ITO, WD-23(2), HOOGHLY, Hooghly V. M/s Shreehari Bastralaya, Hooghly

ITA 1396/KOL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4519 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 19-11-2015
• Court: TRIBUNAL
• Department Lawyers: AMITABH BHATTACHARYA
• Keywords: Tax effect

Judgement Text

I.T.A. NO. 1396/KOL./2015 ASSESSMENT YEAR: 2009-2010 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 1396 /KOL/ 2015 ASSESSMENT YEAR: 2009-2010 INCOME TAX OFFICER,................................ ............................APPELLANT WARD-23(2), HOOGHLY, AAYAKAR BHAWAN, KHADINAMORE, G.T. ROAD, HOOGHLY-712 101 -VS.- M/S. SHREEHARI BASTRALAYA,......................... ...................RESPONDENT BAGBAZAR, CHANDANNAGAR STATION ROAD, P.O. & P.S. CHANDANNAGAR, HOOGHLY-712 136 [PAN: AATFS 4073 G] APPEARANCES BY: SHRI AMITABH BHATTACHARYA, JCIT, D.R., FOR THE DEPARTMENT SHRI SOMNATH GHOSH, ADVOCATE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : JULY 27, 2016 DATE OF PRONOUNCING THE ORDER : JULY 27, 2016 O R D E R THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-6, KOLKATA DAT ED 07.09.2015 FOR THE ASSESSMENT YEAR 2009-10 ON THE FOLLOWING GROUND S:- (1) WHETHER THE LD. CIT(A) ERRED IN DELETING THE EN TIRE ADDITION MADE ON ACCOUNT OF DISCREPANCY FOUND ON PHYSICAL VE RIFICATION OF STOCK DURING THE COURSE OF SURVEY OPERATION U/S 133(A) IN SPITE OF THE FACT - (I) THAT THE VALUATION OF STOCK HAD BEEN RIGHTLY QUANTIFIED IN PRESENCE OF ASSESSEE OUT OF HIS SALE REGISTER, PURCHASE REGISTER & BILLS AND VOUCHERS MAINTAINED BY ASSESSEE OR FOUND DURING THE COURSE O F SURVEY AND THE VALUATION OF STOCK WAS COMPUTED IN PRESENCE OF ASSESSEE WHICH WAS ACCEPTED AND CONFIRMED BY THE ASSESSEE AS PER STATEMENT RECORDED AT THE TIME OF SURVEY. I.T.A. NO. 1396/KOL./2015 ASSESSMENT YEAR: 2009-2010 PAGE 2 OF 3 (II) THAT THE ASSESSEE HAD FAILED TO RECONCILE THE STOCK FIGURE AT THE TIME OF HEARING ON 19.09.2008 AND ACCEPTED SUCH DISCREPANCY OF STOCK. AGAIN DURING TH E COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAD CONFIRMED AND ACCEPTED THE DISCREPANCY VIDE HIS SUBMISSION DATED 09.12.2011. (III) THAT THE ASSESSEE FAILED TO PRODUCE STOCK REG ISTER DURING THE COURSE OF SURVEY AS NO STOCK REGISTER WA S EVER MAINTAINED BY THE ASSESSEE AND THE ASSESSEE WA S IN PRACTICE TO VALUE THE STOCK AT THE END OF THE YE AR AS ADMITTED IN STATEMENT RECORDED DURING THE COURSE OF SURVEY. (IV) THAT THE FRESH SUBMISSION OF ASSESSEE ON ITEM WISE PURCHASE AND SALE WHICH WAS NOT PRODUCED BY THE ASSESSEE AT ANY TIME DURING SURVEY AND ASSESSMENT PROCEEDINGS, HAD BEEN GIVEN COGNISANCE BEFORE DELETING THE ADDITION MADE BY AD ON ACCOUNT OF DISCREPANCY OF STOCK FOUND AS DISCUSSED ABOVE. (2) WHETHER THE LD. CIT(A) ERRED IN DELETING THE EN TIRE ADDITION MADE ON ACCOUNT OF DISCREPANCY REGARDING PAYMENT OF PARTNER'S REMUNERATION IN ABSENCE OF ANY CATEGORICAL NOTING I N THE PARTNERSHIP DEED REGARDING WORKING PARTNERS REMUNER ATION IGNORING THE CBDT CIRCULAR NO. 739 DT. 25/03/1996. 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 I.T.A. NO. 1396/KOL./2015 ASSESSMENT YEAR: 2009-2010 PAGE 3 OF 3 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 27, 2016 . SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 27 TH DAY OF JULY, 2016 COPIES TO : (1) INCOME TAX OFFICER, WARD-23(2), HOOGHLY, AAYAKAR BHAWAN, KHADINAMORE, G.T. ROAD, HOOGHLY-712 101 (2) M/S. SHREEHARI BASTRALAYA, BAGBAZAR, CHANDANNAGAR STATION ROAD, P.O. & P.S. CHANDANNAGAR, HOOGHLY-712 136 (3) COMMISSIONER OF INCOME TAX (APPEALS)-6, KOLKA TA; (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.