PARTHASARATHY GOPINATHAN, CHENNAI V. ITO NON CORPORATE WARD 8(3), CHENNAI

ITA 1366/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6008 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 03-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S. PANDIAN
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !', $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.1366/CHNY/2019 ' (' / ASSESSMENT YEAR : 2015-16 SHRI PARTHASARATHY GOPINATHAN, #36, VELLALAR STREET, PERIYA NOLAMBUR, NOLAMBUR, CHENNAI - 600 095. PAN : AKTPG 9378 C V. THE INCOME TAX OFFICER, NON CORPORATE WARD 8(3), CHENNAI - 600 034. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : NONE ,-*+ . / / RESPONDENT BY : DR. S. PANDIAN, JCIT 0 . 1$ / DATE OF HEARING : 25.07.2019 23( . 1$ / DATE OF PRONOUNCEMENT : 01.08.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -9, CHENNA I, DATED 31.03.2019 AND PERTAINS TO ASSESSMENT YEAR 2015-16. 2. NO ONE APPEARED FOR THE ASSESSEE EVEN THOUGH THE APPEAL WAS ADJOURNED ON THE BASIS OF THE LETTER OF THE ASS ESSEE. THEREFORE, 2 I.T.A. NO.1366/CHNY/2019 WE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PR OCEEDED TO DISPOSE OF THE APPEAL ON MERIT. 3. DR. S. PANDIAN, THE LD. DEPARTMENTAL REPRESENTAT IVE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS DIFFERENCE IN INVOICE VALUE AND ADMITTED VALUE OF GOODS IMPORTED. ACCORDING TO THE LD. D.R., THE INVOICE VALUE WAS 43,90,438/-. HOWEVER, THE ASSESSEE HAS ADMITTED ONLY 28,35,358/- IN THE PROFIT & LOSS ACCOUNT. MOREOVER, THE DATA AVAILABLE WITH THE ASS ESSING OFFICER SHOWS THE PAYMENT OF CUSTOMS DUTY TO THE EXTENT OF 11,94,206/- AGAINST WHICH THE ASSESSEE HAS NOT CLAIMED ANY EXPE NDITURE UNDER THE HEAD CUSTOMS DUTY PAID IN THE PROFIT & LOSS A CCOUNT. ACCORDING TO THE LD. D.R., THE ASSESSEE CLAIMED BEF ORE THE ASSESSING OFFICER THAT THEY ARE DEALING IN INDUSTRI AL PAINTS WHICH WOULD BECOME OBSOLETE WITHIN THREE MONTHS. SINCE T HE DIFFERENCE WAS NOT RECONCILED, ACCORDING TO THE LD. D.R., THE ASSESSING OFFICER MADE ADDITION OF 15,55,080/- TO THE TOTAL INCOME OF THE ASSESSEE. THE CIT(APPEALS) ALSO CONFIRMED THE ADDITION MADE B Y THE ASSESSING OFFICER. 3 I.T.A. NO.1366/CHNY/2019 4. WE HEARD THE LD. D.R. AND PERUSED THE RELEVANT M ATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER MADE AD DITION OF 15,55,080/- DUE TO DIFFERENCE IN THE INVOICE VALUE AS WELL AS CBEC DATA AND ACTUAL PURCHASE VALUE REPORTED IN THE PROF IT & LOSS ACCOUNT. THE ASSESSEE CLAIMED BEFORE THE ASSESSING OFFICER REDUCTION OF PURCHASES ON ACCOUNT OF OBSOLETE STOCK AND DAMAGES WHICH WAS NOT DEMONSTRATED WITH NECESSARY MATERIAL EVIDENCE. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT GIV ING ONE MORE OPPORTUNITY TO THE ASSESSEE TO EXPLAIN HOW THE DIFF ERENCE OCCURRED BETWEEN INVOICE VALUE AND ADMITTED VALUE WOULD PROM OTE THE CAUSE OF JUSTICE. GIVING ONE MORE OPPORTUNITY TO THE ASS ESSEE MAY NOT PREJUDICE THE INTERESTS OF REVENUE IN ANY WAY. THE REFORE, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE IS SUE RAISED BY THE ASSESSEE WITH REGARD TO DIFFERENCE IN INVOICE VALUE AND PURCHASE VALUE REPORTED IN PROFIT & LOSS ACCOUNT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER AND THEREAFTER DECIDE THE ISSUE AFRESH AFTER CONSIDERING RECONCILIATION, IF ANY, FILED BY THE ASSESSEE, IN A CCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESS EE. 4 I.T.A. NO.1366/CHNY/2019 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 1 ST AUGUST, 2019 AT CHENNAI. SD/- SD/- (. !') ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 1 ST AUGUST, 2019. KRI. . ,167 87(1 /COPY TO: 1. *+/ APPELLANT 2. ,-*+/ RESPONDENT 3. 0 91 () /CIT(A)-9, CHENNAI 4. PRINCIPAL CIT-4, CHENNAI 5. 7: ,1 /DR 6. ' ; /GF.