Assistant Commissioner Of Income Tax, Jabalpur V. Smt. Vinita Badkul, Jabalpur

ITA 140/JAB/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1062 (ITAT-JABALPUR)
• Duration Of Justice: 6 year(s) 18 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-05-2019
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 22-05-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 10-05-2013
• Court: TRIBUNAL
• Department Lawyers: D P LAKHORIYA
• Assessee Lawyers: SANJAY SETH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI D.T. GARASIA, J.M. AND SHRI B.C.MEENA, A.M. I.T.A.NO. 140/JAB/2013 A.Y. : 2009-10 ACIT, SMT. VINITA BARKUL, CIRCLE 1(1), JABALPUR VS WRIGHT TOWN, JABALPUR APPELLANT RESPONDENT PAN NO. : AFRPB4543D APPELLANT BY : SHRI D.P.LAKHORIYA, D.R. RESPONDENT BY : SHRI SANJAY SETH, C.A. DATE OF HEARING : 22 . 0 5 .201 5 DATE OF PRONOUNCEMENT : 22 . 0 5 .201 5 O R D E R PER GARASIA, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), JABALPUR, DATED 29.10.2012 FOR THE ASSE SSMENT YEAR 2009-10. -: 2: - 2 2. THE REVENUE HAS TAKEN FOLLOWING GROUNDS OF APPEAL : - 1) ON THE FACTS AND CIRCUMSTANCES, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 17,45,422/- MADE ON ACCOUNT OF DIFFERENCE IN RECEIPTS FROM RELIANCE. 2) THE CIT(A) HAS ERRED IN NOT APPRECIATING THE FACTS THAT THE ASSESSEE DID NOT SUBMIT RECONCILIATION STATEMENT OF COMMISSION/INTEREST/INCENTIVES IN SUPPORT TO ITS CONTENTION AT ANY STAGE AND THAT THE ASSESSEE NEVER STATED BEFORE THE AO THAT THE ABOVE AMOUNT WAS TRANSFERRED TO RETAILERS AGAINST INCENTIVES/COMMISSION. 3. THE ASSESSEE IS IN THE BUSINESS OF DISTRIBUTOR OF RECHARGE VOUCHERS, SIMS ETC. OF RELIANCE INDIA MOBI LES. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THE WRIT TEN SUBMISSION, WHICH READS AS UNDER :- HON. MEMBER, IN ADDITION TO ORAL SUBMISSION PUT FORTH BEFORE YOU R HONOUR IT IS SUBMITTED AS FOLLOWS: -: 3: - 3 1. THAT THE APPLICANT HAD MADE THE ADDITION OF RS. 17,46,423/- ON ACCOUNT OF DIFFERENCE IN RECEIPTS FROM RELIANCE TELECOM M CASE OF M/S ADITI ENTERPRISES. THE ASSESSEE IS DISTRIBUTOR OF RECHARG E VOUCHERS, SIMS ETC. OF RELIANCE INDIA MOBILES (RIM) ( HERE IN AFTER CALLED COMPANY). DURING THE YEAR UNDER CONSIDERATION THE COMPANY HAD DEDUCTED INCOME TAX OF RS. 3,18,561/- ON PAYMENTS OF RS. 28,41,870/- FOR INTEREST, INCENTIVES, COMMISSION ETC. PAID BY THE COMPANY. RESPONDENT HAD INCORPORATED THE TOTAL AMOUNT IN HER BOOKS OF ACCOUNTS AND SUBMITTED THE COPY OF VARIOUS LEDGER ACCOUNT WITH THE APPLICANT. DURING THE COURSE OF ASSESSMENT APPLICANT RAISED A QUERY FOR INCOME OF RS. 28,41,870/- WHICH WAS NOT SHOWN M THE PROFIT AND LOSS ACCOUNT. RESPONDENT SUBMITTED THE COPY OF LEDGER ACCOUNT IN WHICH THE NET INCOME WAS SHOWN IN THE PROFIT AND LOSS ACCOUNT AS THE RESPONDENT HAD TO PAY INCENTIVES TO THE SUB DEALERS. THE DETAILS ARE AS SUCH :- GROSS RECEIPTS FROM THE COMPANY AGAINST INTEREST, INCENTIVES, COMMISSION ETC. 28,41,870/- LESS :- AMOUNT TRANSFERRED TO RETAILERS AGAINST INCENTIVE COMMISSION ETC. 17,45,422/- NET AMOUNT SHOWN IN PROFIT & LOSS A/C 10,95,448 /- 2. THAT THE APPELLANT VIDE POINT NO. 2 OF GROUNDS OF APPEAL BEFORE THE HON. BENCH HAD SUBMITTED THAT -: 4: - 4 'THE ASSESSEE DID NOT SUBMIT RECONCILIATION STATEMENT OF COMMISSION / INTEREST / INCENTIVES IN SUPPORT TO ITS CONTENTION AT ANY STAGE AND THAT THE ASSESSEE NEVER STATED BEFORE THE AO THAT THE ABOVE AMOUNT WAS TRANSFERRED TO RETAILERS AGAINST INCENTIVES / COMMISSIONS'. 3. THAT THE RESPONDENT DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE HIS REPLY DATED 24.10.2011 HAD SUBMITTED THE DETAILS OF INCOME OF RELIANCE FOR RS. 28,41,870/- (COPY ENCLOSED) WHICH THE AO HAD ASKED TO SUBMIT. RESPONDENT HAS ALSO SUBMITTED THE COPY OF LEDGER ACCOUNT IN SUPPORT OF HER REPLY TO THE AO. 4. THAT THE RESPONDENT HAD ALSO SUBMITTED THE COPY OF CERTIFICATE ISSUED BY THE RELIANCE (COPY ENCLOSED ) IN SUPPORT OF HER SUBMISSION. 5. IT IS ALSO SUBMITTED THAT THE DOCUMENTS / REPLY SUBMITTED BEFORE YOUR HONOUR HAS BEEN SUBMITTED AT THE STAGE OF ASSESSMENT AND APPEAL PROCEEDINGS. 6. LOOKING IN TO ABOVE FACTS THE APPEAL MADE BY THE APPLICANT MAY KINDLY BE DISMISSED. 5. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO RAISED QUERY REGARDING INCOME OF RS. 28,41,870/-WHI CH WAS -: 5: - 5 SHOWN IN THE PROFIT AND LOSS ACCOUNT AND THE ASSESS EE HAS TAKEN THE CONTENTION THAT HE HAS TO PAY INCENTIVES TO THE SUB- DEALER AND THAT INFORMATION WAS GIVEN TO THE LD. CI T(A). 6. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALSO GONE THROUGH THE WRITTEN SUBMISSION SUBMITTED BY THE ASSESSEE. T HE ASSESSEE SUBMITTED THE COPY OF LEDGER ACCOUNT IN WH ICH THE NET INCOME WAS SHOWN IN THE PROFIT AND LOSS ACCOUN T, AS THE ASSESSEE HAD TO PAY INCENTIVES TO THE SUB DEALERS. THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDING S VIDE HER REPLY DATED 24.10.2011 HAD SUBMITTED THE DETAILS OF INCOME OF RELIANCE FOR RS. 28,41,870/-, WHICH THE AO HAD ASKE D TO SUBMIT. ASSESSEE HAS ALSO SUBMITTED THE COPY OF LED GER ACCOUNT IN SUPPORT OF HER REPLY TO THE AO. WE FIND THAT THE LD. CIT(A) WITHOUT VERIFYING AND CALLING FOR REMAND REP ORT HAS DELETED THE ADDITION. THEREFORE, THE AO HAD NO CHAN CE TO VERIFY THE SAME. WE, THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY, RESTORE THIS ISSUE BACK TO THE FILE OF AO AND THE A O IS DIRECTED TO VERIFY THE SAME AND DECIDE THE MATTER AFRESH AFT ER AFFORDING PROPER OPPORTUNITY TO THE ASSESSEE. -: 6: - 6 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 22 ND MAY, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 22 ND MAY , 2015. CPU* 126