ITO,Ward-3(2), Kolkata, Kolkata V. M/s. Steel World(P)Ltd, Kolkata

ITA 1056/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83076 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2014
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 25-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 16-07-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P B PRAMANICK
• Assessee Lawyers: JAI NARAYAN GUPTA
• Section: 43B

Judgement Text

I.T.A. NO. 1056/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI SHAMIM YAHYA (ACCOUNTANT MEMBER), AND SHRI GEORGE MATHAN (JUDICIAL MEMBER) I.T.A. NO. 1056/KOL/ 2012 ASSESSMENT YEAR : 2008-2009 INCOME TAX OFFICER,................................ .......................APPELLANT WARD-3(2), KOLKATA, 8/2, ESPLANADE EAST, DWARLI HOUSE, GROUND FLOOR, KOLKATA-700 069 -VS.- M/S. STEEL WORLD (P) LTD.,......................... ..............RESPONDENT 5/1, CLIVE ROW, 1 ST FLOOR, ROOM NO. 25, KOLKATA-700 001 [PAN : AAGCS 0697 A] APPEARANCES BY: SHRI P.B. PRAMANICK, JCIT, SR. D.R., FOR THE DEPARTMENT SHRI JAI NARAYAN GUPTA , FCA, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : AUGUST 25, 2014 DATE OF PRONOUNCING THE ORDER : AUGUST 25, 2014 O R D E R PER GEORGE MATHAN: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, KOLKATA IN APPEAL NO. 838/CIT(A)-I/3(2)/11-12 DATED 11.04.2012 FOR THE AS SESSMENT YEAR 2008-09. 2. SHRI P.B. PRAMANICK, JCIT, SR. D.R., REPRESENTED ON BEHALF OF THE REVENUE AND SHRI JAI NARAYAN GUPTA, FCA, REPRESENTE D ON BEHALF OF THE ASSESSEE. 3. IN THE REVENUES APPEAL, REVENUE HAS RAISED THE FOLLOWING GROUNDS:- (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE LD. CIT(A) WAS ERRED IN DELETING RS.1,73,074/- ON ACCOU NT OF DISALLOWANCE OF MATHADI EXPENSES. I.T.A. NO. 1056/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 4 (2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) WAS ERRED IN DELETING RS.35,70,442/- ON ACCO UNT OF UNPAID VAT IN VIOLATION OF RULE 46A. 4. IN REGARD TO GROUND NO. 1, IT WAS SUBMITTED BY T HE LD. D.R. THAT THE ISSUE WAS AGAINST THE ACTION OF THE LD. CIT(APPEALS ) IN DELETING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER REPRESEN TING THE EXPENSES BEING MATHADI EXPENSES. LD. D.R. SUBMITTED THAT THE ASSESSEE HAD NOT EXPLAINED THE NATURE OF THE MATHADI EXPENSES. HE V EHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER. 5. IN REPLY, LD. A.R. DREW OUR ATTENTION TO PAGE 2, PARA 9 OF THE ORDER OF LD. CIT(APPEALS). IT WAS THE SUBMISSION THAT THE MA THADI EXPENSES WERE OF THE PAYMENTS MADE BY ACCOUNT PAYEE CHEQUES TO THE M ATHADI LABOUR BOARD, MAHARASHTRA, WHICH IS A STATUTORY BODY LOOKI NG AFTER LABOUR CHARGES PAYABLE TO LABOURERS. IT WAS THE SUBMISSION THAT THE LD. CIT(APPEALS) AFTER VERIFYING ALL THE DETAILS HAD AL LOWED THE CLAIM OF THE ASSESSEE. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE PARA 9 OF THE ORDER OF LD. CIT(APPEALS) SHOWS THAT THE ASS ESSEE HAS PRODUCED ALL THE DETAILS IN CONNECTION WITH THE MATHADI EXPENSES . IT IS NOTICED THAT THE LD. CIT(APPEALS) HAS TAKEN INTO CONSIDERATION THE C ERTIFICATE ISSUED BY THE ITO (TDS), MUMBAI AS ALSO THE DETAILS OF THE PAYMEN TS MADE TO THE MATHADI LABOUR BOARD BEFORE DELETING THE ADDITION. AS THE REVENUE HAS NOT BEEN ABLE TO DISLODGE THE FINDING AS ARRIVED AT BY THE LD. CIT(APPEALS) ON THE EVIDENCES AS HAS BEEN SPECIFICALLY RECORDED BY THE LD. CIT(APPEALS), WE ARE OF THE VIEW THAT THE FINDING O F THE LD. CIT(APPEALS) ON THIS ISSUE IS ON THE RIGHT FOOTING AND DOES NOT CALL FOR ANY INTERFERENCE. CONSEQUENTLY GROUND NO. 1 OF THE REVENUES APPEAL S TANDS DISMISSED. I.T.A. NO. 1056/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 4 7. IN RESPECT OF GROUND NO. 2, IT WAS SUBMITTED BY THE LD. SR. D.R. THAT THE ISSUE WAS AGAINST THE ACTION OF THE LD. CIT(APP EALS) IN DELETING THE ADDITION MADE ON ACCOUNT OF THE UNPAID VAT IN VIOLA TION OF THE PROVISIONS OF RULE 46A. IT WAS THE SUBMISSION THAT THE CHALLAN S IN RESPECT OF THE PAYMENTS OF THE UNPAID VAT WERE FRESH EVIDENCES PRO DUCED BEFORE THE LD. CIT(APPEALS). IT WAS THE SUBMISSION THAT THE ISSUE MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION OF T HE CHALLANS. 8. TO THIS SUBMISSION, LD. A.R. DID NOT RAISE ANY O BJECTION. 9. WE HAVE CONSIDERED THE SUBMISSIONS. AS IT IS NOT ICED THAT THE CHALLANS IN RESPECT OF THE VAT PAYMENTS HAD NOT BEE N PRODUCED BEFORE THE ASSESSING OFFICER, THIS ISSUE IS RESTORED TO TH E FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATION. THE ASSESSING OFFICER SHALL VERIFY THE CHALLANS THAT WERE PRODUCED BY THE ASSESSEE AND IF IT IS FOU ND THAT THE PAYMENTS HAD BEEN MADE BEFORE THE DUE DATE OF FILING OF THE RETURN IN VIEW OF THE PROVISO TO SECTION 43B OF THE ACT, PAYMENT OF THE V AT BEFORE THE DUE DATE OF FILING OF THE RETURN IS TO BE ALLOWED. CONSEQUEN TLY THIS ISSUE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDIC ATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE ITS C LAIM. IN THESE CIRCUMSTANCES, GROUND NO. 2 OF THE REVENUES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH AUGUST, 2014. SD/- SD/- SHAMIM YAHYA GEORGE MATHAN (ACCOUNTANT MEMBER) (J UDICIAL MEMBER) KOLKATA, THE 25 TH DAY OF AUGUST, 2014 I.T.A. NO. 1056/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 4 OF 4 COPIES TO : (1) INCOME TAX OFFICER, WARD-3(2), KOLKATA, 8/2, ESPLANADE EAST, DWARLI HOUSE, GROUND FLOOR, KOLKATA-700 069 (2) M/S. STEEL WORLD (P) LTD., 5/1, CLIVE ROW, 1 ST FLOOR, ROOM NO. 25, KOLKATA-700 001 (3) COMMISSIONER OF INCOME-TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA --LAHA/SR. P.S.