Ashim Kumar Mondal , Purba Medinipur V. ITO, Ward - 38(4), Midnapore , Midnapore

ITA 1011/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4596 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 15-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHARY
• Assessee Lawyers: G BANNERJEE
• Section: 143(3); 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C, KOLKATA BEFORE SH. S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 1011/KOL/2018 [ASSESSMENT YEAR: 2014-15] ASHIM KUMAR MONDAL VILL. BANLOURI, BHAGABANPUR, PURBA MIDNAPORE 721 601. PAN- ABBFS 9142 H VS INCOME TAX OFFICER WARD-38(4), MIDNAPORE. (APPELLANT) (RESPONDENT) APPELLANT BY SH. G. BANNERJEE, FCA RESPONDENT BY SH. ROBIN CHOUDHARY , ADDL. CIT( DR ) DATE OF HEARING 23.08 .2019 DATE OF PRONOUNCEMENT 28 .08 .2019 ORDER PER SH. S.S.GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 ARISE AGAINST THE CIT(A)- 11, KOLKATAS ORDER PASSED IN CASE NO. 36/CIT(A)-11/CIR-39/16-17 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). WE HAVE HEARD RIVAL CONTENTIONS. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CANVASSED IN THE INSTANT LIS SEEKS TO CHALLENGE BOTH THE LOWER AUTHORITIES ACTION DECLINING ITS UNPAID LABOUR CHARGES CLAIM OF RS. 40,62,358/-. THIS ASSESSEE IS A DEALER WITH M/S. TATA STEELS ENGAGED IN TRANSPORTATION, LOADING/UNLOADING/RELOADING, PACKAGING AND STACKING ETC. OF IRON AND STEEL MATERIALS. HIS OPENING BALANCE OF THE RELEVANT PREVIOUS YEAR, ADDITION THERETO MADE BETWEEN 01.04.2013 TO 31.03.2014 AND PAYMENTS INVOLVE SUMS OF RS. 3,30,600//-, 69,08,369/- AND 31,76,611/-; RESPECTIVELY. 3. IT IS ALSO AN ADMITTED FACT THAT THE ASSESSEES DEALERSHIP BUSINESS ACTIVITY INVOLVES SUPPLY OF LABOURERS, TRANSPORTATION AND ALLIED SERVICES AS ACCEPTED IN THE ASSESSMENT ORDER DATED 30.12.2016. HIS CORRESPONDING TURNOVER IN THE RELEVANT PREVIOUS YEAR IS OF RS. 1,44,99,310/-. ABOVE STATED ASSESSMENT ORDER SUGGESTS THAT THE ASSESSING OFFICER HAD ISSUED SECTION 131 NOTICES TO 36 PARTIES RELATING TO UNPAID LABOUR CHARGES OUT OF WHICH 16 REPLIED IN ASSESSEES FAVOUR, 15 OF THEM DID NOT RESPOND AND REMAINING 5 STOOD UNSERVED. ALL THIS MADE THE ASSESSING OFFICER TO ITA NO. 1011/KOL/2018 [ASSESSMENT YEAR: 2014-15] M/S. ASHIM KUMAR MONDAL PAGE | 2 DISALLOW THE ASSESSEES IMPUGNED CLAIM OF UNPAID LABOUR CHARGES AS AFFIRMED IN THE LOWER APPELLATE PROCEEDINGS. 4. LEARNED DR VEHEMENTLY CONTENDS DURING THE COURSE OF HEARING THAT BOTH THE LOWER AUTHORITIES HAVE RIGHTLY DISALLOWED THE ASSESSEES UNPAID LABOUR CHARGES IN ISSUE ON ACCOUNT OF HIS FAILURE IN FILING THAT NECESSARY EVIDENCE, DOCUMENTARY AND ORAL, BEFORE THE ASSESSING OFFICER. HE FAILS TO REBUT THE CLINCHING FACT THAT THE ASSESSEE HAS BEEN CLAIMING SIMILAR UNPAID LABOUR CHARGES THROUGHOUT SINCE ENGAGED IN MANUAL LABOUR ON REGULAR BASIS FOR LOADING, UNLOADING AND TRANSPORTATION OF THE STEEL PRODUCTS. THE FACT ALSO REMAINS THAT THE TAXPAYER HAS ALSO NOT FULLY DISCHARGED HIS ONUS IN SUPPORT OF THE IMPUGNED UNPAID LABOUR CHARGES BY WAY OF COGENT ORAL DOCUMENTARY EVIDENCE. WE OBSERVE IN THIS PECULIAR FACTUAL BACKDROP THAT NEITHER OF THE TWO PARTIES ARGUMENTS DESERVE TO BE ACCEPTED IN ENTIRETY. WE MAKE IT CLEAR THAT THE IMPUGNED DISALLOWANCE OF ASSESSEES ENTIRE UNPAID LABOUR CHARGES CLAIM WOULD LEAD TO SKY HIGH PROFIT RATE IN SUCH A LINE OF BUSINESS. WE TAKE INTO ACCOUNT ALL THESE FACTS AND CIRCUMSTANCES TO RESTRICT THE IMPUGNED DISALLOWANCE OF RS. 40,62,358/- TO A LUMPSUM FIGURE OF RS. 5 LAKHS WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTHER CASE OR IN ANY PRECEDING OR SUCCEEDING YEAR; AS THE CASE MAY BE THE ASSESSEE GETS RELIEF OF RS. 3,56,235/-. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 28.08.2019. SD/- SD/- (A.L. SAINI) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE:- 28.08.2019 BIDHAN COPY FORWARDED TO: 1. APPELLANT- M/S. ASHIM KUMAR MONDAL, VILL. BANLOURI, BHAGABANPUR, PURBA MIDNAPORE 721 601. 2. RESPONDENT- INCOME TAX OFFICER, WARD-38(4), MIDNAPORE. 3. CIT-KOLKATA 4. CIT(APPEALS)-11, KOLKATA (SENT THROUGH MAIL) 5. DR: ITAT-KOLKATA BENCHES (SENT THROUGH MAIL) AR/H.O.O ITAT, KOLKATA