The Asst. Commissioner of Income Tax, Guntur V. M/s. Boommidala Packagings Limited, Guntur

ITA 128/VIZ/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8750 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-03-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 18-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y SESHA SRINIVAS
• Keywords: Business income
• Section: 143(3); 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 128 /VIZ/ 201 6 ( / ASSESSMENT YEAR: 20 06 - 07 ) THE ASST. COMMISSIONER OF INCOME - TAX CIRCLE - 1(1), GUNTUR VS. M/S BOMMIDALA PACKAGINGS LTD., D.NO.4 - 20 - 24, RING ROAD GUNTUR [PAN :AAAC9113C] ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI Y SESHA SRINIVAS, DR / RESPONDENT BY : SHRI I KAMA SASTRY, AR / DATE OF HEARING : 08 . 02 .201 8 / DATE OF P RONOUNCEMENT : 2 1 . 0 2 .201 8 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS) [CIT(A)] - 1 , GUNTUR VIDE ITA 2 ITA NO . 128 /VIZ/201 6 BOMMIDALA PACKAGINGS LTD ., GUNTUR NO. 241/CIT(A) - 1/GNT/2013 - 14 DATED 08.02.2016 FOR THE ASSESSMENT YEAR 20 06 - 07 . 2. THE ASSESSMENT WAS COMPLETED U/S 143(3) ON TOTAL INCOME OF RS.NIL BY AN ORDE R U/S 143(3) R.W.S.147 ON 29.12.2009. SUBSEQUENTLY THE AO FOUND THAT THERE WAS A MISTAKE IN TOTAL SALES AS PER THE TDS CERTIFICATES. THE TOTAL SALES AS PER THE TDS CERTIFICATES WERE RS.5,83,74,100/ - , WHEREAS THE ASSESSEE HAD ADMITTED TOTAL SALES OF RS.5,0 8,44,437/ - . THE AO OBSERVED THAT THE SALES RELATING TO M/S HINDUSTAN LEVER LIMITED, UTTARANCHAL AMOUNTING TO RS.75,29,663/ - OMITTED TO HAVE INCLUDED IN THE TOTAL SALES , H ENCE ISSUED NOTICE U/S 154 AFTER GIVING OPPORTUNITY TO THE ASSESSEE, PASSED RECTIFICA TION ORDER DETERMINING THE TOTAL INCOME OF RS.94,22,292/ - AFTER SET OFF OF LOSSES , T HE REVISED TOTAL INCOME WAS ALSO ASSESSED AT RS.NIL. 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) ALLOWED THE APP EAL OF THE ASSESSEE HOLDING THAT THE ASSESSEE IS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING AND EXCLUDE D THE EXCISE DUTY OR SALES TAX AND ADMITT ED THE NET SALES IN THE PROFIT AND LOSS ACCOUNT AND OBSERVED THAT THERE WAS NO DIFFERENCE IN SALES AND ACCORDINGL Y ALLOWED THE APPEAL OF THE ASSESSEE . 3 ITA NO . 128 /VIZ/201 6 BOMMIDALA PACKAGINGS LTD ., GUNTUR 4 . AGGRIEVED BY THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HEARING, THE LD.DR ARGUED THAT THERE WAS A MISTAKE IN THE TOTAL SALES ADMITTED BY THE ASSESSEE AS PER THE TDS CERTIFICATES AND AS PER THE TOTAL SALES ADMITT ED BY THE ASSESSEE. THOUGH THE ASSESSEE HAS FURNISHED THE RECONCILIATION STATEMENT TO THE AO, THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS TO VERIFY THE CORRECTNESS OF THE RECONCILIATION STATEMENT. THE LD.CIT(A) ALSO RELIED ON THE RECONCILIATION S TATEMENT SUBMITTED BY THE ASSESSEE BUT NOT VERIFIED THE CORRECTNESS OF THE RECONCILIATION WITH THE BOOKS OF ACCOUNTS. THE LD.DR FURTHER SUBMITTED THAT ONLY ISSUE INVOLVED IN THIS CASE IS NON ADMISSION OF SALES OF HINDUSTAN LEVER LTD. WHICH CAN BE VERIFIED FROM THE BOOKS OF ACCOUNTS. HENCE ARGUED THAT THE ISSUE SHOULD BE REMITTED BACK TO THE FILE OF THE AO TO VERIFY THE CORRECTNESS OF THE RECONCILIATION STATEMENT AND TO PASS APPROPRIATE ORDERS. 5. ON THE OTHER HAND THE LD.AR VEHEMENTLY OPPOSED TO REMIT THE MATTER BACK TO THE FILE OF THE AO AND SUPPORTED THE ORDERS OF THE LD.CIT(A). THE LD.AR FILED A PAPER BOOK ENCLOSING THE LEDGER COPY OF THE SALES MADE FOR THE PERIOD FROM 01.04.2005 TO 31.03.2006 AND FURNISHED THE DETAILS OF THE SALES MADE DURING THE RELEVANT YEAR . THE LD.AR ALSO F URNISHED THE BILL WISE AMOUNT FOR WHICH THE TDS WAS NOT DEDUCTED BY M/S HINDUSTAN LEVER 4 ITA NO . 128 /VIZ/201 6 BOMMIDALA PACKAGINGS LTD ., GUNTUR LIMITED, UTTARANCH AL AMOUNTING TO RS.75,29,663/ - . THE LD.AR ARGUED THAT THERE WAS NO UNDERSTATEMENT OF SALES AND THE ASSESSEE HAD ACCOUNTED THE ENTIRE SALES HENCE ARGUED THAT THE ORDER OF THE LD.CIT(A) DOES NOT REQUIRE INTERFERENCE. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. ON PERUSAL OF THE RECONCILIATION STATEMENT AND THE SALES ACCOUNT WE ARE OF T HE OPINION THAT THERE WAS CONSIDERABLE MERIT IN THE SUBMISSION MADE BY THE LD.A.R. HOWEVER, THOUGH THE ASSESSEE HAS FILED RECONCILIATION STATEMENT BEFORE THE AO, NEITHER THE AO NOR THE CIT(A) HAS VERIFIED THE SAME WITH BOOKS OF ACCOUNTS TO FIND OUT WHETHE R THE SALES OF HINDUSTAN L E VER LTD WERE ADMITTED FOR THE ASSESSMENT YEAR 2006 - 07 OR NOT? THOUGH THE ASSESSEE HAD RECONCILED THE SALES IT IS OBLIGATION ON THE PART OF THE ASSESSEE TO DEMONSTRATE THE CORRECTNESS OF THE RECONCILIATION WITH THE BOOKS OF ACCOUN TS. THEREFORE IN THE INTEREST OF JUSTICE, WE ARE OF THE CONSIDERED OPINION THAT THE ISSUE SHOULD BE REMITTED BACK TO THE FILE OF THE AO TO VERIFY THE CORRECTNESS OF RECONCILIATION STATEMENT FILED BY THE ASSESSEE WITH THE BOOKS OF ACCOUNTS AND TO VERIFY TH E SALES MADE TO M/S HINDUSTAN LEVER LIMITED AS PER PAGE NO.3 OF THE PAPER BOOK WAS ADMITTED IN THE RETURN OF INCOME OR NOT AND TO PASS APPROPRIATE ORDERS U/S 154. 5 ITA NO . 128 /VIZ/201 6 BOMMIDALA PACKAGINGS LTD ., GUNTUR ACCORDINGLY, THE ISSUE IS REMITTED BACK TO THE FILE OF THE AO AND THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSE . THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21 ST FEB 20 1 8 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 21 .02.2018 L.RAMA, SPS / COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT - THE ASST. COMMISSIONER OF INCOME - TAX, CIRCLE - 1(1), GUNTUR 2 . / THE RESPONDENT M/S BOMMIDALA PACKAGINGS LTD., D.NO.4 - 20 - 24, RING ROAD, GUNTUR 3 . THE PR. COMMISSIONER OF INCOME TAX , GUNTUR 4. THE COMMISSIONER OF INCOME TAX(APPEALS) - 1, GUNTUR 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM