ACIT, Circle - 30, Kolkata , Kolkata V. M/s. Greater Calcutta Land & Housing Corporation , Kolkata

ITA 1459/KOL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9321 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 06-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RADHEY SHYAM
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM ./ITA NO.1459/KOL/2018 ( / ASSESSMENT YEAR: 2014-15) ACIT, CIRCLE-30, KOLKATA VS. M/S GREATER CALCUTTA LAND & HOUSING CORPORATION 75, BALLYGUNGE GARDENS, KOLKATA- 700019. ./ ./PAN/GIR NO.: AAFFG 9143 F (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI RADHEY SHYAM, CIT DR RESPONDENT BY : NONE / DATE OF HEARING : 31/10/2019 /DATE OF PRONOUNCEMENT : 10/01/2020 / O R D E R PER BENCH: THE CAPTIONED APPEAL FILED BY THE REVENUE, PERT AINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-8, KOLKATA, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX AC T, 1961 (IN SHORT THE ACT) DATED 17/04/2018. 2. AT THE TIME OF HEARING NONE APPEARED ON BEHALF O F ASSESSEE IN SPITE OF ISSUANCE OF NOTICE FOR HEARING MORE THAN ONE OCCASION AND LD . DEPARTMENTAL REPRESENTATIVE(DR), WAS PRESENT FOR THE APPELLANT R EVENUE. IN THE ABSENCE OF ANY APPEARANCE BY THE ASSESSEE, THE APPEAL IS BEING DIS POSED OF EX PARTE QUA THE M/S GREATER CALCUTTA LAND & HOUSING CORPORATION ITA NO.1459/KOL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 ASSESSEE, AFTER HEARING LD. DR FOR THE REVENUE ON M ERITS IN TERMS OF RULE 24 OF THE INCOME TAX APPELLATE, TRIBUNAL, RULES, 1963. 3. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AS FOLLOWS: 1. THAT THE LD. CIT(A) HAS ERRED IN ACCEPTING THE S UBMISSION OF THE ASSESSEE ON FACE VALUE, WITHOUT PROPER ENQUIRY DESPITE THE F ACT THAT THE ACT EMPOWERS HIM TO DO SO. 2. THAT THE LD. CIT(A) HAS ERRED IN ALLOWING THE AP PEAL OF THE ASSESSEE WITHOUT GOING INTO MERITS OF THE CASE. 3. WITHOUT PREJUDICE TO THE ABOVE, THE LD. CIT(A) H AS ERRED IN DELETING THE ADDITIONS MADE BY THE ASSESSING OFFICER EVEN THOUGH HE OBSERVED THAT THE SUBMISSIONS OF THE ASSESSEE IS WINDING AND MEANDERI NG AND NOT EXACT TO THE ISSUES. 4. THAT THE LD. CIT(A) HAS ERRED IN NOT CALLING FOR A REMAND FROM THE ASSESSING OFFICER. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, M ODIFY, DELETE OR INCLUDE ANY OF THE GROUNDS OF APPEAL. 4. AT THE OUTSET ITSELF, WE NOTE THAT IN ASSESSEES CASE UNDER CONSIDERATION, THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT. THE ASSESSING OFFICER HAS NOT REJECTED ASSESSEES BOOKS OF ACCOUNTS U/S 145(3) OF THE ACT. I) THE ASSESSING OFFICER MADE ADDITION UNDER THE HE AD LOANS AND ADVANCES, TREATING THEM UNACCOUNTED MONEY OF THE ASSESSEE AT RS. 5,56, 60,895/-. II) THE ASSESSING OFFICER MADE ADDITION UNDER THE H EAD SUNDRY CREDITORS OF RS. 16,35,875/- AS THE ASSESSEE FAILED TO PRODUCE DETAI LS OF SUNDRY CREDITORS. III) THE ASSESSING OFFICER MADE AD HOC 50% DISALLOW ANCE OF VARIOUS EXPENSES. 5. NOW COMING TO DISALLOWANCE OF LOANS AND ADVANCES . WE NOTE THAT ASSESSING OFFICER MADE DISALLOWANCE AS THE ASSESSEE FAILED TO PRODUCE THE DETAILS OF UNSECURED LOANS TO THE TUNE OF RS. 5,56,60,895/- AL ONG WITH RELEVANT DOCUMENTS TO PROVE GENUINENESS AND CREDITWORTHINESS OF LOAN GIVE RS. M/S GREATER CALCUTTA LAND & HOUSING CORPORATION ITA NO.1459/KOL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 6. DURING THE APPELLATE PROCEEDINGS, THE ASSESSEE S UBMITTED WRITTEN SUBMISSION BEFORE THE LD. CIT(A) WHICH IS REPRODUCED BELOW: RS. 5,56,60,895/- UNDER THE HEAD UNACCOUNTED INCOM E FROM THE BALANCE SHEET SHOWN IN THE LIABILITIES SIDE UNDER THE HEAD LOANS AND ADVANCES. THIS LOAN AND ADVANCES IS CONTINUED FIGURE FROM THE PREVIOUS YEAR. THE ASSESSEE COMPANY PROCURE LAND FROM THE LAND PURCHASE AND SA LE THOSE LAND AFTER DUE PLOT INTO THE DIFFERENT CUSTOMERS AND IT IS AN ADVANCE M ONEY FROM THE CUSTOMER AND IT IS A LIABILITY TO THE FIRM. IF THE ASSESSEE WAS UN ABLE TO DELIVER THIS LAND, THEY WILL REFUND BACK THAT AMOUNT TO THE INTENDING BUYER. FUR THER THE ASSESSEE BORROWED MONEY FROM BANK AND OTHERS. YEAR LOAN POSITION IN DETAILS 2010-11 A.Y. 2011-12 THE LOANS FIGURE WAS RS. 5,22,57,486/- LOAN FROM U CO BANK RS. 2.01.86,056/- ADVANCE FROM M/S SUBA ENTERPRISE RS. 3,25,000/- 2011-12 A.Y. 2012-13 THE LOANS AND ADVANCES FIGURE WAS RS. 6,98,02,920/- 2012-13 A.Y. 2013-14 THE LOANS AND ADVANCES WAS RS. 6,00,64,129/-. 2013-14 A.Y. 2014-15 THE LOANS FIGURE WAS 5,56,60,085/- WHICH IS NOW DIS ALLOWED IN FULL IGNORING THE CARRYOVER EFFECT IN THE BALANCE S HEET. 7. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION O BSERVING THE FOLLOWING: THE LOANS AND ADVANCES ARE ENTIRELY BROUGHT-FORWA RD BALANCES FROM EARLIER AYS- SINCE AY 2010-11. I HAVE PERUSED THE BALANCE SHEETS AS ON 31.03.2013 AND AS ON 31.03.2014- AND THERE WILL SUFFICE. AS ON 31.03.2013 THE LOANS & AD VANCES WERE AT RS. 6,00,64,129/-. AND AS ON 31.03.2014 THE LOANS AND A DVANCES HAD REDUCED TO RS. 5,56,60,895/-. THE ENTIRE LOANS AND ADVANCES BEING BUT BROUGHT FOR WARD BALANCES FROM PRECEDING AY(S) THUS THERE CANNOT BE ANY ISSUE FOR ADDITION IN THIS A.Y. 2014-15. 8. HAVING GONE THROUGH THE ORDER OF THE LD. CIT(A), WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A). THEREFORE, WE CONFIRM THE ORDER OF THE LD. CIT(A). THAT BEING SO, WE DECLINE TO INTERFERE IN THE ORDER OF THE LD. CIT(A), HIS ORDER, ON M/S GREATER CALCUTTA LAND & HOUSING CORPORATION ITA NO.1459/KOL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 4 44 4 THIS ISSUE, IS HEREBY ACCEPTED AND THE GROUND NO. 1 RAISED BY THE REVENUE IS DISMISSED. 9. SUNDRY CREDITORS- DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE A SSESSEE WAS REPEATEDLY ASKED TO PRODUCE THE DETAILS OF SUND RY CREDITORS TO THE TUNE OF RS. 16,35,875/- ALONG WITH NAME , ADDRESS OF THE SUNDRY CREDITORS AND NATURE OF THE TRANSACTION. BUT, THE ASSESSEE FAILED TO PRODUCE THE SAME DESPITE VARIOUS OPPORTUNITIES WERE GIVEN TO PRESENT THE CASE. HENCE , IN ABSENCE OF ANY SUPPORTING DETAILS, THE SUNDRY CREDITORS TO THE TUNE OF RS. 16 ,35,875/- SHOWN IN THE BALANCE SHEET WAS TREATED AS BOGUS; AND ASSESSING OFFICER M ADE ADDITION OF RS. 16,35,875/-. 10. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION OBSERVING THE FOLLOWING: SIMILAR TO THE PRECEDING ISSUE ABOVE, HERE TOO, AS ON 31.03.2013 THE PROJECT CREDITORS WERE AT RS. 15,68,700/-; AND AS ON 31.03. 2014 IT WAS AT RS. 16,35,870/-. FOREMOST, THESE ARE CREDITORS FOR GOODS AND SERVICE S [NOT CASH CREDIT]. THEREFORE, EVEN IF SOME OF THEM WERE DOUBTED; THERE CANNOT BE THE CASE OF ADDITION. FOR ACADEMIC DISCUSSION SAKE ONLY- EVEN IF THERE WERE S OME THAT WERE DOUBTED IF THE RELEVANT TRANSACTION / DEBIT TO THE P & L A/C WAS I N THIS A.Y., THEN IT WOULD BE THE CASE FOR DISALLOWANCE OF THE ITEM DEBITED TO THE P & L A/C. IF THEY WERE OF PRECEDING / EARLIER A.Y(S), THEN FOR POSSIBLE INITI ATION OF PROCEEDINGS U/S 147. BUT THERE IS NO SUCH CASE HERE. THE ACIT ASSESSING OFFI CER HAS MADE SUBSTANTIAL DISALLOWANCE OUT OF THE P & L A/C BUT IT IS MERE ARBITRARY AND AD HOC 50% DISALLOWANCE. 11. HAVING GONE THROUGH THE ORDER OF THE LD. CIT(A) , WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A). THEREFORE, WE CONFI RM THE ORDER OF THE LD. CIT(A). THAT BEING SO, WE DECLINE TO INTERFERE IN THE ORDER OF THE LD. CIT(A), HIS ORDER, ON THIS ISSUE, IS HEREBY ACCEPTED AND THE GROUND NO. 2 RAISED BY THE REVENUE IS DISMISSED. 12. DIFFERENT EXPENSES- ON VERIFICATION OF P/L ACCO UNT FOR THE YEAR ENDED ON 31.03.2014, IT WAS NOTED BY ASSESSING OFFICER THAT THE ASSESSEE HAD CLAIMED THE VARIOUS EXPENSES WHICH ARE AS UNDER: DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSEE WAS REPEATEDLY ASKED TO PRODUCE THE DETAILS OF SAID EXPENSES TO THE TUNE OF RS. 2,17,78,117/ ASKED TO PRODU CE THE DETAILS OF UTILIZATION OF THE FUND. BUT, THE ASSESSEE FAILED TO PRODUCE THE SAME DESPITE VARIOUS OPPORTUNITIES WERE GIVEN TO PRESENT THE CASE. CONSIDERING THE FACTS MENTIONED ABOVE, 50% OF 2,17, 78,117/ 1,08,89,059/- WAS DISALLOWED AND ADDED BACK TO THE TOTAL INCOME OF TH E ASSESSEE. 13. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION OBSERVING THE FOLLOWING: THE ODDITY IS THAT DISALLOWANCE HAS ALSO BEEN MADE FROM PARTNER REMUNERATION WHICH IS REMUNERATION PER SECTIO AS ALSO OF SALARY AND WAGES ALLOWED. THE AD HOC DISALLOWANCE IS BUT JUST MERE ARBITRARY AD HOC DISALLOWANCE ASTRONO MICALLY HIGH AT 50%. THE IMPUGNED AD HOC DISALLOWANC 14. HAVING GONE THROUGH THE ORDER OF THE LD. CIT(A), ACCOUNTS OF THE ASSESSEE WERE NOT REJECTED BY ASSES SING OFFICER, THEREFORE, NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT ORDER OF THE LD. CIT(A). THAT BEING SO, WE DECLINE TO INTERFERE IN THE ORDER OF THE M/S GREATER CALCUTTA LAND & HOUSING CORPORATION ITA NO. ASSESSMENT YEAR: DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSEE WAS REPEATEDLY ASKED TO PRODUCE THE DETAILS OF SAID EXPENSES TO THE TUNE OF RS. 2,17,78,117/ CE THE DETAILS OF UTILIZATION OF THE FUND. BUT, THE ASSESSEE FAILED TO PRODUCE THE SAME DESPITE VARIOUS OPPORTUNITIES WERE GIVEN TO PRESENT THE CASE. CONSIDERING THE FACTS MENTIONED ABOVE, 50% OF 2,17, 78,117/ DISALLOWED AND ADDED BACK TO THE TOTAL INCOME OF TH E ASSESSEE. 13. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION OBSERVING THE FOLLOWING: THE ODDITY IS THAT DISALLOWANCE HAS ALSO BEEN MADE FROM PARTNER WHICH IS REMUNERATION PER SECTIO N 40(B). AS ALSO OF AUDIT FEES. AS ALSO OF SALARY AND WAGES WHEREAS PAYMENT TO PROVIDENT FUND HAS BEEN THE AD HOC DISALLOWANCE IS BUT JUST MERE ARBITRARY AD HOC DISALLOWANCE MICALLY HIGH AT 50%. THE IMPUGNED AD HOC DISALLOWANC E(S) AT RS. 1,08,89,058/- ARE HEREBY DELETED. HAVING GONE THROUGH THE ORDER OF THE LD. CIT(A), WE NOTE THAT BOOKS OF ACCOUNTS OF THE ASSESSEE WERE NOT REJECTED BY ASSES SING OFFICER, THEREFORE, NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT (A). THEREFORE, WE CONFIRM THE ORDER OF THE LD. CIT(A). THAT BEING SO, WE DECLINE TO INTERFERE IN THE ORDER OF THE M/S GREATER CALCUTTA LAND & HOUSING CORPORATION ITA NO. 1459/KOL/2018 ASSESSMENT YEAR: 2014-15 P PP PA AA AG GG GE EE E | || | 5 55 5 DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSEE WAS REPEATEDLY ASKED TO PRODUCE THE DETAILS OF SAID EXPENSES TO THE TUNE OF RS. 2,17,78,117/ -. HE WAS ALSO CE THE DETAILS OF UTILIZATION OF THE FUND. BUT, THE ASSESSEE FAILED TO PRODUCE THE SAME DESPITE VARIOUS OPPORTUNITIES WERE GIVEN TO PRESENT THE CASE. CONSIDERING THE FACTS MENTIONED ABOVE, 50% OF 2,17, 78,117/ - I.E. RS. DISALLOWED AND ADDED BACK TO THE TOTAL INCOME OF TH E ASSESSEE. 13. ON APPEAL, THE LD. CIT(A) DELETED THE ADDITION OBSERVING THE FOLLOWING: THE ODDITY IS THAT DISALLOWANCE HAS ALSO BEEN MADE FROM PARTNER N 40(B). AS ALSO OF AUDIT FEES. WHEREAS PAYMENT TO PROVIDENT FUND HAS BEEN THE AD HOC DISALLOWANCE IS BUT JUST MERE ARBITRARY AD HOC DISALLOWANCE AND ARE HEREBY DELETED. WE NOTE THAT BOOKS OF ACCOUNTS OF THE ASSESSEE WERE NOT REJECTED BY ASSES SING OFFICER, THEREFORE, WE DO (A). THEREFORE, WE CONFIRM THE ORDER OF THE LD. CIT(A). THAT BEING SO, WE DECLINE TO INTERFERE IN THE ORDER OF THE M/S GREATER CALCUTTA LAND & HOUSING CORPORATION ITA NO.1459/KOL/2018 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 6 66 6 LD. CIT(A), HIS ORDER, ON THIS ISSUE, IS HEREBY ACC EPTED AND THE GROUND NO. 2 RAISED BY THE REVENUE IS DISMISSED. 15. IN THE RESULT, THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE COURT ON 10.01. 2020 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 10/01/2020 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. ACIT, CIRCLE-30, KOLKATA 2. M/S GREATER CALCUTTA LAND & HOUSING CORPORATION 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES