Pawan Jaun, Guwahati V. Income Tax Officer, ard-4(2), Guwahati

ITA 128/GTY/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9007 (ITAT-GUWAHATI)
• Duration Of Justice: 1 year(s) 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 28-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC GAUHATI BEFORE SHRI S ANJAY GARG , JUDICIAL MEMBER . / ITA NO. 1 28 / GAU/2019 ASSESSMENT YEAR: 20 1 5 - 16 SHRI PAWAN JAIN C/O RAJRATAN & CO., G.K TOWER, A T ROAD, BHARALUKUKH, GUWAHATI - 781009, ASSAM. PAN: ABWPJ1413H / V/S . I.T.O., WARD (4) 2, O/O JCIT, RANGE - 4, 5 TH FL., AAYKAR BHAWAN, G S ROAD, GUWAHATI, 781006, ASSAM I / APPELLANT .. / RESPONDENT HEARING THROUGH VIDEO CONFERENCING / BY APPELLANT SHRI R.K. JOSHI, ADVOCATE , A .R / BY RESPONDENT SHRI JAYANTA MRIDHA , JCIT, SR - DR / DATE OF HEARING 16 - 03 - 20 2 1 / DATE OF PRONOUNCEMENT 16 - 03 - 20 2 1 / O R D E R TH E PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 2 0 - 12 - 2018 OF THE COMMISSIONER OF INCOME - TAX (APPEALS) , GUWAHATI [HEREINAFTER REFERRED TO AS CIT(A)] . 2. THE SOLE ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL IS RELATING TO ADDITION OF RS. 2,91,19,670/ - MADE /CONFIRMED BY THE LOWER AUTHORITIES ON ACCOUNT OF DIFFERENCE BETWEEN IMPORT PURCHASE VALUE SHOWN BY THE ASSESSEE COMPARED TO THE VALUATION BY THE CU STOM AUTHORITIES FOR THE PURPOSE OF LEVY OF CUSTOM DUTY AS PER THE CUSTOMS VALUATION (DETERMINATION OF VALUE OF IMPORTED GOODS) RULES, 2007. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE HAS BROUGHT MY ATTENTION TO THE IMPUGNED ASSESSMENT ORDER TO SHOW THAT THE LEARNED ASSESSING OFFICER ( IN SHORT, THE ITA NO. 1 28 /GAU/2019 A.Y. 20 1 5 - 16 PAWAN JAIN PAGE 2 LD. AO) DID NOT FIND ANY EVIDENCE REGARDING SUPPRESSION OF VALUE OF GOODS FROM THE ACCOUNTS OF THE ASSESSEE OR OTHERWISE . T HE BASIS O N WHICH THE LD. AO HAS MADE THE IMPUGNED ADDITION IS THAT THE CUSTOM AUTHORITIES FOR THE PURPOSE OF LEVY OF CUSTOM DUTY HAVE A PPLIED CERTAIN FORMULA BY WAY OF WHICH THE VALUE OF THE IMPORTED GO ODS FOR THE PURPOSE OF LEVY OF CUSTOM DUTY HAS BEEN ADOPTED . THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AS PER THE CUSTOM VALUATION (DETERMINATION OF VALUE OF IMPORTED GOODS) RULES, 2007 , T HE CUSTOM AUTHORITIES HAVE ADOPTED CERTAIN FORMULA ON TH E BASIS OF WHICH THE CUSTOM DUTY IS LEVIED. HOWEVER, THE APPLICABILITY OF SAID FORMULA FOR DETERMINATION OF CUSTOM DUTY CANNOT BE THE BASIS TO HOLD THAT THE ASSESSEE HAS SUPPRESSED THE ACTUAL PURCHASE VALUE OF THE IMPORTED GOODS. 4. THE LEARNED DEPAR TMENTAL REPRESENTATIVE ( IN SHORT, THE LD. DR) COULD NOT SHOW FROM THE RECORD THAT ANY OTHER EVIDENCE WAS AVAILABLE WITH THE ASSESSING OFFICER TO ARRIVE AT A CONCLUSION THAT THE ASSESSEE HAD SUPPRESSED THE PURCHASE OF VALUE OF IMPORTED GOODS. 5. I FIND MERIT IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. THOUGH THERE MAY BE VALUATION ADOPTED OF THE GOODS BY THE CUSTOM AUTHORITIES FOR THE PURPOSE OF LEVY OF CUSTOM DUTY ON THE BASIS OF CERTAIN FORMULA AS PER PRESCRIBED RULES , H OWEVER, THE LD. AO HAS NOT BROUGHT ANYTHING/ MATERIAL ON RECORD THAT THE ASSESSEE HAD SUPPRESSED THE PURCHASE VALUE OF THE IMPORTED GOODS THEREFORE, THERE WAS NO JUSTIFICATION ON THE PART OF THE LD. AO TO MAKE THE IMPUGNED ADDITION. ACCORDINGLY, THE SAM E IS ORDERED TO BE DELETED. IN VIEW OF THE ABOVE, THE APPEAL OF THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN OPEN COURT AT THE TIME OF HEARING ON TUESDAY , 1 6 TH MARCH , 2021 . SD/ - (S ANJAY GAR G ) JUDICIAL MEM BER - 16 - 03 - 2021 /KOLKATA ITA NO. 1 28 /GAU/2019 A.Y. 20 1 5 - 16 PAWAN JAIN PAGE 3 * *PP/SR.PS / COPY OF ORDER FORWARDED TO: - 1. /APPELLANT /ASSESSEE: SHRI PAWAN JAIN C/O RAJRATAN & CO., G.K TOWER, A T ROAD, BHARALUKUKH, GUWAHATI - 781009, ASSAM . 2. /RESPONDENT - I.T.O., WARD - (4) 2, O/O JCIT, RANGE - 4, 5 TH FL., AAYKAR BHA W AN, G S ROAD, GUWAHATI, 781006 , ASSAM 3. / CONCERNED CIT 4. - / CIT (A) 5. , / DR, ITAT, GUWAHATI 6. / GUARD FILE. BY ORDER/ , /TRUE COPY/ SENIOR PRIVATE SECRETARY