ALLIANCE MEDICAL EQUIPMENTS PVT. LTD.,KOLKATA V. I.T.O., WARD - 12(2), KOLKATA, KOLKATA

ITA 1724/KOL/2024

AI Insights

The case involves Alliance Medical Equipments Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the Assessment Year 2016-17. The primary contention was regarding the additions made by the Assessing Officer, which included Rs.28,89,999 as bogus sundry creditors, disallowances of donation & subscription expenses amounting to Rs.12,136, and tour expenses of Rs.1,70,105. The Tribunal noted that the assessee had not provided sufficient evidence at earlier stages but had submitted additional evidence at the Tribunal level. Considering the principles of natural justice, the Tribunal decided to remit the case back to the Assessing Officer for a fresh examination of the additional evidence provided.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26973 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 14-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Corroborative evidences; Principle of natural justice; Bogus
• Section: 142(1); 143(2); 143(1); 133(6)

Judgement Text

" ITA No. 1724/KOL/2024 (A.Y. 2016-2017) Alliance Medical Equipments Pvt. Ltd. 1 THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 1724/KOL/2024 Assessment Year: 2016-2017 Alliance Medical Equipments Pvt. Ltd.,……Appellant C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata-700069 [PAN:AADCA9627P] -Vs.- Income Tax Officer,……………………………….Respondent Ward-12(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Siddharth Agarwal, Advocate, appeared on behalf of the assessee Shri Manas Mondal, Addl. CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing: November 12, 2024 Date of pronouncing the order: November 28, 2024 O R D E R The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 21st June, 2024 passed for Assessment Year 2016-17. ITA No. 1724/KOL/2024 (A.Y. 2016-2017) Alliance Medical Equipments Pvt. Ltd. 2 2. Brief facts of the case are that the assessee is a dealer of medical equipments and filed its return of income on 21.09.2016 declaring total income at Rs.1,05,250/- for the assessment year 2016-17. The return was duly processed under section 143(1) of the Act. The case of the assessee was selected for scrutiny and a notice under section 143(2) of the Act dated 18.08.2017 was issued and duly served upon the assessee. After that, a notice under section 142(1) of the Act dated 06.02.2018 was issued to the assessee asking it to produce and submit certain details and documents to substantiate its return of income, but there was no response from the assessee. Therefore, again notice under section 142(1) of the Act was issued on 01.08.2018, 08.10.2018 and 24.10.2018 along with questionnaire and duly served. In response to the said notices, the assessee submitted documents electronically and manually. It was submitted by the assessee that the documents have been test-checked and placed on records and thereafter a notice under section 133(6) has been issued to the Sundry Creditors to verify the transaction. Similarly notice under section 133(6) was also issued to Wipro GE Healthcare Pvt. Limited to verify the transactions as sought by the assessee but no reply was received by the ld. Assessing Officer till the date of passing the assessment order. Thereafter the ld. Assessing Officer completed the assessment making an addition of Rs.28,89,999/- as bogus sundry creditors. The ld. Assessing Officer also made disallowances of donation & subscription of Rs.12,136/-. Finally, he made another disallowance of tour expenses of Rs.1,70,105/-. Since the assessee has not filed any supporting evidence in respect of the above expenses and also the assessee has not filed any ITA No. 1724/KOL/2024 (A.Y. 2016-2017) Alliance Medical Equipments Pvt. Ltd. 3 details regarding sundry creditors, therefore, the ld. Assessing Officer concluded the assessment. 3. Being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) provided several opportunities to the assessee but there is no response from its end and finally on 10.06.2024, he has issued final notice, but the assessee did not respond to the final notice also. Thereafter the ld. CIT(Appeals) dismissed the assessee’s appeal on merit after considering the evidences available on record. 4. On being further aggrieved, the assessee preferred an appeal before the Tribunal raising the following grounds:- (i) For that on the facts and circumstances of the case, the ld. CIT(A) was not justified in upholding the action of the ld. AO in adding back a sum of Rs.28,89,999/- as bogus sundry creditors. (ii) For that on the facts and circumstances of the case, the ld. CIT(A) was not justified in not allowing the donation & subscription expenses in entirety. (iii) For that on the facts and circumstances of the case, the ld. CIT(A) was not justified in upholding the action of the ld. AO in adding back a sum of Rs.1,70,105/- on account of tour expenses. 5. It was the submission of the ld. Counsel for the assessee that he filed all the evidences before the ITAT along with the application for admission of additional evidences. He also filed confirmation of accounts from Wipro GE Healthcare Pvt. Limited, bills issued by Wipro GE Healthcare Pvt. Ltd. and Bank Statement of the ITA No. 1724/KOL/2024 (A.Y. 2016-2017) Alliance Medical Equipments Pvt. Ltd. 4 assessee. He also filed ledger account of donation & subscription alongwith supporting vouchers and receipts, Ledger Account of Tour Expenses alongwith sample copies of vouchers. He, therefore, pleaded before me to provide one more opportunity before the ld. Assessing Officer. 6. On the other hand, ld. D.R. has brought to my notice that both the lower authorities have granted several opportunities, but the assessee did not avail any of the opportunities and now he filed a petition for admission of the additional evidence and he has not explained why all these evidences are not placed before the lower authorities. Therefore, he pleaded to uphold the orders passed by the lower authorities. 7. I have heard the rival contentions and gone through the material placed before me. It is an admitted fact that the assessee has not placed any evidence before the revenue authorities and he filed evidences before me in the form of paper book. He also filed a petition to admit the additional evidences. Considering the facts and circumstances of the case and in order to meet the principle of natural justice, I am of the view that it is a fit case to grant one more opportunity to the assessee. Therefore, I remit the matter back to the file of ld. Assessing Officer to examine all the additional evidences filed by the assessee and pass appropriate order on merit. At the same time, the assessee is also directed to place all the evidences, which are filed before me, before the ld. Assessing Officer so that ld. Assessing Officer can provide an opportunity of ITA No. 1724/KOL/2024 (A.Y. 2016-2017) Alliance Medical Equipments Pvt. Ltd. 5 being heard to the assessee and to pass an appropriate order. The grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 28/11/2024. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 28th day of November, 2024 Copies to :(1) Alliance Medical Equipments Pvt. Ltd., C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata-700069 (2) Income Tax Officer, Ward-12(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "