MODI & MODI CO, CHENNAI V. ACIT 12(1), MUMBAI

ITA 1079/MUM/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9656 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 22-04-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 07-02-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR LD
• Assessee Lawyers: GANESH K BHAT LD

Judgement Text

ITA NO.1079/M/2013 MODI & MODI CO. ASSESSMENT YEAR-2004-05 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE SHRI MAHAVIR SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO. 1079/MUM/2013 ( / ASSESSMENT YEAR: 2004-05) MODI & MODI CO NO.60 (OLD 33) KASTURI RANGAN ROAD ALAWARPET CHENNAI 600 018 / VS. ASSISTANT COMMISSIONER OF INCOME TAX 12(1) AAYKAR BHAVAN M.K.ROAD MUMBAI 400 020 ./ ./PAN/GIR NO. AAAFM-3276-C ( ! /APPELLANT ) : ( '#! / RESPONDENT ) A SSESSEE BY : GANESH K.BHAT, LD.AR RE VENUE BY : SUMAN KUMAR, LD. DR / DATE OF HEARING : 06/09/2017 / DATE OF PRONOUNCEMENT : 08 /09/2017 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2004-05 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)-23 [CIT(A)], MUMBAI DATED 01/11/2012 QUA CONFIRMATION OF ITA NO.1079/M/2013 MODI & MODI CO. ASSESSMENT YEAR-2004-05 2 CERTAIN ADDITION. THE ONLY GROUND PRESSED BEFORE US BY LD. COUNSEL FOR ASSESSEE [AR] IS ADDITION ON ACCOUNT OF WAREHOUSING CHARGES FOR RS.7,90,117/-. THIS IS SECOND ROUND OF APPEAL BEFOR E US. 2. THE ASSESSEE IS A RESIDENT FIRM ENGAGED IN MANUFACTURING OF STEEL WIRES AND CONDUCTORS . THE SHORT FACTS QUA THE ADDITION ARE THAT THE ASSESSEE, IN HIS PROFIT & LOSS ACCOUNT, REFLECTED I NCOME FROM WAREHOUSING CHARGES FROM AN ENTITY NAMELY MUKAND LIMITED AS RS.30,75,060/-. HOWEVER, THE SAME IN TDS CERTIFICAT ES WAS REFLECTED AS RS.38,65,176/- AND THEREFORE DIFFERENTIAL AMOUNT OF RS.7,90,117/- WAS ADDED TO THE INCOME OF THE ASSESSEE. IN THE FIRST R OUND, THE TRIBUNAL RESTORED THE MATTER BACK TO THE FILE OF LD. AO FOR RE-EXAMINATION. HOWEVER, SINCE LD. AO FAILED TO RE-ADJUDICATE THE S AME, THE LD. CIT(A), IN THE SECOND ROUND, CALLED FOR REMAND REPORT AGAINST THE SAME AND CONFIRMED THE ADDITION SINCE THE EXPLANATION FURNIS HED BY THE ASSESSEE WERE NOT ACCEPTED. AGGRIEVED, THE ASSESSEE IS IN FU RTHER APPEAL BEFORE US. 3. THE LD. AR, WHILE DRAWING OUR ATTENTION TO THE D OCUMENTS PLACED IN THE PAPER BOOK EXPLAINED THAT THE NET WAREHOUSING CHARGES WERE REFLECTED IN THE PROFIT & LOSS ACCOUNT AND THE DIFF ERENCE REPRESENTS CREDIT NOTES ISSUED BY ASSESSEE. PER CONTRA , LD. DR CONTENDED THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE SAME EVEN IN SE COND ROUND AND THEREFORE, THE ADDITIONS WERE JUSTIFIED. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. WE FIND THAT THE ASSESSEE HAS I SSUED CREDIT NOTES NO. C-01/03 DATED 31/10/2003 & C-02/03 DATED 31/03/ 2004 AGGREGATING TO RS.7,90,126/- AND THE SAME HAS BEEN REFLECTED BY THE ASSESSEE IN HIS ITA NO.1079/M/2013 MODI & MODI CO. ASSESSMENT YEAR-2004-05 3 BOOKS OF ACCOUNTS. HOWEVER, THERE IS NO CORRESPONDI NG CONFIRMATION FROM MUKAND LIMITED TO SUBSTANTIATE THIS FACT. THE ASSESSEE HAS ONLY FURNISHED BALANCE CONFIRMATION CERTIFICATE AT YEAR- END. THEREFORE, WE FIND THAT THE MATTER REQUIRES RECONCILIATION AND HENCE, THE SAME IS RESTORED BACK TO THE FILE OF LD. AO FOR LIMITED PURPOSE OF V ERIFYING THE ASSESSEES CONTENTION. THE ASSESSEE IS DIRECTED TO PROVIDE LED GER COPIES/ CONFIRMATION FROM MUKAND LIMITED TO SUPPORT HIS CONTENTIONS. 5. RESULTANTLY, THE ASSESSEES APPEAL STANDS PARTY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH SEPTEMBER, 2017. SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 08. 09.2017 SR.PS:- THIRUMALESH / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT 3. * ( ) / THE CIT(A) 4. * / CIT CONCERNED 5. '%- , - , / DR, ITAT, MUMBAI 6. ./ / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI