M/s. Vitco Tea & Allied Pvt. Ltd., , Siliguri V. ITO, Ward - 1(4), Jalpaiguri , Jalpaiguri

ITA 1422/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9380 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 02-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Section: 143(3); 68

Judgement Text

PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH D, KOLKATA BEFORE SH. P.M.JAGTAP, VICE PRESIDENT & SH.S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.1422/KOL/2018 (ASSESSMENT YEAR-2012-13) ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER THIS APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 03.05.2018 PASSED BY CIT(A), JALPAIGURI FOR AY 2012-13 U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). 2. HEARD BOTH PARTIES AND PERUSED MATERIAL AVAILABLE ON RECORD. IT IS NOTED FROM THE ASSESSMENT ORDER THAT THE AO FOUND THAT THE ASSESSEE HAS SHOWN HEAD SUNDRY CREDITOR BALANCE IN THE BOOKS OF ACCOUNTS. TO VERIFY THE SAME, THE AO ISSUED LETTERS TO ALL THE PARTIES WHEREIN SOME OF THE PARTIES RESPONDED BY FILING REQUIRED DOCUMENTS AND PARTICULARS, SOME FAILED TO FILE ANY EXPLANATION NOR THE RELEVANT DOCUMENTS. THE AO HELD IN RESPECT OF PARTIES WHO DID NOT APPEAR BEFORE HIM THAT THE ASSESSEE CREATED A BOGUS LIABILITY IN THE GARB OF SUNDRY CREDITORS AND ADDED THE AGGREGATE OF SUCH UNEXPLAINED SUNDRY CREDITOR BALANCE AMOUNTING TO RS.21,90,478/- TO THE TOTAL INCOME OF THE ASSESSEE U/S 68 OF THE ACT. 3. THE ASSESSEE CHALLENGED THE IMPUGNED ADDITION BEFORE THE CIT(A) AND IT IS OBSERVED THAT THERE WAS NO ADJUDICATION BY THE CIT(A) IN THE FIRST APPELLATE PROCEEDINGS. FURTHER, IT IS NOTED THAT THE CIT(A) M/S. VITCO TEA & ALLIED PVT.LTD., 2 ND MILE, 233, SEVOKE ROAD, P.O-SILIGURI-734001. PAN- AADCV1883G VS ITO, WARD-1(4), JALPAIGURI. (APPELLANT) (RESPONDENT) APPELLANT BY SH. S.M.SURANA, ADV. RESPONDENT BY SH. RADHEY SHYAM, CIT DR DATE OF HEARING 09.04.2019 DATE OF PRONOUNCEMENT 03.07.2019 ITA NO.1422/KOL/2018 (ASSESSMENT YEAR-2012-13) PAGE | 2 ISSUED MANY NOTICES FIXING THE DATE OF HEARING ON FOUR OCCASIONS BUT, HOWEVER, NO COMPLIANCE WAS MADE BY THE ASSESSEE BEFORE HIM. 4. THE CONTENTION OF THE LD.AR IS THAT WHEN THE AO COULD NOT VERIFY THE RELEVANT DOCUMENTS RELATING TO THE IMPUGNED ADDITIONS, THE PARTIES WHO DID NOT COMPLY IN THE ASSESSMENT PROCEEDINGS, THE MATTER MAY BE REMANDED TO THE FILE OF AO FOR HIS FRESH VERIFICATION OF EVIDENCES INVOLVING THE IMPUGNED ADDITION. THE LD. DR OPPOSED THE SAME WHEN THERE IS NO FINDING BY THE CIT(A), THE MATTER SHOULD BE REMANDED TO THE FILE OF CIT(A) INSTEAD OF AO. FURTHER, IT WAS CONTENDED WHEN THE MATTER IS BEFORE THE CIT(A), THE DEMAND WILL BE ALIVE AND THE RESPONDENT-REVENUE CAN TAKE STEPS IN RECOVERING THE OUTSTANDING TAX. WE FIND THAT IN THE ASSESSMENT ORDER FROM PAGE NO.2 TO 3, THE AO CLEARLY HELD THE CREDIT BALANCE OF PARTIES REFLECTED IN PAGE NO.2 OF AO COULD NOT BE VERIFIED AND THE ASSESSEE COULD NOT FILE ANY MATERIAL EVIDENCE TO RECONCILE THE DIFFERENCE BETWEEN CREDIT BALANCES AS SHOWN BY THE ASSESSEE AND HAS SHOWN BY THE SUNDRY CREDITORS. THEREFORE, IN OUR VIEW, AS RIGHTLY POINTED OUT BY THE LD.AR, THE MATTER SHOULD BE REMANDED TO THE FILE OF AO AND ACCORDINGLY, IT IS REMANDED TO THE FILE OF AO FOR HIS FRESH CONSIDERATION. THE ASSESSEE IS LIBERTY TO FILE EVIDENCES, IF ANY, IN SUPPORT OF IMPUGNED ADDITION. THUS, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03.07.2019. SD/- SD/- (P.M.JAGTAP) (S.S.VISWANETHRA RAVI) VICE PRESIDENT JUDICIAL MEMBER DATE:- 03.07.2019 *AMIT KUMAR* ITA NO.1422/KOL/2018 (ASSESSMENT YEAR-2012-13) PAGE | 3 COPY FORWARDED TO: 1. APPELLANT- M/S. VITCO TEA & ALLIED PVT.LTD., 2 ND MILE, 233, SEVOKE ROAD, P.O-SILIGURI-734001. 2. RESPONDENT- ITO, WARD-1(4), JALPAIGURI. 3. CIT-KOLKATA 4. CIT(APPEALS)-KOLKATA 5. DR: ITAT -KOLKATA BENCHES BY ORDER AR/H.O.O ITAT, KOLKATA