G.K.Roofings, Vellore V. DCIT, Vellore

ITA 1423/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81269 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-10-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 22-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: K NIRAIMATHI AZHAGAN
• Section: 143(3); 147; 148

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHE NNAI . , . ! ! ! ! , ' ' ' ' # # # # BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER ./ I.T.A.NOS.1422 AND 1423/MDS/2014 ' ! $! / ASSESSMENT YEAR :2005-06 & 2006-07 G.K. ROOFINGS, NO. 98, GANDHI ROAD, KANCHEEPURAM 631 501. [PAN: AADFG6848F] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE I, VELLORE. ( %& %& %& %& /APPELLANT ) ( '(%& '(%& '(%& '(%& / RESPONDENT ) %& ) * / APPELLANT BY : SHRI K. NIRAIMATHI AZHAGAN, CA '(%& ) * / RESPONDENT BY : SHRI S. DAS GUPTA, JCIT ) + / DATE OF HEARING : 30.10.2014 ,$ ) + /DATE OF PRONOUNCEMENT : 21.11.2014 - - - - / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THESE TWO APPEALS FILED BY THE SAME ASSESSEE ARE DI RECTED AGAINST THE COMMON ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) VII, CHENNAI, DATED 10.04.2014 RELEVANT TO THE ASSESSMEN T YEARS 2005-06 AND 2006-07. SINCE BOTH THE APPEALS PERTAINING TO SAME ASSESSEE, FACTS ARE COMMON AND THE ISSUE INVOLVED ALSO SIMILAR AND HEAR D TOGETHER ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF BR EVITY. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A FIRM DEALING IN ROOF TOP FIXTURES AND PROVIDING LABOUR SERVICES FOR FIXI NG THE ROOFING MATERIALS. IN I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NOS SS S. .. .1422 & 1423 1422 & 1423 1422 & 1423 1422 & 1423/M/ /M/ /M/ /M/1 11 14 44 4 2 THE ASSESSMENT YEAR 2005-06, THE ASSESSING OFFICER HAS NOTICED FROM THE TDS CERTIFICATES SUBMITTED BY THE ASSESSEE THAT THE GROSS CONTRACT RECEIPTS AMOUNTING TO .1,42,80,713/-, AGAINST WHICH THE ASSESSEE HAS ADMI TTED CONTRACT RECEIPTS OF .69,39,884/- ONLY IN ITS TRADING ACCOUNT. THE ASSES SEE WAS VIDE LETTER DATED 10.08.2011, REQUESTED TO RECO NCILE THE DIFFERENCE. IT WAS ALSO ASKED TO PRODUCE THE LEDGER FOLIOS OF THE SALES REGISTERED AND CONTRACT RECEIPT REGISTER FOR THE CONCERNED ACCOUNT ING PERIOD. THE ASSESSEE DID NOT RESPOND TO THE ABOVE LETTER. SUBSEQUENTLY, THE ASSESSMENT WAS REOPENED UNDER SECTION 147 OF THE INCOME TAX ACT AN D NOTICE UNDER SECTION 148 OF THE ACT WAS ISSUED. THE CASE WAS TAKEN UP FO R SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISSUED. IN RESP ONSE TO THAT, THE ASSESSEES COUNSEL APPEARED AND EXPLAINED THAT IN T HE CASE OF THE ASSESSEE, THERE IS A DIFFERENCE IN THE CONTRACT REC EIPTS ACCOUNTED BY THE ASSESSEE IN ITS BOOKS OF ACCOUNTS AND THAT IS GIVEN IN THE TDS CERTIFICATES ISSUED BY M/S. L & T. HOWEVER, HE STATED THAT THE R ELEVANT BOOKS OF ACCOUNTS, DOCUMENTS COULD NOT BE TRACED OUT AND HEN CE HE IS NOT ABLE TO FILE ANY RECONCILIATION FOR THE CONTRACT RECEIPTS ADMITT ED IN ASSESSEES BOOKS AND THAT IS FURNISHED IN TDS CERTIFICATES. THE ASSESSIN G OFFICER, AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE, COMPLETED THE ASSE SSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE ACT BY ADDING THE ENTIRE D IFFERENCE IN CONTRACT RECEIPTS ADMITTED BY THE ASSESSEE AND THAT IS REPOR TED IN THE TDS CERTIFICATES WITHOUT ALLOWING ANY FURTHER DEDUCTION . I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NOS SS S. .. .1422 & 1423 1422 & 1423 1422 & 1423 1422 & 1423/M/ /M/ /M/ /M/1 11 14 44 4 3 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFOR E THE LD. CIT(APPEALS). EVEN BEFORE THE LD. CIT(APPEALS), THE ASSESSEE HAS NOT FILED ANY RECONCILIATION FOR CONTRACT RECEIPTS ADMITTED I N THE BOOKS AND THAT IS FURNISHED IN THE TDS CERTIFICATES. UNDER THOSE CIRC UMSTANCES, THE LD. CIT(APPEALS) CONFIRMED THE ORDER OF THE ASSESSING O FFICER. 4. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT IT WAS NOT ABLE TO RECONCILE THE CONTRACT RECEIPTS ADMITTE D IN THE BOOKS AND THAT IS FURNISHED IN THE TDS CERTIFICATES. THE RELEVANT BOO KS AND DOCUMENTS COULD NOT BE TRACED OUT AT THAT TIME AND HE HAS REQUESTED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE FOR PRODUC ING THE BOOKS AND OTHER DOCUMENTS BEFORE THE ASSESSING OFFICER. 5. ON THE OTHER HAND, THE LD. DR STRONGLY SUPPORTE D THE ORDERS PASSED BY THE AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ONE RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. T HE ASSESSING OFFICER HAS MADE THE ADDITION FOR THE REASON THAT THERE IS DIFF ERENCE IN THE CONTRACT RECEIPTS ADMITTED BY THE ASSESSEE AND THE TDS CERTI FICATE FURNISHED. THE ASSESSEE WAS NOT ABLE TO RECONCILE THE CONTRACT REC EIPTS ADMITTED IN ASSESSEES BOOKS AND THAT IS FURNISHED IN THE TDS C ERTIFICATE NEITHER BEFORE THE ASSESSING OFFICER NOR BEFORE THE LD. CIT(APPEAL S). AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE UNDERTOOK BEFORE T HE BENCH THAT THE I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NOS SS S. .. .1422 & 1423 1422 & 1423 1422 & 1423 1422 & 1423/M/ /M/ /M/ /M/1 11 14 44 4 4 ASSESSEE IS NOW READY TO SUBMIT THE RECONCILED STAT EMENT BEFORE THE ASSESSING OFFICER AND PRAYED FOR OFFERING ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE. ACCORDINGLY, IN THE INTEREST OF JUSTI CE, WE ARE OF THE HUMBLE OPINION THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO T HE ASSESSEE TO FILE THE RECONCILED STATEMENT AND OTHER RELATED DOCUMENTS BE FORE THE ASSESSING OFFICER. WE, THEREFORE, SET ASIDE THE CONSOLIDATED ORDER PASSED BY THE LD. CIT(APPEALS) RELEVANT TO THE ASSESSMENT YEARS 2005- 06 AND 2006-07, WHEREIN FACTS AND ISSUE RAISED ARE COMMON AND REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO CONSIDER THE ISSUE AFRESH AND DECIDE IN ACCORDANCE WITH LAW AFTER ALLOWING OPPORTUNITY OF H EARING TO THE ASSESSEE FOR BOTH THE ASSESSMENT YEARS 2005-06 AND 2006-07. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON FRIDAY, THE 21 ST OF NOVEMBER, 2014 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 21.11.2014 VM/- - ) ''+./ 0/$+ /COPY TO: 1. %& / APPELLANT, 2. '(%& / RESPONDENT, 3. 1 ( ) /CIT(A), 4. 1 /CIT, 5. /2 ''+' /DR & 6. 3! 4 /GF.