Zenith Timber Products Pvt. Ltd., Kolkata V. ACIT, C.C.- XXIII, Kolkata, Kolkata

CO 6/KOL/2011

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 1768 (ITAT-KOLKATA)
• Duration Of Justice: 4 year(s) 10 month(s) 20 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 10-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 19-08-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 21-01-2011
• Court: TRIBUNAL
• Department Lawyers: NIRAJ KUMAR
• Assessee Lawyers: N O N E
• Keywords: Opportunity of being heard; Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA [BEFORE SHRI MAHAVIR SINGH, JM & SHRI WASEEM AHMED , AM] I.T.A NO.2212/KOL/2010 ASSESSMENT YEAR: 2004-05 ASSISTANT COMMISSIONER OF INCOME-TAX, VS. M/S. ZEN ITH TIMBER PRODUCTS (P) LTD. CENTRAL CIRCLE-XXIII, KOLKATA. (PAN: AAACZ1944P) ( APPELLANT ) ( RESPONDENT ) & C.O. NO. 6/KOL/2011 IN I.T.A NO.2212/KOL/2010 ASSESSMENT YEAR: 2004-05 M/S. ZENITH TIMBER PRODUCTS (P) LTD. VS. ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-XXIII, KOLKATA. (CROSS OBJECTOR) (RESPONDENT) DATE OF HEARING: 10.12.2015 DATE OF PRONOUNCEMENT: 10.12.2015 FOR THE REVENUE: SHRI NIRAJ KUMAR, CIT, DR FOR THE ASSESSEE: N O N E ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY REVENUE AND CROSS OBJECTION BY ASSES SEE ARE ARISING OUT OF ORDER OF CIT(A), CENTRAL-III, KOLKATA IN APPEAL NO.99/CC-XXI II/CIT(A)C-III/08-09 DATED 22.09.2011. ASSESSMENT WAS FRAMED BY ACIT, CC-XXII I, KOLKATA U/S. 147/143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS T HE ACT) FOR ASSESSMENT YEAR 2004-05 VIDE HIS ORDER DATED 03.09.2008. 2. AT THE OUTSET, IT IS NOTICED FROM THE ORDER SHEE T ENTRIES THAT THIS APPEAL CAME UP FOR HEARING FOR THE FIRST TIME ON 27.03.2012 AND SINCE THEN NONE APPEARED FROM THE ASSESSEES SIDE DESPITE THE FACT THAT THERE ARE TOTAL TEN EFFE CTIVE HEARING TOOK PLACE. THIS IS A MATTER OF RECORD. IT SEEMS THAT THE ASSESSEE IS NOT INTER EST IN PROSECUTING THIS APPEAL. HENCE, WE ARE DECIDING THE APPEAL EX PARTE QUA THE ASSESSEE. 3. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGAI NST THE ORDER OF CIT(A) DELETING THE ADDITION MADE BY AO BEING UNDISCLOSED SALES DUE TO SHORT CREDIT OF SALES AMOUNTING TO RS.4,76,13,159/-. FOR THIS, REVENUE HAS RAISED FOL LOWING GROUND NO.1: 2 ITA NO.2212/K/2010 & C.O. NO. 6/KOL/2011 ZENITH TIMBER PRODUCTS (P) LTD. AY 2004-05 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.4,76,13,159/- MADE ON A CCOUNT OF UNDISCLOSED AMOUNT OF SALES DUE TO SHORT CREDIT OF SALES BY RELYING ON THE STAT EMENT OF RECONCILIATION IN RESPECT OF THE ALLEGED SHORT CREDIT OF SALES PRODUCED BY THE ASSES SEE WHICH THE AO DID NOT FIND TENABLE AS NO EVIDENCE IN SUPPORT OF THE SAID STATEMENT WAS PR ODUCED. 4. BRIEFLY STATED FACTS ARE THAT THE AO NOTICED FRO M THE LIST OF DEBTORS THAT THERE IS A SHORT CREDIT OF SALES AMOUNTING TO RS.4,76,13,158/- INVOLVING TEN PARTIES AND THE AO HAS GIVEN COMPLETE DETAIL IN THE FOLLOWING CHART: SL. NO. NAME OF THE PARTY TOTAL BILL AMOUNT AS PER DEBTORS LIST AMOUNT SHOWN AS SALES AS PER DETAILS OF SALES DIFFERENCE (SHORT CREDIT OF SALE) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. ARBIND TRADING CO. CHAKRABORTY SAW MILL D. D. ENTERPRISE EASTERN TIMBER COMMO TRADE INDIA TIMBER & SEASONING PLANT NAINI PLYWOOD (P) LTD. RAJPUTANA GENERAL COMM. CORPN. (P) LTD. SHREE BHAGWATI DAYAL PLYBOARD SHREE DADU PLY HOUSE TIMTECH INDIA PVT. LTD. TOTAL 27270123 621103 23406534 43773407 1006469 21258975 36964091 43555234 6648921.96 21226086 225730944 24591543.9 568775.84 17406527.4 37573383.9 993062.25 18708968 31759162 35590284.7 699996 10226081.5 178117785 2678579.12 52327.16 6000006.62 6200023.13 13406.75 2550007 5204929 7964949.27 5948925.96 11000004.5 47613158.51 AS THERE WAS NO COMPLIANCE FROM THE ASSESSEE, THE A O IN THE ABSENCE OF SUPPORTING EVIDENCE MADE ADDITION OF UNDISCLOSED SALES DUE TO SHORT CREDIT OF SALES. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT(A). BEFORE CI T(A), ASSESSEE FILED SOME RECONCILIATION BUT CIT(A) SIMPLY TAKING THE RECONCI LIATION FILED BY ASSESSEE WITHOUT SENDING FOR VERIFICATION OR MAKING ENQUIRIES DELETE D THE ADDITION BY OBSERVING AS UNDER: FROM THE ABOVE CHART IT IS CLEARLY SEEN THAT THE DIFFERENCE STATED IN THE RECONCILIATION STATEMENT MATCHES WITH THE DIFFERENCE POINTED OUT B Y THE AO. THE MINOR DISCREPANCY OF FEW RUPEES IS THE RESULT OF ROUNDING OFF. FROM THE REC ONCILIATION STATEMENT IT IS ALSO NOTED THAT THE CHEQUE NUMBERS AND DATES HAVE BEEN CLEARLY MENT IONED. IN SUPPORT OF THIS RECONCILIATION STATEMENT PARTY WISE LEDGER ACCOUNTS HAVE BEEN PROD UCED WHERE THESE TRANSACTIONS HAVE BEEN DULY REFLECTED. HE HAS ALSO PRODUCED THE CONF IRMATION OF ACCOUNTS BY THESE PARTIES. ALL THESE EVIDENCES, PAINSTAKINGLY COLLATED BY THE APPE LLANT WERE BEFORE THE AO WHO HAS NOT BEEN ABLE TO POINT OUT EVEN A SINGLE DEFECT. IN VI EW OF THE ABOVE FACTS I AM SATISFIED THAT THE APPELLANT HAS BEEN ABLE TO RECONCILE THE DIFFERENCE S POINTED OUT BY THE AO AND ALSO FURNISHED EVIDENCE IN SUPPORT OF THE RECONCILIATION STATEMENT . THEREFORE I HOLD THAT THE ADDITION MADE ON THIS ACCOUNT IS NOT JUSTIFIED AND THE AO IS DIRE CTED TO DELETE THE SAME. AGGRIEVED, REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD LD. SR. DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND FROM THE ABOVE FACTS AND CIRCUMSTANCES AND ARGUMENT OF LD. SR. DR, WHO REQUESTED THAT THE ISSUE NEEDS RECONSIDERATION AT T HE LEVEL OF THE AO FOR VERIFICATION OF RECONCILIATION STATEMENT. WE ARE OF THE VIEW THAT THE CIT(A) SHOULD HAVE EXAMINED THE 3 ITA NO.2212/K/2010 & C.O. NO. 6/KOL/2011 ZENITH TIMBER PRODUCTS (P) LTD. AY 2004-05 ISSUE IN GREATER DETAILS SO THAT ENTIRE FACT COMES ON RECORD. AS THE ASSESSEE IS NOT REPRESENTING BEFORE US, IN THE ABSENCE OF THE SAME, WE HAVE ONLY ONE ALTERNATIVE BUT TO RESTORE BACK THIS ISSUE TO THE FILE OF AO AND AO WI LL EXAMINE THE DETAILS FILED BEFORE THE CIT(A) AND ALSO ALLOW OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN TERM OF THE ABOVE, THE APPEAL OF REVENUE IS SET ASIDE TO THE FILE OF A O FOR FRESH ADJUDICATION. APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 6. CROSS OBJECTION OF ASSESSEE IS IN SUPPORT OF THE ORDER OF CIT(A). SINCE WE SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER BA CK TO THE FILE OF AO FOR FRESH ADJUDICATION, THE CROSS OBJECTION FILED BY ASSESSEE IS DISMISSED BEING INFRUCTUOUS. 7. IN THE RESULT, THE APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES AND THE CROSS OBJECTION OF ASSESSEE IS DISMISSED. 8. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (WASEEM AHMED) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :10 TH DECEMBER, 2015 JD. SR. P.S COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT ACIT, CC-XXIII, KOLKATA. 2 RESPONDENT M/S. ZENITH TIMBER PRODUCTS (P) LTD., 5 , NIMTALLA GHAT STREET, KOLKATA-700 006. 3 . THE CIT(A), KOLKATA 4. 5. CIT KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .