PDP International Limited, Kolkata V. ACIT, Circle - 9, Kolkata, Kolkata

CO 15/KOL/2011

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7032 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-03-2012
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 24-02-2011
• Court: TRIBUNAL
• Department Lawyers: R GUPTA
• Assessee Lawyers: R K GOEL

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH C, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $%& $%& $%& $%& ' ' ' ' / ITA NO . .. . 728 /KOL/2010 () *+/ ASSESSMENT YEAR : 2004-05 (-. / APPELLANT ) D.C.I.T., CIRCLE-9, KOLKATA. - ( - - VERSUS - . (01-./ RESPONDENT ) M/S.P.D.P.INTERNATIONAL LTD., KOLKATA (PAN: AABCP 5271 G ) 2 %& 2 %& 2 %& 2 %& /C.O. NO.15/KOL/2011 ' ' ' ' / A/O ITA NO.728/KOL/2010 () *+/ ASSESSMENT YEAR : 2004-05 (-. / APPELLANT ) M/S.P.D.P.INTERNATIONAL LIMITED, KOLKATA (PAN: AABCP 5271 G ) - ( - - VERSUS - . (01-./ RESPONDENT ) A.C.I.T., CIRCLE-9, KOLKATA. -. 3 4 '/ FOR THE DEPARTMENT: SHRI R.GUPTA 01-. 3 4 '/ FOR THE ASSESSEE : SHRI R.K.GOEL 5(6 3 !# /DATE OF HEARING : 23.03.2012. 7* 3 !# /DATE OF PRONOUNCEMENT : 28.03.2012. '8 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THE ABOVE TWO APPEALS ONE FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE AGAINST ORDERS DATED 28.01.201 0 OF THE CIT(A)-VIII, KOLKATA PERTAINING TO A.YR. 2004-05. 2 2. IN THIS APPEAL THE REVENUE HAS TAKEN THE FOLLOWI NG GROUND :- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, L D.CIT(A) HAS ERRED ON TREATING RS,.2,25,83,195/- AS INCOME OF THE ASSESSEE INSTEAD OF RS.3,23,58,415/- IN THE AY 2004-05 BECAUSE AS PER TDS CERTIFICATE CORRESPONDIN G INCOME CREDITED BY THE PAYER IN FAVOUR OF THE ASSESSEE IS RS.3,23,58,415/-. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT WHILE DO ING THE SCRUTINY ASSESSMENT THE ASSESSING OFFICER HAS ADDED AN AMOUNT OF RS.97,75,2 20/- BY OBSERVING AS UNDER :- THE ASSESSEES CLAIM OF TDS AMOUNT TO THEIR CLIENT S DEDUCTORS PAYMENT OF RS. 32304676/- THOUGH THE ASSESSEES INCOME QUANTUM IS RS. 22583195/- REFLECTED IN THE P & L A/C IN RELEVANT TO THE ASSESSMENT YEAR UNDER REFERENCE. IN THIS REGARD, IT IS CLARIFIED THAT THE NET AMOUNT OF INCOME HAD BEEN TA KEN IN THE RELEVANT P&L A/C UNDER THE RESPECTIVE HEADS OF INCOME. BESIDES THIS, IT IS STATED THAT NO TDS IS OR WAS DEDUCTIBLE ON THE SEA/AIR FREIGHT AMOUNT. HOWEVER AS AN INSTANCE IT IS FURTHER STATED THAT THE GROSS CREDIT SIDE AMOUNT WAS RS. 18 436092/ AND DR. SIDE AMOUNT WAS R. 13780377/- UNDER THE CFS INCOME AND THUS N ET AMOUNT OF RS. 4655716/- WAS AS USUAL REFLECTED IN THE P & L A/C FOR THE YEA R UNDER ASSESSMENT AND LIKELY THE NET FIGURES UNDER SOME OTHER HEADS OF INCOME HAD BEEN T AKEN AND HENCE THERE WAS DIFFERENCE EXISTED. PLEASE NOTE THAT THE ASSESSEES CLAIM WAS BASED ON THE TDS CERTIFICATES. RECEIVED FOR THE RELEVANT PERIOD. 3.1. ON APPEAL THE LD. CIT(A) HAS DELETED THE SAME AFTER TAKING INTO CONSIDERATION OF VARIOUS SUBMISSIONS AND THE RECONCILIATION STATEMEN T FILED BY ASSESSEE BY OBSERVING AS UNDER :- . I DO NOT SEE ANY CONFLICT BETWEEN THE PROVISIONS OF SEC. 198 OF THE ACT AND THE ACCOUNTING TREATMENT DONE BY THE APPELLANT. THE APP ELLANTS SUBMISSION WOULD SHOW THAT IT HAD OFFERED INCOME CORRESPONDING TO THE TDS CERTIFICATES AFTER ADJUSTING RECEIPTS WITH THE EXPENDITURE IT HAD INCURRED. NO D ISPUTE ON THIS ISSUE HAS BEEN RAISED BY THE A.O. FURTHERMORE, THE A.O. DOES NOT ADDRESS THE APPELLANTS CONTENTION THAT IT WAS NEVER LIABLE FOR DEDUCTION UNDER SEC. 194EE OF THE INCOME TAX ACT. AS PER THE ACT, THIS SECTION IS APPLICABLE IN RESPECT OF PAYM ENTS IN RESPECT OF DEPOSITS UNDER NATIONAL SAVINGS SCHEME, ETC. THE A.O. DOES NOT PO INT OUT ANY SUCH RECEIPTS. I, THEREFORE, DIRECT THE A.O. TO DELETE THE ADDITION M ADE. THESE GROUNDS OF APPEAL ARE ALLOWED. 3.2. AGGRIEVED BY THIS THE REVENUE IS IN APPEAL BEF ORE US. 4. AT THE TIME OF HEARING THE LD. DR APPEARING ON BEHALF OF THE REVENUE RELIED ON THE ORDER OF ASSESSING OFFICER. 3 5. ON THE OTHER HAND, THE LD. AR APPEARING ON BEHA LF OF ASSESSEE HAS FILED RECONCILIATION STATEMENT FOR THE DIFFERENCE OF AMOU NT SHOWN IN P&L ACCOUNT AND THAT OF THE TDS CERTIFICATE BASED ON WHICH THE LD. CIT(A ) HAS DELETED THE SAME AFTER GETTING THE REMAND REPORT FROM AO. THEREFORE, HE RE QUESTED TO UPHELD THE ACTION OF LD. CIT(A). 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF MATERIALS AVAILABLE ON RECORD, IT IS OBSERVED THAT IN THE REM AND REPORT THE AO HAS NOT COMMENTED ANYTHING ABOUT THE RECONCILIATION STATEME NT SUBMITTED BY ASSSESSEE AND BASED ON THIS RECONCILIATION STATEMENT LD.CIT(A) HA S DELETED THE ADDITION. HENCE WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) TO BE INTERFERED WITH. THEREFORE WE UPHELD THE SAME AND DISMISS THE GROUND RAISED BY REVENUE. 7. THE CROSS OBJECTION RAISED BY ASSESSEE IN THIS APPEAL IS IN SUPPORT OF THE ORDER OF LD. CIT(A). SINCE WE CONFIRM THE ORDER OF LD. CI T(A) THE CROSS OBJECTION RAISED BY ASSESSEE BECOMES INFRACTUOUS AND THE SAME IS DISMIS SED AS BEING INFRACTUOUS. 8. IN THE RESULT THE REVENUES APPEAL AS WELL AS AS SESSEES CROSS OBJECTION ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 28.03.2012. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 28.03.2012. R.G.(.P.S.) 4 '8 3 0% 9'%*:- COPY OF THE ORDER FORWARDED TO: 1. M/S.PDP INTERNATIONAL LIMITED, 2, N.C.DUTTA SARANI, PLOT NO.2, 4 TH FLOOR, KOLKATA-700001. 2 THE D.C.I.T., CIRCLE-9, KOLKATA. 3. THE CIT, 4. THE CIT(A)-VIII, KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA 1% 0/ TRUE COPY, '8(5/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES