Alclad Fabrication Pvt. Ltd., Kolkata V. D.C.I.T.,Circle-10(1), Kolkata

ITA 1244/KOL/2019

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 0791 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 21-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NOT MAKING DISALLOWANCE
• Keywords: Principle of natural justice; Wholly owned subsidiary; TDS
• Section: 143(3); 142(1); 40(a)(ia)

Judgement Text

1. ITA No. 1244/Kol/2019 AY 2013-14 Alclad Fabrication P.Ltd. . IN THE INCOME TAX APPELLATE TRIBUNAL BENCH “C” KOLKATA Before: Shri Manish Borad, Accountant Member, and Shri Sonjoy Sarma, Judicial Member आयकर अपील सं.य/ I T A N o . 12 4 4/ K o l / 2 01 9 A s s e s s m e n t Y e a r : 2 01 3-1 4 M / s .A l c l a d F a b r i c a t i o n P vt . L t d . B / 3 2 / H / 1 4 Ma h e n d r a R o y L a n e , K o l k a t a- 7 0 0 0 4 6 . बनाम V / s . D C I T , C i r c l e 1 0(1) , A a yk a r B h a va n , P-7 C h o wr i n g h e e S q . , K o l k a t a-7 0 0 0 6 9 . P A N : AA F C A 2 7 8 3 C अपीलाथ / A p p e l l a n t . . यथ / R e s p o n d e n t अपीलाथ क ओर से/By Appellant None यथ क ओर से/By Respondent Shri Patha Pratim Barman, Addl. , CIT, Ld.DR स ु नवाई क तार ख/Date of Hearing 26-07-2022 घोषणा क तार ख/Date of Pronouncement 03-08 -2022 आदेश /O R D E R PER MANISH BORAD, AM : This appeal of the assessee for the assessment year 2013-14 is directed against the order dt. 25-02-2019 passed by the ld. Commissioner of Income-tax, Appeals [ in short, hereafter referred to as ‘the Ld. CIT(A), Kolkata-4, Kolkata, which is arising from the assessment order dt. 04-03-2016 passed by the DCIT,Circle-10(1), Kolkata framed u/s. 143(3) of the Act. 2. ITA No. 1244/Kol/2019 AY 2013-14 Alclad Fabrication P.Ltd. . 2. When the case was called, none appeared on behalf of assessee. A perusal of file shows that number of opportunities have been granted and assessee remained non-compliant. We, therefore, proceed to execute the appeal ex parte qua the assessee. 3. The assessee has raised the following grounds of appeal:- 1) That the Assessment Order passed by Ld. CIT(A)-4/Kolkata u/s 143(3) of Income Tax Act 1961 is unlawful, unwarranted & against Natural Justice. 2) That the Addition of Rs 1,93,407 being Interest on Car Loan paid to Kotak Mahindra Pvt Ltd without deduction of TDS is unwarranted & uncalled for as Kotak Mahindra Pvt Ltd is a wholly owned subsidiary of Kotak Mahindra Bank and has been in the list of notified exempted institution under section 194a(iii)(f) of Income Tax Act,1961. So Relief claimed Rs 1,93,407/- 3)That the addition of Rs 37,776/- on account of Donation & subscription for the whole year is against the principle of natural justice as the said expenses have been incurred for the whole year including for Vishwakarma Puja at factory cum godown& different sites at which the client is working. A Copy of Ledger (A/c Subscription & donation) was handed over to Ld. CIT(A}-4 which elaborately shows the details of expenses. The Appellant has all the necessary vouchers which can be produced at the time of hearing. So relief claimed is Rs 37,776/- 4)The appellant craves leave to urge to add, amend or alter the grounds of appeal before the final date of hearing.” 3. ITA No. 1244/Kol/2019 AY 2013-14 Alclad Fabrication P.Ltd. . 4. Brief facts of the case are that the assessee is a private limited company and engaged in the business of works contractor. Income of Rs. 88,88,450/- declared in e-return for the AY 2013-14 filed on 29- 09-2013. Case selected for scrutiny followed by serving of notices u/s. 143(2) and 142(1) of the I.T. Act, 1961. After considering the submissions of assessee, the ld.AO completed the assessment making certain disallowances totalling to Rs. 6,23,312/- and assessed the income at Rs. 95,11,759/-. 5. Aggrieved, the assessee preferred an appeal before the ld. CIT(A), but partly succeeded. 6. Now, the assessee is in appeal before this Tribunal. 7. The Ld. Departmental Representative ( in short, the ld. DR) vehemently argued supporting the orders of the lower authorities and also stated that the issue raised in ground no.2 was not pressed by the assessee before the ld. CIT(A). 8. We have heard the ld. DR and perused the record placed before us. 9. Ground nos. 1 & 4 are general in nature, which need no adjudication. 10. Ground no. 2 relates to disallowance/addition of interest on car loan paid to M/s. Kotak Mahindra Pvt. Ltd. at Rs.1,93,047/- for non deduction of tax at source thereby making disallowance u/s. 40(a)(ia) 4. ITA No. 1244/Kol/2019 AY 2013-14 Alclad Fabrication P.Ltd. . of the Act. In the impugned order the ld. CIT(A) has observed that the assessee did not press this ground before him and therefore, the same was dismissed. Before us the assessee has again raised this ground stating that M/s. Kotak Prime Ltd is a subsidiary of M/s. Kotak Mahindra Bank and is in the list of notified exempted institution as provided in section 194A(iii)(f) of the Act. Since the assessee is neither present before us in the hearing nor placed any material to support/substantiate this claim through written submissions, we are of the view that this issue needs to be verified by the ld. AO, before whom the assessee will file necessary details/evidences in support of this ground/claim. In addition to this, the assessee can also provide proof of alleged amount being offered to tax by the M/s. Kotak Prime Ltd and if requisite certificate of the Chartered Accountants is obtained in the prescribed format evidencing that the alleged amount has been offered as revenue and due taxes have been paid, then the ld. AO shall grant relief to the assessee by not making disallowance u/s.40(a)(ia) of the Act of the alleged amount. Thus, ground no. 2 raised by the assessee is allowed for statistical purpose. 11. Apropos to ground no. 3 we find that it relates to the disallowance of donation and subscription of Rs.37,776/-. Discussions on this issue before the lower authorities indicate that the said amount is claimed to be incurred towards Puja expenses. The assessee could not produce any bills/voucher(s) to substantiate this claim, We, however, looking to the facts of the case and the expenses being incurred by the assessee company on festival and similar customary occasions for its employees find it proper to disallow only 10% of the 5. ITA No. 1244/Kol/2019 AY 2013-14 Alclad Fabrication P.Ltd. . alleged amount and delete the remaining disallowance. Accordingly, the addition of Rs.3778/- is sustained and remaining disallowance of Rs. 33,998/- is deleted. Thus, ground no. 3 raised by the assessee is partly allowed. 12. I n the result, the appeal of the assessee is partly allowed for statistical purpose. The order pronounced in the open Court on 03 -08-2022 Sd/- Sd/- (SANJOY SARMA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER दनांक /Dated :03-08-2022 **PP/SPS आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1.अपीलाथ /Appellant/Assessee: M/ s . M / s . A l c l a d F a b r i c a t i o n P vt . L t d . B / 3 2 / H / 1 4 Ma h e n d r a R o y L a n e , K o l k a t a- 7 0 0 0 4 6 . 2. यथ /Respondent/Revenue: D C I T , C i r c l e 1 0 ( 1 ) , A a yk a r B h a va n , P-7 C h o wr i n g h e e S q . , K o l k a t a-7 0 0 0 6 9 . 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त- अपील / CIT (A) 5. वभागीय त न ध, आयकर अपील य अ धकरण कोलकाता / DR, ITAT, Kolkata 6. गाड फाइल / Guard file. /True Copy By order/आदेश से, Assistant Registrar / Senior Private Secretary ITAT, Kolkata