I.T.A. No. 832/Kol/2013, I.T.(SS) A. No. 08/Kol/2013, C.O. No. 41/Kol/2013 In I.T.(SS) A. No. 08/Kol/2013, I.T.(SS) A. No. 09/Kol/2013 and C.O. No. 42/Kol/2013 in I.T.(SS) A. No. 09/Kol/2013. Case: Bhagdev Roy and Ors. Vs Assistant Commissioner of Income Tax, Central Circle-XII and Ors.. ITAT (Income Tax Appellate Tribunal)

Case NumberI.T.A. No. 832/Kol/2013, I.T.(SS) A. No. 08/Kol/2013, C.O. No. 41/Kol/2013 In I.T.(SS) A. No. 08/Kol/2013, I.T.(SS) A. No. 09/Kol/2013 and C.O. No. 42/Kol/2013 in I.T.(SS) A. No. 09/Kol/2013
CounselFor Appellant: Miraj D. Shah, A.R. and For Respondents: John Vincent Donkupar Langstich, CIT, DR
JudgesA.T. Varkey, Member (J) and Waseem Ahmed, Member (A)
IssueDirect Tax
Judgement DateMarch 31, 2017
CourtITAT (Income Tax Appellate Tribunal)


A.T. Varkey, Member (J), (ITAT Kolkata 'B' Bench)

  1. These are appeals of the assessee and the Revenue against the order of Ld. CIT(A), Central-II, Kolkata dated 23.10.2012 which is a combined order for AY 2008-09, 2009-10 and 2010-11 and the Cross Objection by the assessee in support of the decision of relief given to him and also against the claim made on addition based on peak credit.

  2. The assessee's appeal in ITA No. 832/Kol/2013 for AY 2008-09 is time barred by 47 days and assessee has filed a condonation petition stating the reasons for the delay and prayed before the bench to condone the delay. Ld. DR has not objected to this prayer of the assessee and since the Ld. DR has given concession to condone the delay, we condone the delay and admit the appeal for hearing.

  3. In all appeals, the assessee has raised the 1st, 2nd and 3rd grounds against the legal validity of proceedings initiated u/s. 153C of the Act which has not been pressed before us, therefore, we dismiss the same as not pressed.

  4. The ground No. 4 of assessee's appeal is against the addition of Rs. 38,64,870/- as peak credit in AY 2008-09; whereas the revenue's appeal (ground No. 1) for both AYs 2009-10 and 2010-11 is against the action of the Ld. CIT(A) in allowing set off of the said amount (peak credit confirmed for AY 2008-09) while calculating peak credit for AYs 2009-10 and 2010-11, that is the Revenue is assailing the telescoping of peak credit confirmed by him in AY 2008-09 while computing the peak credit for AYs 2009-10 and 2010-11. And the CO of the assessee is against the peak credit addition sustained by the Ld. CIT(A) and in support of the relief given to him by Ld. CIT(A). The second ground raised by the revenue in both the AYs. 2009-10 and 2010-11 is against the action of Ld. CIT(A) deleting the commission income of Rs. 9,56,825/- for AY 2009-10 and Rs. 28,84,292/- for AY 2010-11. Since all the grounds are interlinked, the same are adjudicated together.

  5. Brief facts of the case as noted by the Ld. CIT(A) which have not been disputed before is that a search operation u/s. 132 of the Act was conducted in "Fortune Ispat Group of cases" on 16.02.2010. During the course of search documents marked as FI/Office/1 & 2 were seized which belonged to the assessee i.e. Shri Bhagdev Roy. The documents seized were in the form of a pocket diary and loose papers which contained the details of various bank accounts pertaining to a number of firms and companies managed by Shri Bhagdev Roy. The seized documents also contain some bank deposit slips. The statement of the assessee was recorded in the course of search in which he stated that he has been engaged in the activities of providing accommodation entries and earning of commission income through the firms and companies managed by him, though, on record names of other persons are there as proprietors and directors etc. The said other persons also admitted that all the firms and companies along with their bank accounts were managed by Shri Bhagdev Roy. Consequently, search operation was conducted on various bank accounts on 12.04.2010 and 13.04.2010. As a result of search amount deposited of Rs. 2,02,39,629/- was seized from various bank accounts as detailed in the assessment order.

  6. Thereafter, we note that during the course of assessment proceedings the Ld. AR of the assessee submitted a revised computation on 13.12.2011 which according to the AO reflected undisclosed income based on the peak credit balance in the 32 bank accounts controlled by the assessee and thereafter, the AO brought the peak credit deposit in the 32 bank accounts in a chart form for AY 2007-08 to 2009-10 as given below:

    And thereafter, the AO treated the said amounts as undisclosed income of the assessee. On appeal when the assessee challenged the addition made of the said amount (Rs. 34,64,870/-) for AY 2008-09 as peak credit, the Ld. CIT(A) did not accept the contention of the assessee and was pleased to confirm the peak credit of Rs. 34,64,870/- for AY 2008-09. However, gave partial relief to the assessee by giving the benefit...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT