ITO, WD-5(1), KOLKATA, Kolkata V. M/s S. P. T. Commodities Pvt. Ltd., Kolkata

ITA 1174/KOL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4507 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2016
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 15-09-2015
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA PRASAD
• Assessee Lawyers: B K SINGH
• Keywords: Principle of natural justice; Tax effect

Judgement Text

I.T.A. NO. 1174/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 1174 /KOL/ 2015 ASSESSMENT YEAR: 2008-2009 INCOME TAX OFFICER,................................ ...........................APPELLANT WARD-5(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 -VS.- M/S. S.P.T. COMMODITIES PVT. LIMITED,.............. ................RESPONDENT 11, CLIVE ROW, KOLKATA-700 001 [PAN: AAHCS 9522 M] APPEARANCES BY: SHRI RAJENDRA PRASAD, JCIT, D.R., FOR THE DEPARTMENT SHRI B.K. SINGH, ADVOCATE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JULY 28, 2016 DATE OF PRONOUNCING THE ORDER : JULY 28, 2016 O R D E R THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA DAT ED 25.06.2015 FOR THE ASSESSMENT YEAR 2008-09 ON THE FOLLOWING GROUND S:- 1. ' THAT ON THE FACTS OF THE CASE, THE LD. CIT(A)- 2, KOLKATA, ERRED IN LAW AND ON FACT IN DELETING THE ADDITION OF RS.22,84,199/- ON ACCOUNT OF UNDISCLOSED INVESTMENT OF THE ASSESSEE COMPANY WITHOUT OBJECTIVELY DEALING WITH THE MATERIAL, INFORMATION, EVIDENCES AVAILABLE ON RECORDS'. 2. ' THAT ON THE FACTS OF THE CASE READ WITH GROUND NO. 1 ABOVE, THE LD. CIT(A)-2, KOLKATA, ERRED IN DELETING INTEREST INCOME OF RS.4,11,199/- IN RESPEC T OF ADDITION OF RS.22,84,199/- ON ACCOUNT OF UNDISCLOSED INVESTMENT OF THE ASSESSEE COMPANY'. 3. 'THAT ON THE FACTS OF THE CASE, THE LD. CIT(A)-2 , KOLKATA, ERRED IN DELETING OF 25% OF WAREHOUSE I.T.A. NO. 1174/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 3 CHARGES DEBITED BY THE ASSESSEE COMPANY AMOUNTING TO RS.4,24,668/-.' 4. 'THAT ON THE FACTS OF THE CASE, THE LD. CIT(A)-2 , KOLKATA, ERRED IN ALLOWING RELIEF ABOUT THE INITIATION OF PROCEEDINGS U/S, 271(L)(C) IN CONSEQUENCE OF DELETION OF ADDITION OF RS.22,84,199/- ON ACCOUNT OF UNDISCLOSED INVESTMENT OF THE ASSESSEE COMPANY.' 5. 'THAT ON THE FACTS OF THE CASE, THE LD.CIT(A)-2, KOLKATA, ERRED IN NOT ALLOWING THE A.O. TO RECEIVE ANY NOTICE OF FIXTURE FROM CIT(A) WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE.' 2 AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESSE E AT THE OUTSET, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE I S LESS THAN THE REVISED MONETARY LIMIT RECENTLY FIXED BY THE CBDT VIDE CIRC ULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 AT RS.10,00,000/- FOR FILING THE AP PEAL BY THE REVENUE BEFORE THE TRIBUNAL AND THIS POSITION CLEAR LY EVIDENT FROM THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL IS NOT DISPUTED EVEN BY THE LD. D.R. IN CIRCULAR NO. 21/2015 (SUPRA) RECENTLY I SSUED BY THE CBDT, THE MONETARY LIMIT FOR FILING THE APPEAL BY THE REVENUE BEFORE THE TRIBUNAL HAS BEEN INCREASED TO RS.10,00,000/- AND AS CLARIFI ED IN THE SAID CIRCULAR, THE SAID MONETARY LIMIT IS APPLICABLE RETROSPECTIVE LY EVEN TO THE APPEALS PENDING BEFORE THE TRIBUNAL. THE CBDT HAS ALSO INST RUCTED THAT SUCH PENDING APPEALS BELOW THIS SPECIFIED TAX LIMIT OF R S.10,00,000/- MAY BE WITHDRAWN/ NOT PRESSED. KEEPING IN VIEW THE INSTRUC TION GIVEN BY THE CBDT VIDE CIRCULAR NO. 21/2015 DATED 10.12.2015, WH ICH IS SQUARELY APPLICABLE IN THE PRESENT CASE, THE APPEAL FILED BY THE REVENUE IN THIS CASE IS TREATED AS WITHDRAWN/NOT PRESSED AND DISMIS SED ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 28, 2016 . SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 28 TH DAY OF JULY, 2016 I.T.A. NO. 1174/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 3 COPIES TO : (1) INCOME TAX OFFICER, WARD-5(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (2) M/S. S.P.T. COMMODITIES PVT. LIMITED, 11, CLIVE ROW, KOLKATA-700 001 (3) COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKAT A; (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.