Costal Automobiles Pvt.Ltd., Rajamahendravaram V. ACIT, Circle-2(1), Rajamahendravaram

CO 76/VIZ/2017

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 3744 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 18-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: V APPALA RAJU
• Section: 143(3); 144

Judgement Text

ITA NO.157 /VIZAG/2017 & CO 76/VIZAG/2017 M/S. COASTAL AUTOMOBILES PVT. LTD., RAJAMAHENDRAVAR AM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . .. . . . . . ' , % BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./I.T.A.NO.157/VIZAG/2017 ( / ASSESSMENT YEAR: 2012-13) ACIT, CIRCLE - 2(1) RAJAMAHENDRAVARAM M/S. COASTAL AUTOMOBILES PVT.LTD. RAJAMAHENDRAVARAM [PAN NO. AABCC5287H ] ( ' / APPELLANT) ( ()' / RESPONDENT) C.O.NO.76/VIZAG/2017 ./I.T.A.NO.157/VIZAG/2017 ( / ASSESSMENT YEAR: 2012-13) M/S. COASTAL AUTOMOBILES PVT.LTD. RAJAMAHENDRAVARAM ACIT, CIRCLE - 2(1) RAJAMAHENDRAVARAM ( ' / APPELLANT) ( ()' / RESPONDENT) / APPELLANT BY : SHRI V. APPALA RAJU, DR / RESPONDENT BY : SHRI G.V.N. HARI, AR / DATE OF HEARING : 24.04.2018 / DATE OF PRONOUNCEMENT : 2 6.04.2018 / O R D E R PER D.S. SUNDER SINGH, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-2, GUNTUR VIDE APPEAL NO.150/2015-16 DATED 5.1.2017 FOR THE ASSESSMENT YE AR 2012-13. THE CROSS OBJECTION FILED BY THE ASSESSEE IS IN SUPPORT OF THE ORDER PASSED BY THE CIT(A)-2, GUNTUR. ITA NO.157 /VIZAG/2017 & CO 76/VIZAG/2017 M/S. COASTAL AUTOMOBILES PVT. LTD., RAJAMAHENDRAVAR AM 2 2. THE REVENUE HAS FILED THE FOLLOWING GROUNDS OF A PPEAL: (I) THE CIT(A) ERRED IN GIVING BLANKET RELIEF TO THE AS SESSEE WITHOUT CONDUCTING ANY CLINICAL EXAMINATION OF THE FACTS AN D SANS MAKING ANY RECONCILIATION OF THE GROSS RECEIPTS WITH REFERENCE TO THE DISCREPANCY POINTED OUT BY THE ASSESSING OFFICER. (II) THE CIT(A) OUGHT TO HAVE CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER, PARTICULARLY WHEN THE ASSESSMENT WAS DONE EX-PARTE U/S 144 OF THE ACT BEFORE GIVING RELIEF. (III) THE CIT(A) OUGHT TO HAVE SET A RIDER TO THE ASSESSI NG OFFICER TO EXAMINE THE ACCOUNTABILITY OF THE RECEIPTS VIS--VI S TDS CERTIFICATES AND OTHER INFORMATION AVAILABLE ON RECORD, RATHER THAN GIVING FULL RELIEF TO THE ASSESSEE WITHOUT ADJUDICATING THE FACTS AND MER ITS OF THE CASE WHICH ARE VERY MUCH AVAILABLE ON RECORD. (IV) ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF A PPEAL HEARING. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE ADDI TION MADE BY THE A.O. IN RESPECT OF DIFFERENCE IN TURNOVER AMOUNTING TO ` 1,25,48,381/-. IN THIS CASE, THE ASSESSEE FILED RETURN OF INCOME O N 29.9.2012 DECLARING TOTAL INCOME OF ` 31,73,316/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. HAS POSTED THE CASE ON NUMBER OCCASIONS AND THERE WAS NO COMPLIANCE FROM THE ASSESSEE. IN RESP ECT OF DETAILS CALLED FOR BY THE A.O., THE ASSESSEE DID NOT SUBMIT THE DE TAILS AND HAS NOT COMPLIED WITH THE NOTICES ISSUED BY THE A.O. AND TH E SAME IS EVIDENT FROM THE PARA NO.3 OF THE ASSESSMENT ORDER. SINCE THE ASSESSEE FAILED TO FURNISH THE DETAILS CALLED FOR, THE AO COMPLETED THE ASSESSMENT AS PER THE INFORMATION AVAILABLE ON RECORD U/S 143(3) R.W. S. 144 OF THE ACT. IN THE PROCESS, THE A.O. FOUND THAT THE ASSESSEE HAD R ECEIVED A SUM OF ITA NO.157 /VIZAG/2017 & CO 76/VIZAG/2017 M/S. COASTAL AUTOMOBILES PVT. LTD., RAJAMAHENDRAVAR AM 3 ` 3,07,87,416/- FROM VARIOUS PERSONS WHO HAVE DEDUCT ED THE TAX AT SOURCE BUT FROM THE PROFIT &LOSS ACCOUNT, IT WAS OBSERVED THAT THE ASSESSEE HAD ADMITTED THE RECEIPTS FROM RELIANCE I NDUSTRIES LIMITED AND M/S. ONGC AGGREGATING TO ` 1,82,39,035/- AND THE BALANCE AMOUNT OF ` 1,25,48,381/- WAS REMAINED UNADMITTED. THEREFORE, THE A.O. MADE THE ADDITION OF ` 1,25,48,381/- DIFFERENCE IN TURNOVER TO THE RETURN ED INCOME. 3. AGGRIEVED BY THE ORDER OF THE A.O., THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD. CIT(A) OBSERVED THAT AS PER THE PROFIT & LOSS ACCOUNT, THE ASSESSEE HAD OFFERED THE INCOME O F ` 536.30 LAKHS TOWARDS OTHER INCOME OTHER THAN SALE OF VEHICLES. THE RECEIPTS OF ` 182.4 LAKHS RELATING TO RELIANCE INDUSTRIES AND ONG C FORMS PART OF OTHER INCOME IN THE P&L ACCOUNT OF ` 536.30 LACS AND OUT OF OTHER INCOME , THE RECEIPTS SUBJECTED TO TDS AS PER THE TDS CERTIF ICATE WAS ONLY A SUM OF ` 307.87 LAKHS. THEREFORE, THE CIT(A) HAS VIEWED TH AT THE INCOME ADMITTED BY THE ASSESSEE IS MORE THAN THE RECEIPTS SUBJECTED TO TDS, AND HENCE THERE IS NO LOSS TO THE REVENUE ON THIS A CCOUNT AND ACCORDINGLY DELETED THE ADDITION. 4. AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENU E IS IN APPEAL BEFORE US. DURING THE APPEAL HEARING, THE LD. D.R. ARGUED THAT IN THIS ITA NO.157 /VIZAG/2017 & CO 76/VIZAG/2017 M/S. COASTAL AUTOMOBILES PVT. LTD., RAJAMAHENDRAVAR AM 4 CASE, THE A.O. HAS GIVEN NUMBER OF OPPORTUNITIES AN D CALLED FOR THE DETAILS INSPITE OF GIVING REPEATED OPPORTUNITIES TH E ASSESSEE FAILED TO FURNISH THE DETAILS DURING THE ASSESSMENT PROCEEDIN GS. THE A.O. CALLED FOR THE RELEVANT BASIC DETAILS BUT THE ASSESSEE FAI LED TO FURNISH THE SAME. FROM PLAIN READING OF THE ASSESSMENT ORDER, IT IS A LSO CLEAR THAT THE ASSESSEE HAS NOT PRODUCED BOOKS OF ACCOUNTS. IN TH E ABSENCE OF THE BOOKS OF ACCOUNTS AND THE REQUIRED DETAILS, THE A.O . COMPLETED THE ASSESSMENT AS PER THE INFORMATION AVAILABLE ON RECO RD BY MAKING THE ADDITION OF ` 1,25,48,381/- RELATING TO THE INCOME SHOWN UNDER S CHEDULE 2 OF THE STATEMENT OF INCOME. THOUGH LD. CIT(A) HE LD THAT THE ASSESSEE HAS ADMITTED ` 536.30 LAKHS IN THE PROFIT & LOSS ACCOUNT REPRESEN TING OTHER THAN SALES ITEM WISE RECEIPTS SUBJECTED TO TD S, IT WAS NEITHER EXAMINED BY THE CIT(A) NOR THE CIT(A) HAS CALLED FO R THE REMAND REPORT. SINCE THE ASSESSMENT IS COMPLETED U/S 144 OF THE AC T AND THE RECEIPTS VIS--VIS TDS CERTIFICATE WERE NOT RECONCILED BY TH E ASSESSEE BEFORE THE A.O., LD. A.R. REQUESTED TO REMIT THE MATTER BACK T O THE FILE OF THE A.O. TO CONSIDER THE ISSUE ON MERITS. 5. ON THE OTHER HAND, THE LD. A.R. RELIED ON THE OR DER OF THE CIT(A) AND OBJECTED TO REMIT THE MATTER BACK TO THE FILE O F THE A.O. ITA NO.157 /VIZAG/2017 & CO 76/VIZAG/2017 M/S. COASTAL AUTOMOBILES PVT. LTD., RAJAMAHENDRAVAR AM 5 6. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. IN THIS CASE, IT IS EVIDENT FROM THE ASSESSMENT ORDER THAT THE A.O. HAS GIVEN NUMBER OF OPPORTUNITIES FOR COMPLETION OF ASSESSMEN T BUT CERTAIN DETAILS WERE NOT FURNISHED BY THE ASSESSEE DURING THE ASSES SMENT PROCEEDINGS. THE LD. A.R. SUBMITTED RECONCILIATION STATEMENT OF RECEIPTS AS PER 26AS AND WITH RESPECT TO OTHER INCOME OFFERED IN THE PRO FIT & LOSS ACCOUNT. ACCORDING TO THE RECONCILIATION STATEMENT, THE RECE IPTS AS PER 26AS WAS ` 3,07,87,467/-. THOUGH THE OTHER INCOME ADMITTED I N THE RETURN OF INCOME OTHER THAN SALES WAS ` 5,36,26,699/-, THE SAID RECONCILIATION STATEMENT WAS NOT MADE AVAILABLE TO THE A.O. AND IT APPEARS FROM THE ASSESSMENT ORDER THAT ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS FOR EXAMINATION. THE ADMISSION OF RECEIPTS AS PER 26AS IS REQUIRED TO BE VERIFIED FROM THE BOOKS OF ACCOUNTS. THE RECONC ILIATION STATEMENT AS WELL AS THE OTHER INCOME ARE REQUIRED TO BE EXAMINE D BY THE A.O. TO CONFIRM WHETHER THE ASSESSEE HAS ADMITTED THE SAID RECEIPTS IN THE P&L ACCOUNT OR NOT. THEREFORE, WE ARE OF THE CONSIDERE D OPINION THAT THE ISSUE NEEDS TO BE REMITTED BACK TO THE FILE OF THE A.O. IT APPEAR FROM THE LD. CIT(A)S ORDER THAT THE CIT(A) HAS NOT GIVE N ANY OPPORTUNITY TO THE A.O. TO VERIFY THE CORRECTNESS OF THE RECONCILI ATION SUBMITTED BY THE ASSESSEE. THE LD. CIT(A) ALSO DELETED THE ADDITION ON THE PRESUMPTION ITA NO.157 /VIZAG/2017 & CO 76/VIZAG/2017 M/S. COASTAL AUTOMOBILES PVT. LTD., RAJAMAHENDRAVAR AM 6 THAT TOTAL OTHER RECEIPTS WERE ` 536.30 LAKHS MORE THAN THE INCOME WHICH WAS SUBJECTED TO TAX AND THUS THERE WAS NO LO SS OF REVENUE. THE ISSUE OF DIFFERENCE IN RECEIPTS COMPARED TO SCHEDUL E-2 WAS NEITHER EXAMINED BY CIT(A) WITH THE RELEVANT BOOKS OF ACCOU NTS NOR REMITTED MATTER BACK TO THE FILE OF THE A.O., HENCE, WE ARE OF THE CONSIDERED OPINION THAT IN THE INTEREST OF JUSTICE, THE ISSUE SHOULD BE REMITTED BACK TO THE FILE OF THE A.O. TO VERIFY THE RECEIPTS AS P ER 26AS AND THE INCOME OFFERED BY THE ASSESSEE IN THE PROFIT & LOSS ACCOUN T. ACCORDINGLY WE SET ASIDE THE ORDER OF THE CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE A.O. TO DECIDE THE ISSUE AFRESH ON MERITS. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. C.O. 76/VIZAG/2017: 8. THE ASSESSEE FILED CROSS OBJECTIONS SUPPORTING T HE ORDER OF THE LD.CIT(A). THE CROSS OBJECTION IS FILED WITH A DEL AY OF 64 DAYS AND THE ASSESSEE HAS NOT FILED ANY CONDONATION PETITION TO CONDONE THE DELAY, THEREFORE, THE CROSS OBJECTION FILED BY THE ASSESSE E IS DISMISSED. ITA NO.157 /VIZAG/2017 & CO 76/VIZAG/2017 M/S. COASTAL AUTOMOBILES PVT. LTD., RAJAMAHENDRAVAR AM 7 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES AND THE CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 26 TH APR18. SD/- SD/- ( . ) ( . .. . . . . . ' ) (V. DURGA RAO) (D.S. SUNDER SINGH) /JUDICIAL MEMBER /ACCOUNTANT MEMBER # /VISAKHAPATNAM: ' /DATED : 26.04.2018 VG/SPS )# *# /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ACIT, CIRCLE-2(1), RAJAMAHEN DRAVARAM 2. / THE RESPONDENT M/S. COASTAL AUTOMOBILES PVT. L TD., D.NO.84-1-2, NH- 5, HUKUMPETA, RAJAMAHENDRAVARAM 3. + / THE CIT, RAJAHMUNDRY 4. + ( ) / THE CIT (A)-2, RAHAMUNDRY 5. # . , . , # / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM