ng h as bee n he ar d i n thi s r e g ar d f r om the A O . In th i s f ac tu al b ac k gr o un d; g iv e n the f ac ts of t he c a se a nd the f i ndi ng s of t he A O i n hi s as s e ssm e n t o r d er ; ' and al so , t he d e c i s io ns of the H o n 'b l e B enc h e s o f t he j ur i sdi c tio nal IT A T in si mi l ar c as e s i nv ol v i n g ide nti c al f ac t s and c i r c ums t anc e s , t he pr e s e n t a p pe al s n o w b ei n g d ec ide d o n t h e b as i s of t he m ate r i al av ai l ab l e o n r e co r d. I f i nd tha t th e A O has m ad e t h e a d d i tio n s o n the b asi s of the ad m i s s i o n m ade by th e d i re c to r bef ore t h e D D IT ( Inv ) wh ic h wa s l at e r r et r a c te d . It i s a s e t tl e d l e g al p ro po si t i o n th at a m e re ad m i s s i o n wh i c h i s l at e r r e t r ac t ed an d whi c h i s no t c or r o bo r at e d o r su pp o r te d by an y i nde pe nde nt m a te ri al c an n o t be m ad e t h e b asi s . f o r ' ad d i ti on . O n ce t he ad m i s s i o n m ad e b y the di r ec t or was r e tr ac te d , t he on u s wa s o n th e A O to b r i ng p o s i t iv e ma te r i al o n r ec o r d wh i c h co ul d· c o r ro bo r at e o r s up po r t the ad m i s s i o n. B u t, i n t he pr e se nt c ase , no su c h ma te r i al h a s b e en br o u g h t o n re c o r d b y th e A O . O n th e c o ntr ary , th e A O h a s si mp l y r e j ec t ed t he ret r a c ti o n wi tho ut as s i gn i n g an y r e aso n. T he A O has no t e v e n di sc u ss e d i n h i s as se s sm e nt o r de r as t o why t he re t rac t i o n m ade - by t he d i rec to r t hr ou gh a s wo r n af f idav i t was no t ac c ep t ab l e to hi m. M o re o ve r, t h e A O h as br o u g ht o n r ec o r d no i n de pe nde n t mate r i al whi c h c oul d po s s i bl y c or r o bo r at e o r s up po r t t he ad m i s si o n m ade e arl i e r b y th e d ir ec t o r of the a ss e ss e e c o mp an y . In th i s f ac tu al b ac k g ro u n d, I am of t he co ns i de r e d v ie w th at the A O h a s e r r e d i n l a w a s wel l as o n f ac t s i n re sti n g hi s as s e ssm e n t o n t h e a d m i s si o n of th e d i r ec t o r wh i c h was l at er r e t r ac t e d an d whi c h wa s no t c o r r ob o r ate d o r su pp o r te d by an y i n dep e nd en t m at er i al o n r e c o r d. I Page | 3 ITA No.515 TO 517/Kol/2013 (ASSESSMENT YEAR-2006-07 TO 2008-09) al so f i nd f ro m th e a ss e ssm e nt o r der t h at the add i tio n on ac c ou n t of u nex pl ai ned c as h was m a de b y the A O on p ro te c ti ve b a si s . T he AO h as hi ms elf giv e n the f in di n g i n hi s as s e s sm e nt o r de r th a t th e as s e ss e e c o mp any h ad i ss ue d c he q ue s by t ak i n g eq ual a m o u nt of c ash f r o m v ar i o us c o mp an i e s; an d t h at, s uc h c as h was as se s sa bl e as une x pl ai ne d i nc om e i n the h and s of th o s e co m pa n i e s. The AO h as the n ad de d the s a me c as h o n p r o tec ti v e b as i s as une x pl ai n e d i nc o m e of the as s e sse e c o mp an y wi t ho ut as s i gn i ng any c o nc r e te r ea s o n s . I f ind no basi s o r j u stif i c ati o n f o r t he A O to c o n sid er o n p ro te c ti v e bas i s su c h c a s h as une x pl ai ne d i n co me of th e as se s s e e c o m p an y whi c h he hi m s el f hel d was as se s sa bl e as une x pl ai ne d i nc om e i n the h and s of th e v ar i o u s c o m pan i e s wh o had al l ege dl y p ur c has e d ac c o mm o d a ti on e ntr ie s . T he add i t io n on p r o te c t iv e b asi s o n ac c ou nt of une x pl ai ne d c as h b y the A O c o n tr adi c t s h i s o wn f indi n gs th at s u c h c as h was as s e ss abl e as unex p l ai ne d i nc o m e i n the 'h and s of the v ar io us c o m p a ni e s who had al l e ge dl y p ur c has e d ac c o mm o d a ti on e nt r i e s. A bo ve al l , i de nti c al ad di t i o ns m ad e b y t h e A O i n si m il ar c a se s we r e de l e te d b y m y l ear ne d p red ec e ss or as we l l as by the H o n'b l e B e nc h e s of th e j u ri sd ic ti o nal ITA T . In o the r wo r ds, si mi l ar ad d i ti o n s b a s e d o n t he ad m i s si o n of th e di re c to r of the c o mp any whi c h wa s l ater r e tr ac te d wa s del e te d b y t he j u r i sd ic t i o n al IT A T i n the as s e s sm e nt of s uc h c o m p any . In th e se c a s e s, t he di r e c tor of the c o m pany m ade ad m i s s i o n r e g ar d i ng pr o vi d i ng ac c o m m o d at i o n e ntr y i n l ie u o f ca sh wh i c h was l ater re tr ac te d. T ho ug h t he A O m ad e s i mil ar ad d i ti o n s o n ac c o un t of u ne x pl ai ne d c as h an d c o m m i s si o n i nc o me i n the c as e of the c o m p any, t he sa m e wa s de l ete d b y t he L d C IT ( A ) as we l l as b y t he j u r i sd ic t i o n al ITA T . T he i ss ue s i n the p re s e nt ap p e al ar e t h u s c ov e re d b y th e o rde r s of the H o n'b l e Be n c he s of t he . j u r i s di c ti o n al IT A T whe rei n s i mi l ar ad di ti o ns, m ad e u nd er i de nti c al f ac ts an d ci rc um s t an c e s, we re del e ted . R e sp ec tf ul l y f ol l o wi ng the de c i si o n s of t he j u r i sd ic t i o n al IT A T, i t i s to be h e l d th at th e ad di t i o ns m ad e by t h e AO o n ac c o u nt of unex pl ai ne d c as h an d c o mm i s si o n i n c o me i s ne i the r s u st ai n ab l e i n l a w no r o n f ac ts. T he add i tio ns of R s.41 , 87, 38, 0 00 /- an d R s. 8 3 , 7 4 , 76 0/- i s di r e c t e d to be del ete d. G r o un d no 2 & 3 ar e al l o we d ".
Fo r al mo st i de n ti c al re as o ns as giv e n i n h i s i m pu g ne d o r de r f or A . Y. 2 0 0 5- 0 6, th e l d . C IT ( A ppe al s) al so d el e te d th e si m il ar ad di ti o ns m ad e by t he A ss es s i ng Of f i ce r t o the t o tal i nc o m e of t he as s e sse e f or A . Y. 2 0 0 6- 0 7 and 20 07- 0 8 o n ac c o u nt of the al l e ge d ac c o mm o d a ti o n e n tr i e s g i ve n t o the M um b ai b ase d Co m p ani e s i n t he f orm of c om mi ssi on i nc o m e an d f ur the r add i t i o n o n acc o unt of pr o t e c tiv e b a si s .
4. A s r e gar d s th e ad d i t io n of Rs. 3 , 06, 62, 000/ - m ade by the A s se ssi n g Of f ic er to th e t o t al i n co m e of the as s e s s e e f o r A . Y. 2 00 5- Page | 4 ITA No.515 TO 517/Kol/2013 (ASSESSMENT YEAR-2006-07 TO 2008-09) 0 6 on ac c ou n t of un e xpl ai ne d c as h d ep o s i ts f ound to b e m ad e i n the B a n k ac c o u nt s, th e l d. C IT ( A ppe al s) d id no t f i nd the s ame to be s u s t ai n abl e f o r t he f o l l o wi n g r e aso n s giv en i n p ar agr ap h no. 8 o f hi s i m p u gn e d o r d e r :-
" 8. I h av e c o n si de re d t h e ass e ss me nt o r de r an d the r em a nd r e po r ts of the A O . It was c o nt e nde d b ef o re me th a t th e c a sh dep o s i ts i n t he bank acc o unt was ver if i ab l e f rom th e c ash bo ok of the as s e ss ee c o m p any . It wa s f u r th e r c o nte nde d th at t he c as h b al anc e s av ai l ab l e in t h e c ash bo o k we r e d ue to c as h wi t h d r a wal s m ade e ar l i er f ro m the b an k ac c o u nt ( wh i c h wa s v er if iab l e f r om th e b an k st a t e me nt ) an d the sal e pr o ce ed s of sh ar e s ( wh i c h was d ul y sup po r t e d by sal e s i nv o i ce s ) . T he A O has adm i t t e d i n hi s re m an d r ep o rt s th at th e c a sh d e po s i ts i n t h e b ank ac c o u nt we r e v e r if i ab l e f rom t h e c ash bo o k wh i c h was pr o d uc e d b ef or e hi m i n c o u r se of the re m an d pr o c ee d i n g s. Th e A O has f ur t he r ad m i t te d t h at th e s al e pr o c ee d s of s h ar e s r ef l e ct e d i n t he c as h bo o k ar e dul y su pp o r te d by s al e s i nv oi c e s whi c h we r e al so pr o duc e d bef or e hi m . T h e AO has f ound no def ec t i n th e c as h bo o k of the a s se ss e e c o mp an y. T he AO has n o t p oi nte d ou t a ny r ec e ip ts r e c or de d i n th e c a sh b o ok who se so u rc e wa s h o t ex pl ai n e d. . T he re m an d rep or ts of t he A O con ta i n n o ad v e r se f indi n g or r e m ark ab o u t the c as h bo ok . In t hi s f ac tu al b ac k gr o un d, the o nl y c o ncl u s io n th a t c an po ssib l y b e d r a wn i s tha t t he c as h dep o s i t s i n th e b ank ac c o un t ar e e x p l ai ne d wi th r ef er enc e to th e c a s h boo k of th e as s e s se e c o m p any . T he A O h as n ot e d i n hi s r e m and re po r ts th at ap ar t f r om t he b a nk st at e me nt , c as h ' bo ok an d th e s al e s i n vo ic e s, t he as se s se e c o ul d pr o d uc e no o th e r e v i de nc e f o r v er if i ca ti o n. B ut th en, i t h as n o t b ee n c l ar if ie d b y th e AO as t o wh at mo r e e v i de nc e he re qui re d the as s e sse e t o p ro d uc e f o r ve r if ic ati o n. T he A O has ob ser v ed t ha t t h e t r ans ac t i o ns i n s har e s we r e m ade i n c as h . B u t t he n , the s al e s i nvo i c e s al o ng wi th t h e P A N of th e b uy e r s wa s pr o duce d bef ore the A O i n c o ur se of th e re m an d pr oc e ed i ng s an d t he r e m and re p o r ts c o n tai n no a d v er s e f i nd i n g s i n thi s re g ar d. I t h er ef or e ag r ee wi t h th e L d A R t ha t t he re i s no a dv e r s e f indi ng i n th e r e m an d r e po r t s o f the AO . T he A O has c ate go r ic al l y a dm i t t e d t h at the ban k st a te m e nt, c as h bo o k an d s al e s i nv o i c e s we r e p ro d uc ed b ef o re h i m an d th a t th e c a sh de p o si ts i n th e b an k ac c o u nt we re ver if i ab l e f ro m th e c ash b o ok. I a m th e r ef o r e of t he c o n sid er e d v i e w th at s uc h c ash dep o s i ts i n the b an k ac c o u nt whi c h we r e d ul y ve r if iabl e f r om the c as h bo o k of t he as se ss ee c o m p any c o ul d no t be t r e ate d as i ts u n di s c l os ed i nc o m e . T he ad d i tio n of R s. 3, 0 6, 6 2, 0 00/ - i s d el e t e d. G ro und no 4 i s al l o we d. G r ou nd no 5 i s di re c ted a g ai n s t th e i ni t i ati o n o f p en al ty pr o c e e di n gs u/ s. 27 1 ( 1) ( c) whi c h i s pr e m atur e f o r adj ud ic at i o n at th i s s t ag e . H e n ce , g r ou nd no 5 i s di s m i s s e d. G r o und no 6 i s ge n er al i n nat ur e" .
Page | 5 ITA No.515 TO 517/Kol/2013 (ASSESSMENT YEAR-2006-07 TO 2008-09) Fo r al mo st i de n ti c al re as o ns as giv e n i n h i s i m pu g ne d o r de r f or A . Y. 2 0 0 5- 0 6, t h e l d. C IT ( Appe al s) al so h el d th at t he s i m il ar add i ti o n m ad e b y t h e A s se ss i ng Of f ic e r on ac c ou nt o f une x p l ai ne d c as h de p o si t s f o un d t o be mad e i n th e B ank ac c o u nts of the ass e s se e f or A . Y . 2 0 06 - 0 7 wa s n o t s us t ai n abl e . A c c or d i ngl y he de l e te d the se ad d i ti o n s m ad e by th e A s s e s si n g Of f ic e r t o the to t al i nc o m e of the as s es se e f or A . Y s. 2 00 5- 0 6 and 2 00 6- 07. A gg r ie v e d b y the o r de r s of th e l d. C IT ( A pp e al s) gi v i ng re l ief to the ass e s s ee f o r al l the t hr ee ye ar s u n de r co n s i d e r a t i o n, t he Re ve nue has p ref e rr ed t he se app e al s bef or e th e T r ib u nal .
5. A t t h e t i m e o f he ari n g of the s e app e al s f ix ed on 28. 0 1. 2 00 9, no n e h as ap pe ar ed on be h al f of the as s e sse e. T he se app e al s ar e , th e ref o re , b e i n g d i sp o se d of ex - p ar te q ua t he r e sp o nd e nt- as se ss ee af ter he ar i n g th e a r gu me nts of t he l d. D . R . an d pe r us i ng the r e l ev an t ma t e r i al a v ai l ab l e on r e co r d . T he t wo c o mmo n i s su e s i n vo l ve d i n al l th e se th re e app eal s r e l at e to th e del e ti o n by the l d. C IT ( A p pe al s) of th e add i ti o n s m ade b y the A s se ss i ng Of f ice r o n ac c o u nt of al l eged ac c o m m o d at i o n ent ri e s gi ve n t o the M um b ai b ase d C o m p an i e s on p ro te c ti v e b asi s an d the de l e tio n b y the l d. C IT ( A p pe al s) of the addi ti o n mad e by t he A s se s si n g O f f ice r o n ac c o u nt of c om mi s si o n i nc o me al l eged l y r e c ei v e d by the as s e s s e e f or g ivi n g a c c o m mo d at i on e n tr ie s . It i s o b se r ve d th at t h e s i m il ar i s su e s we r e i n v o l ve d i n so me o the r c ase s a nd al l the s e c as e s we re ad j o ur n ed i n th e p a st and al so bl o c ke d f o r s o m e p e r io d f o r ge t ti ng th e i nf o rm a ti o n a b o u t the st a tus o r o ut c o m e of th e c as e s whe re the s i m il ar am o u n t s were ad d e d o n s ub st an t i v e b as i s. In s p i t e of s uf f ic ie nt ti me gi ve n to bo th t he p ar ti e s , t he y h av e f ai l ed t o f u r ni s h th e sai d i nf o r ma ti o n. It i s wel l se ttl e d th a t p ro tec ti v e as s e s s m e nt i s pe r m i ssi b l e i n l a w and i n c ase a do ub t o r am b i g ui t y ab o u t r e al e n ti ty i n wh o se ha n d s a par ti c ul ar i nco m e i s to b e as s e s se d, the as s es si n g a u t h o r i ty i s e n ti tl e d t o hav e r ec ou r se to m ake a p r o t e c tiv e as s es sm e n t. A s h el d by the H o n' b l e Su p re me Co u r t i n t he c ase of L al j i H a r ida s - v s.- IT O ( 43 IT R 38 7) , the O f f ic e r m ay, whe n i n do ub t, to s af e g u ar d t h e i n t e re s t of the rev e nue c an ass e s s i t i n m o r e than o n e h an d b u t th i s p roc ed ure c an be pe rm i t t e d o nl y at t he st ag e of as s es sm e n t. Pr o te c t i ve ass e ss m en t be c o me s re du ndan t wh e n t he s u b s t an t i v e asse s sm e nt be c o me s f inal an d if th e sub s t an ti v e as s es sm e n t f ai l s, i t i s p ro te c ti ve as se ss m e n t whi c h i s to be t r e ate d as su b s t an t i v e. K e e pi n g i n vi e w th i s c o r o l l ar y b e t we e n the s u b s t an t i v e as s es s m e nt an d pr o tec tiv e as s e s s m e nt , an app e al ag ai n st th e p ro tec t ive as se s sm e n t sho ul d o r di nar il y a wai t the o u tc om e of the su b s tan ti ve asse s s m e nt so t ha t the p r o t e c t i ve as s es sm e n t c a n be i nc o nf or mi ty wi th t h e s ub s t an t i v e as se ss m e n t. In t h e c as e of C IT -v s. - S ure nd ra G ul ab C h an d M o di ( 14 0 IT R 517) , th e ap pe al a r i s i n g o u t of the pr o t e c t i ve as se s sm e nt was di s po se d of by th e ap pe l l a te a u th o ri ty i . e . T r ib unal v ac ati n g t h e p r o te c ti ve as s es sm e n t wi th o u t wa i t i n g f o r the f inal ou tc o m e of the p roc e e d i ng s ar i s i n g f r o m t he su bs t an ti ve as se ss m e n t, whi c h ma t te r wa s p en di ng i n t he H o n' bl e S up re m e C o u r t . The H o n' b l e G uj ar at H i g h Co u r t he l d th a t th e T ri b u n al was no t j us tif ie d i n pr o c ee d i n g wi th the m a t te r an d i n d i sp o si n g of i t i ns te ad of bl oc k i ng i t ti l l the d i sp o sal of t he m at te r p e n di n g i n the H o n' bl e S up r em e Co u r t i n o rd er t o b ri n g i t i n co nf o r mi t y wi th t he vi e w of the H o n' bl e S upr e me C o ur t . T he Page | 6 ITA No.515 TO 517/Kol/2013 (ASSESSMENT YEAR-2006-07 TO 2008-09) H o n' b l e G uj a r at H i g h Co u r t ac c o r d i ng l y dir e c t e d the Tr ib un al to ke e p th e ma tt e r al i ve an d pe ndi n g a w ai t i n g t he d ec i s io n of the H o n' b l e S u p re me C o urt i n the p r oc eed i ng s ar i s i ng f r o m the s u b s t an t i v e a s s es s m en t.
6. In th e p r e se n t c ase , the l d. C IT ( A ppe al s ) di d no t a wai t the o u tc om e of t h e p ro c e ed i ng s ar i si n g f ro m t he s u b s t an ti v e as se s sm e n t an d si n c e th e sai d i nf orm a ti o n was no t f or thc o m i ng ev e n af ter a c o n sid er a bl e p e ri o d f r om the co nc e r n ed ass e s s i ng of f ic e r, he pr o c ee de d t o d i sp o se of the appe al s a ri si n g f ro m th e p r o t e c tiv e as s es sm e n t s by h i s i m p u gne d o r de r s and del e te d t h e add i ti o n m ade o n p r o t ec tiv e b asi s wi t ho ut a wa i ti ng t he f inal ou tc o me of the pr o c ee d i n g s ar i s i n g f rom t he s ub s t an t i v e as se s s m e n t . K e e p i ng i n v ie w t he d ec i sio n of t he H o n' b l e G u j ar a t H i g h C o u r t i n the c ase of C IT - v s. - S ur e nd r a G ul ab C hand Mo di ( s upr a) , we ho l d t hat the l d. C IT ( A p pe al s) wa s n o t j us t if ie d i n de l e ti ng the ad di ti o ns m ade b y the A s se ssi n g Of f ic er o n pr o t e c t iv e b asi s i n al l t he thr e e ye ar s u nd e r c o n sid er a t i o n wi th o u t a wa i ti n g f or the f i n al o u tc o me o f the pr o c ee d i n g s ar i s i ng f r om th i s s ub st an t i v e as se ss me n t. W e , th e ref o re , se t asi d e t he i m p ug ne d o r d er s of the l d. C IT ( A p p e al s) o n th i s i s su e a n d re mi t t he m att e r b ac k t o hi m f o r ke epi ng i t al iv e an d pe nd i n g t il l the o u tc o me of the p roc e ed i ng s ar i s i n g f r om the s u b s t an t i v e a s s es s m en t.
7. A s r e g ar d s th e i s sue r el at i n g t o th e ad di tio ns m ade o n ac c o u nt of c om mi s si o n i nc o me al l eged l y r e c ei v e d by the as s e s s e e f or g ivi n g a c co mm o d a ti on e ntr ie s , we f ind t h at thi s i s sue i s c o n se q u e n ti al to th e i s su e r e l ati n g to th e ad d i ti o n m ad e o n pr o t e c tiv e b a si s o n ac c o u nt of ac c o m m o d at i o n e ntr ie s al l e ge dl y g ive n b y t h e as se ss ee- c o m p any to t h e M umb ai b as e d c o mp an i e s . Si nc e t h e s ai d i ss u e i s r e m i t te d b ac k by u s t o the l d. C IT ( A p pe al s) , we al so re mi t th e c o nse q ue nti al i s su e re l ati n g to add i tio n o n ac c o u nt of c om m i s s io n i nc o m e b ac k to the l d. C IT ( A pp e al s) f or de c i di n g th e s am e af r esh. G ro und s N o . 1 & 2 of the R e v e nu e' s ap p e al s f or al l t he th r e e y e ars un d e r c o ns i de r ati o n ar e ac c o r di n gl y tr e at e d as al l o we d f or s t a t i s t i c al p ur po se s . "
3. In view of the above, we therefore, set aside the impugned order of the ld. CIT(Appeal) on this issue and remit the matter back to him for keeping it alive and pending till the outcome of the proceedings arising from the substantive assessment. Thus, the grounds raised by the Revenue are allowed for statistical purposes.
ITA No.516 TO 517/Kol/2013 (ASSESSMENT YEAR-2007-08 TO 2008-09)
4. As discussed above, the issues raised in these two appeals are similar to the issue raised in ITA No.515/Kol/2013, since we have Page | 7 ITA No.515 TO 517/Kol/2013 (ASSESSMENT YEAR-2006-07 TO 2008-09) decided the issue in afore-mentioned paras in favour of the Revenue and the same view is applicable in these two appeals also. Thus, grounds raised by the Revenue in both appeals are allowed for statistical purposes.
5. In the result, both appeals of the Revenue are allowed for statistical purposes.
6. In final result, all three appeals of the Revenue are allowed for statistical purposes.
Order pronounced in the open court on 08.05.2019.
Sd/- Sd/- (P.M.JAGTAP) (S.S.VISWANETHRA RAVI) VICE PRESIDENT JUDICIAL MEMBER Date:- 08.05.2019 *Amit Kumar* Copy forwarded to:
1. Appellant- DCIT, Central Circle-VII, Aayakar Bhawan, Poorva, 110, Shantipally, Kolkata-700107.
2. Respondent- M/s. Dabriwal Investment & Financiers Pvt.Ltd., 39, Kalikrishna Tagore Street, Kolkata-700007.
3. CIT-Kolkata
4. CIT(Appeals)-Kolkata
5. DR: ITAT -Kolkata Benches By order AR/H.O.O ITAT, KOLKATA Page | 8