M/s. K.B. Pharma , Kolkata V. ITO, Ward - 22(2), Kolkata , Kolkata

ITA 1460/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5703 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-01-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 09-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIR KALYAN NATH CITSRDR
• Assessee Lawyers: A K GHOSH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.1460/KOL/2018 ASSESSMENT YEAR:2013-14 M/S K.B. PHARMA 55/F-9, B.R.B. BASU ROAD, MEHATA BUILDING KOLKATA-700001 [ PAN NO.AADFK 7550 Q ] / V/S . INCOME TAX OFFICER, WARD-22(2), 54/1, RAFI AHAMED KIDWAI ROAD, KOLKATA-16 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI A.K. GHOSH, ADVOCATE /BY RESPONDENT SHIR KALYAN NATH ADDL. CIT-SR-DR /DATE OF HEARING 24-01-2019 /DATE OF PRONOUNCEMENT 31-01-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-6, KOLKATAS O RDER DATED 25.10.2017 PASSED IN CASE NO. CIT(A),KOLAKT-6/10078/16-17 INVOLVING PROC EEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION ADDING THE ALLEGED EXCESS CREDIT BALANCE IN THE NAME OF FIVE PARTIES TO THE TUNE OF 17,36,984/-. THIS TAXPAYER IS A PARTNERSHIP FIRM EN GAGED IN RETAIL / WHOLESALE OF DRUGS AND MEDICINES. THERE IS NO QUARR EL THAT THIS ASSESSEE HAD ISSUED CHEQUES IN THE NAME OF FIVE PHARMACEUTICAL / PRODUC T MANUFACTURERS TOTALING TO 17,36,984/-. THE SAID PAYEES REALIZED THE SAME IN T HE SUCCEEDING ACCOUNTING PERIOD FROM 01.04.2014 TO 31.03.2014. THE CIT(A) IS OF THE VIEW THAT THE SAID AMOUNTS OUGHT ITA NO. 1460/KOL/2018 A.Y.2013-14 M/S K.B.PHARMA VS. ITO WD-22(2), KOL. PAGE 2 TO HAVE GIVEN CREDIT IN THE IMPUGNED ASSESSMENT YEA R SINCE THE ASSESSEE FOLLOWES MERCANTILE SYSTEM OF ACCOUNTING AND THAT ONCE THE A SSESSEE HAD ISSUED CHEQUE IN FAVOUR OF PHARMACEUTICAL PRODUCTS SUPPLIERS, IT OUG HT TO HAVE IMMEDIATELY ENTERED INTO BOOKS AS EXPENDITURE FOLLOWED BY CREDIT THEREOF. AL L THESE SUFFICIENTLY INDICATES THAT THERE IS NO DISPUTE ON GENUINENESS ASPECT PER SE BE TWEEN ASSESSEE AND THE REVENUE. IT TRANSPIRES DURING THE COURSE OF HEARING THAT ASSESS EES PURCHASED ACCOUNTS HAD NOT BEEN SETTLED IN THE IMPUGNED ASSESSMENT YEAR WHICH COULD MAKE IT TO CLAIM THE IMPUGNED SUM AS CORRESPONDING PURCHASING EXPENDITUR E IN THE RELEVANT PREVIOUS YEAR. I AM FURTHER OF THE VIEW THAT ASSESSEE HAS BEEN ASS ESSED AT THE SAME RATE IN BOTH THE IMPUGNED AS WELL AS SUCCEEDING ASSESSMENT YEAR MAKE S IT A REVENUE NEUTRAL CASE. I THEREFORE DELETE THE IMPUGNED ADDITION OF 17,36,984/- KEEPING IN MIND ALL THESE PECULIAR FACTS AND CIRCUMSTANCES WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTHER ASSESSMENT YEAR OR IS ANY OT HER CASE. 3. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 31/01/2019 SD/- (S.S. GODARA) JUDICIAL M EMBER KOLKATA, *DKP/SR.PS - 31/01/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S K.B. PHARMA 55/F-9, B.R.B.BASU RD, M EHATA BUILDING KOL KAT-700 001 2. /RESPONDENT-ITOWRD-22(2), 54/1, RAFI AHMED KIDWAI R D. KOLKATA-16 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ',