ACIT, CIR-25, KOLKATA, Kolkata V. Sri Sudarshan Panja, Kolkata

ITA 1037/KOL/2016

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 4059 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 13-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOUDHURY CITSRDR
• Assessee Lawyers: SOMNATH ROY CHOWDHURY
• Section: 143(3); 144

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A KOLKATA BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI, M. BALAGANESH, ACCOUNTANT MEMBER ITA NO. 1037 / KOL / 20 16 ASSESSMENT YEAR :2011-12 ACIT, CIRCLE-25, AAYAKAR BHAVAN DAKSHIN, 2 GARIAHAT ROAD, SOUTH, KOLKATA-68 V/S . SRI SUDARSHAN PANJA 143, KANANGO PARK, 4 TH FLOOR, P.O. GARIA, KOLKATA-700084 [ PAN NO.AKBPP 6220A ] /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI ROBIN CHOUDHURY, ADDL. CIT-SR-DR /BY RESPONDENT SHRI SOMNATH ROY CHOWDHURY, ADVOCATE /DATE OF HEARING 03-10-2018 /DATE OF PRONOUNCEMENT 10-10-2018 / O R D E R PER S.S.GODARA, JUDICIAL MEMBER:- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2011-12 A RISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-7, KOLKATAS O RDER DATED 18.02.2016 PASSED IN CASE NO.615/CIT(A)/7/R.-25/14-15, INVOLVI NG PROCEEDINGS U/S 144 R.W.S 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. FOR THE REASONS STATED IN REVENUES CONDONATION PETITION / AFFIDAVIT DATED 11.05.2016, WE CONDONE FOUR DAYS DELAY IN FI LING OF THE INSTANT APPEAL AS LEARNED COUNSEL REPRESENTING ASSESSEE IS FAIR EN OUGH IN NOT DISPUTING THE SOLEMN AVERMENTS THEREIN. 3. WE ADVERT TO REVENUES TWIN SUBSTANTIVE GROUNDS SEEKING TO REVIVE ADVANCE FROM CUSTOMERS RECEIPTS AND UNMEASURED BIL LS ADDITION OF 1,04,50,000/- AND 2,43,62,503/-; RESPECTIVELY ADDED IN THE COURSE OF ITA NO.1037/KOL/2016 A.Y. 2011- 12 ACIT, CIRCLE-25, KOL. VS. SRI SUDARSHAN PANJA PAGE 2 ASSESSMENT AND DELETED IN THE LOWER APPELLATE PROCE EDINGS. MR CHOUDHURY TAKES US TO ASSESSMENT ORDER FIRST OF ALL INDICATIN G THE ASSESSING OFFICER TO HAVE MADE THE IMPUGNED ADDITION(S) ON ACCOUNT OF D IFFERENCE IN FORM 26AS AVAILABLE WITHOUT THE DEPARTMENT VIS--VIS TAXPAYER S TAD AUDIT REPORT ALONGWITH TDS CREDIT AMOUNTING TO 44,45,836/- AS AGAINST ITS INCOME DECLARED FROM JOB PROCEEDS OF 2,30,35,337/-. MR. CHOUDHURYS CASE IS THAT THE ASS ESSEE RECEIVED TOTAL PAYMENTS OF 26,70,57,382/.40 AND THEREFORE THE ASSESSING OFFICER HAD RIGHTLY ADDED THE DIFFERENTIAL AMOUNT O F 440,22,045/- IN ASSESSMENT ORDER DATED 25.03.2014. 4. WE NOTICE AT THE OUTSET THAT THE REVENUES GRIEV ANCE IN THE INSTANT APPEAL DOES NOT SEEK TO REVIVE THE ABOVE ADDITION A MOUNT OF 440,22,045/- BUT ONLY TWO ADDITION(S) PERTAINING TO ADVANCE FROM CUSTOMERS AND UNMEASURED BILLS (SUPRA). THE CIT(A)S DISCUSSION QUA THESE TWO HEADS READ AS UNDER:- (III) ADVANCE FROM CUSTOMERS RS.1,04,50,000/-: IN T HE RECONCILIATION STATEMENT THE APPELLANT HAS GIVEN THE DETAILS OF ADVANCE FROM CUSTOMERS. BEFORE ME THE APPELLANT STATED THAT THE APPELLANT RECEIVED ADVANC ES AND THE SAME WERE ADJUSTED AGAINST THE REGULAR BILL. THE REGULAR BILL S ARE ADMITTED AS INCOME AND WHEN THE BILLS ARE RAISED AS PER SYSTEM OF ACCOUNTI NG. THEREFORE THE ADVANCES ARE LIQUIDATED AGAINST THE PAYMENT RECEIVE D. SINCE THE APPELLANT HAS ALREADY ADMITTED THE REGULAR BILLS AS PER THE C ONTRACT VALUE NO SEPARATE ADDITION IS CALLED FOR ON ACCOUNT OF ADVANCES. I HAVE CONSIDERED THE SUBMISSION MADE BY THE APPELL ANT AND FIND SUFFICIENT FORCE IN THE ARGUMENT. THE APPELLANT HAS ADMITTED T HE CONTRACT BILLS AS PER THE BILLS RAISED AND FINALIZED AS PER THE CONTRACT VALU E. THEREFORE NO SEPARATE ADDITION IS CALLED FOR ON ACCOUNT OF ADVANCES RECEI VED FROM THE CUSTOMERS. THE MATTER WAS REMANDED TO THE AO AND THE AO DID NO T DISPUTE THE FACT. THEREFORE, THE ADDITION MADE BY THE AO IS DELETED. (IV) RA BILLS RS.2,43,62,503/-: THE APPELLANT HAS R ECEIVED THE AMOUNT TO THE EXTENT OF RS.2,43,62,503/- AGAINST THE RA BILLS. TH ESE BILLS WERE NOT ADMITTED IN THE YEAR UNDER CONSIDERATION PENDING CONFIRMATIO N FROM CONTRACTEE. THESE BILLS WERE ADMITTED AS RECEIPT IN THE SUBSEQUENT YE AR AS PER THE SYSTEM OF ACCOUNTING REGULARLY FOLLOWED BY THE APPELLANT. I H AVE CONSIDERED THE SUBMISSION MADE BY THE APPELLANT AND THE APPELLANT HAS GIVEN THE DETAILS OF THE BILLS ADMITTED IN THE SUBSEQUENT YEAR. THIS IN THE REMAND REPORT. THEREFORE, THE ADDITION MAD BY THE ASSESSING OFFICE R IS DELETED. 5. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL CONTENTIONS REITERATING RESPECTIVE STANDS OF BOTH THE PARTIES. THERE IS NO DISPUTE ABOUT THE ITA NO.1037/KOL/2016 A.Y. 2011- 12 ACIT, CIRCLE-25, KOL. VS. SRI SUDARSHAN PANJA PAGE 3 ASSESSING OFFICER HAVING MADE THE TWO ADDITION(S) O N THE BASIS OF FORM 26AS STATEMENT. THE SOLE ISSUE IN THE INSTANT LIS THEREF ORE IS THAT OF RECONCILIATION OF THESE TWO FIGURES ONLY. WE NOTICE IN THIS BACKDROP THAT CIT(A) HAD SENT ASSESSEES DETAILS FILE DURING THE LOWER APPELLATE PROCEEDINGS TO THE ASSESSING OFFICER FOR REMAND REPORT WHICH WAS DULY SUBMITTED. IT IS ONLY ON THE BASIS OF ALL THE RELEVANT MATERIAL ON RECORD THAT T HE CIT(A) HAS HELD QUA THE FORMER ISSUE OF ADVANCE FROM CUSTOMERS THAT THE TAX PAYER HAD DULY ADMITTED THE CORRESPONDING REGULAR BILLS AS INCOME AND QUA T HE LATTER ISSUE, HE HOLDS THAT THE VERY BILLS STOOD DECLARED AS RECEIPTS / IN COME IN SUCCEEDING ASSESSMENT YEAR AS PER ITS REGULAR SYSTEM OF ACCOUN TING. THESE CRUCIAL FINDINGS ON FACTS HAVE GONE UNREBUTTED FROM THE REV ENUE SIDE. WE THEREFORE REJECT ITS INSTANT TWO SUBSTANTIVE GROUNDS AS WELL AS MAIN APPEAL. 6. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 10 /10/2018 SD/- SD/- ( %) (' %) (M.BALAGANESH) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) KOLKATA, *DKP, SR.P.S (- 10 / 10 /201 8 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ACIT, CIRCLE-25, AAYAKAR BHAVAN DAKSHIN, 2 GARIAHAT ROAD, SOUTH, KOLKATA-6 8 2. /RESPONDENT-SRI SUDARSHAN PANJ, 143, KANANGO PARK, 4 TH FL, P.O. GARIA, KOL-84 3. 3 4 / CONCERNED CIT KOLKATA 4. 4- / CIT (A) KOLKATA 5. 7 ''3, 3, / DR, ITAT, KOLKATA 6. < / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY, HEAD OF OFFICE/DDO 3,