ITO Wd 1(2), Kolkata, Kolkata V. M/s. Pearl Transport Co. Ltd, Kolkata

ITA 1439/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75049 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2014
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2002-2003
• Appeal Filed On: 08-10-2012
• Court: TRIBUNAL
• Department Lawyers: SUCHETA CHATTOPADHYAY
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C , KOLKATA [BEFORE HONBLE SRI ABRAHAM P.GEORGE, AM & HONBL E SRI GEORGE MATHAN, JM] ITA NOS.1439,1440&1441/KOL/2012 ASSESSMENT YEARS : 2002-03, 2003-04 & 2004-05 ( APPELLANT ) (RESPONDENT) I.T.O., WARD-1(2) -VS- M/S.PEARL TRANSPORT CO.L TD. KOLKATA KOLKATA (PAN: AACCP 2218 A) FOR THE APPELLANT SMT.SUCHETA CHATTOPADHYAY, JCIT, SR.DR FOR THE RESPONDENT: SHRI RAVI TULSIYAN, CA DATE OF HEARING : 31.01.2014 DATE OF PRONOUNCEMENT : 06. 02.2014. ORDER PER SHRI GEORGE MATHAN, JM THESE ARE THREE APPEALS FILED BY THE REVENUE AGAIN ST THE CONSOLIDATED ORDER OF LD. C.I.T(A)-I, KOLKATA IN APPEAL .NO.92,93&143/CIT (A)-I/1(2)/08-09 DATED 02.07.2012 FOR ASSESSMENT YEARS 2002-03, 2003-04 AN D 2004-05 2. SMT.SUCHETA CHATTOPADHYAY, JCIT,SR.DR REPRESEN TED ON BEHALF OF THE REVENUE AND SHRI RAVI TULSIYAN, CA REPRESENTED ON BEHALF OF THE ASSESSEE. 3. IN THE REVENUES APPEAL THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : ITA NO.1439/KOL/2012 (A.YR.2002-03) 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, LD. CIT(A) ERRED IN DELETION OF ADDITION OF RS.11,99,965/- MADE U/S 40A(3) OF IT AC T AS DISALLOWANCE OF EXPENDITURE OF RS.59,99,823/- MADE IN CASH IN EXCESS OF RS.20,000/ -. 2. THAT THE APPELLANT CRAVES TO ADD OR AMEND ANY GR OUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. ITA NO.1440/KOL/2012 (A.YR.03-04) 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, LD. CIT(A) ERRED IN DELETION OF ADDITION OF RS.8,71,190/- MADE U/S 40A(3) OF IT ACT AS DISALLOWANCE OF EXPENDITURE OF RS.43,55,950/- MADE IN CASH IN EXCESS OF RS.20,000/ -. ITA NOS.1439,1440&144 1/KOL/2012 M/S.PEA RL TRANSPORT CO..LTD. A.YRS.2002-03, 2003- 04 & 2004-05 2 2. LD.CIT(A) ERRED IN TAKING INTO ACCOUNT THE CONT RACT AND GODOWN RENTAL INCOME AT RS.1,92,02,845/- INSTEAD OF RS.1,90,02,845/- AS OBS ERVED BY THE AO DURING ASSESSMENT AND GRANTED RELIEF OF RS.2,00,000/- ACCORDINGLY. 3. THAT THE APPELLANT CRAVES TO ADD OR AMEND ANY GR OUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. ITA NO.1441/KOL/2012 (A.YR.04-05) 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE C ASE, LD. CIT(A) ERRED IN DELETION OF ADDITION OF RS.19,96,429/- MADE U/S 40A(3) OF IT AC T AS DISALLOWANCE OF EXPENDITURE OF RS.99,82,143/- MADE IN CASH IN EXCESS OF RS.20,000/ -. 2. THAT THE APPELLANT CRAVES TO ADD OR AMEND ANY GR OUNDS OF APPEAL ON OR BEFORE THE DATE OF HEARING. 4. IT WAS SUBMITTED BY THE LD. DR THAT THE MAIN ISS UE IN REVENUES APPEAL WAS AGAINST THE ACTION OF LD. CIT(A) IN DELETING THE AD DITION MADE BY THE AO BY INVOKING THE PROVISION OF SECTION 40A(3) OF THE ACT IN RESPE CT OF CASH PAYMENTS MADE BY THE ASSESSEE TO THE LABOURERS. IT WAS THE SUBMISSION TH AT THE PAYMENTS HAVE BEEN MADE THROUGH LABOUR SARDARS IN EXCESS OF RS.20,000/- IN CASH. THE LD. CIT(A) OUGHT NOT TO HAVE DELETED THE ADDITION. IT WAS PRAYED THAT ORDER OF THE LD. CIT(A) BE REVERSED. 4.1. IN REGARD TO THE ISSUE IN GROUND NO.2 IN ITA N O.1440/KOL/2012 FOR A.YR. 2003-04 IT WAS THE SUBMISSION THAT THE LD. CIT(A) E RRED IN DELETING THE ADDITION OF RS.2,00,000/-. THE LD. DR VEHEMENTLY SUPPORTED THE ORDER OF AO. 5. IN REPLY THE LD. AR DREW OUR ATTENTION TO THE OR DER OF LD. CIT(A). IT WAS THE SUBMISSION THAT THE LD. CIT(A) HAD VERIFIED THE CAS H VOUCHERS AS ALSO THE LABOURERS PAYMENT REGISTER WHEREIN EACH OF THE PAYMENTS TO TH E LABOURERS WERE LESS THAN RS.20,000/- IT WAS THE SUBMISSION THAT IT WAS ONLY FOR THE PURPOSE OF EASING THE PRESSURE OF PAYMENTS, THE PAYMENTS WERE MADE THROUG H LABOUR SARDARS. IT WAS THE SUBMISSION THAT EACH OF THE PAYMENTS TO THE INDIVID UAL LABOURERS WERE SEPARATELY RECORDED AND NONE OF THE PAYMENTS EXCEED RS.20,000/ -. 5.1. IN REGARD TO THE DELETION OF RS.2,00,000/- FOR A.YR.2003-04 IT WAS THE SUBMISSION THAT THE LD. CIT(A) HAS NOT DELETED THE ADDITION SPECIFICALLY BUT HAS ONLY CORRECTED THE ARITHMETIC ERROR. IT WAS THE SUBMISSI ON THAT THE ERROR WAS IN TAKING THE FIGURE OF THE RECEIPT ON ACCOUNT OF CONTRACT AND WA REHOUSE RENT INCOME FROM ITA NOS.1439,1440&144 1/KOL/2012 M/S.PEA RL TRANSPORT CO..LTD. A.YRS.2002-03, 2003- 04 & 2004-05 3 M/S.HINDALCO LTD WHICH WAS TAKEN BY THE AO AT RS.1, 90,02,845/- AS AGAINST RS.1,92,02,845/- WHICH HAD BEEN RECEIVED AND RECORD ED IN THE ACCOUNTS OF ASSESSEE. THE LD. AR VEHEMENTLY SUPPORTED THE ORDER OF LD. CI T(A). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF THE ASSESSMENT ORDER CLEARLY SHOWS THAT IT WAS SUBMITTED BEFORE THE AO T HAT THE PAYMENTS MADE TO THE LABOURERS WERE BELOW RS.20,000/-. HOWEVER, THE AO H AD NOT ACCEPTED THE SAME BECAUSE THE PAYMENTS WERE MADE THROUGH LABOUR SARDA RS. A PERUSAL OF THE ORDER OF LD. CIT(A) CLEARLY SHOWS THAT LD. CIT(A ) HAS VERIFIED THE LABOUR PAYMENTS REGISTER AND HAS ALSO VERIFIED THAT EACH OF THE LABOURERS HAVE S IGNED OR PUT THEIR LEFT THUMB IMPRESSION AGAINST THE PAYMENTS RECEIVED BY THEM AN D THAT EACH OF THE PAYMENTS DID NOT EXCEED RS.20,000/-. THIS BEING SO AND THIS FACT HAVING NOT BEEN DISPUTED NOR DISLODGED BY THE REVENUE, WE ARE OF THE VIEW THAT T HE FINDINGS OF LD. CIT(A) ON THIS ISSUE IS ON A RIGHT FOOTING AND DOES NOT CALL FOR A NY INTERFERENCE. 6.1. IN RESPECT OF GROUND NO.2 FOR A.YR.2003-04 IT IS NOTICED FROM THE ORDER OF LD. CIT(A) AS ALSO FROM FORM 16 AS RECORDED THAT THE AC TUAL FIGURE RECEIVED BY THE ASSESSEE IS RS.1,92,02,845/- AND NOT RS.1,90,02,845 /- AS TAKEN BY THE AO. IN THE CIRCUMSTANCES WE ARE OF THE VIEW THAT THE RELIEF OF RS.2,00,000/- GRANTED BY LD.CIT(A) IS ONLY ADOPTION OF THE CORRECT FIGURE AND IS ON A RIGHT FOOTING AND DOES NOT CALL FOR ANY INTERFERENCE. 7. IN THE RESULT THE APPEAL OF THE REVENUE STAND DI SMISSED. ORDER PRONOUNCED IN THE COURT ON 06.02.2014. SD/- SD/- [ABRAHAM P.GEORGE] [ GEORGE MATHAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 06.02.2014. R.G.(.P.S.) ITA NOS.1439,1440&144 1/KOL/2012 M/S.PEA RL TRANSPORT CO..LTD. A.YRS.2002-03, 2003- 04 & 2004-05 4 COPY OF THE ORDER FORWARDED TO: 1. M/S.PEARL TRANSPORT CO.LTD., 1, SUNYAT SEN STREET, KOLKATA-12. 2 I.T.O., WARD-1(2), KOLKATA 3 . CIT(A)- I, KOLKATA 4. CIT - KOLKATA. 5. CIT(A)DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES